HF2185: HSA/HDHP Cost Sharing

Regulates how cost sharing (copayments, coinsurance, deductibles) is applied for enrollees in group insurance and accident/health insurance who have HSAs and qualified HDHPs. If the cost sharing could jeopardize HSA eligibility under federal law, it must only be applied to the HDHP after the enrollee meets the required minimum deductible, except for preventive care as defined by federal law. The bill aligns state requirements with federal tax code provisions for HSAs.

Key Points & Impacts:

• Adds new sections to Iowa law specifically addressing cost sharing for HSAs and qualified HDHPs.

• Prohibits application of copayments, coinsurance, or deductibles before the enrollee's minimum deductible is satisfied, unless for preventive care.

• Ensures state law does not cause enrollees to lose HSA eligibility due to improper cost sharing practices.

• Defines preventive care according to the federal Internal Revenue Code, Section 223(c)(2)(C).

• Applies to both group insurance and accident/health insurance policies.

• Aligns Iowa’s insurance cost sharing requirements with federal HSA eligibility standards.

• Provides clarification for insurers and enrollees regarding when cost sharing can be applied under qualified HDHPs.

• Does not alter cost sharing for preventive care, which can be covered before the deductible is met.