Expanded Health Savings Accounts: Easier Access and Broader Use
This act aims to simplify access to Health Savings Accounts (HSAs) and broaden their permissible uses for citizens. Key changes include allowing joint contributions for spouses, expanding the list of qualified medical expenses, and increasing contribution limits, which can help individuals manage their healthcare costs more effectively.
Key points
Spouses can make joint catch-up contributions to the same HSA if both are over 55.
Individuals enrolled only in Medicare Part A (hospital insurance) can still contribute to an HSA.
Members of health care sharing ministries are eligible to establish HSAs.
Direct primary care arrangements and on-site medical clinic coverage do not disqualify individuals from having an HSA.
HSAs can be used to purchase certain health insurance plans, including HSA-qualified plans and some Medicare plans.
Medical expenses incurred up to 60 days before establishing an HSA can be covered.
Prescription and over-the-counter drugs for preventing chronic conditions are considered preventive care and can be paid from an HSA.
Funds from Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs) can be rolled over to HSAs, subject to limits.
HSAs receive the same bankruptcy protections as retirement funds.
Administrative errors in HSA contributions can be corrected without penalty if fixed before the tax return due date.
The maximum HSA contribution limit will increase to match the health plan's deductible and out-of-pocket maximum.
Expenses for exercise equipment, fitness programs, nutritional supplements (up to $1,000 annually), and certain primary care provider fees can be paid from an HSA.
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