The implementation of HB 3800 would have a significant impact on federal tax code, particularly regarding tax advantages for medical expenses associated with chronic conditions. By aligning IRS guidelines with the provisions of this act, the bill would expand access to preventive care, potentially leading to better health outcomes for individuals with chronic illnesses. This could also relieve some of the financial burden individuals face when managing their conditions, thereby encouraging more regular medical attention.
Summary
House Bill 3800, known as the Chronic Disease Flexible Coverage Act, aims to codify existing Internal Revenue Service (IRS) guidance that recognizes certain services and items for chronic conditions as qualifying preventive care. This classification is essential for individuals with high deductible health plans (HDHPs) who utilize health savings accounts (HSAs). By treating these services as preventive, the bill seeks to ensure that individuals do not have to meet their deductible for these necessary treatments, thus promoting more effective management of chronic diseases.
Sentiment
General sentiment around HB 3800 appears to be positive among healthcare advocates and patient support organizations. Proponents argue that the bill will enhance the healthcare system by alleviating cost barriers that impede access to preventive treatments, thereby aligning healthcare delivery with best practices in chronic disease management. However, there could be potential concerns about the funding implications of expanding preventive services under HSAs, particularly regarding the overall costs incurred by the federal government.
Contention
Notable points of contention might arise from those concerned about the long-term effects of increased access to preventive services on healthcare costs overall. Critics may argue that while initial financial barriers are lowered for patients, there could be a subsequent rise in healthcare utilization that might strain resources or lead to higher premiums for health plans. Additionally, as with any changes to tax codes affecting health insurance, discussions around equity and access in coverage will likely surface, particularly concerning individuals who do not qualify for HSAs.
Emergency Savings Accounts Act of 2023 This bill allows an individual taxpayer occupying a residence a deduction from gross income for up to $5,000 of amounts paid into such taxpayer's emergency savings account. The bill defines emergency savings account as an account established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster mitigation expenses, disaster recovery expenses, public health emergency expenses, and unemployment-related expenses.
Chronic Disease Flexible Coverage ActThis bill provides statutory authority for guidance from the Internal Revenue Service (IRS) that expands the types of preventive care that may be offered under a high deductible health plan (HDHP) without requiring a deductible or with a deductible below the minimum threshold.Under current law, to be considered health savings account-eligible, an HDHP must have a deductible above a certain minimum threshold amount, which is adjusted annually. However, an HDHP may cover certain types of preventive care without requiring a deductible or with a deductible below the minimum threshold. The IRS issued guidance expanding the types of preventive care that may be covered by an HDHP without requiring a deductible or with a deductible below the minimum threshold to includeangiotensin converting enzyme inhibitors for individuals with congestive heart failure, diabetes, or coronary artery disease;anti-resorptive therapy for individuals with osteoporosis or osteopenia;beta-blockers for individuals with congestive heart failure or coronary artery disease;blood pressure monitors for individuals with hypertension;inhaled corticosteroids and peak flow meters for individuals with asthma;insulin and other glucose lowering agents, retinopathy screening, glucometers, and hemoglobin A1c testing for individuals with diabetes;international normalized ratio testing for individuals with liver disease or bleeding disorders;low-density lipoprotein testing for individuals with heart disease;statins for individuals with heart disease or diabetes; andselective serotonin reuptake inhibitors for individuals with depression. The bill provides statutory authority for the IRS's guidance.