Rep. LaTurner Introduces the Health Savings Act

Washington, D.C. – Congressman Jake LaTurner (R-KS) introduced H.R. 6271, the Health Savings Act of 2021, in the U.S. House of Representatives this week. This legislation would simplify and expand Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to allow American workers to maintain financial control over their health care spending without tax penalties. Senator Marco Rubio (R-FL) and Senator Tim Scott (R-SC) are the lead sponsors of the companion bill in the U.S. Senate.

“The COVID-19 pandemic has shown that hard-working American families need increased access, more flexibility, and lower costs when it comes to their health care. For over a decade, tax-free Health Savings Accounts and Flexible Spending Accounts have helped drive down health care costs and provided Americans with additional options to cover out-of-pocket expenses,”said Congressman LaTurner.“I am proud to introduce the Health Savings Act that would expand and update medical savings accounts to give Americans more flexibility and financial control over their health care.”

“Health savings accounts empower families and individuals to have more financial control in their health care choices,”said Senator Rubio upon introduction of the Health Savings Act in the U.S. Senate.“I am proud to reintroduce this commonsense, pro-family legislation alongside Senator Scott to make managing the cost of health care more feasible for Americans.”

Congressman LaTurner is proud to have received endorsements from Americans for Prosperity and the National Taxpayers Union for the Health Savings Act of 2021.

“Expanding access to tax free health savings accounts will make care more affordable by putting Americans in control of their health dollars. HSAs give people more personalized options for getting the care they need, and put patients – not insurance bureaucrats – in the driver’s seat. We applaud Rep. LaTurner for introducing The Health Savings Act, and urge lawmakers to support this commonsense legislation that will allow for greater choice and control in health care.” - Dean Clancy, Senior Policy Fellow, Americans for Prosperity

"NTU applauds Congressman LaTurner for introducing the pro-taxpayer, pro-consumer Health Savings Act. This legislation would expand Americans' eligibility to open and contribute to Health Savings Accounts (HSAs) in a number of important ways, and would also expand opportunities to spend those HSA dollars on health needs. We encourage the House to quickly consider and pass this bill, and we look forward to working with Congressman LaTurner and his colleagues on this and other pro-taxpayer health policies." - Andrew Lautz, Director of Federal Policy, National Taxpayers Union

Background:

Recent polling indicates that large majorities of Republicans, Democrats, and Independents view these accounts favorably. However, just 10 percent of Americans are able to use an HSA because owners are restricted to narrowly defined high deductible health plans. The Health Savings Act would eliminate that restriction, in addition to increasing how much individuals can save in the accounts and the array of items and coverage options they can purchase with them.

This legislation would, among other things:

• Increase the maximum contribution limit for HSAs so that it matches the out-of-pocket limit for HSA eligible health plans;
• Allow working seniors and their employers to continue contributing to an HSA after reaching the Medicare eligibility age of 65;
• Allow you to use your tax-free HSA funds to pay health insurance premiums;
• Include dollars spent on prescription and over-the-counter medicines or drugs as “qualified medical expenses” for which HSAs can be used; and
• Let you use your HSA to pay for alternatives to insurance like direct primary care arrangements.

Full text of the Health Savings Act can be found here