Bill 118 hr 5777, also known as the Health Savings Account Improvement Act, aims to make changes to the Internal Revenue Code of 1986 in order to enhance health savings accounts (HSAs).
The bill proposes several key amendments to current HSA regulations. One of the main changes is the increase in the annual contribution limit for individuals and families. Under the proposed legislation, individuals would be able to contribute up to $3,500 per year to their HSAs, while families would be able to contribute up to $7,000. This is an increase from the current limits of $3,450 for individuals and $6,900 for families.
Additionally, the bill seeks to expand the list of eligible medical expenses that can be paid for using HSA funds. This would include expenses related to direct primary care arrangements, certain over-the-counter medications, and menstrual care products.
Furthermore, the bill aims to simplify the process for individuals to use their HSA funds by allowing for the reimbursement of medical expenses incurred up to 60 days before the HSA was established. This would provide individuals with more flexibility in utilizing their HSA funds for eligible expenses.
Overall, the Health Savings Account Improvement Act seeks to make HSAs more accessible and user-friendly for individuals and families, while also expanding the range of eligible medical expenses that can be covered.