July 2025

July 2025

The Senior Citizens League (TSCL) Monthly Washington Update for the end of July 2025

As we enter August, it's a reminder that Fall is just around the corner, bringing with it the Medicare open enrollment period. Recent updates indicate that some Medicare Advantage (MA) participants may face fewer plan options and potential cost increases. This issue also includes coverage on expected changes to Medicare for particular beneficiaries, concerns over rising drug prices, and new legislative efforts aimed at preventing the closure of rural hospitals.

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Large Medicare Advantage Provider to Leave Some Markets, Raise Prices

UnitedHealthcare, one of the largest health care insurance providers in the nation, has announced that, because of lower-than-expected profits in the first part of this year, they will be leaving some markets, a move that could impact 600,000 Medicare Advantage (MA) users.

In addition to MA plans, the rising costs in Medicare supplement plans are causing the company to look at adjusting “pricing and benefit designs to account for the cost pressures,” which is another way of saying they will be raising their prices.

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Medicare Part D (Prescription Drug) Prices Expected to Rise Next Year

A recent trade agreement between the U.S. and the European Union will introduce a 15% tariff on imported medicines from Europe, which could include popular drugs like Keytruda and Ozempic. This tariff could result in higher costs for drug manufacturers, which may then be passed on to consumers in the form of higher prices.

In addition to this, premiums for Medicare Part D (prescription drug plans) were already set to rise sharply in 2025 due to other rising costs, regulatory changes, and reductions to a subsidy program. The subsidy program, which helps reduce the out-of-pocket costs for many seniors, had been expected to be cut by 40%. However, it was recently announced that the subsidy will continue, though at a reduced level, with support declining by one-third in 2026. This change may result in higher premiums for some beneficiaries.

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Sen. Hawley Introduces Bill to Save Rural Hospitals

Senator Josh Hawley (R-MO) has introduced the "Protect Medicaid and Rural Hospitals Act," which aims to increase federal spending on rural healthcare and make changes to Medicaid hospital funding. This legislation seeks to reverse specific provisions from recent legislation that critics argue could force rural hospitals to close.

Senator Hawley’s Protect Medicaid and Rural Hospitals Act would, among other things:

  • Restore a key aspect of Medicaid funding that states rely on to finance their programs.
  • Repeal provisions in the OBBB related to state-directed payments that could reduce Medicaid reimbursements.

While the bill may face challenges in Congress, TSCL believes it is a crucial step toward maintaining healthcare access for seniors living in rural areas. We encourage you to reach out to your Senators and express support for this legislation.

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Millions of Americans Face Loss of Medicare Coverage

Millions of Medicare beneficiaries rely on the Medicare Savings Programs (MSP) to help cover out-of-pocket healthcare costs. However, recent changes to federal regulations may limit access to these programs, particularly for low-income individuals. The changes included in a broader piece of legislation (The One Big Beautiful Bill) have reintroduced additional paperwork requirements, potentially making it more difficult for eligible seniors to qualify for assistance.

Although the MSPs themselves have not been eliminated, the new regulations may prevent some seniors from accessing the financial help they need to afford healthcare. These changes have raised concerns about the potential impact on low-income seniors who rely on the program to help cover medical costs.

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As we head into the final weeks of summer and prepare for the Medicare open enrollment period, it's important for seniors and their families to stay informed about the changes taking shape in healthcare policy. From shifting Medicare Advantage options and rising prescription drug costs to evolving access to essential benefits like the Medicare Savings Programs, the coming months may bring significant decisions for beneficiaries. TSCL remains committed to advocating for policies that protect the health and financial security of older Americans, and we encourage you to stay engaged, ask questions, and make your voice heard with your elected officials.

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