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Representatives Should Vote "Yes" on Bill Restoring Value of Health Savings Accounts

by Nan Swift / /

NTU urges all Representatives to vote “YES” on H.R. 1270, the “Restoring Access to Medication Act of 2015.” This bipartisan legislation would repeal provisions of the Patient Protection and Affordable Care Act (PPACA) that restricted the utility of Health Savings Accounts (HSAs) and similar tax-preferred arrangements.

Previous to the enactment of PPACA, financial tools such as HSAs and Flexible Spending Accounts (FSAs) provided consumers the option to set aside pre-tax dollars to help defray the cost of over-the-counter medications, health insurance deductibles, dental or vision care, and even COBRA payments. Under PPACA however, use of these plans for out-of-pocket medical expenses has been largely limited to prescription drugs, significantly reducing the cost-savings formerly enjoyed by consumers and incentivizing overuse of doctors for prescriptions.

In addition, H.R. 1270 would allow both spouses to make “catch up” contributions to the same HSA, make it easier to pay for expenses incurred before the establishment of an HSA, and roughly double the current maximum contribution limit. Together, these reforms would do much to restore the former value of HSAs as innovative cost-saving mechanisms that increased consumer choice and ownership of their health management, as well as expanded access to medical care.

Roll call votes on H.R. 1270 will be included in our annual Rating of Congress and a “YES” vote will be considered the pro-taxpayer position.

If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700