Bill Would Expand HSAs, FSAs

U.S. Senator Orrin Hatch (R-Utah) and U.S. Senator Marco Rubio (R-Florida) introduced the bill (S.1031), with counterpart legislation introduced in the U.S. House of Representatives by U.S. Representative Erik Paulsen (R-Minnesota).

Hatch and Rubio said the bill would:
 

• Allow a husband and wife to make catch-up contributions to the same HSA;
• Remove the onerous new restrictions on the use of HSA and FSA dollars for the purchase of over-the-counter drugs;
• Clarify the use of prescription drugs as preventive care that will not be subject to an HSA-eligible plan deductible;
• Reauthorize the use of Medicaid health opportunity accounts;
• Promote wellness by expanding the definition of qualified medical expenses to encourage more exercise and better nutrition;
• Allow seniors enrolled in Medicare Part A to continue contributing to their HSAs; and
• Allow for the purchase of low-premium health insurance and long-term care insurance with HSA dollars.

“Congress created health savings accounts and flexible spending accounts to help Americans pay for health care. Over the years, these plans have grown in popularity and it’s well past time Congress act to improve them,” said Hatch. Streamlining these health care products, he said, will provide millions of families, workers, and retirees the opportunity to put away tax-free savings to pay for their personal medical costs.

The full text of the bill can be found here.