Tuesday, December 24, 2019

(Potentially) Exciting HSA News

Keep in mind that this has been proposed, it is far from law.

But it's a start:

"U.S. Sens. Ted Cruz (R-Texas) and Mike Braun (R-Ind.) this week introduced the Personalized Care Act (PCA), legislation to make Americans' health care more portable, accessible, and tailored to meet their unique needs by dramatically expanding Heath Savings Accounts (HSA) - a pre-tax savings tool millions of Americans use to cover the costs of their health care."

Some highlights:

• Expand HSAs to Millions of Americans

This is perhaps the most important feature, since, as we've been proposing for years, it "decouples HSAs from high deductible health insurance plans (HDHP)." In fact it seems to go even further, and, as we've also long endorsed, it includes alternative mechanisms and policies like Sharing Ministries and Short Term Medical plans.

• Allow HSAs to Pay for Direct Primary Care and Other Direct Medical Care Arrangements

This is fantastic: by allowing folks to use HSA funds to pay for DPC, these plans should become even more popular, both with patients and as a model for doc's.

One disappointment is that it doesn't seem to contain any mechanism for re-legalizing true catastrophic plans. Still, it's a great step in the right direction.

Kudos, Senators!

[Hat Tip: FoIB Dr Lee Gross]
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