To codify Internal Revenue Service guidance relating to treatment of certain services and items for chronic conditions as meeting the preventive care deductible safe harbor for purposes of high deductible health plans in connection with health savings accounts.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The "Chronic Disease Flexible Coverage Act" makes permanent an IRS rule that allows high-deductible health plans (HDHPs) to cover certain chronic disease treatments before the deductible is met, without disqualifying enrollees from having a health savings account (HSA). This codifies IRS Notice 2019-45 into law.
Who Benefits and How
- People with chronic conditions (diabetes, heart disease, asthma, etc.) enrolled in HDHPs can access covered treatments without paying the full deductible first.
- HSA holders with chronic diseases maintain their HSA eligibility while receiving pre-deductible chronic disease care.
- Employers offering HDHPs gain legal certainty that their plan designs are compliant.
- Health insurers can confidently design HDHPs that cover chronic disease management services.
Who Bears the Burden and How
- Federal revenue may be reduced if more pre-deductible services are covered (modest tax expenditure impact).
- Health insurers may cover more services before deductibles are met, potentially affecting premiums.
Key Provisions
- Codifies IRS Notice 2019-45 into statutory law
- Allows HDHPs to treat certain chronic disease services as "preventive care" that can be covered before the deductible
- Maintains HSA eligibility for enrollees receiving these pre-deductible services
- Preserves Treasury Department authority to issue additional guidance on preventive services
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Codifies IRS Notice 2019-45 into law, permanently allowing high-deductible health plans (HDHPs) to cover certain chronic disease services and items before the deductible is met without disqualifying enrollees from using health savings accounts (HSAs).
Key Policy Areas
Healthcare, Taxation, Insurance
Primary Purpose
Codifies IRS Notice 2019-45 into law, permanently allowing high-deductible health plans (HDHPs) to cover certain chronic disease services and items before the deductible is met without disqualifying enrollees from using health savings accounts (HSAs).
Policy Domains
Sponsors
Legislative Progress
ReportedReceived; read twice and referred to the Committee on Finance
Additional sponsors: Ms. Malliotakis and Mr. Davis of North Carolina
Reported with an amendment, committed to the Committee of the …
Mr. Wenstrup (for himself and Mr. Blumenauer) introduced the following …
Impact analysis is available but no clear stakeholder effects identified. View clause-level analysis →
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology