Three Cheers for Sen. Hatch
The Family and Retirement Health Investment Act of 2011 will:
- Allow a husband and wife to make catch-up contributions to the same HSA;
- Remove the onerous new restrictions on the use of HSA and FSA dollars for the purchase of over-the-counter drugs;
- Allow individuals to roll-over up to $500 from their FSA accounts;
- Clarify the use of prescription drugs as preventive care that will not be subject to an HSA-eligible plan deductible;
- Reauthorize the use of Medicaid health opportunity accounts;
- Promote wellness by expanding the definition of qualified medical expenses to encourage more exercise and better diet;
- Allow seniors enrolled in Medicare Part A to continue contributing to their HSAs; and
- Allow for the purchase of low-premium health insurance and long-term care insurance with HSA dollars.
Read full post on the Family and Retirement Health Investment Act of 2011.
Why just three??
Sounds good to me!
For the healthy, HSAs are a way to save for retirement health care expenses, and for those with chronic conditions, they are a way to pay deductibles with pre-tax dollars. Their use should be encouraged and their availability expanded to everyone.
Good changes.
All these reforms are great. I think the most important one, short term, is restoring OTC medicines to HSA/FSA eligibility. I believe that this is the only piece of Hatch’s bill that is actually a repeal of part of PPACA.
As a results of PPACA outlawing HSA/FSA eligibility for OTC meds, we have developing evidence that patients are going to their doctors to prescribe the meds, and submitting the claim to their health plan. This is an unnecessary increase in medical spending.
Good for Sen. Hatch for keeping his eye on HSAs. We’re not hearing enough about them these days.