U.S. Sen. Cory Gardner (R-CO) introduced bipartisan legislation to help seniors pay for everyday homecare by allowing them to use tax-free health savings accounts (HSAs) for qualified homecare expenses.
“Current law keeps seniors from being able to use the money they have saved in a health savings account to access homecare services,” Sen. Gardner noted.
The senator introduced the Homecare for Seniors Act, S. 3261, on Feb. 10 with U.S. Sen. Kyrsten Sinema (D-AZ). The bill would specifically amend the Internal Revenue Code to allow individuals over the age of 65 to use qualified distributions from tax-advantaged health savings accounts for certain qualified homecare expenses, including assistance with eating, bathing, dressing and taking medication.
“Without homecare support, seniors can be forced to decide to move into a more restrictive, expensive setting,” Sen. Gardner said. “It is critical we give seniors the flexibility to use their savings to pay for invaluable homecare services and ensure they are able to choose to remain in their homes.”
Sen. Gardner’s bill is companion legislation to H.R. 2878, which was introduced by lead sponsor U.S. Rep. Katie Porter (D-CA) and original cosponsors including U.S. Rep. Jackie Walorski (R-IN) in May 2019.
“With health care costs ever-growing, the home is the ideal and most efficient setting for seniors in need of assistance with activities of daily living. Relaxing restrictions on distributions of health savings account funds is a simple way to open up access to these services,” said Calvin McDaniel, director of Government Affairs for the National Association for Home Care and Hospice.
The legislation is also endorsed by the Homecare Association of America, the National Alliance for Caregiving, and the Alzheimer’s Foundation, among others.