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» Executive Order Signals Changes to HDHPs, FSAs, and ‘Eligible Medical Expenses’

July 8, 2019

HR News Alerts

New Guidance and Proposed Regulations Expected

Among the issues addressed by President Trump’s June 24 executive order (PDF) on health care transparency were expanding access to high deductible health plans (HDHPs) and flexible spending accounts (FSAs), as follows:

  • Within 120 days of the order, the Treasury Department must issue guidance to expand patients’ ability to select HDHPs that can be used alongside health savings accounts (HSAs), and that cover low-cost preventive care, before the deductible, for medical care for chronic conditions.
  • Within 180 days of the order, the Department must issue guidance to increase the amount of FSA funds that can be carried over at the end of the year.

Also within 180 days of the order, the Department is 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 under section 213(d) of the tax code, which concerns tax deductions for expenses related to medical care.

Click here (PDF) to read these and other directives contained in the order.

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