Medicare benefits would be expanded to include hearing coverage under a framework for a $1.75 trillion spending plan released by President Joe Biden on Thursday.
Biden’s proposed Medicare expansion is less ambitious than some Democrats have pushed for. Currently, original Medicare doesn’t cover hearing, dental or vision benefits, and a budget reconciliation bill considered by Congress earlier this year would have expanded the program to cover all three. Proponents of the expansion argued that covering these benefits would ensure that older Americans received necessary care and would put original Medicare on a more level playing field with Medicare Advantage plans. Some Advantage plans, which are provided by private insurers, already cover dental, hearing and vision.
However, the expansion into all three areas could have been costly. Based on a 2019 bill that proposed expanding Medicare, the Congressional Budget Office estimated that covering all three areas would cost about $360 billion over a decade. Of that, $89 billion would go toward hearing care with $30 billion for vision services and $238 billion for dental care.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Biden's framework, called Build Back Better, said that adding hearing benefits would cost $35 billion over 10 years.
Democrats had hoped to offset these increased costs by allowing Medicare to negotiate lower drug prices for expensive medications with no generic alternatives. This change was also not included in Biden’s framework.
The proposed Medicare expansion could still change significantly or the plan for adding even hearing benefits could be scrapped entirely if Congress passes legislation that differs from Biden’s framework. Right now, the related draft legislation says hearing benefits would begin in 2024 and would cover one hearing aid per ear every five years. A written order from a doctor or audiologist would also be required.
Biden’s framework also included improving Medicaid coverage for home care services for older adults and those with disabilities. The proposal touted this as the “most transformative investment in access to home care in 40 years.” Currently, Medicaid will cover some costs for home care, though the services provided varies by state.
-
What the Comcast Cable Spinoff Means for InvestorsComcast has announced plans to spin off select cable networks and digital assets into a separate publicly traded company. Here's what you need to know.
-
TJX Stock: Wall Street Stays Bullish After EarningsTJX stock is trading lower Wednesday despite the TJ Maxx owner's beat-and-raise quarter, but analysts aren't worried. Here's why.
-
457 Plan Contribution Limits for 2025Retirement plans There are higher 457 plan contribution limits for state and local government workers in 2025 than in 2024.
-
Medicare or Medicare Advantage: Which Is Right for You?From overall costs to availability of care, here's what to know about the differences between traditional Medicare and Medicare Advantage plans.
-
What Does Medicare Not Cover? Seven Things You Should KnowHealthy Living on a Budget Medicare Part A and Part B leave gaps in your healthcare coverage. But Medicare Advantage has problems, too.
-
Medicare Basics: 11 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
Six of the Worst Assets to Inheritinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
Will Retirees Stop Paying Tax on Social Security Next Year?Social Security Lawmakers have proposed to eliminate taxes on Social Security benefits. Here’s what that could mean for you.
-
SEP IRA Contribution Limits for 2024 and 2025SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $69,000 in 2024 and $70,000 in 2025..
-
Roth IRA Contribution Limits for 2024 and 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
