Aug 07, 2018
The House of Representatives passed two bills to expand the use of health savings accounts (HSAs). However, for these bills to become law, the Senate would have to pass them before the end of the year, which is challenging, according to an analysis by the Society for Human Resource Management (SHRM). With H.R. 6199, the Restoring Access to Medication and Modernizing Health Savings Accounts Act:
- Consumers could use tax-favored health accounts to purchase over-the-counter medical products
- Menstrual care products would be qualified medical expenses
- Certain sports and fitness expenses would be qualified medical expenses up to $500 a year for an individual and $1,000 a year for a family, including gym memberships and exercise programs
- High-deductible health plans (HDHPs) would cover non-preventive services up to $250 (self-only) and $500 (family) annually. On a limited basis, HDHPs could cover outside of the deductible for chronic-condition treatment and telehealth services, for example
- Individuals with HSA-qualifying family coverage could contribute to an HSA if their spouse is enrolled in a medical flexible spending account (FSA)
- Members could gain limited use of employer onsite medical clinics and other employment-related health services without risking their HSA eligibility
- HSA-eligible individuals who participate in a direct primary care (DPC) arrangement would be protected from losing their HSA eligibility. DPC provider fees would be covered with HSAs (capped monthly at $150 per individual and $300 per family)
With H.R. 6311, the Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act:
- The ACA's premium tax credit for low and moderate earners could be applied when buying lower-premium, catastrophic Copper plans
- People over 30 would be able to buy Copper plans
- Copper and Bronze individual and small-group market plans would qualify for HSA contributions. HSA contributions would be raised to $6,650 for individuals and $13,300 for families
- Members could use their HSAs to pay for qualified medical expenses at the start of HDHP coverage if the HSA is opened within 60 days of the HDHP start date
- Working seniors could contribute to an HSA of they are in Medicare Part A and covered by a qualifying HDHP
- Spouses over 55 could make an annual catch-up contribution (an extra $1,000) to an HSA that's linked to a family health plan. Currently, only the account holder can make an annual catch-up contribution
- At the employer's discretion, members in a qualifying high-deductible health plan could transfer balances from their FSA or health reimbursement arrangement (HRA) to their HSA. Transfers would be capped at $2,650 for individuals and $5,300 for families
- Health FSA balances could be carried over to the following plan year. This rollover could not exceed three times the annual FSA contribution limit
Contact your LISI Regional Sales Manager to find out how to take advantage of employee benefit trends in California.
