The House Ways and Means Committee recently cleared legislation which would make substantial enhancements and improvements to Health Savings Accounts (HSAs). There are two bills which have now been cleared for a vote in the House of Representatives (House). If passed in the House, the bills would then need to be approved by the Senate before going to the president for signature.
 

The Bipartisan HSA Improvement Act would make the changes to HSAs:

• Allow individuals to use direct primary care arrangements and worksite health clinics without it eliminating HSA eligibility.
• Allow an individual to open and contribute to an HSA if their spouse has coverage under a Health Flexible Spending Account (Health FSA).
• Allow individuals to convert their Health FSA or Health Reimbursement Arrangement (HRA) into an HSA.

The HSA Modernization Act would make the following changes to HSAs:

• Allow individuals to have coverage under Medicare Part A or through the Veterans Administration without it eliminating HSA eligibility.
• Additional coverage for mental health and home health care could be provided without it eliminating HSA eligibility.
• Any Bronze tiered plan sold on the Marketplace would be considered a qualified High Deductible Health Plan (HDHP) even if it did not meet the traditional definition of an HDHP.
• HSA contribution maximums would be significantly increased.
• HSA funds could be withdrawn tax-free for medical expenses that were incurred up to 60 days prior to the establishment of an HSA.
• Catch-up contributions when both spouses are age 55 or older could be made to the same HSA (rather than two separate HSAs).
   

For additional information, please refer to this press release from the House Ways and Means Committee.