S.1944 - Employee Access to Worksite Health Services Act (119th Congress)
Summary
S.1944, the "Employee Access to Worksite Health Services Act," aims to amend the Internal Revenue Code of 1986. The amendment clarifies that individuals accessing certain healthcare services through worksite health clinics can make pre-tax contributions to a health savings account (HSA). This bill seeks to expand HSA eligibility for employees utilizing on-site healthcare facilities.
The bill defines "qualified items and services" provided at these clinics, including physical exams, immunizations, certain drugs, injury treatment, preventive care for chronic conditions, drug testing, and screenings. It also specifies that all persons treated as a single employer under specific sections of the Internal Revenue Code shall be considered a single employer for the purposes of this act.
The amendment would apply to taxable years beginning after December 31, 2025, if enacted.
Expected Effects
The primary effect of this bill would be to increase the number of individuals eligible to contribute to HSAs. This could lead to greater utilization of worksite health clinics.
Employees who previously couldn't contribute to an HSA due to their use of on-site clinics would now be able to do so. This may incentivize employers to offer or expand on-site health services.
Potential Benefits 4/5
- Increased HSA Eligibility: More individuals can contribute to HSAs, potentially leading to greater healthcare savings.
- Employer Incentives: Encourages employers to offer or expand worksite health clinics, improving employee access to healthcare.
- Preventive Care Focus: The bill emphasizes preventive care for chronic conditions, potentially improving long-term health outcomes.
- Reduced Healthcare Costs: By promoting preventive care and early intervention, the bill could help reduce overall healthcare costs.
- Improved Employee Health: Easier access to healthcare services at the workplace can lead to earlier detection and treatment of health issues.
Potential Disadvantages
- Potential for Increased Tax Burden: The expansion of HSA eligibility could lead to a decrease in tax revenue, potentially requiring adjustments elsewhere.
- Limited Scope: The bill only addresses HSA eligibility for those using worksite clinics, potentially creating disparities with other healthcare arrangements.
- Complexity: The specific definitions of "qualified items and services" and "preventive care for chronic conditions" may require further clarification and could be complex to administer.
- Administrative Burden: Employers and healthcare providers may face additional administrative burdens in tracking and reporting qualified services.
- Potential for Abuse: There is a risk that the definition of qualified services could be exploited, leading to inappropriate use of HSAs.
Constitutional Alignment 4/5
The bill appears to align with the general welfare clause of the Constitution (Preamble). By promoting access to healthcare and potentially reducing healthcare costs, the bill could contribute to the overall well-being of the population.
Furthermore, the bill falls under the legislative powers granted to Congress in Article I, Section 8, which includes 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 regulation of health savings accounts falls under this purview.
Impact Assessment: Things You Care About
This action has been evaluated across 19 key areas that matter to citizens. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).