The American Health Care Act of 2017, which was passed by a 217 to 213 vote in the House yesterday, contains several provisions that would expand Americans’ ability to access health savings accounts.
Among other things, the bill would increase the annual HSA contribution limit; allow both spouses to make catch-up contributions to one HSA beginning in 2018; lower the tax penalty for non-qualified HSA distributions for any distributions made after Dec. 31, 2017; and delay the so-called Cadillac tax on high-cost employer-sponsored health plans until 2026. It would also repeal the prescription requirement for over-the-counter medications, making withdrawals from HSAs tax-free beginning in the 2018 tax year.
The American Bankers Association’s HSA Council has been actively involved in ensuring that healthcare reform includes an expanded role for health savings accounts. In March, members of the council attended a meeting with Vice President Mike Pence and Secretary of Health and Human Services Tom Price to advocate for changes to current policies surrounding HSAs. For more information, contact ABA’s Kevin McKechnie.