HERMAN Act

The HERMAN Act modifies Medicare rules to prevent employer health plans from reducing benefits for workers who could enroll in Medicare Part B but choose not to. It specifically applies to employees of small employers (with fewer than 20 full-time workers) who are not enrolled in Medicare Part B. The law requires employer plans to maintain full coverage for these individuals, regardless of their potential Medicare eligibility, unless the worker actively elects Medicare Part B. If the worker chooses Medicare Part B, the employer plan may then stop or reduce coverage. This change takes effect after the bill is signed into law.