ATR Urges HSA Expansion in One, Big, Beautiful Bill

The House-passed One, Big, Beautiful Bill Act includes historic improvements to Health Savings Accounts (HSAs).

The OBBBA’s HSA provisions, as written, would allow another 20 million Americans access to these tax-advantaged accounts – the most significant expansion of HSAs since they were created in 2003.

Americans for Tax Reform encourages the U.S. Senate to include the HSA expansions in their version of the reconciliation bill. Not only would this expand healthcare access to millions of Americans, but it would also promote a conservative vision for the future of healthcare in the U.S., as Democrats continue to lie about the bill’s Medicaid reforms.

Earlier this month, over 30 free market organizations joined ATR in a coalition letter supporting these provisions.

If it proves impossible to include in the OBBBA, we urge Senators to include these provisions, or the ones potentially excluded, in this year’s upcoming reconciliation bills.

Because HSAs are owned by patients, empowering them to choose the best care and most cost-effective options for their health, HSAs have become a popular and successful vehicle. HSAs are currently used in conjunction with low premium, high deductible health insurance plans (HDHPs). There are over 35.5 million HSAs, covering nearly 72 million people.

Building on this success will give Americans more control over their own health – a perfect complement to President Trump’s ‘Make America Healthy Again’ initiative.

Expanding HSAs means more Americans can save their hard-earned tax dollars, are allowed a significant vehicle for growing their savings, and are given the freedom of portability. Because HSAs promote consumer-driven healthcare, they encourage more modest healthcare spending, helping lower exorbitant costs in the American healthcare sector. One study out of Health Services Research found that HSA enrollees spent up to 7 percent less than non-HSA enrollees on medical expenses and up to 9 percent less for pharmacy spending. Further, HSA plans often have the lowest monthly premiums and competitive deductibles when compared to employer and Obamacare plans.  

The House-passed reconciliation bill makes needed improvements to HSAs, expanding access to new groups and broadening and clarifying the types of care covered. These changes include, but are not limited to, allowing HSA access to seniors eligible for Medicare Part A and those with bronze and catastrophic plans via the health insurance exchange, broadening HSA-covered care to Direct Primary Care arrangements and qualified fitness expenses, and increasing contribution limits for working-class households.

Since they were created over 20 years ago, HSAs have proven successful in promoting healthcare choice, lowering taxes, and lowering healthcare costs. We encourage members of the Senate to build on this success.