House Adopts Bills Enhancing HSAs, FSAs, and HRAs
On Wednesday, July 25, 2018, the House of Representatives adopted two health care bills, H.R. 6199 and H.R. 6311, that expand tax-advantaged health care accounts, including Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs).
Previous versions of these bills were reported upon favorably by the House Ways and Means Committee on July 11th followed by the Committee on Rules on July 23rd.
The House-approved version of these bills would have important implications for HSAs, FSAs, and HRAs if they were to become law. Some notable examples include:
- Individuals would now be able to purchase over-the-counter (OTC) medications with an HSA, FSA, or HRA without being required to obtain a prescription for eligibility purposes
- Menstrual care products would become qualified medical expenses that could be purchased with all tax-advantaged health care accounts
- Certain sports and fitness expenses – including gym memberships and the cost to participate in certain physical exercise programs – would be treated as qualified medical expenses up to a limit of $500 a year for an individual and $1,000 a year for a joint return
- HSA contribution would be raised to $6,650 for individuals and $13,300 for families – the combined annual limit on out-of-pocket and deductible expenses under an HSA-qualified insurance plan in 2018
- Working seniors participating in Medicare Part A and covered by a qualifying HDHP would now be able to contribute to an HSA
- Individuals would no longer be barred from contributing to an HSA if his/her spouse is enrolled in a medical FSA – a disqualifying scenario currently
- Spouses over the age of 55 would be able to make “catch-up” contributions to the same HSA
- At an employer’s discretion, employees with an FSA or HRA that enroll in a qualifying HDHP with an HSA would be permitted to transfer balances from their FSA or HRA to the HSA. Transfers would be capped at $2,650 for individuals and $5,300 for families
- Health FSA balances could be carried over to the following plan year. This rollover could not exceed three times the annual FSA contribution limit
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This is a republished excerpt. Read more here at the article’s original source: https://www.connectyourcare.com/blog/house-adopts-bills-enhancing-hsa-fsa-hra/