This week, H.R. 1196, ‘The Health Savings Act’ was introduced in the U.S. House of Representatives. Health savings accounts (HSAs) are used in conjunction with low premium health insurance plans so that families can spend their own money on their own health needs. This legislation will make important improvements to HSAs to allow individuals and families greater freedom to finance their medical needs. ATR urges all members of Congress to support this legislation.
H.R. 1196, introduced by Congressman Michael C. Burgess, M.D. (R-Texas) makes several commonsense improvements to HSAs. This bill creates child HSAs to help parents meet the costs of caring for young children. Specifically, this will allow families to set aside part of their hard-earned after tax dollars towards the wellbeing of their children.
The legislation also raises the contribution limit that individuals are permitted to contribute to their HSAs to equal the annual out-of-pocket maximum. Lastly, H.R. 1196 protects individuals from losing money in HSAs from bankruptcy. If an individual faces bankruptcy, the money in an HSA is protected in the same manner as retirement accounts.
This legislation will increase patient choice, update and improve HSAs and allow American families the freedom to plan and finance their medical needs. ATR fully supports the Health Savings Act and urges all members of the House and Senate to support this bill.