House Votes to Expand HSAs

July 27, 2018

The House pushed off action on the ACA’s Cadillac tax to September while passing three HR Policy-supported bills that would improve health savings accounts, further delay the tax on fully-insured health plans, and permanently repeal the tax on medical devices.

H.R. 6199, which passed with the backing of 46 Democrats, would allow HSAs to be used for direct primary care service arrangements, on-site health clinics, certain over-the-counter medicines, gym memberships, and certain sports equipment.  It would also give spouses more opportunities to contribute to their partner's HSA and allow FSA and HRA terminations or conversions to roll into HSAs.

H.R. 6311, which passed with 12 Democrats, would double the maximum contribution to health savings accounts, allow working seniors to contribute to HSAs, let balances on flexible savings accounts be carried over, and delay the ACA’s health insurance tax on fully-insured plans until 2022.

H.R. 184, which passed with the backing of 57 Democrats, would permanently repeal the ACA’s 2.3 percent tax on medical devices.

Dim prospects for Senate action this year: Despite the bipartisan votes for the three bills, the Senate has no plans to take up any health care legislation before the November elections or in any lame-duck session before the end of the year.