Legislation To Improve Health Savings Accounts Moving Through Congress


Legislation To Improve Health Savings Accounts Moving Through Congress

For Immediate Release: Contact:  Kristin Oberlander
(202) 466-2100
Twitter: NASEtweets

NASE Supports H.R. 5842 And H.R. 5858, Which Make HSAs More Flexible For The Self-Employed

Washington, D.C., May 31, 2012 – As the House Committee on Ways & Means prepares to mark up recently introduced health care access bills, the National Association for the Self-Employed (NASE) is pleased to announce its support for H.R. 5842, Restoring Access to Medications Act and H.R. 5858, a bill to improve Health Savings Accounts (HSAs). Access to reasonably priced, quality health care for the self-employed and micro-businesses is a  top priority for the NASE. 

“Health Savings Accounts play a critical role in allowing small business owners to save for their medical expenses,” commented NASE President Kristie Arslan. “These bill will ensure that business owners are able to utilize their HSA’s to the fullest extent.”
The Restoring Access to Medications Act, H.R. 5842, would repeal the disqualification of over-the-counter medications for use with a health savings account (HSA) or a health flexible spending arrangement (FSA). Current law prohibits over-the-counter medication purchase with these savings instruments.
H.R. 5858 expands usage and affordability for individuals who use a health savings account (HSA) in connection with a high deductible health plan (HDHP). Many self-employed business owners opt to use an HDHP because the premiums are generally lower than traditional health plans. 
Here are some of the highlights of H.R. 5858:
  • Saver’s Credit: Contributions to an HSA would generate the same amount of credits as current law allows for contributions to IRAs or 401(k)s.
  • 60 day grace period: Medical expenses incurred between the time an individual enrolls in an HDHP and establishes an HSA (for up to sixty days) would be reimbursed using HSA funds.
  • Spouses may make catch-up contributions to the same HSA:  Both spouses (if eligible) could make catch-up contributions to their HSA. They may also transfer the amount into one HSA account if they choose to do so.
Health Savings Accounts are tax-preferred accounts which can be utilized with high deductible health plans, the typical health insurance plan for America’s smallest businesses- the self-employed.  For more information, visit NASE’s Health Resource Center and the Department of Treasury’s Resource Center.

About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org.

Courtesy of NASE.org