March 22, 2019
President Trump’s proposed 2020 Budget called for health savings account (HSA) enhancements, including:
- Encouraging more plan design flexibility (meeting an actuarial value of 70%) for HSA-qualified plans. Currently, plan sponsors must abide by strict IRS limits on minimum deductible, out-of-pocket maximum (OOPM) and other restrictions on pre-deductible plan coverage; and
- Allowing people aged 65 or older who are enrolled in Medicare Advantage or employer-sponsored plans to make contributions to HSAs.
The Business Group recently sent comments to the Senate HELP Committee Chair Lamar Alexander (R-TN) that included adopting HSA enhancements, particularly more flexibility to cover chronic care services prior to the deductible.
Newsletters
Descriptive ipsum: dolor sit amet, consectetur adipiscing elit aenean
Sign up
Impact on Employers and Employees
If enacted, employers would have much greater flexibility to adopt innovative plan designs, such as greater pre-deductible coverage for chronic conditions and greater generic drug substitution, that could lower costs and improve access to needed care for employees and their families. Additionally, more employees, retirees and their families would be able to make HSA contributions.
Outlook
Action to enhance HSAs and provide more plan design flexibility may prove too heavy a lift in a divided Congress that also has differing views on HSA plans.
More Topics
Articles & Guides
Health Accounts
This content is for members only. Already a member?
Login
Join today to gain access to member-only resources!
Learn More