Health Savings Act of 2023

Health Savings Act of 2023

This bill modifies the requirements for health savings accounts (HSAs) to

• rename high deductible health plans as HSA-qualified health plans;
• allow spouses who have both attained age 55 to make catch-up contributions to the same HSA;
• make Medicare Part A (hospital insurance benefits) beneficiaries eligible to participate in an HSA;
• allow individuals eligible for hospital care or medical services under a program of the Indian Health Service or a tribal organization to participate in an HSA;
• allow members of a health care sharing ministry to participate in an HSA;
• allow individuals who receive primary care services in exchange for a fixed periodic fee or payment, or who receive health care benefits from an on-site medical clinic of an employer, to participate in an HSA;
• include amounts paid for prescription and over-the-counter medicines or drugs as qualified medical expenses for which distributions from an HSA or other tax-preferred savings accounts may be used;
• increase the limits on HSA contributions to match the sum of the annual deductible and out-of-pocket expenses permitted under a high deductible health plan; and
• allow HSA distributions to be used to purchase health insurance coverage.

The bill also (1) exempts HSAs from creditor claims in bankruptcy, and (2) reauthorizes Medicaid health opportunity accounts.

The bill allows a medical care tax deduction for (1) exercise equipment, physical fitness programs, and membership at a fitness facility; (2) nutritional and dietary supplements; and (3) periodic fees paid to a primary care physician and amounts paid for pre-paid primary care services.

Bill 118 HR 2959, also known as the Health Savings Act of 2023, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to expand and improve health savings accounts (HSAs) for individuals and families.

One key provision of the bill is to increase the annual contribution limits for HSAs, allowing individuals to save more money tax-free for medical expenses. This would provide individuals with greater flexibility and control over their healthcare costs.

Additionally, the bill aims to make HSAs more accessible to a wider range of individuals by allowing for the use of HSA funds to pay for health insurance premiums. This would help individuals who may not have access to employer-sponsored health insurance to still benefit from the tax advantages of an HSA. Furthermore, the bill includes provisions to allow for the rollover of unused HSA funds from year to year, providing individuals with the opportunity to save for future medical expenses without the fear of losing their savings at the end of the year. Overall, the Health Savings Act of 2023 seeks to empower individuals to take control of their healthcare costs and save for future medical expenses in a tax-advantaged way. It is currently being debated in Congress and may undergo changes before being voted on.