Latta introduces HSA expansion measure

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WASHINGTON, D.C. — U.S. Representative Bob Latta (R-Bowling Green) has introduced legislation to expand access to health savings accounts (HSAs) and fix a technicality that prohibits individuals that are receiving social security benefits from contributing to their HSA accounts. Latta authored the legislation after constituents who had been affected by the issue reached out to the congressman’s office.

Under current law, once an individual begins to collect Social Security benefits, both they and their spouse are automatically enrolled in Medicare Part A. They are then disqualified from making any contribution to their HSA account. In the case of Latta’s constituents, one spouse was still working. They ended up having to keep their high-deductible health insurance plan while being prohibited from making contributions to their HSA.

Latta’s legislation would remove the prohibition on contributions to an HSA if an individual is enrolled solely in Medicare Part A.

“Health Savings Accounts have skyrocketed in popularity with more than four times as many people utilizing the accounts since a decade ago,” said Latta. “HSAs allow Americans to save money tax-free and use it for their health care needs. However, current law creates significant problems when an individual begins to collect social security while their spouse is still working. I appreciate the constituents who reached out to my office to let me know how they had been affected by the problems that currently exist. With the use of HSAs continuing to rise, this issue will only grow bigger.”

Health Savings Accounts allow individuals to make tax-free contributions and use the money for qualified medical expenses. In order to contribute to an HSA, an individual must be combined with a High Deductible Health Plan. The Employee Benefit Research Institute puts the number of Americans with HSAs at over 20 million.