Legislation in the U.S. House and Senate would give individuals the same tax advantages employers have to make their own health care arrangements, such as direct primary care (DPC), and remove many restrictions on health savings accounts to do so.
The Personalized Care Act (PCA), HR 4803, introduced by Rep. Chip Roy (R-TX) on July 20, is a version of legislation introduced in 2020. Sen. Ted Cruz (R-TX) introduced a companion bill in the Senate.
The PCA has provisions to appeal to consumers, employers, and physicians, says DPC Action in a news release.
“We firmly believe that the Personalized Care Act has the potential to revolutionize healthcare by placing the power back into the hands of patients, employers, and physicians alike,” stated Lee Gross, M.D., chairman of DPC Action, an advocacy group. “It is time for a patient-centric approach, and this Act offers the foundation for such a transformation.”
Putting Consumers in Charge
The PCA raises the cap on contributions to HSAs and broadens their use.
Currently, consumers must be covered by a high-deductible Obamacare-compliant plan to contribute to an HSA and are prohibited from using the funds for DPC.
The PCA also addresses the tax advantage employers get for providing health insurance to their employees. Currently, only health insurance premiums paid by employers are exempt from federal income and payroll taxes. The PCA extends that tax advantage to individual employees to make their own health care arrangements.
“The Personalized Care Act liberates employers from the burden of serving as de facto healthcare providers,” states DPC Action. “This freedom will allow businesses to redirect their focus toward their core operations and foster economic growth.”
Lifetime Coverage Possible
Chad Savage, M.D., president of DPC Action, says the PCA would lead to innovation and reduce health care prices.
“The provisions would unleash a wave of new coverage products that could reduce purchase costs and break the government-sanctioned monopoly that traditional insurance has on HSAs,” said Savage.
“Individuals could own their health plans themselves, which means they wouldn’t have to lose their insurance between jobs,” said Savage. “Also, with self-ownership of a plan, Americans could buy a policy at a young age, like a life insurance policy, and keep it for life. They wouldn’t have to worry about losing coverage if they develop a pre-existing condition, which can happen between plans.”
AnneMarie Schieber (amschieber@heartland.org) is the managing editor of Health Care News.
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