Bicameral HSA Expansion Proposed

Sen. Ted Cruz (R-TX) and Rep. Chip Roy (R-TX) have introduced the Personalized Care Act, bi-cameral legislation that would expand usage of Health Savings Accounts (HSAs). According to a press release, the bill would do the following.

• Decouple HSAs from high deductible health plans and expand access for individuals with Medicare, Medicaid, CHIP, health care sharing ministries, and other arrangements
• Increase annual contribution limits to $10,800 for individuals and $29,500 for families (current limits are $4,300 for individuals and $8,550 for families)
• Allow distributions from HSAs for certain amounts paid to a health care sharing ministry as qualified medical expenses
• Decrease the penalty for nonqualified distributions from 20 percent to 10 percent