Bipartisan HSA Improvement Act

Last month, U.S. Representative Mike Kelly (R-PA) introduced the Bipartisan HSA Improvement Act. The proposed legislation would improve and enhance Health Savings Accounts (HSAs), and unlike most other HSA initiatives, this bill has bipartisan support. HSAs have been an agenda item for the Republican party since their inception in 2004, but they are now gaining support amongst Democrats too. The Bipartisan HSA Improvement Act is co-authored by Rep. Earl Blumenauer (D-OR) and is being co-sponsored by a mixture of Republicans and Democrats including Erik Paulsen (R-MN), Ron Kind (D-WI), Terri Sewell (D-AL) and Brian Fitzpatrick (R-PA).

The Bipartisan HSA Improvement Act would include the following reforms:

• Allow for pre-deductible coverage of health services at on-site health clinics without disqualifying HSA-eligibility.
• Allow for pre-deductible coverage of health services and medications that manage chronic conditions without disqualifying HSA-eligibility
• Clarify that employers can offers benefits such as telemedicine and second opinion services without disqualifying HSA-eligibility.
• Make a change to existing legislation which would allow an employee to establish an HSA if their spouse had a general-purpose Flexible Spending Account (FSA).
• Permit the use of HSA funds toward wellness benefits, including exercise and other expenses associated with physical activity.

A summary of the Bipartisan HSA Improvement Act can be found here.