H.R.919 - Chronic Disease Flexible Coverage Act (119th Congress)
Summary
H.R. 919, the Chronic Disease Flexible Coverage Act, seeks to codify IRS guidance (Notice 2019-45) regarding the treatment of certain services and items for chronic conditions as preventive care within high-deductible health plans (HDHPs) linked to health savings accounts (HSAs). This means that individuals with HDHPs could use their HSAs for chronic disease-related expenses before meeting their deductible. The bill aims to provide greater flexibility in managing chronic conditions and utilizing HSAs.
Expected Effects
The primary effect of this bill would be to allow individuals with chronic conditions and HDHPs to access HSA funds for related healthcare expenses sooner. This could lead to better management of chronic diseases and potentially reduce the financial burden on individuals. It also provides certainty by codifying existing IRS guidance into law.
Potential Benefits
- Increased access to healthcare for individuals with chronic conditions.
- Greater flexibility in using Health Savings Accounts (HSAs).
- Potential for improved management of chronic diseases.
- Reduced financial burden on individuals with high-deductible health plans.
- Codification of existing IRS guidance provides legal certainty.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased healthcare costs due to increased utilization.
- May disproportionately benefit higher-income individuals who are more likely to have HSAs.
- Possible complexity in understanding and implementing the new rules.
- Could lead to overuse of certain services if not managed properly.
- Limited impact if individuals are already meeting their deductible.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution, as it aims to improve healthcare access for individuals with chronic conditions. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This bill relates to tax policy and healthcare, both areas within the purview of Congress.
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).