Expanding consumer directed healthcare (CDH), especially the use of health savings accounts (HSAs), will be a large part of the eventual ACA replacement legislation. HSAs have been a key component in every healthcare reform proposal that Republicans have sponsored. Leadership in both Houses of Congress and within the incoming President Trump administration have all introduced or sponsored HSA expansion bills.
The incoming administration’s healthcare platform includes expanded HSA availability, flexibility, and protections as part of its top list of priorities and praises “the flexibility and security provided by HSAs.” Vice President-elect Pence, who is heading the Republican healthcare reform effort, enacted the Healthy Indiana Plan (HIP) 2.0 while Gov. of Indiana and co-sponsored nine HSA expansion bills while in Congress.
Additionally, the nomination of Rep. Tom Price (R-GA) to head the Department of Health and Human Services (HHS), underscores the strong HSA/CDH support within the administration. Rep. Price’s Empowering Patients First Act repeals the ACA and is centered on expanding the use of HSAs and reforming state and federal programs to include HSA pilot programs, like the HIP 2.0.
It is expected that the Department of Labor Fiduciary ruling – effectively treating TPAs as fiduciaries with respect to HSA investment selection – will be reversed with an Executive Order.
Both House Speaker, Paul Ryan, and Senate Finance Committee Chair, Orrin Hatch, are sponsors of legislation that strongly favors the expansion of tax-advantaged savings accounts in general, and HSAs in particular. Because Ryan’s bill, A Better Way, passed Congress last summer it is considered to be the blueprint for changes to the Affordable Care Act (ACA). Page 13 proposes the following improvements to CDH and HSAs:
There are even more targeted HSA administrative provisions included in Senator Hatch’s comprehensive HSA legislation, the Health Savings Act of 2016. As Chairman of the Senate Finance Committee with jurisdiction over healthcare legislation, he is well positioned to advance his HSA proposals:
Alegeus is uniquely positioned to help you fully capture the market opportunity for accelerated CDH adoption that will be fueled by the favorable treatment of HSAs. Now is the time to take advantage of this growing segment consumer directed healthcare. Contact us to learn more about the Alegeus HSA solution. Simply fill out the form to the right and an Alegeus representative will be in touch.