Legislation Introduced in House and Senate to Expand HSAs

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Last week, Senators Orin Hatch (R-UT) and Marco Rubio (R-FL) introduced the Health Savings Act of 2017, S.403. Companion legislation was introduced in the House of Representatives by Rep. Eric Paulsen (R-3rd MN). The legislation would expand the use of Health Savings Accounts (“HSAs”) by broadening eligibility rules, increasing maximum contribution limits and widening the universe of expenses that could be reimbursed from HSAs. The legislation also contains provisions pertaining to the interaction between HSAs, flexible spending accounts (“FSAs”) and health reimbursement arrangements (“HRAs”).

This legislation is similar to the HSA bill that Sen. Hatch and Rep. Paulsen introduced in the last Congress. Among other things, this legislation would permit FSAs, HSAs and HRAs to reimburse for over-the counter drugs. Unlike the previous bill, however, this legislation would not exempt employee contributions to FSAs and HSAs from the “Cadillac Tax” calculation.

Because the principal sponsor of the bill in the Senate is Sen. Hatch, the Chairman of the Finance Committee, and the sponsor in the House is Rep. Paulsen, a member of the Health Subcommittee of the Ways and Means Committee, both of which have jurisdiction over health care legislation, this bill will very likely be considered as part of future Congressional discussions on health care reform. We will continue to monitor the progress of this bill as it moves through Congress and will post updates as they become available.

Categories: Health Care Reform | Tags: HSA , HRA , FSA , Health Savings Accounts , Health Reimbursement Arrangements , Flexible Spending Accounts , Health Care Reform | Return