What’s the news: The AMA is endorsing a bipartisan bill (S. 3204/H.R. 4464) that would update federal budget rules to more effectively account for long-term savings generated by preventive care. The Preventive Health Savings Act was introduced by Sen. Angus King (I-Maine), and original co-sponsors Sens. Mike Crapo (R-Idaho), Chris Van Hollen (D-Md.) and Kevin Cramer (R-N.D.).
On the House side, the bill is led by Reps. Jay Obernolte (R-Calif.), Dianna DeGette (D-Colo.), Scott Peters (D-Calif.), and Buddy Carter (R-Ga.).
The legislation would permit the Congressional Budget Office (CBO) to expand the current 10-year budget scoring window to 30 years, allowing for a more comprehensive evaluation of the cost savings associated with preventive health care provided they are asked to do this jointly by the leadership of the budget and health care committees of jurisdiction in Congress. This would give Congress a clearer and more accurate understanding of how preventive health policies can improve patient health while lowering overall health care costs.
“This bipartisan legislation brings together budget policy and health policy to reflect the benefits of tackling chronic disease,” said AMA President Bobby Mukkamala, MD, in a statement issued by Sen. King that touted introduction of the bill.
“Not only will our patients live longer and healthier because of federally funded health initiatives aimed at prevention, but taxpayers will benefit from savings resulting from treating chronic diseases. Allowing CBO to assess long-term savings from prevention legislation is a prescription for bending the health care cost curve,” Dr. Mukkamala added.
AMA CEO and Executive Vice President John Whyte, MD, MPH, commended the legislation’s definition of “preventive health” in a letter (PDF) to House companion bill (H.R. 4464) sponsors earlier in 2025.
That definition includes actions aimed at protecting, promoting and maintaining the health of the public, individuals, and specific populations, as well as preventing disease, disability, and premature death, as supported by credible, publicly available studies and data, Dr. Whyte wrote to Reps. Obernolte, DeGette, Carter and Peters.
Why it’s important: Chronic diseases are among the leading causes of death and disability in the United States. Each year, nearly 1 million Americans die from heart disease or stroke, and about 1.7 million receive a cancer diagnosis. Additionally, more than 98 million Americans have prediabetes, while 38 million are living with diabetes. From a fiscal perspective, most of the nation’s $3.3 trillion in annual health care spending goes toward treating chronic illness.
Expanded access to routine screenings, diagnostic testing, and early intervention could help reduce the prevalence of common, easily identifiable conditions such as heart disease, diabetes, and obesity.
CBO analyses serve as a key benchmark for assessing the fiscal impact of legislation on taxpayers. However, under current law, these analyses do not account for the long-term cost savings of preventive health initiatives. As Dr. Whyte noted in his letter, research indicates that the financial benefits of preventive medicine may not become apparent within the standard 10-year budget window.
The Preventive Health Savings Act would require the CBO to better reflect the cost-savings of preventive health care by allowing congressional panels to request additional analyses of the budgetary impact. Expanding the budget window would more accurately capture savings from preventive care. This approach would support more informed health policy reviews, promote public health, and encourage Congress to invest in proven strategies that save lives and reduce costs.
Expanding preventive care means learning how to best measure it, said Sen. King in his statement. “The cheapest surgery or treatment is the one that we avoid by getting ahead of the issue, and this bill is a simple step to reduce health care expenses, save taxpayer dollars and support Americans’ long-term health,” he said.
Learn more: The AMA will continue to work with the bipartisan sponsors of the bill to advance this legislation in Congress. Visit AMA Advocacy in Action to find out what’s at stake for advocacy priorities the AMA is actively working on.
