ABA Applauds Passage of HSA Legislation

ABA today applauded the passage of H.R. 1270, the Restoring Access to Medication Act. The bill — which advanced by a bipartisan vote of 243 to 164 — expands the range of health care products and services covered by health savings accounts and increases the amount individuals can contribute to their HSAs each year. In addition, provides much needed administrative relief for HSA owners, allowing both spouses to make catch-up contributions to a joint account.

“The goal of healthcare reform was to provide better coverage to all Americans at more affordable prices,” said Kevin McKechnie, executive director of ABA’s HSA Council. “Expanding the utility of HSAs helps accomplish this goal.”

ABA recently released a guide for banks administering HSA programs which includes an introduction to HSAs and overviews of how to open an account, make contributions and close zero-balance or inactive accounts.