House Republicans are looking to finalize the details of their budget reconciliation package by the end of the month, which would include major changes to health reimbursement arrangements and high deductible health plans.
10 notes:
1. Working seniors who are eligible for Medicare Part A and enrolled in HDHPs could continue contributing to their HSA, with the same rules that apply to those under 65, including penalties for nonqualified medical expenses.
2. Individuals with HDHPs could use their HSAs to pay for direct primary care services, with limits of $150 a month for individuals and $300 a month for families, adjusted annually for inflation.
3. Bronze and catastrophic ACA plans could be used to make HSA contributions.
4. Individuals using discounted healthcare services at worksite health clinics could contribute to their HSA.
5. Individuals could use their HSAs to pay for fitness memberships (up to $500 annually for individuals and $1,000 for families).
6. Spouses aged 55 and up could contribute their catch-up contributions ($1,000 annually) to a single HSA, rather than having to open separate accounts.
7. Employees could convert FSA or HRA balances into HSA contributions when enrolling in an HDHP-HSA plan, with a cap on the conversion at the annual FSA contribution limit.
8. Medical services that occurred within 60 days before opening an HSA account could be eligible for reimbursement.
9. Individuals would still be able to qualify for an HSA even if their spouse is enrolled in an FSA.
10. Individuals earning less than $75,000 annually ($150,000 for families) could contribute an extra $4,300 to their HSA, with families able to contribute an additional $8,550. This extra contribution would be phased out for those earning above $100,000 (or $200,000 for families).
