Definition of Medical Care: The Order calls on the IRS to propose regulations to treat expenses related to “certain types of arrangements, potentially including direct primary care arrangements and healthcare sharing ministries, as eligible medical expenses.” If these regulations became final, a participant could use HSA funds on the new list of expenses that the IRS defines as “medical care,” possibly making arrangements such as concierge primary care eligible as covered expenses.
On June 24, 2019, President Trump issued the “Executive Order on Improving Price and Quality Transparency in American Healthcare to Put Patients First.” The Order affects the healthcare system at large, but this post focuses on the impacts the Order has on health plans, including the future changes a plan sponsor may have to make to their plans. Although the Order does not require plan sponsors to make any changes to their plans now, they will want to keep a close eye on the guidance the administrative agencies were ordered to issue. We will update this blog post when further guidance is issued.
Categories: National Headlines