Health Savings Act of 2017 Introduced to Senate and House of Representatives

2/16/2017

Health Savings Act of 2017 Introduced to Senate and House of Representatives

Today, the Chairman of the Senate Finance Committee, Orin Hatch (R-UT) and Senator Marco Rubio (R-FL) introduced the Health Savings Act of 2017 S.403.  (A copy of the bill text is HERE.)  Rep. Eric Paulsen (R-3rd MN) introduced companion legislative in the House of Representatives (H.R. # pending).  This legislation contains numerous provisions aimed at expanding HSAs, including expanding eligibility rules, increasing the maximum contribution limit, expanding the expenses that can be reimbursed from an HSA, and provisions dealing with the interaction of FSAs and HRAs with HSAs.  This legislation is certain to be in the mix in any future health care reform legislation, since the principal sponsor of the bill in the Senate is the Chairman of the Finance Committee, and the sponsor in the House is a member of the Health Subcommittee of the Ways and Means Committee, both of which have jurisdiction over health care legislation.

The bill is similar to the HSA bill that Chairman Hatch and Rep. Paulsen introduced in the last Congress.  As with the previous legislation, the bill will allow for reimbursement of over-the-counter drugs from an FSA, HSA or HRA, which is an important priority for ECFC members.  Unlike the previous legislation, this bill does not contain the provision supported by ECFC which would have exempted employee contributions to FSAs and HSAs from the calculation of the excise tax on high-cost health plans (often referred to as the “Cadillac Tax”).  However, it is important to remember that Chairman Hatch advocates the full repeal of the excise tax as part of the legislative effort to repeal the Affordable Care Act (ACA) so that a limited cutback of the imposition of the tax would not be necessary.  If the full repeal of the all the tax provisions in the ACA is not feasible, we will ask Chairman Hatch to exempt employee contributions to FSAs and HSA from the excise tax as part of any legislation to repeal the ACA.

William F. Sweetnam, Jr
Legislative and Technical Director
Employers Council on Flexible Compensation—ECFC

 

Media Contact:

Martin Trussell
(202) 659-4300
mtrussell@ecfc.org

About Employers Council on Flexible Compensation

The Employers Council on Flexible Compensation (ECFC) is a non-profit organization dedicated to the maintenance and expansion of private employee benefit programs on a tax-advantaged basis. The organization has two driving missions. The first is to represent and promote flexible compensation programs through effective lobbying. The second is to provide information on flexible compensation programs to member, national opinion leaders and the general public to help create a positive climate for the growth of flexible compensation.