ICHRA Permanency Act
Summary
The ICHRA Permanency Act aims to codify the final rule (84 Fed. Reg. 28888) published on June 20, 2019, related to health reimbursement arrangements (HRAs) and other account-based group health plans. This rule was issued by the Secretary of the Treasury, the Secretary of Labor, and the Secretary of Health and Human Services. The bill seeks to give this rule the full force and effect of law.
By codifying the existing rule, the Act intends to provide stability and certainty for employers and employees utilizing HRAs. This permanency could encourage greater adoption and utilization of these health plans.
The bill was introduced in the House of Representatives and referred to multiple committees for consideration.
Expected Effects
If enacted, the ICHRA Permanency Act would make the existing rules governing health reimbursement arrangements (HRAs) permanent. This would provide legal certainty for employers offering these plans and employees using them.
This permanency could lead to increased adoption of HRAs as a healthcare benefit option. It would reduce the risk that future administrations could alter or repeal the existing rules through regulatory changes.
Potential Benefits
- Provides certainty and stability for employers and employees using HRAs.
- May encourage greater adoption of HRAs, potentially expanding healthcare options.
- Reduces the risk of future regulatory changes impacting HRAs.
- Could lead to more predictable healthcare costs for individuals using HRAs.
- Simplifies compliance for employers offering HRAs.
Potential Disadvantages
- May entrench existing regulations that could become outdated or inefficient over time.
- Could limit the flexibility of future administrations to adapt HRA rules to changing healthcare needs.
- May not address underlying issues with healthcare affordability or access.
- The codification could inadvertently create legal challenges or ambiguities.
- Potential for reduced innovation in HRA design due to regulatory lock-in.
Constitutional Alignment
The ICHRA Permanency Act appears to align with the Constitution, specifically Article I, Section 8, which grants Congress the power to regulate commerce and provide for the general welfare. The act does not appear to infringe upon any individual liberties or rights protected by the Bill of Rights.
Congress has the authority to legislate on matters related to health and employee benefits. The act codifies existing regulations, solidifying their legal standing.
However, the extent of the impact on individual healthcare choices and the overall healthcare system should be considered in assessing its broader constitutional implications.
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).