Medicare ‘Part E’ Would Let Even Non-Retirees Join Under New Bill
6 minutes
Medicare Part E doesn’t exist yet, but a new bill introduced in Congress could give millions of Americans the option to enroll in a new kind of public health insurance.
The Choose Medicare Act, reintroduced in June 2025 by Representatives Jimmy Gomez (CA-34) and Don Beyer (VA-08), would give new people access to “Medicare Part E,” even if they’re not 65 or disabled.
According to Rep. Gomez, the goal is to create “affordable, effective, and trusted” coverage that’s open to everyone, not just retirees. Think of it like traditional Medicare, but available to all ages, designed to compete with private plans, and built to be easy to access and understand.
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What is Medicare Part E?
You’ve probably heard of Medicare Parts A, B, C, and D, but if the Choose Medicare Act becomes law, Medicare Part E would be a brand-new health insurance option run by the federal government and available to:
Anyone living in the U.S. who isn’t already on Medicare, Medicaid, or CHIP
Employers, who could offer it instead of (or alongside) private insurance
Individuals shopping for health insurance on state or federal marketplaces
The full bill text explains that Medicare Part E plans would be offered “in the individual market, small group market, and large group market,” and would be available on Affordable Care Act (ACA) marketplaces and the Small Business Health Options Program (SHOP). People could use their existing ACA subsidies to help pay for it.
Importantly, Part E would be self-sustaining, with the bill directing the Secretary of Health and Human Services to set premium rates “at a level sufficient to fully finance the costs of health benefits provided by such plans.”
What would Part E cover?
A lot. In fact, it could end up being more generous than many private plans.
Medicare Part E would include:
Gold-level coverage, meaning the plan pays about 80% of costs
Essential health benefits outlined in the ACA, plus all services covered under traditional Medicare
Full reproductive health services, including abortion, with explicit protections that prevent states from banning such coverage
How would Medicare Part E affect current coverage?
The goal is more choice, not less. The Choose Medicare Act doesn’t eliminate private insurance or require anyone to switch. Instead, it gives individuals and employers another option.
In the press release, Rep. Beyer emphasized that the bill “would fill many of the gaps in our health care system, get more people covered, and make the nation healthier.” Employers of any size could opt into Part E, and workers who lose their job could stay on the plan thanks to built-in portability protections.
How would the Choose Medicare Act it make coverage more affordable?
The Choose Medicare Act would tackle costs in several key ways:
Cap out-of-pocket costs in traditional Medicare to $6,700 starting in 2027, adjusted yearly
Expand access to premium subsidies, removing the income cap and allowing more families to qualify
Replace silver-level ACA benchmarks with gold-level benchmarks, increasing plan generosity and reducing consumer costs
Allow Medicare to negotiate drug prices and apply those lower prices to Medicare Part E plans
Establish a $30 billion Reinsurance and Affordability Fund to help states reduce premiums and cost-sharing
As the bill states, the expanded cost-sharing subsidies would mean that lower-income families could see their insurance cover up to 94% of total health costs. Even households earning up to 400% of the federal poverty level could see coverage of up to 80%.
What’s next for the Choose Medicare Act?
The bill was introduced in both the House and Senate in June 2025 and is supported by health and labor advocacy groups like Families USA, MoveOn, the American Federation of Teachers, and the Center for Medicare Advocacy.
But for the Choose Medicare Act to become law, it still needs to pass both chambers of Congress and be signed by the President.
Rep. Gomez, who nearly lost everything after a childhood health crisis, said the legislation is deeply personal. “Too many families are still one medical emergency away from financial crisis,” he said in the press release. “We’re going to keep fighting until everyone has access to the care they need.”