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Subcommittee adopts bill to block accumulator schemes and protect patient assistance funds
Summary
House Bill 870 would prohibit entities from restricting patient assistance program funds from applying to a patient's deductible and out-of-pocket expenses and would address an IRS issue related to health savings accounts. The subcommittee approved the bill and sent it to the full Insurance Committee.
The Insurance Subcommittee on Wednesday approved House Bill 870, which would prohibit entities from using patient assistance programs — sometimes described as maximizers, accumulators, optimizers or alternate funding programs — to prevent patient assistance payments from applying to a patient’s deductible or other out-of-pocket expenses.
Chairman Rudder, sponsor of House Bill 870, said prior legislation attempted to stop such schemes but new methods repeatedly arise. “No matter what you call the program, no entity should be permitted to engage in any activity which prohibits or restricts patient assistant funds from being applied to that patient's deductible and out of pocket expenses,” Rudder said. He also said Section 2 of the bill addresses an Internal Revenue Service issue related to health savings accounts and earlier accumulator legislation.
Committee members asked no recorded questions. The subcommittee adopted the amendment and voted 6-0 to advance the bill to the full Insurance Committee.
