Health Savings Accounts Should Be Expanded and Protected
26th May 2016
The importance of HSAs is why Congress should pass H.R. 5324 and S. 2980, the Health Savings Account Expansion Act of 2016, legislation introduced this week by Congressman Dave Brat (R-Va.) and Senator Jeff Flake (R-Ariz.). This legislation contains a number of important reforms that will make HSAs even better.
First, the legislation more than doubles HSA contribution limits. Current HSA contribution limits are $3,350 for a single filer and $6,750 for a joint filer, and this legislation increases that to $9,000 for single filer and $18,000 for joint filers per year.
Second, the HSA expansion act lifts Obamacare restrictions on over the counter purchases and penalties placed on certain withdrawals.
Third, the bill allows HSA funds to be used to pay premiums and direct primary care expenses.
Lastly, superfluous regulatory requirements would be streamlined with the high deductible health plan mandate eliminated.