House approves Moolenaar bill to improve health savings access for Native Americans

The U.S. House of Representatives passed U.S. Rep. John Moolenaar’s (R-MI) bipartisan bill that would permit individuals eligible for Indian Health Service assistance to qualify for federal Health Savings Accounts (HSAs).

“Health Savings Accounts help millions of Americans save money to pay for their health care, but an unfair law blocks Native Americans from paying into their HSAs for three months after they receive care from the Indian Health Service,” Rep. Moolenaar explained. “My bill ends this unfairness, helping Native Americans, including the Saginaw Chippewas in my district.”

The Native American Health Savings Improvement Act, H.R. 1476, introduced last March by Rep. Moolenaar and cosponsored by U.S. Rep. Raul Ruiz (D-CA), would improve access to HSAs for Native Americans who receive services at U.S. Health and Human Services’ Indian Health Service facilities. The House on July 24 amended and passed H.R. 1476.

Currently, Native Americans are required to wait three months after receiving care at an Indian Health Service facility before they’re permitted to contribute to their HSAs again depending on the nature of the care received. HSA eligibility isn’t impacted if a person received only select preventive services, but if someone receives any care that diagnoses, mitigates or treats an injury, illness or condition, then HSA eligibility is lost for three full months, according to Benefit Strategies LLC, a third-party employee benefits administration firm based in Manchester, N.H.

“They will no longer have to wait three months to save money for their health care,” said the congressman, noting that the bill would eliminate the restriction so that contributions to HSAs could be made whenever someone wanted to make them.

H.R. 1476 would amend the Internal Revenue Code of 1986 and would apply to taxable years beginning after Dec. 31, 2018, according to the congressional record.

“I thank my colleagues for their support of this legislation and I hope the Senate will take it up soon,” Rep. Moolenaar said.

The U.S. Senate received H.R. 1476 on July 25 and has referred it for consideration to the U.S. Senate Finance Committee.