Chronic Disease Flexible Coverage Act

Floor Speech

Mr. Speaker, I thank the chairman of the Ways and Means Committee and, of course, my good friend, Representative Vern Buchanan, an excellent member of the Ways and Means Committee for their work on this bill.

With his work, I rise today to support this legislation, the Chronic Disease Flexible Coverage Act. This is bipartisan, commonsense legislation to allow predeductible health coverage for chronic disease patients with a high deductible health plan, otherwise known as HDHP.

This commonsense legislation, as you heard from the chairman, already passed Congress last session under the leadership of my friends and former colleagues, Brad Wenstrup and Earl Blumenauer. It is common sense mainly because, as you heard from the chairman, chronic disease is so common.

Mr. Speaker, 6 in 10 adult Americans have a chronic disease, which is the leading cause of disabilities in the United States of America. Mr. Speaker, 90 percent of our annual health spending goes to chronic disease and mental health management. While these chronic diseases are common, they are also manageable if we just do everything that we can to improve access to care.

In my 19th Congressional District on the central coast of California, the number one thing I hear about from constituents is access to healthcare or, I should say, the lack of access to healthcare. The one thing that is clear, though, is that insurance doesn't do you much good if you can't use it.

In 2023, according to the Centers for Disease Control and Prevention, more than 43 percent of people with employer-based coverage had an HDHP. Moreover, 56 percent of employers offer an HDHP. However, nearly 59 percent of Americans--that is nearly 6 in 10 people--lack $1,000 in savings to handle an emergency expense.

That is exactly why expanding HDHP coverage to offer critical care for some of our most medically vulnerable constituents isn't just the right thing to do. It is the smart thing to do.

The Chronic Disease Flexible Coverage Act codifies IRS guidance to expand the safe harbor for high deductible health plans offering predeductible care for chronic conditions. It lets employers offer first-dollar access to care for patients with diabetes, asthma, high blood pressure, and many more, as the chairman mentioned.

When this IRS guidance was originally issued in 2019, a survey found that 76 percent, or more than three-quarters, of employers expanded predeductible coverage for chronic diseases. Codifying this policy now will save countless lives by helping more patients manage their conditions and stay healthy.

That is why this bill is endorsed by so many, from chronic disease advocates to health benefit groups to small business associations. That is why I recommend my colleagues to vote for the Chronic Disease Flexible Coverage Act.

Again, I thank Congressman Buchanan, and I thank the chairman for bringing this bill forward.
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Mr. PANETTA. Mr. Speaker, I have no further speakers, and I yield myself the balance of my time for the purpose of closing.

Mr. Speaker, as you have heard, this legislation has bipartisan support and support from a broad coalition of employers and health stakeholders. I appreciate my colleagues on the other side being so concerned and so focused on this. Let's just hope they have that same concern when it comes to Medicaid and Medicare going forward, especially with the reconciliation package.

They understand, and we understand, that it is critical that we start expanding access to preventative care and chronic care management to stem the tide of chronic disease.

Passing the Chronic Disease Flexible Coverage Act will improve long- term health outcomes, let businesses offer superior health benefits, and strengthen healthcare for everyone.

Once again, I encourage my colleagues to support this legislation, and I yield back the balance of my time.

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