New Health Care Bills Introduced that Would Affect HSAs, FSAs, and ACA

Written by Rob Keller | Aug 10, 2018 3:30:32 PM

Last week, the U.S. House of Representatives passed 11 health care bills that would enhance consumer-driven healthcare, including Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and the Affordable Care Act (ACA).

The passing of these bills does not mean the bill will become law. First, the House of Representatives must approve the bill. Next, the Senate must approve or amend it. Lastly, the President must sign it.

It is predicted that the Senate will vote on these bills before the end of the year and President Trump is expected to sign any and all of these bills if they pass.

Health Savings Accounts (HSAs)
Bill Name	Proposed Changes
Promoting High-Value Health Care Through Flexibility for High Deductible Health Plans Act	Allow HSA-linked, high deductible health plans to offer predeductible coverage for services and drugs used to treat chronic conditions (currently individuals with existing conditions pay out-of-pocket costs until the deductible is met)
Bipartisan HSA Improvement Act	Allows onsite employee clinics and retail clinics to provide “qualified items and services” without disqualifying the individual from making HSA contributions Spouses could contribute to a family coverage HSA even if their spouse has an FSA (which currently is a disqualifying scenario)
Improve the Rules with Respect to Health Savings Accounts Act	Creates a new grace period for expenses incurred before HSA was established Increases contribution limits for HSAs ($6,650 single, $13,300 family) Both spouses could make catch-up contributions to the same HSA
Allow Working Seniors to Keep Their Health Savings Account Act	Individuals could contribute to an HSA if they were over age 65 and entitled to Medicare Part A
Personal Health Investment Today Act	Qualified medical expenses would include gym memberships and exercise classes, allowing use of an HSA/FSA to pay for them Qualifying expenses would be capped at $500 for individuals and $1,000 for joint filers HSAs or FSAs could be used to cover dependent school sports programs (within limits)
Primary Care Enhancement Act	Individuals who are HSA eligible and participate in direct primary care would not lose their HSA eligibility Direct primary care provider fees could be covered by HSA

Flexible Spending Account (FSA)
Bill Name	Proposed Changes
Responsible Additions and Increases to Sustain Employee Health Benefits Act	Remaining FSA balances could carry over to the following year

Affordable Care Act (ACA)
Bill Name	Proposed Changes
Employer Relief Act	Delays Cadillac Tax until 2023 Suspends Employer Mandate Penalty until January 1, 2019
Restoring Access to Medication Act	HSAs and FSAs would be allowed to purchase over-the-counter drugs without a prescription Menstrual care products would be considered a qualified medical expense
Increasing Access to Lower Premium Plans Act	Allows individuals to purchase a lower-premium copper plan outside of the exchanges Changes the premium tax credit for low/moderate earners Credit applies to “catastrophic” copper plans and qualified plans purchased outside the exchanges
Health Savings Act	Expands access and eligibility to HSAs by allowing “catastrophic” and bronze plans in the ACA exchanges to qualify for HSA contributions

If these bills pass in their current form, the provisions in the bill would take effect for plan years beginning after December 31, 2018. Stay tuned to our blog for the latest updates on these pending bills.

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New Health Care Bills Introduced that Would Affect HSAs, FSAs, and ACA

Health Savings Accounts (HSAs)

Flexible Spending Account (FSA)

Affordable Care Act (ACA)