HR Policy signed on to a letter supporting the coverage of chronic disease management services for employees who have not reached their deductible and are enrolled in high-deductible health plans (HDHPs) alongside a health savings account (HSA).
The Chronic Disease Management Act of 2021 (S.1424) codifies 2019 Department of Treasury guidance that expanded its interpretation of preventive care to include services for chronic conditions. The legislation builds on this guidance and modifies the requirements for HSAs so that preventive care for chronic conditions can be used pre-deductible if:
- The service or item is low-cost;
- There is medical evidence of effectiveness; and
- There is a strong likelihood that use will prevent the exacerbation of the chronic condition or the development of a secondary condition.
A KFF survey found that 48% of large employers changed the pre-deductible services for which individuals with chronic illness are eligible after the Treasury guidance in 2019. Employees with chronic health conditions, such as diabetes or heart disease, may defer needed treatment or medications for their chronic health condition due to financial concerns when enrolled in a high-deductible health plan. However, this leads to the need for more costly treatments in the future as the condition becomes worse. Removing the financial barrier of a deductible allows for better health outcomes and lower overall health care spending for employees and employers.