The Health Savings Act would greatly expand access to Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) and significantly enhance the types of medical expenses the accounts could be used for.
The bill would make HSAs available to employees beyond those in high deductible health plans (HDHP). Currently, HSAs are only available to employees enrolled in HDHPs.
The legislation would, among other things:
- Allow HSA funds to pay health insurance premiums and direct primary care arrangements;
- Allow HSAs in cases where employees are also eligible for on-site medical clinic coverage;
- Expand “preventive care” to include prescription and over-the-counter drugs that prevent the onset or deterioration of chronic conditions;
- Allow working seniors and their employers to continue contributing to an HSA after reaching age 65; and
- Increase the maximum contribution limit for HSAs to match the out-of-pocket limit for HSA eligible health plans.
Outlook: The bill, which is consistent with the GOP’s Healthy Future Task Force recommendations, has a much better chance of passing the House than the Senate.