The White House announced last Friday that the federal government will issue one-time $90 payments to more than 20 million Medicare enrollees to help with Medicare Part B premiums.
The payments will be drawn from the Medicare Improvement Fund, which contains $2 billion allocated by Congress for improvements to the Medicare fee-for-service program. The administration noted that while the fund was established in 2008, it has not been utilized for direct payments to citizens by previous administrations.
Most eligible seniors are expected to receive the $90 via direct deposit in early October. Individuals who do not use direct deposit will receive a check sent to their registered Medicare mailing address during the same period.
While most Medicare Part B enrollees qualify for the rebate, certain groups are excluded. Those whose premiums are covered by Medicaid or those who pay an Income-Related Monthly Adjustment Amount are not eligible for the payment. Beneficiaries can contact Medicare to verify eligibility and the Social Security Administration to check on the status of their funds.
The administration highlighted that this action marks the first time the Medicare Improvement Fund has been used to directly lower costs for seniors. It further noted that previous allocations of the fund included $20.7 billion used for the Affordable Care Act.
This announcement is part of a broader series of healthcare initiatives from the administration, including executive orders aimed at increasing hospital price transparency and aligning prescription drug costs with those of other nations. The administration reported that it has reached agreements with pharmaceutical manufacturers covering nearly 90% of the branded drug market. Additionally, the administration has highlighted efforts to reduce healthcare fraud and expand access to health savings accounts through the Working Families Tax Cuts Act.
