American Health Policy Institute

House Committee Advances HR Policy-Supported HSA Expansion Legislation

The House Ways and Means Committee advanced two HR Policy-supported bills that expand access to health savings accounts (HSA). HR Policy signed a letter of support with other business groups ahead of the Ways and Means Committee markup.

The two bills allow participants to use funds for additional services like direct primary care arrangements and raise the contribution limits for single and family plans.

  • The Bipartisan HSA Improvement Act (H.R. 5688) allows participants to utilize HSA funds for services including direct primary care arrangements and worksite clinics. It also eliminates a provision which prohibits an individual from establishing an HSA if their spouse has an existing flexible savings account (FSA).

  • The HSA Modernization Act (H.R. 5687):
    1. Increases the basic limit on annual contributions to $7,750 from $3,850 for single coverage and to $15,000 from $7,750 for family coverage;

    2. Widens veteran access to HSAs;

    3. Allows those eligible for Medicare Part A to continue to contribute to HSAs;

    4. Allows both spouses to make catch-up contributions at age 55;

    5. Clarifies that HSA funds can purchase long-term care services; and

    6. Provides a safe harbor for mental health services without a deductible.

What’s Next: Several Democrats opposed the legislation arguing that it will continue to bolster high-deductible health plans which they argue increases tax breaks and exacerbates health disparities by making health care unaffordable. While some of these members support certain provisions like directing funds for direct primary care, it will likely not be enough to put their full support behind the overall legislation.

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Authors: Margaret Faso



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