ABA HSA Council supports House-approved flexible medical coverage bill

Originally posted on ABA Banking Journal

A House bill that would codify an IRS notice to expand the list of preventive care benefits permitted to be provided by high deductible health plans passed by voice vote on Sept. 17. Kevin McKechnie, executive director of the American Bankers Association’s Health Savings Account Council, voiced the association’s support for the bill in a letter to House leaders.

The Chronic Disease Flexible Coverage Act (H.R. 3800) would codify IRS Notice 2019-45 while preserving the Treasury secretary’s flexibility to expand the list of preventive medical services and drugs that can be covered by HSA-qualified health plans, McKechnie said. He noted that according to the U.S. Centers for Disease Control and Prevention, roughly 90% of the nation’s $4.5 trillion in annual healthcare spending is for people with chronic and mental health conditions.

“The good news is that 75%-80% of employers and health plans have utilized the flexibility granted in Notice 2019-452 and updated their plan designs to the benefit of their employees,” McKechnie said. “We strongly support this common sense, bipartisan legislation.”