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Friday, 08 November 2019 11:22

Proposed Healthcare Bills Impacting Tax-Favored Accounts

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On October 23, 2019, The House Ways and Means Committee voted to send two bills to the House floor for a vote that could favorably impact healthcare consumers.

H.R. 1922 (Restoring Access to Medication Act) (https://www.congress.gov/bill/116th-congress/house-bill/1922)

This bill would repeal provisions of the Internal Revenue Code that restrict payments for over-the-counter medications through Health Savings Accounts (HSAs), medical savings accounts, health Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs). You may remember that these over-the-counter expenditures were excluded when the Affordable Care Act (ACA) was enacted. This new bill would also allow for the purchase of feminine hygiene products under these tax-sheltered arrangements.

H.R. 3708 (Primary Care Enhancement Act of 2019) (https://www.congress.gov/bill/116th-congress/house-bill/3708)

This bill would allow taxpayers who incur primary care service arrangement fees (sometimes called Direct Primary Care) to pay them from HSA funds, as long as fees do not exceed $150 a month. Coverage of these types of fees has been prohibited under HSA rules since their inception.

Both bills are now in the process of being debated and/or amended in the House, and have yet to be formally voted on. We will continue to watch this process and will provide updates on any future developments. If you have any questions about these bills, please contact your Fall River Client Manager today!

For more info you can also check out this video:


Read 2142 times Last modified on Monday, 14 September 2020 10:29