Social Security Update: Millions of seniors are relying on Medicare for their well-being, but some great changes might be coming. After having passed the House, the One Big Beautiful Bill Act is now under Senate review and proposes important updates that would tremendously affect how older Americans receive and pay for healthcare.
With 68.5 million people supported by Medicare, small policy changes become a really massive issue. And this is not really small changes being made with the new legislation-the changes could be dramatic for healthcare.
Now let’s go over the four major Medicare changes that are likely to be enacted soon and what they mean for you or your loved ones.
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1. Continued HSA Contributions for Seniors on Medicare Part A
The news is huge for working seniors. At the moment, if you’re enrolled in Medicare Part A, you’re not allowed to contribute to a Health Savings Account-HSA-with the certificates of being working and having a high-deductible health plan (HDHP). Older Americans who want to save up for medical out-of-pocket expenses face limitations with this rule.
What’s Changing:
The law proposes to let you keep contributing to your HSA if you remain eligible for Medicare Part A but are still working with HDHP coverage. This empowers seniors with control over their future healthcare costs and affords them some degree of protection against unanticipated medical bills.
Higher Contribution Limits:
If you’re a single taxpayer earning under $75,000, you’d be able to add an extra $4,300 annually to your HSA. Married couples earning under $150,000 could contribute an additional $8,550 per year. These added benefits will be adjusted for inflation in the years to come.
2. Giving Rural Hospitals a Lifeline
Across America’s heartland, rural hospitals have been closing at an alarming rate-146 were shuttered between 2005 and 2023. The closures are putting small-town families in jeopardy, with no emergency care nearby.
The Fix: Expand “Rural Emergency Hospital” (REH) Status
Currently, Medicare rules allow hospitals only if they were open as of December 27, 2020, to convert into an REH. The new law would now extend that eligibility to rural hospitals that had been open as far back as 2014 and allowed the conversion of those even if they had since closed.
This change is likely to revive local healthcare in underserved areas, assisting thousands of families in regaining access to emergency services—and not to mention, services that are available within a few hours away from them now.
3. Using Technology to Cut Fraud and Save Taxpayer Dollars
Let’s face it: Medicare waste and fraud have been an ongoing problem for decades, and this bill intends to act smartly and proactively by leveraging technology to stop improper payments before they happen.
What It Includes:
A $25 million budget is proposed to be spent on hiring data scientists and contractors who will use advanced data tools to identify and recover overpayments. These intents will decrease the backlog of improper payments and avoid further abuses.
4. Tighter Rules on Medicare Eligibility
There’s also a highly debated change coming: stricter eligibility requirements for who can access Medicare benefits.
What’s Changing:
Today, to enroll in Medicare, you must be at least 65, have worked 10 years in the U.S., and be a citizen or lawful permanent resident. The new bill would officially exclude undocumented immigrants and limit access to:
- U.S. citizens
- Lawful Permanent Residents
- Certain Cuban nationals
- Individuals residing under Compacts of Free Association (agreements with Micronesia, Palau, and the Marshall Islands)