House of Representatives has passed two bills that enhance and seek to expand the use of health savings accounts. Perhaps more significantly, the bills – H.R. 6199 (115) and H.R. 6311 (115) passed with some crossover support from Democrats.
Restoring Access to Medication and Modernizing Health Savings Accounts Act of 2018-
HR 6199, the Restoring Access to Medication and Modernizing Health Savings Accounts Act of 2018, passed 277-142 with the backing of 46 Democrats (and the opposition of a single Republican, Rep. Walter Jones of North Carolina). The bill would allow people with health savings accounts to count gym memberships, the purchase of certain sports equipment, and certain over-the-counter medications as qualified medical expenses (up to a limit of $500 a year for an individual and $1,000 a year for a joint return). It would also give spouses more opportunity to contribute to their partner’s HSA (in situations where the spouse has a flexible spending account).
H.R. 6199 was introduced on June 22, 2018, by Rep. Lynn Jenkins (R-KS) and was referred to the Committee on Ways & Means, which ordered the bill reported on July 11, 2018, by a vote of 24-10.
Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act of 2018-
As for HR 6311, the Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act of 2018, that bill passed by a margin of 242-176, gaining the support of a dozen Democrats. H.R. 6311 was introduced on July 6, 2018, by Rep. Peter Roskam (R-IL) and was referred to the Committee on Ways & Means, which ordered the bill reported on July 11, 2018, by a vote of 23-16.
The bill would:
- Increase the maximum contribution to health savings accounts (to the amount of deductible and out-of-pocket limitation – $6,650 for an individual and $13,300 for a family in 2018).
- Allow both spouses to make catch-up contributions to the same health savings account. Under current law, if both spouses are HSA-eligible and age 55 or older, they must open separate HSA accounts for their respective “catch-up” contributions (an extra $1,000 annually). This provision would allow both spouses to deposit their catch-up contributions into one account.
- Allow working seniors to contribute to HSAs.
- Allow balances on flexible savings accounts to be carried over.
It would also delay the Affordable Care Act’s health insurance tax for another two years.
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Source: NAPA Net