Larger limits on pre-tax contributions & more


Big changes could be coming to health savings accounts (HSAs), if two bills currently in the Senate move forward.


The first bill, H.R. 6311 or the Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act of 2018, would update the contribution limits for HSAs.


Pre-tax contributions would nearly double for both individual and family coverage. The maximum amount for single people would increase to $6,650 (from the current $3,450). Families could contribute up to $13,300 instead of the current $6,900 limit.


More people would also be eligible to contribute to HSAs, including working seniors in Medicare Part A who are also covered by a qualified high deductible health plan (HDHP).


In addition, employees’ spouses over age 55 would be able to make a catch-up contribution of $1,000 per year to an HAS that’s connected to a family health plan.


If you have employees with existing flexible spending accounts (FSAs) or health reimbursement arrangements who are controlling in an HDHP with and HAS, they’ll be able to transfer a portion of any remaining balance to the HAS if H.R. 6311 passes: up to $4,60 for individuals and $5,400 for families.


FSA balances could also be carried over into the next plan year, as long as what’s left is less than three times the annual limit.



Worker coverage, spending


The second bill the Restoring Access to Medication and Modernizing Health Savings Accounts Act of 2018 (H.R. 6199), deals more with what HDHPs can cover and how employees can use HAS funds.


Among other changes, it’d allow an employee with family coverage that includes an HSA to contribute to the account even if that person’s spouse is already enrolled in an FSA.


The cost of gym memberships and other sports/exercise programs would also count as qualified medical expenses that could be purchased through HSAs. The maximum benefit would be $500 a year for a single person and $1,000 a year for a family.


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