Rep. Bob Latta, R-Ohio, has introduced legislation, the Stop Penalizing Working Seniors Act, to allow those receiving Social Security benefits to contribute to health savings accounts.
The bill, H.R. 6577, last introduced in April 2023, is co-sponsored by Reps. Stephanie Bice, R-Okla., and Ashley Hinson, R-Iowa.
HSAs allow individuals to make tax-advantaged contributions and withdraw the funds tax-free to cover qualified medical expenses.
To contribute to an HSA, an individual must be enrolled in a high-deductible health plan.
"Under current law, once an individual begins collecting Social Security benefits, they are automatically enrolled in Medicare Part A, which disqualifies them from making further contributions to an HSA," Latta said in a statement.
The bill would allow individuals "enrolled only in Medicare Part A to continue contributing to an HSA," Latta said.
“Seniors deserve the flexibility to keep saving for both their current and long-term health care needs," Latta said. "Right now, many seniors who are still working and enrolled in Medicare Part A are unfairly prevented from contributing to their Health Savings Accounts. This needless restriction reduces their health care choices."
Nancy Altman, president of Social Security Works, said in an email that Latta's bill "does not address the underlying challenge facing the American people: Social Security benefits are too low, and health care costs are too high. It would give a tax break to a limited number of people, who are the best off. They are still working while collecting Social Security and they have the ability to save money. They also have enough income to have income tax liability. Most Americans are not so fortunate."
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