Liberating Health Savings Accounts

Senators Orrin Hatch (R-UT) and Marco Rubio (R-FL) have introduced legislation to eliminate many of the restrictions currently placed on HSAs and FSAs. For instance, the bill would allow HSA accounts to be used to pay health insurance premiums. The bill allows eligible spouses 55 and older to make HSA catch-up contributions to the same HSA account and it allows Medicare beneficiaries to contribute to HSAs after age 65. Also, Medicare beneficiaries in an MSA plan will be able to contribute their own tax-deductible money to their MSAs.

Comments (12)

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  1. JD says:

    Freedom to do what you want with your own money? Great!

  2. Ronnie says:

    great idea! HSA’s are such valuable option!

  3. Tim says:

    Great…we shouldn’t be creating regulatory burdens on HSA’s…makes no sense to regulate something that gives flexibility to an individual over their own relationship between personal finance and health.

    • Sam says:

      Right and we should actually propagate this concept and if we’re going to subsidize to low-income citizens, let’s grant stipends for HSA’s…not an entire health-care-government-run program.

  4. Roget says:

    Hesitance for full HSA support seems like a cautionary tale about dependence on large government.

  5. Jordan says:

    With the number of people with poor retirement savings rates — it’s worrisome that transitioning to a full HSA program will only make things worse. At the same time — have to go along with JD. Individual choice sans Medicare safety net is more in keeping with constitutional values.

  6. Studebaker says:

    I’m not a fan or coercing people into doing what’s good for them — much less a fan of coercing them into doing what’s good for society. However, if I were to agree to support an individual mandate, it would be limited to high-deductible plans. I’d wouldn’t allow a tax deduction for health coverage. But I’d provide a tax credit only good for a high-deductible plan. I’d consider allowing a small deduction for HSA deposits. Had we done this years ago our health care system would be far better off.

  7. August says:

    It also removes regulation blocking HSA spending on health insurance and over-the-counter medicine without a prescription.

    • Cabaret says:

      Don’t forget title 2; it allows the tax deduction of up to $1000 of Exercise and physical fitness programs, and $1000 of Nutritional and dietary supplements.

      That seems like tax expenditure to me.

  8. Slaw says:

    Another reason why I hope Rubio runs for president in 2016!

  9. James Lansberry says:

    Also it will allow (like H.R. 207) use of an HSA with a health care sharing ministry instead of a HDHP. More HSAs means more patient directed health care which means better health care for everyone and more affordable quality options.

  10. Kyle says:

    Section 103 and 105 are policy suggestions made by the NCPA six months ago. Hope this passes. Restrictions on HSAs make some serious assumptions about the efficacy of federally regulated care.