H.R.919 - Chronic Disease Flexible Coverage Act (119th Congress)
Summary
H.R. 919, the Chronic Disease Flexible Coverage Act, aims to codify existing 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 and HSAs could use their accounts for chronic disease-related expenses without jeopardizing their HSA eligibility.
The bill ensures that the IRS guidance has the same legal force as if it were explicitly written into law. It clarifies that the codification does not affect other existing or future IRS guidance on preventive services.
Expected Effects
The primary effect of this bill is to provide greater certainty and flexibility for individuals with chronic conditions who use HDHPs and HSAs. It allows them to manage their chronic conditions more effectively by using their HSA funds for related services and items without first meeting their deductible.
This could lead to better management of chronic diseases, potentially reducing long-term healthcare costs. It also provides clarity for healthcare providers and insurers regarding which services qualify as preventive care in this context.
Potential Benefits
- Increased Access to Care: Allows individuals with chronic conditions to access necessary services and items without meeting their deductible, potentially improving health outcomes.
- Financial Relief: Provides financial flexibility for managing chronic conditions, reducing the burden of out-of-pocket expenses.
- Clarity and Certainty: Codifies existing IRS guidance, providing legal certainty for individuals, healthcare providers, and insurers.
- Preventive Care Focus: Encourages proactive management of chronic conditions, potentially preventing more serious health issues.
- Better Chronic Disease Management: Enables individuals to better manage their conditions, leading to improved quality of life.
Most Benefited Areas:
Potential Disadvantages
- Potential for Increased Healthcare Costs: Increased utilization of services could lead to higher overall healthcare costs.
- Complexity: The interaction between HDHPs, HSAs, and preventive care can be complex, potentially leading to confusion.
- Limited Scope: The bill only addresses specific IRS guidance and may not cover all services and items related to chronic conditions.
- Potential for Abuse: There is a potential for misuse of HSA funds for non-preventive care related to chronic conditions.
- Impact on Insurance Premiums: Increased utilization of healthcare services could potentially lead to higher insurance premiums for all.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution, as it aims to improve access to healthcare for individuals with chronic conditions. The Constitution grants Congress the power to enact laws that "promote the general Welfare." (Preamble).
Furthermore, 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.
There are no apparent constitutional conflicts arising from this legislation.
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).