H.R.919 - Chronic Disease Flexible Coverage Act (119th Congress)
Summary
H.R. 919, the Chronic Disease Flexible Coverage Act, seeks to codify existing IRS guidance (Notice 2019-45) regarding the treatment of certain services and items for chronic conditions as preventive care within the context of high-deductible health plans (HDHPs) and health savings accounts (HSAs). This means that individuals with HDHPs would be able to receive certain chronic disease-related services before meeting their deductible without jeopardizing their HSA eligibility. The bill aims to provide greater flexibility and access to care for individuals managing chronic conditions.
Expected Effects
The primary effect of this bill would be to make permanent the provisions outlined in IRS Notice 2019-45. This would provide certainty to individuals with chronic conditions who utilize HDHPs and HSAs. It would also potentially increase the utilization of preventive services, leading to better management of chronic diseases.
Potential Benefits
- Increased access to necessary healthcare services for individuals with chronic conditions.
- Greater flexibility in managing healthcare expenses within the framework of HDHPs and HSAs.
- Potential for improved health outcomes through proactive management of chronic diseases.
- Reduced financial burden on individuals by allowing access to preventive care before meeting the deductible.
- Simplification and clarification of tax rules related to healthcare expenses.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased healthcare costs overall, as more services are utilized before meeting deductibles.
- Possible administrative complexities for healthcare providers and insurers in implementing the changes.
- May disproportionately benefit individuals with HSAs, potentially exacerbating existing healthcare disparities.
- Risk of overutilization of services if not properly managed, leading to unnecessary expenses.
- The bill does not address the underlying issues of high healthcare costs or lack of access for those without insurance or HSAs.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to improve access to healthcare for individuals with chronic conditions. Article I, Section 8 grants Congress the power to lay and collect taxes to provide for the general welfare of the United States. This bill, by modifying the tax treatment of certain healthcare expenses, falls under this power. The bill does not appear to infringe upon any specific constitutional rights or limitations.
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).