Sen. Hatch Floats Bill to Strengthen, Expand HSAs, FSAs

Hatch noted in his statement that in 2011, health care costs are expected to rise by 8%, more than double the rate of inflation. “HSAs and FSAs provide individuals with opportunities to put away tax free savings for everyday medical expenses” he said. “When Congress first made HSAs available, these plans only covered 454,000 lives. Today, more than 10 million people are covered under a health plan that is eligible for an HSA.”

Specifically, Hatch’s legislation 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.