In an Executive Order issued just before the Fourth of July holiday, President Trump directed several agencies to address a number of health care related matters through the rule making process (i.e. forthcoming regulations). Section #6 of the Executive Order is of particular interest to TASC since it takes aim at HSAs, health FSAs and medical expenses in general.
Health Savings Accounts
Within 120 days of the Executive Order, Treasury is directed “to expand the ability of patients to select high-deductible health plans that can be used alongside a HSA, and that cover low-cost preventive care (before the deductible) for medical care that helps maintain health status for individuals with chronic conditions.”
Health Flexible Spending Accounts
Within 180 days of the Executive Order, Treasury is directed “to increase the amount of funds that can carryover (currently $500) without penalty at the end of the year.”
Eligible Medical Expenses
Within 180 days of the Executive Order, Treasury is directed to propose rules to expand the definition of Section 213(d) ”to treat expenses related to certain types of arrangements, including direct primary care arrangements and healthcare sharing ministries, as eligible medical expenses.”
It’s important to note that the guidance issued must be permitted under current law, so Treasury may not have the authority to issue provisions as broad as is contemplated by the Executive Order.