Updates

Bills Would Alter HSA, MSA Provisions

05/31/2012


May 31, 2012 – Few expect 2012 to be a year when major savings-related legislation is enacted, but two House bills introduced in May would affect health savings accounts (HSAs) and Archer medical savings accounts (MSA). Both bills have been referred to the House Ways and Means Committee. (There currently are no companion Senate bills.)

H.R. 5858, “A Bill … to Improve Health Savings Accounts, and for Other Purposes,” would modify the rules governing HSAs.  Following are some of the bill’s provisions.
  • The tax credit available to some taxpayers for IRA contributions and employer plan deferrals (saver credit) would be extended to HSAs (the aggregate limit would remain unchanged).
  • Medical expenses incurred before an HSA is established would be considered qualified medical expenses if the HSA is established within 60 days of the date that high deductible health plan coverage for the individual begins.
  • Catch-up contributions made by both spouses could be made to the same HSA.
  • Receipt of Veterans Administration medical benefits for a military service-related disability would not disqualify an individual from eligibility to make HSA contributions.
  • Premium payments for employer-provided health insurance would be considered HSA qualified medical expenses for a retiree, and the spouse of a retiree, who is between the ages of 55 and 65. 

H.R. 5842, “Restoring Access to Medication Act,” would repeal the provision of the Affordable Care Act that requires a prescription for over-the-counter medications in order for their cost to be considered a qualified medical expense for HSA and MSA purposes.


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