Legislation Introduced to Expand HSA Access

Senator Rand Paul (R-KY) has reintroduced the Health Savings Accounts for All Act. The legislation is intended to expand access and reduce restrictions on health savings accounts (HSAs).

The bill would eliminate the requirement to be enrolled in a high deductible health plan in order to contribute to an HSA. Additionally, contribution limits would be increased to the level of retirement plan contributions ($23,000 for 2024, and $7,500 for catch-up contributions). Qualified medical expenses would include the payment of health insurance premiums, direct care service arrangements, and expenses incurred during the prior or current tax year before the establishment of the HSA. Another provision would allow for the tax-free transfer of the HSA upon death to a deceased account holder’s surviving child, parent or grandparent, in addition to the surviving spouse.