Rep. Blake Moore
U.S. Rep. Blake Moore (R-UT) on Sept. 26 sponsored legislation that would allow for certain distributions from a health savings account (HSA) for medical expenses incurred during the 60-day period before the account was established.
“This legislation will bolster consumers’ ability to use these tax-advantaged accounts to reduce the cost of their care,” said Rep. Blake on Tuesday.
The Advancing Health Savings Act, H.R. 5690, aims to help patients access their HSA benefits as soon as they are covered under an HSA-eligible, high-deductible health plan (HDHP), according to a bill summary provided by Rep. Moore’s staff.
“The Advancing Health Savings Act is a common-sense reform measure that will give patients peace of mind in knowing they have access to the savings afforded by HSAs for certain medical expenses incurred before they could establish their HSA,” Rep. Moore said. “These accounts are designed to empower patients to lower their health care costs and save tax-free for future medical needs.”
If enacted, H.R. 5690 would establish a special rule for qualified medical expenses incurred prior to the establishment of an HSA. If an HSA were established within 60 days of the effective coverage date for a HDHP, then an individual could use distributions from the HSA to pay for qualified medical expenses incurred during that 60-day period between when their HDHP coverage began and when the HSA was established, the summary says.
H.R. 5690 has garnered support from numerous organizations, including the American Bankers Association Health Savings Account Council, the Employers Council on Flexible Compensation, the HSA Coalition, the ERISA Industry Committee, the Utah Association of Certified Public Accountants, the Utah Bankers Association, the Utah Hospital Association, the Utah Hispanic Chamber of Commerce, the Utah Taxpayers Association, and several Utah chambers of commerce.
The bill is cosponsored by U.S. Rep. Claudia Tenney (R-NY).