Bipartisan HSA Improvement Act of 2023

3/18/2024, 10:19 PM

Bipartisan HSA Improvement Act of 2023

This bill allows an individual to contribute to a health savings account (HSA), as part of a high deductible health plan (HDHP), while also participating in a primary care service arrangement, receiving qualified items or services at an employer-sponsored on-site clinic, or if covered under a spouse’s flexible spending arrangement (FSA). Further, the bill allows individuals to rollover amounts in an FSA or health reimbursement arrangement (HRA) into an HSA.

The bill defines a primary care service arrangement as one in which an individual is provided primary care services by a primary care practitioner for a periodic fixed fee of no more than $150 a month for an individual (or no more than $300 a month for an arrangement that covers more than one individual).

Additionally, under the bill, qualified items or services received at an employer-sponsored, on-site clinic include physical exams, immunizations, nonprescription drugs or biologicals, treatment for injuries related to an individual’s employment, preventative care for chronic conditions, and vision and hearing screenings.

The bill allows an individual to contribute to an HSA, as part of an HDHP, even if covered by a spouse’s FSA. However, amounts in the spouse’s FSA must be used to reimburse the spouse’s eligible medical expenses for the plan year before being rolled over into the individual’s HSA.

Finally, individuals may be able to rollover up to the annual FSA contribution limit from an FSA or HRA into an HSA upon enrolling in an HDHP. 

Bill 118 HR 5688, also known as the Bipartisan HSA Improvement Act of 2023, aims to make improvements to Health Savings Accounts (HSAs) in the United States. The bill was introduced in the House of Representatives with bipartisan support.

The main provisions of the bill include increasing the contribution limits for HSAs, allowing for catch-up contributions for individuals over the age of 55, and expanding the list of eligible medical expenses that can be paid for using HSA funds. Additionally, the bill seeks to simplify the process for individuals to use their HSA funds for preventive care services.

The bill also includes provisions to allow for the use of HSA funds to pay for certain over-the-counter medications and menstrual care products. Furthermore, the bill aims to expand access to HSAs for individuals who are enrolled in high-deductible health plans through their employer. Overall, the Bipartisan HSA Improvement Act of 2023 seeks to make HSAs more accessible and flexible for individuals to use for their healthcare needs. The bill has garnered support from both Democrats and Republicans in Congress and is currently being considered for passage.
Congress
118

Number
HR - 5688

Introduced on
2023-09-26

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

2/26/2024

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Bipartisan HSA Improvement Act of 2023

This bill allows an individual to contribute to a health savings account (HSA), as part of a high deductible health plan (HDHP), while also participating in a primary care service arrangement, receiving qualified items or services at an employer-sponsored on-site clinic, or if covered under a spouse’s flexible spending arrangement (FSA). Further, the bill allows individuals to rollover amounts in an FSA or health reimbursement arrangement (HRA) into an HSA.

The bill defines a primary care service arrangement as one in which an individual is provided primary care services by a primary care practitioner for a periodic fixed fee of no more than $150 a month for an individual (or no more than $300 a month for an arrangement that covers more than one individual).

Additionally, under the bill, qualified items or services received at an employer-sponsored, on-site clinic include physical exams, immunizations, nonprescription drugs or biologicals, treatment for injuries related to an individual’s employment, preventative care for chronic conditions, and vision and hearing screenings.

The bill allows an individual to contribute to an HSA, as part of an HDHP, even if covered by a spouse’s FSA. However, amounts in the spouse’s FSA must be used to reimburse the spouse’s eligible medical expenses for the plan year before being rolled over into the individual’s HSA.

Finally, individuals may be able to rollover up to the annual FSA contribution limit from an FSA or HRA into an HSA upon enrolling in an HDHP. 

Bill 118 HR 5688, also known as the Bipartisan HSA Improvement Act of 2023, aims to make improvements to Health Savings Accounts (HSAs) in the United States. The bill was introduced in the House of Representatives with bipartisan support.

The main provisions of the bill include increasing the contribution limits for HSAs, allowing for catch-up contributions for individuals over the age of 55, and expanding the list of eligible medical expenses that can be paid for using HSA funds. Additionally, the bill seeks to simplify the process for individuals to use their HSA funds for preventive care services.

The bill also includes provisions to allow for the use of HSA funds to pay for certain over-the-counter medications and menstrual care products. Furthermore, the bill aims to expand access to HSAs for individuals who are enrolled in high-deductible health plans through their employer. Overall, the Bipartisan HSA Improvement Act of 2023 seeks to make HSAs more accessible and flexible for individuals to use for their healthcare needs. The bill has garnered support from both Democrats and Republicans in Congress and is currently being considered for passage.
Alternative Names
Official Title as IntroducedTo amend the Internal Revenue Code of 1986 to improve health savings accounts.

Policy Areas
Taxation

Comments

Recent Activity

Latest Summary11/13/2024

Bipartisan HSA Improvement Act of 2023

This bill allows an individual to contribute to a health savings account (HSA), as part of a high deductible health plan (HDHP), while also participating in a primary care service arran...


Latest Action2/26/2024
Placed on the Union Calendar, Calendar No. 330.