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Presidential Executive Order Seeks to Expand CDHP/HSA Use

Presidential Executive Order Seeks to Expand CDHP/HSA Use

 

This week, President Trump issued an executive order focused on improving healthcare price and quality transparency. While the executive order itself does not change any laws, it is a directive for various agencies to create new rules or guidance around medical cost transparency.

Much of the executive order centered around requiring hospitals to post medical services’ actual prices for consumers and making healthcare information more useful and readable for consumers. However, part of it focused on increasing the use of consumer driven health plans (CDHPs) and HSAs:

  1. The executive order directed the Secretary of the Treasury to issue guidance expanding consumers’ ability to select HSA-qualified CDHPs that cover low-cost, pre-deductible preventive care to help consumers with chronic conditions maintain their health.

Beyond that the executive order directed the Secretary of the Treasury to issue this guidance within 120 days, there are not any more details of what this CDHP expansion might look like.

  1. The executive order directed the Secretary of the Treasury to propose regulations that would potentially enable participants of direct primary care arrangements and healthcare sharing ministries to count related expenses as HSA-eligible medical costs.

Direct primary care arrangements allow participants to pay a set regular fee to have access to a primary care physician, which covers many primary care services. In contrast, healthcare sharing ministries allow participants, who typically share a set of religious beliefs, to pool together resources through regular fees to cover their medical expenses.

Currently, fees for direct primary care arrangements and healthcare sharing ministries are not counted as HSA-qualified medical expenses and being covered by these programs disqualifies participants from being HSA-eligible. While the executive order directed related fees for these programs to be counted as HSA-qualified costs, it did not address whether program participants will still be deemed HSA-ineligible.

We’ll share updates as these executive orders take shape, so be sure to check back. Read the full executive order here.

Author: Craig Keohan