ICHRA Permanency Act

Bill Number

H.R. 6708

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Health

Status

Introduced

Latest Action

2025-12-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Education and Workforce, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-01-08T16:42:35Z

AI-Generated Summary

Purpose of the Legislation

The ICHRA Permanency Act (H.R. 6708) aims to make permanent certain federal regulations on health reimbursement arrangements (HRAs) and other account-based group health plans. HRAs are employer-funded accounts that reimburse employees for qualified medical expenses, including individual health insurance premiums. By codifying these rules into law, the bill seeks to provide long-term stability and certainty for these health benefit options.

Key Provisions

• Codification of 2019 Rule: The bill incorporates the final rule published on June 20, 2019 (84 Fed. Reg. 28888) by the Departments of Treasury, Labor, and Health and Human Services into federal law. This rule expands the use of HRAs, including Individual Coverage HRAs (ICHRAs), which allow employers to fund employee purchases of individual health insurance plans on the open market.
• Full Force of Law: The codified rule will have the same legal authority as any other statute passed by Congress, overriding potential future changes through administrative rulemaking alone.
• Scope: Applies specifically to HRAs integrated with individual health insurance coverage and other account-based group health plans, ensuring they comply with the Affordable Care Act (ACA) without being treated as group health plans that trigger certain ACA mandates.

Significant Changes to Existing Law

• From Regulation to Statute: Previously, the 2019 rule was an administrative regulation that could be modified or repealed by future agency actions. This bill elevates it to statutory law, making it more enduring and requiring congressional approval for alterations.
• No New Substantive Changes: The bill does not introduce new policies; it simply locks in the existing regulatory framework, preventing easy reversal by executive branch agencies.

Potential Impacts

• On Government Agencies: Reduces administrative flexibility for the Departments of Treasury, Labor, and Health and Human Services in adjusting HRA rules, potentially streamlining enforcement but limiting adaptability to future health policy needs.
• On Citizens (Employees and Individuals): Increases access to employer-funded reimbursements for individual health insurance, potentially lowering out-of-pocket costs for some workers, especially those in small businesses or without traditional group coverage. However, it may not directly benefit all, as participation depends on employer offerings.
• On Employers and Businesses: Provides certainty for small and large employers using HRAs, encouraging broader adoption of flexible benefit plans without fear of regulatory shifts.
• On Health Insurance Market: Promotes competition in the individual insurance market by integrating employer reimbursements, which could stabilize premiums but might fragment the risk pool if not all plans qualify.
• International Relations: No direct impacts, as the bill focuses on domestic U.S. health policy.

Main Stakeholders Affected

• Employers: Primary beneficiaries, gaining permanent options for cost-effective health benefits without full group plan responsibilities.
• Employees and Workers: Affected through expanded reimbursement opportunities, particularly for self-employed or gig economy participants.
• Health Insurers and Brokers: Benefit from increased demand for individual policies but may face challenges in plan design to align with HRA rules.
• Federal Agencies: Departments of Treasury (tax aspects), Labor (employee benefits), and Health and Human Services (health plan oversight) will enforce the now-statutory rules.
• Small Businesses and Nonprofits: Likely to see the most gains, as the 2019 rule was designed to ease burdens for entities with fewer than 50 employees.

Notable Legal, Constitutional, or Political Implications

• Legal Stability: Codification enhances predictability under the Administrative Procedure Act, reducing litigation risks over regulatory changes and aligning HRAs more firmly with ACA requirements (e.g., avoiding penalties for non-compliance).
• Constitutional Aspects: No direct challenges to constitutional principles; it operates within Congress's authority under the Commerce Clause to regulate interstate health insurance and taxation.
• Political Implications: Signals bipartisan support for market-based health reforms by protecting Obama-era expansions of HRAs (finalized under the Trump administration). It could influence future debates on ACA modifications, emphasizing permanence over frequent regulatory tweaks, but may draw criticism from those favoring stricter group plan mandates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Bean, Aaron [R-FL-4]

Recent Actions

• 2025-12-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Education and Workforce, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-12-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Education and Workforce, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-12-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Education and Workforce, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-12-15: Introduced in House
• 2025-12-15: Introduced in House

Bill Versions

• ICHRA Permanency Act — issued 2025-12-15 — PDF (2 pages)