Modern Estate Planning Blog

Takeaways

• House Democrats have reintroduced the Choose Medicare Act, which seeks to establish a Medicare Part E, a public-option version of Medicare available to individuals and employers.
• Part E would operate through existing Affordable Care Act (ACA) marketplaces, allowing subsidies to be applied to premiums. It would be fully premium-funded and designed to compete with private insurers.
• Part E plan coverage would include essential health benefits and traditional Medicare services. It would also ban discrimination based on preexisting conditions and offer affordability features such as out-of-pocket caps and negotiated drug prices.
• The Choose Medicare Act aims to fill coverage gaps, lower private insurance premiums through competition, and help families with subsidies, out-of-pocket caps, and lower drug prices.
• The bill awaits committee review in the Senate and is viewed by progressive Democrats as a step toward broader health care reforms.

At Chubb Law Firm PC, we’re often asked about how changes in health care policy might affect the families we work with—especially those approaching retirement. With the reintroduction of the Choose Medicare Act, there’s a lot of interest in what Medicare Part E could mean for individuals and employers alike.

This article outlines the key points of the proposed legislation, what it aims to accomplish, and how it might expand access to affordable health care options.

In June 2025, House Democrats Jimmy Gomez (CA) and Don Beyer (VA) reintroduced the Choose Medicare Act, with Senators Jeff Merkley (OR) and Chris Murphy (CT) sponsoring its Senate companion. The bill would establish a Medicare Part E: a public-option version of Medicare that would be available to all individuals and employers as an alternative to private insurance. Currently, one must meet certain age or need requirements to be eligible for Medicare.

If passed, Medicare Part E would operate through existing state and federal Affordable Care Act (ACA) marketplaces, allowing users to apply ACA subsidies toward its premiums. Employers of any size could voluntarily offer Part E to their workforce, just as they now offer private health insurance plans. The bill is fully premium-funded — no extra taxes required — and seeks to compete directly with private insurers.

Coverage and Consumer Protections

Part E Medicare plans would include the 10 essential health benefits mandated by the ACA, all services covered under traditional Medicare. The Part E proposal would ban discrimination based on preexisting conditions. It would also offer affordability features, such as caps on out-of-pocket costs, Medicare-level-negotiated drug prices, and protection from surprise medical bills.

How the Choose Medicare Act Would Help

If passed, the Choose Medicare Act would fill coverage gaps with a public plan option and lower private insurance premiums through increased competition. It would seek to help struggling families through subsidized premiums, out-of-pocket caps, and lower drug prices. In addition, the bill would extend protections across individual and employer markets.

“Every American should be able to access affordable, quality health care,” Rep. Beyer said in a news release. “Our bill would give all Americans access to Medicare.” The proposal is in keeping with Democrats’ long-running push toward universal health care coverage.

What Happens Next?

A dozen members of Congress are co-sponsors of the bill, which also has had long-standing support from several nonprofit organizations, including the Center for Medicare Advocacy and Families USA. In 2024, the Urban Institute released a report outlining in part the potential for a Medicare Part E plan option to reduce annual health care spending over time.

The companion Senate version has been introduced and awaits committee review. If passed, the Choose Medicare Act would follow standard legislative channels before becoming law. Progressive Democrats view it as a springboard toward broader health care reforms, such as ‘Medicare for All’ proposals.

For now, however, Part E stands as a pragmatic first step. Voters interested in seeing the Choose Medicare Act become law can contact their senators and representatives to express their support.

If you or a loved one are approaching Medicare eligibility and have questions about how this might impact your long-term planning, our team at Chubb Law Firm PC is here to help.

Call us at (916) 241-9661 to schedule your free discovery call and get the guidance you need to move forward with confidence.

Learn More About Medicare

For additional reading about Medicare, check out the following articles:

• Turning 65? What to Know About the 4 Parts of Medicare
• Medicare Coverage Basics: What You Need to Know
• What You Should Know About the Medicare Tax
• Don’t Make the Mistake of Not Signing Up for Medicare Supplemental Coverage
• Entering and Leaving Medicare Advantage Plans
• Medicare Advantage: An Alternative to Original Medicare

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