Legislation Proposed to Simplify and Expand Use of HSAs

Representative Mike Gallagher (R-WI) has introduced HR 6857, the Simplify and Expand Health Savings Accounts Act. According to a press release, the bill would help increase use of Health Savings Accounts (HSAs) by:

  • Increasing the maximum contribution for HSAs up to $10,000 for individuals and $20,000 for joint accounts.
  • Allowing HSA funds to be used for Direct Primary Care Arrangements.
  • Codifying a rule allowing employers to satisfy the Obamacare requirement to provide health plan coverage to their employees by contributing money to an employee's HSA and allowing that money to be used to pay for premiums for individual market plans.
  • Authorizing grants from the Centers for Medicare and Medicaid Services (CMS) to states, chambers of commerce, community non-profit entities, and other entities to promote and facilitate enrollment in HSAs.