What Is Medicare Part E?
Key Takeaways
- Medicare Part E is a proposed public health insurance option.
- Under the proposal, Medicare Part E would be available to people who are not eligible for Original Medicare, which is for U.S. adults who are over 65 or have certain disabilities.
- If the bill establishing Medicare Part E became law, people of all ages could enroll in these plans as an alternative to policies from private insurance carriers.
- The proposed insurance program is different from Medicare Supplement Plan E, which is a type of Medicare Supplement, or Medigap, plan that is no longer available to new enrollees.
Medicare Part E is a program that was proposed in legislation introduced by Democrats in the U.S. House of Representatives and Senate in June 2025. If the bill is passed by Congress and signed into law by the president, Part E would become a new public health insurance option, an alternative to policies from private insurance carriers.
Unlike Original Medicare (Medicare Part A and Part B), Part E would be open to all Americans, not just people who are 65 and over or live with certain disabilities.
Part E is currently just a proposal that’s unlikely to become law in the near future, but the bill represents one possible strategy for expanding access to healthcare in the U.S.
Medicare and Health Insurance in the U.S.
As of 2024, more than 61 million people were enrolled in Medicare, the insurance program for U.S. adults who are over the age of 65 or have certain disabilities. Among that group, 32.8 million had switched from Original Medicare, which is administered by the federal government, to a Medicare Advantage plan from a private insurance carrier.
- Medicare Parts A and B: Original Medicare consists of Medicare Part A, which is hospital insurance, and Part B, which is medical insurance to cover outpatient care.
- Medicare Part C: Medicare Advantage plans, also known as Medicare Part C, substitute for Original Medicare and may offer additional benefits.
- Medicare Part D: To access coverage for most prescription medications, people on Medicare may either enroll in a standalone Medicare Part D prescription drug plan or a Medicare Advantage Prescription Drug Plan.
Before they qualify for Medicare, U.S. adults commonly have a health insurance plan through their employer benefits or purchase a policy themselves via the Marketplace that was created under the Affordable Care Act (ACA), commonly referred to as Obamacare. As of 2025, about 71 million beneficiaries were insured through Medicaid, the program run jointly by individual states and the federal government to provide coverage to people with low incomes and qualifying disabilities.
However, approximately 26 million people in U.S. who are under 65 have no health insurance at all. That can mean these individuals either delay or never get the care they need, leading to serious health problems and strain on facilities that help underserved communities like public hospitals.
How Medicare Part E Would Work
Some political leaders have suggested expanding Medicare eligibility to provide coverage to more people. U.S. Representatives Jimmy Gomez of California and Don Beyer of Virginia, along with Senators Jeff Merkley of Oregon and Chris Murphy of Delaware, presented the Choose Medicare Act as one approach to make that idea a reality.
The bill would create Medicare Part E, a new public health insurance program that would compete on the market with policies from private insurance carriers. Businesses would be able to offer Part E plans as a benefit for their employees, or individuals could join through a state or federal insurance marketplace.
According to the proposal, Part E plans would cover the 10 essential health benefits set by the ACA, which include emergency services, hospital stays, prescription drugs, mental health services, and maternal healthcare.
Part E would be financially supported through the premiums paid by members. To help afford those costs, enrollees would be eligible for the subsidies established in the ACA.
“Allowing employers and the general public the option to choose Medicare would fill many of the gaps in our health care system, get more people covered, and make the nation healthier,” Representative Beyer said in a press release. “Every American should be able to access affordable, quality health care, and this bill represents the kind of bold action required to make that a reality for all.”
What’s the Difference Between Medicare Part E and Medigap Plan E?
Medicare Part E should not be confused with Medicare Supplement Plan E. Plan E is one type of Medicare Supplement plan, also called Medigap. Private insurance carriers offer Medigap policies to help with some of the healthcare costs that aren’t covered by Original Medicare.
There are currently 10 standardized Medigap policy types offered in most states, but Plan E has not been available to new enrollees since 2010.
Medicare Part E is not a health insurance option that’s currently available. However, the proposed Choose Medicare Act demonstrates that legislators are exploring strategies to build on the existing Medicare system and improve healthcare access in the U.S.