HSA Modernization Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The HSA Modernization Act increases the contribution limits for Health Savings Accounts (HSAs) to match out-of-pocket expenses under high-deductible health plans, adjusts the maximum contribution amounts for self-only and family coverage, and expands HSA eligibility to include veterans, Medicare recipients, and individuals with certain types of health insurance plans. The bill also allows for the use of HSA funds to cover qualified long-term care expenses and mental health services, and clarifies rules regarding catch-up contributions for married couples.
Key provisions
- Increases HSA contribution limits to equal out-of-pocket expenses under high-deductible health plans.
- Expands HSA eligibility to include veterans receiving VA care, Indian Health Service recipients, and Medicare Part A beneficiaries.
- Allows individuals with bronze-level or catastrophic health insurance plans through exchanges to contribute to HSAs.
- Permits married individuals to make catch-up contributions to the same HSA.
- Allows HSA distributions to cover qualified medical expenses incurred before the HSA is established (within 60 days of coverage start).
- Allows HSA distributions to cover qualified long-term care services.
- Establishes a safe harbor for mental health services, allowing plans to avoid being considered non-compliant if they don't have a deductible for the first $500 of mental health benefits.
- Clarifies rules for catch-up contributions for married individuals with family coverage.
Bill text
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Sponsors
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5 on record
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