MEMORANDUM

To: Coalition Members and Opinion Leaders

From: Dan Perrin

Re: Outcome of House Ways and Means Committee Mark Up

Date: April 10, 2008

 

1) Due to reasons that likely have to do doubts about the data supplied by Evolution Benefits, and their substantiation patent, the Democrats did pass the bill mandating substantiation for HSAs, but with a 2 year implementation delay.

2) The bill will be on the floor of the U.S. House next week, and all Coalition members should immediately begin contacting their Members of Congress and asking them to vote NO on H.R. 5719, the “Taxpayer Assistance and Simplification Act of 2008,” because of the provision that will create a 100% increase in monthly administrative fees and will destroy the ability of banks to offer HSAs. This provision eliminates debit card transactions and will force consumers into a paper world of submitting their receipts to be reimbursed for every single expense. (90% of substantiated expenses are paper based. 90% of HSA expenditures are electronic, the rest being cash or checks.)

3) All Coalition Members with HSA customers should immediately email them, and post a message on their websites and in their customers account that they need to call their Congressman TODAY and urge them to vote NO on H.R. 5719 because of the new HSA tax and that the provision was proposed and is designed to help a Avon, CT company with a patent on the process Congress is imposing through this law.

4) The HSA Coalition will key vote this bill, as well as the Committee vote on the motion to strike this provision offered by Congressman Paul Ryan (R-WI). All Democrats voted to keep the provision, and one Republican, Congressman Porter (R-NV) voted with the Democrats.