Congress Passes Law and President Obama Signs it, to Give Veterans Access to Health Savings Accounts
From Kevin McKechnie, of the HSA Council:
The president signed the Surface Transportation bill today and we are happy to report that it included a provision long supported by the HSA Council, namely repeal of the provision in the IRC stating that having VA benefits disqualified veterans from having HSAs. The same provision also removed veterans as a class from being counted as part of the ACA’s employer mandate, suggesting that there will be some portion of small community banks using veterans as employees who no longer have to comply with the ACA since their work force will no longer have 50 employees in it. We strongly supported the former; we did not lobby on the latter.
Section 4007 AMENDMENTS TO INTERNAL REVENUE CODE WITH RESPECT TO HEALTH COVERAGE OF VETERANS.
(b) Eligibility for Health Savings Account Not Affected by Receipt of Medical Care for Service-Connected Disability
(1) IN GENERAL- Section 223(c)(1) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
`(C) SPECIAL RULE FOR INDIVIDUALS ELIGIBLE FOR CERTAIN VETERANS BENEFITS- An individual shall not fail to be treated as an eligible individual for any period merely because the individual receives hospital care or medical services under any law administered by the Secretary of Veterans Affairs for a service-connected disability (within the meaning of section 101(16) of title 38, United States Code).’.
(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to months beginning after December 31, 2015.