Executive Order and Senate Legislation Enable HSA-HDHPs to Enhance Coverage of Chronic Disease Services

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Washington, DC.– On June 24, 2019, President Trump signed Executive Order 13877, and Senators John Thune (R-S.D.) and Tom Carper (D-DE) introduced bipartisan legislation that allow health savings account eligible high-deductible health plans (HSA-HDHPs) the flexibility to cover essential medications and services used to treat chronic diseases prior to meeting the plan deductible. These actions are the result of over a decade of advocacy by the University of Michigan V-BID Center and its many collaborators, including the Smarter HealthCare Coalition.

Section 6a of the executive order states:

Within 120 days of the date of this order, the Secretary of the Treasury, to the extent consistent with law, shall issue guidance to expand the ability of patients to select high-deductible health plans that can be used alongside a health savings account, and that cover low-cost preventive care, before the deductible, for medical care that helps maintain health status for individuals with chronic conditions.

“Giving HSA-HDHPs the option to cover high-value services on a pre-deductible basis will mitigate cost-related non-adherence and enhance patient-centered outcomes,” said A. Mark Fendrick, MD, Director, V-BID Center. “Our recent research shows that this policy will provide millions of Americans a plan option that better meets their clinical and financial needs and will likely reduce federal expenditures.”

Dr. Fendrick is available for additional comments or questions.

Learn more about the executive order and HSA-Eligible High Deductible Health Plans.