Proposals to Expand HSAs

Health savings accounts (HSAs) offer a triple tax benefit: funds go in on a tax-deductible basis, earnings grow tax deferred, and withdrawals for qualified medical expenses are tax free. The Healthcare Freedom Act would allow for the creation of Health Freedom Accounts (HFAs), which would essentially be HSAs 2.0 (decoupling the savings account from having to maintain a high deductible health plan, allowing for larger annual contributions, and allowing penalty-free rollovers between HFAs). The Direct Medical Care Freedom Act would make individuals with direct medical care arrangements eligible for purposes of HSAs. The Affordable Care and Comprehensive Economic Support through Savings (ACCESS) Act would expand the use of health savings accounts (HSAs) by enabling low-income individuals to make HSA contributions in lieu of reduced cost-sharing for exchange provided plans. Watch for congressional developments on these bills. #IdeaoftheDay