On March 1, Representatives Mike Kelly (R-PA) and Earl Blumenauer (D-OR) introduced H.R. 5138, the Bipartisan HSA Improvement Act. The legislation includes several provisions NAHU has advocated in recent years to address issues with HSAs and employer-sponsored coverage. The legislation seeks to promote flexibility, encourage innovation and expand access to HSAs by aligning HSA regulations with the most effective cost-containment strategies that will help consumers save money and stay healthy.
Specifically, the legislation would:
• allow HSA plans to offer pre-deductible coverage of health services at onsite employee clinics and retail health clinics.
• allow HSA plans to offer pre-deductible coverage for services and medication that manage chronic conditions.
• permit the use of HSA dollars toward wellness benefits, including exercise and other expenses associated with physical activity.
• clarify that employers can offer “excepted benefits” like telehealth and second-opinion services to employees with an HSA plan.
• correct the definition of “dependents,” streamline FSA conversion and fix the prohibition on a spouse using an HSA.
What is a health savings account?
HSAs are both for contributions by the insured individuals themselves or from employers, but can only be used if you are enrolled in qualified HSA high deductible insurance plan. The funds in this account can be used to cover any qualified medical expense. Whatever funds in the account remain unused are fully carried over for use during the following year.
You or your employer contributes a set amount per year (up to $3,350 a person or $6,750 a family) to the HSA. These funds can be deposited directly from your pre-tax payroll, so you will not pay any taxes on this portion of your income or you can put them in with post-tax dollars and take a deduction when you file your tax return. Employer contributions qualify as a valid business expense. Funds in HSA accounts can also be invested and accrue interest on a tax free basis
Insurance coverage can be overwhelming – confusing options, endless paperwork and tedious legalities.
Cosmo Insurance Agency makes it easy. Our team has mastered every detail of the insurance process and will walk you through the process to the end, so you can be 100% confident when signing on the dotted line.
Cosmo’s dedicated service doesn’t end with the selection and signing of your policy. Whether its healthcare, life insurance, long term care, vision, dental, or disability, Cosmo Insurance Agency will be there every step of the way. Our staff maintains close contact and is always only a quick phone call away for questions or concerns relating to billing, provider issues, claims or reimbursements and your insurance renewal. Give us a call today! 732-363-3888
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