Later this week the Biden administration will offer proposals that seek to extend the solvency of the Medicare Trust Fund and reduce beneficiaries’ health care costs.

As part of the proposed FY 2024 federal budget the administration will present this week, it will call for extending the solvency of the Medicare Trust Fund by increasing the Medicare tax rate on income greater than $400,000 a year; closing loopholes in current Medicare taxes and depositing Medicare net investment income tax proceeds into the Medicare Trust Fund; and crediting savings from proposed prescription drug reforms to that same trust fund.

To reduce Medicare beneficiaries’ health care costs, the White House will propose reducing out-of-pocket costs for prescription drugs that are now subject to negotiation; limiting Medicare Part D cost-sharing on selected generic drugs to $2 per prescription a month; and reducing behavioral health care costs.

Learn more about how the administration envisions implementing these changes from this White House fact sheet.