Dena Bunis writes for the AARP Bulletin on how the 2023 federal spending bill promotes the health and financial security of older adults, strengthening Medicare, Social Security and retirement savings.
Expanded Medicare coverage:
- Telehealth coverage: The federal spending bill continues Medicare coverage of telehealth services for two years, through December 2024. People in traditional Medicare and Medicare Advantage are covered for video and telephone visits while at home.
- Hospital at home: In some cases, Medicare will cover care from hospitals in people’s homes, rather than at the hospital.
- Behavioral and mental health: Starting in 2024, Medicare will cover a wider range of behavioral and mental health care providers, including intensive outpatient mental health services.
More Social Security funding:
The Social Security Administration gets $785 million more for its operations.
Social Security pays for itself. But, Congress has year after year failed to appropriate enough money from its Trust Fund to cover its administrative costs. As a result, customer service is underfunded. People must wait an average of 35 minutes to reach the Social Security Administration by phone. And, claims for disability benefits take significantly longer to be processed than ten years ago.
This federal spending bill appropriates $14,1 billion for Social Security, which is 5.9 percent more than last year, though less than the $14.8 billion that the administration requested.
Easier retirement savings:
Secure 2.0 provisions in the federal spending bill make it easier for workers to get retirement plans and for older adults to have retirement accounts.
- The spending bill raises the age at which people must take minimum distributions from IRAs and 401(k)s from 72 to 73.
- The spending bill includes a new tax benefit for low and middle-income adults, effective 2027, that can lower their tax bills if they contribute to qualified retirement plans. They can get a federal matching contribution of as much as $1,000.
- The spending bill includes a new national database for to help people find retirement accounts from previous jobs.
- In some cases, the spending bill increases contributions to 401(k) and 403(b) accounts beginning in 2025, for people 60 t0 63.
- Reduces the time part-time workers must wait to join a retirement plan from three years to two years beginning in 2025.
Here’s more from Just Care:
- The choice between traditional Medicare and Medicare Advantage: It’s a sham
- Biden’s Medicare plan: Retirement with dignity
- Retirement Reboot: What you should know and how to plan ahead
- Beginning at age 72, you must withdraw money from your retirement accounts
- Advocates launch pledge campaign to protect Social Security and Medicare
- Experts comment on CMS proposed payment changes to Medicare Advantage plans
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