09/21/2023

HHS Takes the Most Significant Action in a Decade to Make Care for Older Adults & People with Disabilities More Affordable and Accessible

New Rule Reduces Red Tape and Simplifies Medicare Savings Program Enrollment, Helping Millions of Older Adults and People with Disabilities Afford Coverage

In their continued efforts to improve access to health care and lower costs for millions of Americans, the Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), today finalized a rule to streamline enrollment in the Medicare Savings Programs (MSPs), making coverage more affordable for an estimated 860,000 people. CMS estimates today’s improvements will save older adults and people with disabilities nearly 19 million hours in paperwork each year and reduce state administrative burden by over 2 million hours annually. All told, this action, together with the historic progress made under the President’s prescription drug law will help an estimated 1.2 million older adults and people with disabilities with limited income afford their Medicare coverage and health care costs.

The MSPs, run by state Medicaid programs, currently cover Medicare premiums and, in most cases, cost-sharing for more than 10 million older adults and people with disabilities who also have limited incomes. The final rule makes it easier for millions of people to enroll in, retain, and afford health coverage and care through Medicare. “Throughout my career, I have dedicated myself to ensuring that Americans have access to health insurance, so that they can survive and thrive,” said HHS Secretary Xavier Becerra. “This rule brings us closer to that goal as we expand access and coverage for older Americans and people with disabilities.”      

The MSPs provide vital links to coverage and care. However, only about half of eligible people are enrolled in the MSPs, in part due to cumbersome application and verification processes now simplified by this rule.