WASHINGTON (NEWSnet/AP) — President Joe Biden plans to roll out three initiatives Friday to reduce health care costs: a crackdown on scam insurance plans, new guidance to prevent surprise medical bills and an effort to reduce medical debt tied to credit cards.

Biden's remarks would build on previous initiatives to limit health care costs. For example, the Department of Health and Human Services estimates showing 18.7 million Medicare beneficiaries will save an estimated $400 per year in prescription drug costs starting in 2025 because of a pending cap on out-of-pocket spending.

Gearing up for his 2024 reelection campaign, the Democratic president has emphasized his policies are intended to help families manage expenses; while encouraging private sector development of electric vehicles, clean energy and advanced computer chips.

The administration plans to limit what it calls “junk” insurance plans, such as short-term policies that can deny basic coverage when people transition between employers but need temporary health care coverage. One example given by the White House Domestic Policy Council was a man who received a $43,000 health care bill because the insurer made claims of a pre-existing condition.

The president also will announce new guidance on medical billing stemming from 2020's “No Surprises Act.” The guidance would limit the ability of insurers that contract with hospitals to claim provided care was not “in network” and have customers pay more money.

The Consumer Financial Protection Bureau and Treasury Department also are seeking information on third-party credit cards and loans that are specifically used to pay for health care. The higher costs and interest charges can discourage people in need of treatment from seeking care.

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