H.R.548 - HSA Modernization Act (119th Congress)
Summary
H.R.548, the HSA Modernization Act, proposes several changes to the Internal Revenue Code of 1986 regarding Health Savings Accounts (HSAs). The bill aims to expand HSA eligibility and increase their utility for healthcare expenses. It addresses restrictions related to veteran's benefits, Medicare eligibility, and Indian Health Service assistance, and it also modifies contribution limits and eligible expenses.
Expected Effects
The act would broaden access to HSAs and make them more flexible for individuals and families. This includes allowing those with certain veteran's benefits, Medicare Part A recipients, and those eligible for Indian Health Service assistance to contribute to HSAs. The bill also expands the types of health plans that can be used with HSAs and modifies contribution rules for married individuals.
Potential Benefits
- Increased access to HSAs for veterans, Medicare recipients, and those receiving Indian Health Service assistance.
- Greater flexibility in using HSAs for long-term care services.
- Expanded options for health plans compatible with HSAs, including bronze and catastrophic plans.
- Potential for increased savings and healthcare management for individuals and families.
- Simplification of contribution rules for married individuals with family coverage.
Potential Disadvantages
- Increased complexity in the tax code due to the various amendments.
- Potential for higher healthcare costs if individuals opt for lower-deductible plans.
- May disproportionately benefit higher-income individuals who can afford to contribute more to HSAs.
- Possible strain on the healthcare system if more individuals utilize HSAs for healthcare expenses.
- The changes could lead to confusion among taxpayers regarding eligibility and contribution rules.
Constitutional Alignment
The bill primarily deals with tax policy and healthcare access, areas where Congress has broad authority under Article I, Section 8 of the Constitution, which grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. The expansion of healthcare access could also be argued to align with the general welfare clause. There are no apparent conflicts with individual rights or liberties outlined in the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).