"As Americans' health care costs continue to rise, my plan puts more power in the people's hands, getting rid of unnecessary restrictions, expanding access, and trusting Americans to make the decisions that are best for their families with the money they have worked hard to earn," said
Currently, contributions to Health Savings Accounts (HSAs), which can be saved and spent tax-free on qualified expenses, are arbitrarily capped at
According to the
As well as expanding access to HSAs and allowing the funds to be used to pay health insurance premiums,
You can read the bill here https://www.paul.senate.gov/sites/default/files/page-attachments/HealthSavingsAccountsForAllActof2020.pdf, and you can find more information below:
S. 4367, Dr.
Repeals Contribution Limitations
* Eliminates the annual limit on tax-deductible contributions to HSAs by individuals and their employers.
Offers More Americans the Chance to Save Money in HSAs Tax-Free
* Eliminates the requirement to be enrolled in a high-deductible health plan in order to make tax-free contributions to HSAs.
- Individuals enrolled in any type of health coverage, including people eligible for Medicare,
Expands Qualified Medical Expenses
* Qualified medical expenses would include expenses incurred during the prior or current tax year before establishing the HSA and fees paid for personal patient care.
* Other expenses would be considered as qualified medical expenses up to an annual dollar limit: expenses for physical trainers, nutrition trainers, and health coaches (up to
Enables More Americans to Pay for Insurance and Health Needs
* Americans could use HSAs to pay for health insurance premiums and direct primary care service arrangements.
Permits Administrative Error Correction Before Due Date of Return
* Americans could make changes to payments or distributions to correct an administrative, clerical, or payroll contribution error on or before the last day to file taxes.
Allows HSA Rollover to Family After Account Holder's Death
* Allows the tax-free transfer of HSAs at death to the account holder's child, parent, or grandparent, in addition to the surviving spouse.
Ensures Equivalent Bankruptcy Protections for Health Savings Accounts as Retirement Funds
* HSAs would be treated as an individual retirement account in bankruptcy proceedings.