Smucker’s Bipartisan HSA Improvement Act Approved by Committee

Washington— Legislation introduced by Rep. Lloyd Smucker (PA-11), the Bipartisan HSA Improvement Act, was advanced with bipartisan support of members of the House Ways & Means Committee. Smucker’s legislation was introduced on a bipartisan basis with Rep. Earl Blumenauer (OR-3).

Health savings accounts (HSAs) allow individuals to pay for eligible medical expenses with funds put aside on a pre-tax basis. The Bipartisan HSA Improvement Act expands Americans’ access to HSAs and the services eligible for payment with HSA funds. 

“I appreciate the support of my colleagues on the Ways & Means Committee in advancing legislation to support Americans’ access to HSAs and the health care services they choose. This legislation will expand HSA coverage to Direct Primary Care services, which puts patients in charge of their health, improves outcomes, and reduces costs for businesses and employees. I appreciate Rep. Blumenauer’s support for this legislation and look forward to advocating for this legislation’s passage,” said Rep. Lloyd Smucker (PA-11).  

“The legislation we passed out of the Ways and Means Committee to make commonsense changes to health savings accounts (HSAs) will allow beneficiaries to make the most of their health coverage. These policies ensure that people can take advantage of models like direct primary care that center the provider-patient relationship,” said Congressman Blumenauer (D-OR). “HSAs are a reality of our current health care system and we should take this opportunity to make them better. I thank Mr. Smucker for his partnership on this bill.”

“Serious solutions put patients at the center of our health care system, where they belong. Thanks to the efforts of Reps. Smucker and Blumenauer, the Bipartisan HSA Improvement Act will strengthen patient control over their health care. This legislation will not only expand HSA coverage to Direct Primary Care Services, but also give individuals more options for the type of care they receive, lower costs, and deliver better access to care,” said Ways & Means Committee Chairman Rep. Jason Smith (MO-8).

Background:

The Bipartisan HSA Improvement Act would expand access to HSAs and services eligible for payment by HSAs by:

• Clarifying provisions of the Internal Revenue Code to remove barriers for individuals with HSAs from using those funds to access Direct Primary Care, a health care delivery model which provides high-quality care at lower cost for individuals of all ages and incomes across America.
• Protecting employee access to health care at their workplace health center, by ensuring individuals who access that provided care are also eligible to use HSAs
• Allowing individuals to maintain an HSA even if the individual’s spouse is enrolled in a flexible spending arrangement (FSA). Currently, individuals are not eligible for HSAs if their spouse is enrolled in an FSA.
• Ensuring employees, at the employer’s discretion, may convert their FSA and health reimbursement arrangement (HRA) balances into an HSA contribution upon enrolling in a HDPD-HSA. The conversion amount is capped at the annual FSA contribution limit for an individual ($3,050 in 2023) and double that for family coverage.

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