Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) would be expanded and simplified under bicameral legislation recently introduced by U.S. Rep. Erik Paulsen (R-MN) and U.S. Sen. Orrin Hatch (R-UT).
The Health Savings Act of 2017 would enable both spouses in a marriage to make catch up contributions to tax-advantaged health accounts, and it would allow Medicare beneficiaries’ to have greater opportunities to put away tax-free savings for medical costs.
“Millions of Americans rely on HSAs and FSAs because of the choice, control and flexibility it offers them and their families when it comes to their health care decisions,” Paulsen said. “By expanding and updating this popular health care option, this initiative will provide families with greater flexibility to save and pay for medical expenses.”
HSAs covered approximately 454,000 people when Congress first authorized them, but 20.2 million individuals were covered under an HSA-eligible health plan by 2016.
“Health Savings Accounts and Flexible Spending Accounts are critical to providing Americans with flexibility and control over their personal health spending,” said Hatch, who serves as Senate Finance Committee chairman.
“These plans have been in place for over a decade and while they’ve grown in popularity, they are in need of crucial updates. This bill provides those necessary updates and, as we work to repeal and replace Obamacare, sets a marker for how we can make it easier for American families and workers to grow and access tax-free savings for future medical costs,” Hatch said.