President Trump Issues Executive Order Addressing Medical Price Transparency & HSA/FSA/HRA Issues
On June 24, 2019, President Trump signed an Executive Order designed to “enhance the ability of patients to choose the healthcare that is best for them.” The order directs various departments of the government to develop regulations and materials aimed at improving transparency in healthcare pricing and quality. This includes developing rules to expand the use of health savings accounts (HSAs), health flexible spending arrangements (FSAs) and health reimbursement arrangements (HRAs).
The Executive Order directs the Secretary of the Treasury to:
• Issue guidance that would allow HSA-compatible high deductible health plans (HDHPs) to cover low-cost preventative care for individuals with chronic conditions before satisfying the plan deductible.
• Propose regulations that would expand eligible medical expenses - possibly including direct primary care arrangements and healthcare sharing ministries - so that these expenses could be reimbursed by an FSA, HSA or HSA.
• Issue guidance that would increase the permitted year-end FSA carryover amount (currently limited to $500).
The Executive Order places deadlines ranging from 120 to 180 days for the Treasury Department to produce relevant guidance on these items. As a result, open enrollment for plans with a calendar-year start date (1/1) could be affected, depending on when final guidance is issued. Chard Snyder will provide additional information as soon as it becomes available.