This week, U.S. Sen. Marco Rubio, R-Fla., teamed up with U.S. Sen. Orrin Hatch, R-Utah, to bring out a proposal expanding Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs).
Hatch and Rubio unveiled the proposal on Thursday “to amend the Internal Revenue Code of 1986 to improve access to health care through expanded health savings accounts, and for other purposes.” The bill raises the maximum HSA contribution limit and gives more flexibility on how moneys in HSAs and FSAs are spent by married couples and individuals.
A companion bill is being sponsored in the House by U.S. Rep. Erik Paulsen, R-Minn. The three Republicans made their cases for the legislation as they introduced it.
“Helping individuals and families better afford their health care by expanding access to Health Savings Accounts is a commonsense solution that will empower consumers, make the costs of medical services more transparent and ultimately play a role in getting prices under control,” said Rubio.
“Health Savings Accounts and Flexible Spending Accounts are critical to providing Americans with flexibility and control over their personal health spending,” Hatch said. “These plans have been in place for over a decade and while they’ve grown in popularity, they are in need of crucial updates. This bill provides those necessary updates and, as we work to repeal and replace Obamacare, sets a marker for how we can make it easier for American families and workers to grow and access tax-free savings for future medical costs.”
“Millions of Americans rely on HSAs and FSAs because of the choice, control, and flexibility it offers them and their families when it comes to their health care decisions,” said Paulsen. “By expanding and updating this popular health care option, this initiative will provide families with greater flexibility to save and pay for medical expenses.”
Two Republicans in Congress--Lynn Jenkins of Kansas and Mike Kelly of Pennsylvania--signed on to co-sponsor Paulsen’s bill in the House. The Senate version was sent to the Finance Committee while the House version was referred to the Ways and Means, Judiciary and the Energy and Commerce Committee.
