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 s 1158, 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 access to Health Savings Accounts (HSAs) for individuals and families.

One of the key provisions of the bill is to increase the annual contribution limits for HSAs. Currently, individuals can contribute up to $3,600 per year and families can contribute up to $7,200 per year. The Health Savings Act of 2023 would raise these limits to $5,000 for individuals and $10,000 for families.

Additionally, the bill aims to make it easier for individuals to use their HSA funds for a wider range of healthcare expenses. Under the proposed legislation, over-the-counter medications, menstrual care products, and certain fitness and wellness expenses would be eligible for HSA reimbursement. Furthermore, the Health Savings Act of 2023 includes provisions to allow individuals to roll over unused HSA funds from year to year, rather than losing them at the end of the year. This would give individuals more flexibility in managing their healthcare expenses and saving for future medical needs. Overall, the Health Savings Act of 2023 seeks to promote greater access to affordable healthcare options for individuals and families by expanding the use and benefits of Health Savings Accounts. The bill is currently under review in Congress and may undergo further revisions before being voted on.