To address the high costs of health care services, prescription drugs, and health insurance coverage in the United States, and for other purposes.
About This Bill
Committee
Latest Action · December 12, 2024
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and the Workforce, the Judiciary, Oversight and Accountability, 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.
# Fair Care Act of 2024 Summary
The Fair Care Act of 2024 is comprehensive health care legislation addressing affordability, competition, transparency, and system reforms across public and private insurance.
## Health Savings Accounts & Coverage (Title I)
The bill dramatically expands health savings accounts (HSAs) by modernizing contribution limits based on plan actuarial value, allowing unused premium tax credits to be deposited into HSAs, and enabling new employee contributions. It permits direct primary care arrangements (fixed-fee primary care) outside traditional insurance. The bill also provides $5 million annually in grants to organizations promoting HSA enrollment and requires new corporations to use HSAs rather than traditional health insurance.
## Private Insurance Improvements (Title II)
The legislation maintains protections for people with preexisting conditions while expanding coverage options. It establishes association health plans with clearer standards, permits short-term limited-duration insurance, and adds "copper plans" to exchanges (50% actuarial value coverage). It eliminates the employer mandate, allows premium tax credits for those offered employer coverage, and requires Health care transparency regarding negotiated rates. States gain flexibility for open enrollment periods and innovation waivers.
## Competition, Transparency & Accountability (Title III)
The bill authorizes $160 million for FTC enforcement against anti-competitive health care mergers and practices. It allows private insurers to jointly negotiate drug prices and permits direct negotiations between providers and insurers on hospital services. It requires hospitals to publish machine-readable pricing information and eliminates various anti-competitive contracting restrictions. The bill expands price transparency requirements, mandates timely billing (within 45 days), and requires pharmacy benefit manager (PBM) reporting on rebates and pricing.
## Prescription Drug Reforms (Title III-E & III-F)
Key drug provisions include:
- Expedited FDA approval pathways for complex generic drugs and conditional approval for rare disease treatments
- Reduced brand-name biologics exclusivity from 12 years to 5 years
- Manufacturer discount programs in Medicare Part D (20-40% discounts on certain drugs initially, declining over time)
- Allows biosimilar auto-substitution and eliminates interchangeability requirements
- Prohibits state barriers to biosimilar substitution
- PBM transparency requirements: prohibits spread pricing, requires rebate pass-through
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.