Health Savings Accounts

Position

The ABA's HSA Council supports expansion of account-based health care solutions for all Americans. In particular, the HSA Council is working to streamline the delivery of HSAs under current law by supporting technical corrections to the existing HSA statute.

Explanation

In 2003, Congress enacted sweeping reforms to the Medicare program, including creation of Health Savings Accounts. HSAs are savings accounts paired with qualifying health insurance policies. Contributions to HSAs, interest earnings on balances in an HSA, and distributions for qualified medical expenses are tax deductible.

Congress expanded in 2006 the amount of money individuals can contribute to their HSAs and made it possible to fund HSAs with balances in other health-related accounts, like Flexible Spending Accounts and Health Re-imbursement Arrangements.

However, the ability to administer HSAs and to provide seamless transfer of FSA or HRA balances to a HSA requires further legislation. In addition, the HSA Council supports creating account-based options in all current medical entitlement programs, like Medicare/Medicaid and SCHIP.

 

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​Contact for further information: Kevin McKechnie (202) 663-5172.