Representative Aaron Bean (R-FL) has introduced legislation allowing Americans to save more money for future healthcare expenses in their Health Savings Accounts (HSAs).
Rep. Bean's Flexible Savings Arrangements for Healthy Robust America (FSA-HRA) Act works by amending the Internal Revenue Code of 1986 so that unused funds for Flexible Spending Accounts (FSA) and Health Reimbursement Arrangements (HRA), which must usually be spent by the end of the year or lost, can instead be transferred into an HSA in connection with establishing coverage under a High-Deductible Health Plan (HDHP).
Tax-free, too.
"Many hardworking individuals and families find our nation's health care system too convoluted and confusing to navigate," Rep. Bean described in his press release, adding, "As a result, many often forfeit their unused FSA contributions or lose their HRA contributions. We need to give Americans the flexibility to plan, save, and take charge of health care decisions for their families. That's why I'm proud to introduce this commonsense bill that will make it easier for families to take control of both their physical and financial health."
Representatives Dan Crenshaw (R-TX) and Jimmy Panetta (D-CA) joined the Florida Congressman.
"This bill is simple. If you contribute your dollars to a tax-advantaged account, you should be able to use those dollars to fund a health savings account," said Rep. Crenshaw. "Arbitrary government rules shouldn't stop Americans from using their own savings for health care."
Similarly, Rep. Panetta said, "All too often, too many working families lose their unused FSA and HRA funds because of outdated 'use-it-or-lose-it' rules."
"The FSA-HRA Act lets them roll those unused dollars into their Health Savings Accounts so they can save for future medical expenses tax-free. This bipartisan fix gives working families more flexibility and ensures they're not penalized for being prepared," Rep. Panetta added.
In February, Bean's colleagues, Representatives Kat Cammack (R-FL) and Greg Steube (R-FL), introduced another Health Savings Account-related bill, the Affordable Care and Comprehensive Economic Support through Savings" (ACCESS) Act, which funds equal to 1 ⁄12 of the insured's annual reduced cost-sharing actuarial equivalent would be monthly disbursed.
