HSA Future Still Looking Bright
It would appear that the next several years are looking good for those hoping to find tax-free dollars to pay for medical expenses. President-elect Donald J. Trump’s pick of Rep. Tom Price (R-Ga.) for Secretary of Health and Human Services gives us some more specific insight into the tactics the next administration might use to address healthcare issues. In 2005, Rep. Price introduced H.R. 2300, the Empowering Patients First Act.
Specifically, the bill calls for HSA regulations to be expanded, allowing for:
- A rollover to child or parent of accountholder in the event of the accountholder’s death
- Spouses to make two catch-up contributions in the same HSA, thereby saving fees
- An increase in the contribution limits to be more in line with retirement account funding
- Enrollment in Tricare, or Medicare Part A, without jeopardizing HSA eligibility
- HSA dollars to be used for certain medical events occurring prior to the establishment of the HSA
- HSAs to be treated like IRAs for bankruptcy purposes, and
- Changes in how HRAs and FSAs interact with HSA eligibility.
All in all, the intent appears to be clear; and from my perspective, HSAs have a promising future.