H.R. 4464: Preventive Health Savings Act

The Preventive Health Savings Act aims to amend the Congressional Budget Act of 1974 by establishing a process for assessing the budgetary impact of preventive health care legislation. Here’s a breakdown of what the bill entails:

Purpose of the Bill

The bill seeks to allow for a better understanding of how preventive health care initiatives can lead to financial savings in the federal budget over time. It emphasizes the significance of preventive health care in potentially reducing total government spending related to health issues.

Key Provisions

• Request for Assessment: The Director of the Congressional Budget Office (CBO) must evaluate proposed legislation if requested by certain congressional committee leaders. This assessment will determine if the legislation would lead to net reductions in budget outlays in future budgetary years due to preventive health care measures.
• Inclusion in Projections: If the assessment concludes that a proposal would save money, the CBO is required to include details about these anticipated savings in budget projections. This includes describing the basis for the conclusions made in their assessment.
• Budget Projection Flexibility: The bill allows the CBO to make projections that cover a longer time frame than currently typical, enabling them to assess impacts beyond the usual limits on budget forecasting.
• Supplementary Estimates: It specifies that these estimates regarding budgetary savings should serve as supplemental information and cannot be used for enforcing compliance with existing budget regulations under the Congressional Budget Act.

Definitions

The bill clarifies several terms used within its provisions:

• Budgetary Outyears: Refers to two consecutive ten-year periods beginning ten years after the current fiscal year.
• Preventive Health Care: Defined as actions aimed at protecting and promoting health, preventing diseases, disabilities, and premature deaths. This includes the promotion and application of effective health care interventions supported by credible evidence from various credible sources such as epidemiological models and clinical studies.

Implications

The intention behind the bill is to formally recognize the potential for future federal savings through investments in preventive health measures. By facilitating these assessments, the legislation aims to encourage lawmakers to support and implement preventive health initiatives with a clearer understanding of their long-term financial benefits.

Relevant Companies

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