U.S. Reps. Blake Moore (R-UT), Brian Fitzpatrick (R-PA), and Adrian Smith (R-NE) on Feb. 4 joined a bipartisan contingent of lawmakers in introducing legislation that would provide Americans with a tax-advantaged savings tool that allows them to plan for their future healthcare needs.
Rep. Moore sponsored the Health Out-of-Pocket Expense (HOPE) Act, H.R. 955, alongside nine original cosponsors, including Reps. Fitzpatrick and Smith, as well as U.S. Reps. David Valadao (R-CA), John Moolenaar (R-MI), and Jimmy Panetta (D-CA).
If enacted, H.R. 955 would create a tax-advantaged account that enables Americans with most types of insurance coverage to save for healthcare costs through both individual and employer contributions, according to a bill summary provided by Rep. Moore’s staff.
“Healthcare costs are one of the biggest issues I hear about from Utah patients, providers, and employers, and addressing this pressing issue is a top priority for me in Washington,” Rep. Moore said. “The HOPE Act is a step in the right direction in making health care more affordable for Utahns and Americans across the country.”
Under the bill, a HOPE Account would be similar to a Roth savings account. For example, anyone with qualifying coverage, including in the commercial market, Medicare, Medicaid, the Indian Health Service, and other sources of healthcare coverage, would be eligible to contribute to a HOPE Account.
Additionally, an individual’s contributions would not be tax deductible, though employer contributions would be deductible to the employer, and would be excluded from income and employment tax for individuals with an adjusted gross income of $100,000 or less or $200,000 or less for a family.
Employers and state programs would annually make contributions to a HOPE Account of up to 50 percent of the annual limit, among other provisions, according to the summary.
“This bipartisan legislation puts control back where it belongs — in the hands of families — by providing them with a powerful, tax-advantaged tool to manage their healthcare expenses,” said Rep. Fitzpatrick. “By lifting the financial strain of an increasingly unaffordable system, the HOPE Act ensures no family must choose between their health and their financial future.”
“This bipartisan bill will help families better plan for unexpected health emergencies,” added Rep. Smith. “HOPE Accounts are a strong solution to empower Americans to save money and address the high cost of health care.”