Letter in support of the two HSA Bills to be marked up in the Ways and Means Committee on Thursday
September 28, 2023
The Honorable Jason Smith
Committee on Ways and Means
United States House of Representatives
Washington, D.C. 20515
Dear Chairman Smith,
We, the undersigned, extend our hearty congratulations for your exemplary leadership and foresight in amalgamating and refining top-tier HSA enhancement and reform proposals. Your dedication is evident in consolidating these ideas into H.R. 5688, the Bipartisan HSA Improvement Act of 2023, and H.R. 5687, the HSA Modernization Act of 2023.
The Bipartisan HSA Improvement Act of 2023 proposes the following commendable provisions:
- Permits tax-free spending from a Health Savings Account on the monthly fees charged by Direct Primary Care physicians.
- Facilitates HSA contributions even when a spouse possesses a Flexible Spending Arrangement.
- Allows for transitions of deposits from a terminating FSA or HRA (Health Reimbursement Account) into an HSA.
- Enables employees to utilize their HSA funds at their employer’s on-site health clinic.
The HSA Modernization Act of 2023 will:
- End the prohibition against Disabled Veterans contributing to an HSA.
- Allow working seniors on Medicare and Indian Health Service beneficiaries to establish and contribute to HSAs.
- Make automatic HSA eligibility of all bronze and silver health plans on the health benefit exchange.
- Greenlight the option to avail of mental health benefits beneath the deductible without jeopardizing the health plan’s status as an HSA-qualified health plan.
- Allow tax-free spending on medical expenses 60 days before their Health Savings Account is opened.
- Both spouses can contribute catch-up contributions to the same HSA.
- Align the annual tax-free HSA deposit limit for families and individuals to equal the combined annual limit on out-of-pocket and deductible expenses under their HSA-qualified insurance plan.
- Clarify the scope of home care expenditures permissible through a Health Savings Account.
Chairman Smith, these bills will enhance the versatility and accessibility of HSAs, bolster the U.S. in retaining and attracting premier physicians, and crucially, widen equity by extending HSA-qualified health plans to individuals seeking financial assistance for their health plans on the health benefit exchange.
Your unwavering commitment to health care reform resonates deeply; we, the undersigned, wholeheartedly support both bills.
Under your leadership, we expect their prompt progression through your committee and a swift vote on the U.S. House of Representatives floor.
Daniel Perrin, HSA Coalition