Legislation Proposed to Expand HSA Access

Representative Andy Biggs (R-AZ) has introduced H.R. 107, the Freedom for Families Act, which proposes the following.

  • Provide that distributions from health savings accounts (HSAs) during periods of qualified caregiving are not includible in gross income
  • Remove the requirement that an individual be covered under a high deductible health plan in order to contribute to an HSA
  • Increase the annual contributions limits to $9,000 for single coverage and $18,000 for family coverage

Under the proposal, periods of qualified caregiving are defined as any period during which an individual is on leave or not employed because of the following reasons.

  • Birth of the employee’s child and the period required to care for such child
  • Placement of a child with the employee for adoption or foster care
  • Caring for the employee’s spouse, son, daughter, or parent, because of a serious health condition
  • A serious health condition that makes the employee unable to perform the functions of her position
  • Certain emergencies as a result of covered active duty or notification of order to covered active duty in the Armed Forces by the employee’s spouse, son, daughter, or parent

The bill has been referred to the House Committee on Ways and Means.