A House Republican has brought back a long health care package that could make sweeping changes to employer-sponsored health benefits plans.
The package, the Fair Care Act of 2026 bill, could cap the employer health benefits tax exclusion at $10,200 for self-only coverage and $27,500 for family coverage, with the caps adjusted for inflation.
Another provision could make contributing to an employee's health savings account the only way for a corporation formed after Dec. 31, 2026, to use the federal health benefits tax exclusion.
Rep. Bruce Westerman, R-Ark., filed the latest version of the bill Thursday.
"It is time to create an accessible, functioning health care system," Westerman wrote in a column announcing the bill introduction. "Americans are paying $5 trillion annually for health care plans that barely even work... We cannot afford to let partisan politics stand in the way of common sense and quality care."
What it means: The new Fair Care Act bill is under the jurisdiction of nine House committees and has no co-sponsors.
The new version of the bill is the fifth that Westerman has introduced, and the earlier versions have all died in committee.
But the latest version could get more attention, because it includes many provisions aimed at free-market Republicans who want to focus on having individuals use cash in their own health accounts to pay for as much care as possible, rather than relying mainly on insurers, employer-sponsored health plans and government programs to pay for care.
Other bill provisions: The new bill includes more than 75 proposals.
Many focus on changing the rules for Medicare, Medicaid or individual health coverage.
One provision related to employer-sponsored health benefits could eliminate the law that now requires large employers to offer many employees affordable major medical coverage with a minimum value or else face the risk of having to pay penalties.
Another employee benefits provision could make the rules governing individual coverage health reimbursement arrangement plans, or ICHRA plans, federal law.
An ICHRA plan is a vehicle for providing employer cash that employees can use to buy their own individual or family major medical coverage. The ICHRA plan rules are now based on federal regulations, not on a federal law.
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