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January 23, 2024 at 05:52 PM
Recent legislation has been introduced by Republicans in Congress to expand the use of health savings accounts.
The Simplify and Expand Health Savings Accounts Act would increase the maximum annual HSA contribution limit to $10,000 per individual and $20,000 for family coverage. Employers would also be permitted to contribute to an employee’s HSA and allow those funds to be used to purchase individual health coverage in order to satisfy the employer’s mandate under the Affordable Care Act.
HSA funds would also be allowed to be used for direct primary care arrangements.
We asked two professors and authors of ALM’s Tax Facts with opposing political viewpoints to share their opinions about the impact of recent proposals to expand the use of health savings accounts.
Below is a summary of the debate that ensued between the two professors.
Their Votes:
Byrnes
Bloink
Their Reasons:
Byrnes: Increasing the HSA contribution limits both gives workers greater control of their health care spending and is realistic in light of the ever-increasing costs of health services. We all know that Obamacare health plans come with sky-high deductibles and that every individual who funds an HSA must deal with those costs. The only real appeal of a high-deductible health plan is the HSA funding option, and this legislation would make the structure much more workable.
