On May 26, Senator Orrin Hatch (R-UT) and Representative Erik Paulsen (R-MN) introduced legislation supported by NAHU that would repeal the part of PPACA that will prohibit small business owners from buying health insurance policies with individual deductibles that exceed $2000 in 2014. The Family and Retirement Health Investment Act of 2011 will also expand the use of tax-exempt health savings accounts (HSAs) and allow for individuals to roll over $500 flexible spending accounts (FSAs) annually.
To improve HSAs, the legislation will:
- allow a husband and wife to make catch-up contributions to the same HSA;
- remove the onerous new restrictions on the use of HSA and FSA dollars for the purchase of over-the-counter drugs;
- allow individuals to roll over up to $500 from their FSA accounts;
- clarify the use of prescription drugs as preventive care that will not be subject to an HSA-eligible plan deductible;
- reauthorize the use of Medicaid health opportunity accounts;
- promote wellness by expanding the definition of qualified medical expenses to encourage more exercise and better diet;
- allow seniors enrolled in Medicare Part A to continue contributing to their HSAs; and
- allow for the purchase of low-premium health insurance and long-term care insurance with HSA dollars.