Expanding and Improving Health Savings Accounts (HSAs)
This act aims to make it easier for citizens to save for medical expenses by expanding the use of Health Savings Accounts (HSAs). Changes include increasing contribution limits, broadening the list of qualified expenses, and reducing penalties for unauthorized withdrawals, which may lead to better management of healthcare finances.
Key points
More individuals will be eligible for HSAs, including those covered by various health plans, short-term insurance, government programs (Medicare, Medicaid, CHIP), and members of healthcare sharing ministries.
Annual HSA contribution limits will significantly increase, allowing more money to be saved for future medical expenses.
HSA funds can be used to pay health insurance premiums, fees for medical services under fixed physician agreements, and membership fees for healthcare sharing ministries.
The penalty for non-qualified HSA withdrawals will be reduced from 20% to 10%.
Introduced
Citizen Poll