Bipartisan Health Insurance Affordability Act
Summary
The Bipartisan Health Insurance Affordability Act aims to modify and extend the enhanced premium tax credit under the Affordable Care Act (ACA), enhance fraud prevention measures within health insurance exchanges, and modernize pharmacy benefit manager (PBM) accountability. It also seeks to make health savings accounts (HSAs) more accessible and provide options for prepaying premiums and directing tax credits into HSAs. The Act addresses issues related to healthcare affordability, fraud, and transparency in the pharmaceutical supply chain.
Expected Effects
The bill is expected to lower healthcare costs for some individuals and families by extending premium tax credits and increasing HSA accessibility. It will also increase oversight of agents, brokers, and pharmacy benefit managers, potentially reducing fraud and increasing transparency. These changes could lead to more affordable and accessible healthcare options for many Americans.
Potential Benefits
- Extends enhanced premium tax credits, making health insurance more affordable for low- and middle-income individuals.
- Implements measures to reduce fraudulent enrollment in qualified health plans, protecting consumers and the integrity of the exchanges.
- Modernizes and ensures PBM accountability, promoting transparency and potentially lowering prescription drug costs.
- Allows qualified exchange enrollees to establish health savings accounts, providing more flexibility in healthcare spending.
- Offers options to prepay annual premiums and direct partial advance payments of premium tax credits into HSAs, increasing consumer choice and control.
Potential Disadvantages
- Increased government spending on premium tax credits could lead to higher budget deficits if not offset by other savings.
- Enhanced regulations on agents, brokers, and PBMs may increase compliance costs for these entities, potentially passed on to consumers.
- The complexity of the changes could create confusion for consumers and require significant administrative effort to implement.
- Some provisions, such as those related to PBMs, do not take effect until 2029, delaying potential benefits.
- The act's focus on exchanges might not address broader issues within the healthcare system, such as rising costs and limited competition.
Constitutional Alignment
The bill's provisions related to healthcare fall under Congress's power to regulate interstate commerce, as established in Article I, Section 8. The modifications to the tax code are authorized by Congress's power to lay and collect taxes, also in Article I, Section 8. The expansion of healthcare access and affordability aligns with the general welfare clause of the preamble.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).