To amend the Internal Revenue Code of 1986 to allow distributions from a health flexible spending arrangement or health reimbursement arrangement directly to a health savings account in connection with establishing coverage under a high deductible health plan.

Bill 118 hr 5317, also known as the Health Savings Account Expansion Act, aims to amend the Internal Revenue Code of 1986 to allow distributions from a health flexible spending arrangement or health reimbursement arrangement to be directly transferred to a health savings account. This would be done in connection with establishing coverage under a high deductible health plan.

The bill seeks to streamline the process for individuals who have both a health flexible spending arrangement or health reimbursement arrangement and a health savings account. By allowing for direct transfers between these accounts, individuals would have more flexibility in managing their healthcare expenses and maximizing their savings.

This legislation is intended to make it easier for individuals to save for healthcare costs, particularly those with high deductible health plans. By allowing for these direct transfers, individuals would be able to better utilize the funds in their health savings account and potentially reduce their out-of-pocket expenses. Overall, the Health Savings Account Expansion Act aims to promote greater access to healthcare savings options and provide individuals with more control over their healthcare expenses.