New legislation would allow consumers to use HSA accounts for OTCs and supplements

WASHINGTON – House Ways and Means Committee member, Rep. Erik Paulsen, R-Minn., and Senate Finance Committee Chairman Sen. Orrin Hatch, R-Utah, on Thursday introduced the Health Savings Act of 2016, legislation to simplify and expand Health Savings Accounts and Flexible Spending Accounts.

 

According to the bill, people would be able to use their HSA account to pay for OTC medicines, as well as up to $1,000 per year in dietary supplements and homeopathic remedies. 

 

“Health Savings and Flexible Spending Accounts give hard-working Americans more choice and control when it comes to their health care decisions” Paulsen said. “Expanding and simplifying these plans will provide families with even greater flexibility to save and pay for medical expenses."

 

“Health Savings Accounts and Flexible Spending Accounts were created to give Americans control over their personal health care spending,” Hatch added. “Enacted over a decade ago, these plans have grown in popularity despite needing critical updates to match our changing health care system. This legislation provides those much needed updates and simplifies these plans helping American families, workers and retirees build tax-free savings for future medical costs.”

 

“More than half of Americans already safely use supplements on a daily basis to help balance their diet and ensure they are getting the vitamins they need, but this key component to a healthy lifestyle is not supported by any organized healthcare plans," commented the Natural Products Association in a letter Congress leaders. "The Health Savings Act would make necessary changes to dietary supplement coverage, allowing families to lead healthier lives, provide more freedom in Americans’ personal healthcare choices and lower overall healthcare costs.”

 

Today, health care costs in America are expected to rise by an average of 5.8% each year from now until 2024. HSAs and FSAs provide individuals with opportunities to put away tax free savings for everyday medical costs. When Congress first made HSAs available, these plans only covered 454,000 lives. Today, 19.7 million individuals are covered under a health plan that is eligible for an HSA.