House Passes Bills to Improve Health Savings Accounts

August 16, 2018

The House of Representatives recently passed two bills that expand and improve access to Health Savings Accounts (HSAs).

HR 6199 includes the following:

  • Allowing HSA contributions even if the accountholder’s spouse is enrolled in a health FSA;
  • Allowing an employee to transfer health FSA or HRA balances (up to certain limits) to an HSA upon enrollment in an HDHP;
  • Providing first dollar coverage for certain non-preventive care, up to $250 year for individual coverage and up to $500 for family coverage; and
  • Expansion of eligible medical expenses for HSAs, health FSAs and HRAs, such as gym memberships, menstrual care products, and over-the-counter medications.

HR 6311 includes the following:

  • Increasing the HSA annual contribution limit significantly, to $6,650 for individuals and to $13,300 for families;
  • Allowing employees enrolled in Medicare Part A to be eligible to contribute to an HSA; and
  • Allowing $1,000 catch-up contribution for spouses age 55+ if the accountholder is also age 55+.

Next, the Senate will review and vote on whether to pass each bill. We will keep you updated as additional information becomes available.