Joe Biden Is Privatizing Medicare

The Biden administration is expanding Donald Trump’s Medicare privatization scheme that is forcing hundreds of thousands of seniors onto for-profit health plans.

President Biden Hosts Black History Month Celebration At The White House

Joe Biden speaking at the White House on February 28, 2022 in Washington, DC. (Anna Moneymaker / Getty Images)


A new Medicare privatization scheme developed under President Donald Trump and now being expanded under President Joe Biden is forcing hundreds of thousands of seniors onto new private Medicare plans without their consent.

The development represents a troubling new dimension in the fight by corporate interests to privatize Medicare, the federal health insurance program for people sixty-five or older. Medicare Advantage, which allows for-profit health insurers to offer privatized benefits through Medicare, already results in unexpected costs for routine procedures and wrongful denials of care. Private plans have cost Medicare an astonishing $143 billion since 2008, and are now driving some health insurers’ record profits.

The new Direct Contracting Entity (DCE) program similarly adds a private sector third party between patients and Medicare services. Medicare allows these intermediary companies to offer unique benefits, like gym membership coverage. But as for-profit operations ranging from private insurers to publicly traded companies to private equity firms, these intermediaries are incentivized to limit the care that patients receive, especially when they are very sick.

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