Louisiana's Bill Cassidy has an idea to save money on Medicare. Will Congress take it up?
Few politicians, particularly President
The massive bill shifts more financial responsibility for Medicaid, which provides health care coverage for low-income people, from the federal government to the states. But that isn't enough to fully pay for Trump's domestic agenda and proposed tax cuts.
The entire bill could be killed either by senators who want to roll back proposed Medicaid cuts and by senators who want additional savings to avoid an even larger deficit.
Additional savings could be wrung out of Medicare, perhaps by raising the 65-year-old eligibility age, some conservatives postulated. More eyed reducing overpayments to private Medicare Advantage plans, which would appease budget hawks seeking more spending cuts in the megabill.
One idea comes from
Cassidy's No UPCODE Act was not integrated into the
Cassidy's idea is supported by some lawmakers in both parties. But the influential insurance industry has bellowed objections to No UPCODE, thereby adding another coalition to the ones that oppose Medicaid reductions or some other policy in the thousand-page budget reconciliation bill Trump wants passed.
"They decided just to kind of leave things in the Medicaid space," Cassidy said last week. "There'll be an opportunity to save money for the taxpayer and improve service for Medicare Advantage beneficiaries in the future. It's bipartisan. So, I'm hoping that there will be an appetite for taking this up as soon as we finish the One Big Beautiful Bill."
In traditional Medicare, the federal government reimburses hospitals, physicians and other health care providers, if approved, for services already rendered. About half of the nation's 67 million people on Medicare are enrolled through private insurance companies offering Medicare Advantage plans.
The private plans, generally, cover a wider range of services, such as prescription drugs, without the added charges beneficiaries pay in the traditional plan.
Generally, Cassidy's No UPCODE Act would require private insurers to change aspects of how the federal government calculates the rates it pays.
In particular, the legislation would include limiting the practice of aggressively coding on the front end to capture every possible diagnosis, which allows higher premiums. But when the care is delivered and billed, some of those claims are denied as unnecessary, according to several studies, including one by the
"That's an enormous shift of money from the Medicare program into the coffers of the insurance companies," said
Levine's
"The President and Congressional leaders made a clear promise to seniors that there would be no cuts to Medicare as part of the budget reconciliation legislation," AHIP President and CEO
Though No UPCODE is not part of the
Thune told reporters he hopes to get a full vote this week on the


Iowa officials warn more rural hospitals may close under proposed Medicaid cuts
Walker column: Why Medicaid reform is appropriate
Advisor News
- A rising retirement challenge: The license to spend
- Financial stress leaves less room for retirement saving
- Giving while you’re living: 3 frequently asked questions about gifting
- Helping clients prepare for one of their biggest retirement expenses
- Important year-end financial conversations every advisor must have
More Advisor NewsAnnuity News
- A rising retirement challenge: The license to spend
- What lower interest rates mean to annuity payouts
- AM Best downgrades A-Cap insurers amid financial and regulatory troubles
- Lawsuit claims Delaware Life hid billions in insurer-linked investments
- AM Best to Deliver Presentation at 2026 ACLI Annual Conference
More Annuity NewsHealth/Employee Benefits News
Life Insurance News