A bipartisan bill sponsored on Sept. 26 by U.S. Rep. Lloyd Smucker (R-PA) to improve health savings accounts (HSAs) received committee approval during the same week it was introduced and is headed to the full chamber for action.
“This legislation will expand HSA coverage to Direct Primary Care services, which puts patients in charge of their health, improves outcomes, and reduces costs for businesses and employees,” said Rep. Smucker.
The Bipartisan HSA Improvement Act of 2023, H.R. 5688, which he proposed alongside U.S. Rep. Earl Blumenauer (D-OR), received approval on Sept. 28 with a 28-14 vote from the U.S. House Ways and Means Committee. If enacted, H.R. 5688 would expand Americans’ access to HSAs and the services eligible for payment with HSA funds, according to a bill summary provided by Rep. Smucker’s staff.
“I appreciate the support of my colleagues on the Ways & Means Committee in advancing legislation to support Americans’ access to HSAs and the healthcare services they choose,” Rep. Smucker said. “I appreciate Rep. Blumenauer’s support for this legislation and look forward to advocating for this legislation’s passage.”
Specifically, H.R. 5688 would clarify provisions of the Internal Revenue Code to remove barriers for individuals with HSAs from using those funds to access Direct Primary Care, a healthcare delivery model that provides high-quality care at lower cost, the summary says.
Additionally, the measure would protect employee access to health care at their workplace health center by ensuring individuals who access such care are also eligible to use HSAs, and permit individuals to maintain an HSA even if the individual’s spouse is enrolled in a flexible spending arrangement (FSA), states the summary.
Among other provisions, H.R. 5688 would ensure employees, at the employer’s discretion, may convert their FSA and health reimbursement arrangement balances into an HSA contribution upon enrolling in a High Deductible Health Plan (HDHP)-HSA. The conversion amount would be capped at the annual FSA contribution limit for an individual ($3,050 in 2023) and double that for family coverage, according to the summary.
“The legislation we passed out of the Ways and Means Committee to make common-sense changes to HSAs will allow beneficiaries to make the most of their health coverage,” said Rep. Blumenauer. “HSAs are a reality of our current healthcare system and we should take this opportunity to make them better. I thank Mr. Smucker for his partnership on this bill.”