HSA Expansion Bill Introduced in the House

December 15, 2005 (PLANSPONSOR.com) - A bill to ease up on some of the requirements governing health savings accounts (HSAs) has been introduced in the US House.

Representative Eric Cantor (R-Virginia) introduced the bill that will eliminate the limitation that HSA holders cannot contribute more to their HSA than the deductible on their high-deductible health plan (HDHP).   According to a  press release  on Cantor’s Web site, the bill would allow an individual to contribute the HSA maximum limit, even if the deductible for the person’s HDHP is lower.

The bill also would permit the coordination of HSAs with flexible spending accounts (FSAs) and/or health reimbursement arrangements (HRAs) by allowing them to be used in conjunction with HSA/HDHP arrangements, according to the release.   Under current law HSAs must be tied to an HDHP and the HSA holder may not have other health insurance coverage, including FSAs and HRAs.

In addition, the legislation would limit total annual contributions to an HSA, an FSA, and/or an HRA so as not to exceed the out-of-pocket maximum for the HDHP.

The bill has been referred to the House Ways & Means Committee.