Members of Congress urges a YES vote on H.R. 6311, the Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act, and H.R 6199, the Restoring Access to Medication and Modernizing Health Savings Accounts Act.
This week, the House of Representatives will vote on several pieces of legislation that expand Health Savings Accounts (HSAs) and offer relief from Obamacare taxes.
All members of Congress should support both pieces of legislation.
HSAs are used in conjunction with low premium, high deductible health insurance plans and provide a vehicle for individuals to spend and control their own money on their own health needs. These bills will further build on the success of HSAs by lowering taxes, increasing patient choice, and reducing the cost of healthcare for all Americans.
H.R. 6311 – “Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act of 2018”
This legislation contains numerous proposals that expand HSAs. Most notably, the legislation doubles the contribution limit of HSAs. Under the reform, the limit will increase from $3,450 to $6,650 for an individual and $6,900 to $13,300 for a family.
Doubling the contribution limit will allow individuals and families more money to spend on qualified medical expenses tax free.
H.R. 6311 also expands HSAs in several important ways. First, the bill will allow working seniors enrolled in Medicare part A to continue to contribute to their HSA. Eligibility for an HSA will also be expanded to those who are enrolled in bronze and catastrophic Obamacare health plans.
Finally, the legislation pauses the Obamacare health insurance tax for 2020 and 2021. This destructive tax is imposed on health insurance premiums and impacts 11 million households that purchase through the individual insurance market, 23 million households covered through their employer, and 1.7 million small businesses.
The health insurance tax is estimated to increase premiums by as much as 3 percent and could increase premiums by an average of $5,000 over a ten year period, according to the American Action Forum.
H.R. 6199 – “Restoring Access to Medication and Modernizing Health Savings Accounts Act of 2018”
The Restoring Access to Medication and Modernizing Health Savings Accounts Act contains a number of bipartisan proposals designed to expand the ability of HSAs to be used on medical expenses.
Most notably, the legislation will end the Obamacare restriction on purchasing over-the-counter-medications. Under current law, individuals may not purchase these medications without a prescription, a needless requirement that restricts access to medicines.
H.R. 6199 also expands HSAs so they can be used on certain sports and fitness expenses of up to $500 for an individual and $1,000 for a family. The bill also offers employers flexibility to offer free or discounted medical services at on-site or retail medical clinics without disqualifying an enrollee from an HSA and allows HSAs to be used for direct primary care up to a limit of $150 per month for an individual and $300 per month for a family.