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House of Representatives Passes Two HSA Bills

House of Representatives Passes Two HSA Bills

On July 25, the House passed two HSA-related bills expanding the scope of health savings accounts (HSA). These bills now move to the Senate for review. Here’s what you need to know about these HSA bills:

 

The Restoring Access to Medication and Modernizing Health Savings Account Act (H.R. 6199)

This bill would:

  • • Allow HSA-qualified high deductible health plans (HDHPs) to cover up to $250 of pre-deductible qualified medical expenses annually for individuals under self-only health coverage and $500 annually for individuals under family coverage. This would allow insurers to provide no-cost service that hopefully would reduce further medical charges (like primary care physician visits).
  • • Removes direct primary care (DPC) service arrangements from being counted as disqualifying coverage for HSA accountholders. DPC service arrangements are when individuals pay a fixed regular fee for treatment by a primary care physician.
  • • Allow employers to offer on-site medical clinics that HSA accountholders can use without being disqualified, as long as the clinics don’t offer significant medical treatment.
  • • Allow people to be HSA-eligible if their spouses have an FSA, as long as the spouse’s FSA withdrawals are not used to pay for the HSA-eligible accountholder’s medical expenses.
  • • Allow people with funded FSAs or HRAs to transfer funds to an HSA when they enroll in an HSA. The transfers can be up to $2,650 for individuals and $5,300 for families, and the transfers will be counted towards the HSAs’ contribution limits.
  • • Allow over-the-counter medications to be paid for with HSA funds and allow HSA accountholders to pay for menstrual care products, such as tampons or pads, with HSA funds.
  • • Allow certain sports and fitness-related costs, such as gym memberships, to be paid for with HSA funds. The limits would be $500 annually for individuals and $1,000 for families.

Read more details about this bill.

 

The Increasing Access of Lower Premium Plans and Expanding Health Savings Account Act (H.R. 6311)

This bill would:

  • • Allow FSA funds to be carried over to the next plan year as long as the FSA balance isn’t higher than three times the FSA annual contribution limit.
  • • Allow working individuals covered by an HSA-eligible HDHP and enrolled in Medicare A to contribute to their HSAs.
  • • Increase the HSA annual contribution limits to the year’s annual out-of-pocket maximum. For 2018, that would be $6,650 for individuals under self-only coverage and $13,300 for individuals under family coverage.
  • • Allow both HSA-eligible spouses over age 55 to make catch-up contributions into the same HSA (catch-up contributions are up to $1,000 annually).
  • • Allow new HSA accountholders to pay for any qualified medical expenses incurred after gaining HDHP coverage and before opening their HSA with tax-free HSA funds. This grace period would extend for 60 days.
  • • Allow certain bronze and catastrophic health plans to be HSA-qualified plans.
  • • Allows everyone in the individual market the ability to purchase lower-premium copper health plans.
  • • Postpones the Affordable Care Act’s annual tax on health insurers from 2020 to 2022.

Read more about this bill.

Author: James Denison