The House of Representatives approved legislation on Thursday that U.S. Rep. Lynn Jenkins (R-KS) introduced to allow the purchase of over-the counter medications with tax-advantaged savings accounts.
The bipartisan Restoring Access to Medication and Improving Health Savings Act, H.R. 1270, would roll back a provision of the Affordable Care Act (ACA) that prevents consumers from using health savings accounts (HSA) and flexible savings accounts (FSA) to purchase over-the counter medications. The bill also incorporates provisions from a bill authored by U.S. Rep. Erik Paulsen (R-MN), the Health Care Security Act, H.R. 5445.
“This regulation makes no sense, requiring individuals to see their doctor simply to get a prescription for common cold medication,” Jenkins said. “I urge President Obama to listen to what the American people are saying and sign this bipartisan legislation into law if it reaches his desk — for the sake of the number one priority — putting the patient first.”
Jenkins said on the House floor that the legislation would allow Americans to be able to deposit more money into HSA accounts and match the amounts of deductibles and out-of-pocket expenses.
“It will allow people to contribute $6,550 individually and $13,100 for a family and those amounts will grow with inflation,” Jenkins said. “For older Americans this bill allows them to contribute ‘catch-up’ contributions to one shared HSA.”
The legislation would also modify existing caps on the amount that can be repaid to taxpayers whose advance payments exceed the ACA subsidy to which they are entitled.
“This is a bipartisan offset,” Jenkins said. “Twice Congress has voted to increase the amount of improper Obamacare subsidy overpayments that need to be repaid. Increasing the recovery of improper subsidy overpayments was a proposal first put forward by Senate Democrats in the 2010 Medicare doc fix and extenders legislation. Former HHS Secretary Sebelius described this offset as making it ‘fairer’ for all taxpayers.”
U.S. Rep. Joe Heck (R-NV), a supporter of the bill, said that HSA and FSA accounts are “critically important” to helping individuals afford basic healthcare needs, but that new regulations have restricted the types of purchases that can be made with those accounts.
“(The Restoring Access to Medication and Improving Health Savings Act) will improve access to care by strengthening HSAs and providing relief from unreasonable Obamacare provisions,” Heck said. “Specifically, H.R.1270 allows for the purchase of over-the-counter medication using HSA/FSA funds, allows both spouses to contribute to the same HSA/FSA accounts, and increases the maximum contribution limit.”
House Majority Leader Kevin McCarthy (R-CA) said that the healthcare law has increased costs across America and that even those who have health insurance face high premiums and limited networks.
“The American people won’t have access to affordable and quality care until we replace Obamacare with the plan outlined in the House’s Better Way initiative,” McCarthy said. “But in the meantime, people still need relief. This bill expands the use of tax-favored health savings accounts to cover more of people’s health care needs, including over-the-counter medications, while also increasing the amount people can contribute to their HSAs each year. With improved HSAs, those who struggle to pay growing health care costs can more easily save for and cover expenses.”