Americans for Tax Reform President Grover Norquist today released a letter of support for H.R. 295, the “Pandemic Healthcare Access Act,” introduced by Representative Ted Budd (R-NC). This legislation expands Health Savings Accounts (HSA) so that all Americans can pay for their healthcare tax free for the duration of the Coronavirus pandemic. This legislation will also increase access to healthcare and cut taxes for millions of Americans.
Because of the government mandate that says HSAs are only available when paired with a high deductible health plan (HDHP), hundreds of millions of Americans do not have access to an HSA. The Pandemic Healthcare Access Act suspends this requirement for as long as the coronavirus emergency declaration is in effect, which will allow Americans on Medicare, Medicaid, those that receive care through the VA, Indian health plans, Obamacare, and any employer plan to have an HSA.
The Pandemic Healthcare Access Act increases healthcare access choice and cuts taxes for American families. HSAs offer triple tax benefits to users – contributions made are tax free, interest and investment are earned tax free, and payments made to qualifying health expenses are tax free.
Not only will this bill cut taxes, it will also promote strong savings for American middle class families. For example, an HSA user can accumulate as much as $360,000 after contributing to an account for 40 years assuming a rate of return of just 2.5 percent, according to the Employee Benefit Research Institute. With a rate of return of 5 percent, an HSA user can accumulate $600,000 over 40 years.
ATR applauds Representative Budd’s efforts to expand HSAs so that Americans can save, invest, and spend healthcare dollars tax free. The Pandemic Healthcare Access Act should be supported by all members of Congress.