Chicago – June 27, 2026
A group of 15 Democratic senators has introduced the Medicare Cost Cap Act, which would place a $5,000 annual cap on out-of-pocket medical costs for people enrolled in traditional Medicare (Parts A and B). The bill is led by Ron Wyden and is co-sponsored by lawmakers including Chuck Schumer and Lisa Blunt Rochester.
The proposal is intended to address a long-standing feature of traditional Medicare: unlike many other health insurance plans, it does not currently have a general annual limit on out-of-pocket spending for covered medical services. Many beneficiaries purchase supplemental Medigap insurance to help cover these costs, but not everyone has or can afford such coverage.
According to the bill’s supporters:
- A $5,000 cap would provide greater financial protection for beneficiaries with high medical expenses.
- Researchers estimate the average beneficiary who benefits from the cap could save about $1,200 per year, including reduced direct medical spending and lower supplemental insurance costs.
- About 3.2 million traditional Medicare enrollees could benefit if the policy took effect in 2028.
The legislation would also make it easier for eligible low-income beneficiaries to enroll in Medicare Savings Programs, which help pay Medicare premiums and other costs.
