This bill would create "Medicare Flex Fund Accounts," new tax-advantaged savings accounts designed for Medicare beneficiaries to pay for qualified medical expenses. The accounts would work similarly to Health Savings Accounts, allowing tax-free contributions and withdrawals for eligible medical costs, though they cannot be used for Medigap insurance premiums. Starting in 2026, the accounts become available to all Medicare beneficiaries, with the option to roll over funds from existing health savings accounts or IRAs. Beginning in 2027, Medicare Advantage plans would be required to establish these accounts for their enrollees and deposit at least $400 annually into each account, with the ability to count certain plan rebates and wellness incentive payments toward this minimum. The bill also includes provisions allowing Medicare Advantage enrollees to opt out of primary care coverage in exchange for direct payments deposited into their flex fund accounts, to shop for certain medical procedures at alternative providers while receiving the same payment amounts, and to use pharmaceutical savings accounts for prescription drugs. Additionally, the legislation establishes advisory groups to study price transparency improvements and direct primary care payment models, and requires updates to Medicare's price transparency website.
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