Burgess reintroduces legislation to expand use of HSAs

U.S. Rep. Michael C. Burgess (R-TX) presented legislation on Monday that would increase the opportunity for families to save money for health care expenses through the use of Health Savings Accounts (HSAs).

Under current law, HSAs can only be purchased for designated insurance plans, which often limit the amount the insured is able to contribute. In most cases, the limit ends up being lower than the deductible, which reduces the efficiency of the plan.

The Burgess bill would permit more broad utilization of an HSAs by: allowing parents to set up HSAs for their children to claim an after-tax deduction; increasing the contribution limit to match the maximum out-of-pocket limit; and providing bankruptcy protection to HSAs similar to those for individual retirement accounts.

“I have long been a proponent of expanding the use of HSAs, especially in light of how vastly the president’s health care law limits personal choice when it comes to paying for health care,” Burgess said. “This legislation allows individuals to use their own money more effectively and brings back an element of freedom when it comes to paying for health care.”

Burgess introduced the same legislation last year, but it was not passed.

“This bill is an important step in the right direction to help mitigate some of the problems that have arisen as a result of the president’s damaging health care law,” he added.