Fair Care Act of 2026
- Bill Number
- H.R. 8840
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Health
- Status
- Introduced
- Latest Action
- 2026-05-14: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, the Judiciary, Oversight and Government Reform, Rules, the Budget, Armed Services, and House Administration, 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
- 2026-07-08T16:31:51Z
AI-Generated Summary
Purpose This legislation seeks to reduce the high costs of health care services, prescription drugs, and health insurance coverage in the United States through market-based reforms, expanded consumer options, greater competition, price transparency, and changes to public programs.
Key Provisions
- Title I – Modernization of Health Savings Accounts: Expands eligibility for HSAs to cover a wide range of plans (including Medicare, Medicaid, short-term insurance, and health care sharing ministries). Increases contribution limits based on plan actuarial value. Allows unused premium tax credits to be deposited into HSAs. Integrates HSAs with employer plans and provides grants for outreach. Requires new corporations to use HSAs for tax benefits.
- Title II – Improving Private Health Insurance: Maintains guaranteed issue and prohibits discrimination based on pre-existing conditions, health status, or genetic information. Expands options for association health plans, short-term limited duration insurance, and state innovation waivers. Repeals the employer mandate. Adjusts age rating and premium assistance rules. Adds copper-level plans to exchanges.
- Title III – Competition, Transparency, and Accountability: Promotes hospital competition through antitrust enforcement and site-neutral payments. Requires price transparency for hospitals and insurers. Reforms prescription drug competition, including expedited generic approvals and limits on exclusivity periods. Increases oversight of pharmacy benefit managers and requires reporting on 340B program utilization. Introduces medical malpractice reforms, such as damage caps and expert witness standards.
- Title IV – Medicare and Medicaid Reforms: Reforms Medicaid payments to a beneficiary-based model with state flexibility and maintenance-of-effort options. Limits Medicare eligibility for high-income individuals. Expands telehealth services, removes certain geographic restrictions, and allows waivers during emergencies. Modifies Medicare Advantage bidding and creates an out-of-pocket limit.
Significant Changes to Existing Law
- Replaces traditional fee-for-service payments in Medicaid with a per-beneficiary model tied to categories (elderly, disabled, children, adults) and adjusts for risk and geography.
- Alters ACA provisions by maintaining some consumer protections while repealing the employer mandate and adjusting premium assistance and age rating.
- Introduces antitrust exemptions for certain insurer negotiations and requires transparency in hospital pricing and drug rebates.
- Expands telehealth coverage under Medicare without prior geographic limits for many services.
- Modifies Medicare eligibility rules and adds an out-of-pocket cap for beneficiaries.
Potential Impacts
- Government agencies: Increases administrative requirements for HHS, CMS, and the FTC in oversight, reporting, and enforcement of transparency and competition rules. States gain flexibility in Medicaid and insurance regulation but face new reporting burdens.
- Citizens: Expands consumer choice through HSAs and alternative plans but may shift costs for those previously covered under mandates or subsidies. Telehealth expansion improves access, particularly in rural areas.
- International relations: Minimal direct effects, though drug competition reforms could influence global pharmaceutical markets.
Main Stakeholders Affected
- Patients and consumers (expanded options but potential changes in costs and coverage).
- Health care providers and hospitals (new competition rules and transparency requirements).
- Insurers and pharmacy benefit managers (increased oversight and reporting).
- Employers (repeal of mandate but new HSA rules).
- States (greater flexibility in Medicaid and waivers).
- Pharmaceutical manufacturers (changes to exclusivity and competition rules).
Notable Legal, Constitutional, or Political Implications
- Preempts certain state laws on insurance and antitrust while preserving others.
- Raises potential constitutional questions around federal preemption of state insurance regulation and changes to entitlement programs.
- Politically promotes a market-oriented approach emphasizing competition and consumer-directed care over expanded government programs.
- Includes enforcement mechanisms such as civil penalties for non-compliance with transparency rules.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Westerman, Bruce [R-AR-4]
Recent Actions
- 2026-05-14: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, the Judiciary, Oversight and Government Reform, Rules, the Budget, Armed Services, and House Administration, 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.
- 2026-05-14: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, the Judiciary, Oversight and Government Reform, Rules, the Budget, Armed Services, and House Administration, 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.
- 2026-05-14: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, the Judiciary, Oversight and Government Reform, Rules, the Budget, Armed Services, and House Administration, 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.
- 2026-05-14: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, the Judiciary, Oversight and Government Reform, Rules, the Budget, Armed Services, and House Administration, 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.
- 2026-05-14: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, the Judiciary, Oversight and Government Reform, Rules, the Budget, Armed Services, and House Administration, 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.
- 2026-05-14: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, the Judiciary, Oversight and Government Reform, Rules, the Budget, Armed Services, and House Administration, 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.
- 2026-05-14: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, the Judiciary, Oversight and Government Reform, Rules, the Budget, Armed Services, and House Administration, 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.
- 2026-05-14: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, the Judiciary, Oversight and Government Reform, Rules, the Budget, Armed Services, and House Administration, 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.
- 2026-05-14: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, the Judiciary, Oversight and Government Reform, Rules, the Budget, Armed Services, and House Administration, 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.
- 2026-05-14: Introduced in House
- 2026-05-14: Introduced in House
Bill Versions
- Fair Care Act of 2026 — issued 2026-05-14 — PDF (434 pages)