AFP Applauds House Ways and Means Committee for Passing Personal Option Legislation That Expands Access to Health Savings Accounts

Sep 28, 2023 by AFP

Giving more Americans the ability to open health savings accounts puts people and families in control of their health care dollars, leading to lower prices, more options, and fewer hassles.

Arlington, Va. – This week, the House Committee on Ways and Means passed H.R.5687, the HSA Modernization Act of 2023, and H.R.5688, the Bipartisan HSA Improvement Act of 2023, both supported by Americans for Prosperity. The next stop for the bills is the House floor.

The Bipartisan HSA Improvement Act would make innovative direct primary care arrangements HSA-compatible, removing an important barrier between patients and the medical professionals they trust. Direct primary care offers people the option to pay a flat, low monthly fee in exchange for unlimited, 24/7 access to care. It’ like a Netflix subscription to your favorite doctor.

The HSA Modernization Act would extend HSA access to veterans, Native Americans, and working seniors – Americans too often let down by failing government health care programs. It would also make bronze and catastrophic tier plans in the online marketplace HSA-qualified and would make HSAs even better for hard-pressed families by allowing them to put enough money in their account to fully cover their insurance cost-sharing obligations, providing welcome peace of mind.

Together, these bills represent the most significant improvement in tax-free Health Savings Accounts since their creation twenty years ago.

“Expanding and improving HSAs means lower, more transparent prices and more options to choose from,” said Dean Clancy, senior health policy fellow at Americans for Prosperity. “We support this legislation because it would dramatically advance a Personal Option for millions of Americans, giving them more choice and control over their health care.”

Currently, roughly 90% of Americans do not have access to health savings accounts due to government rules and regulations. However, almost nine in ten voters (87%) support allowing any American to have such an account.

With average health care costs set to rise by roughly 6.5% next year, HSAs offer much-needed relief from the crushing burden of medical inflation. HSAs reduce wasteful spending and help bend the cost curve downward. Studies confirm patients armed with an HSA shop for value, because they are spending their own money. What they do not spend they get to keep, knowing it will be there for them when they need it. HSAs help people take more personal responsibility for their health.

Learn more in AFP’s letter to Congress urging support for both the HSA Modernization Act of 2023 and the Bipartisan HSA Improvement Act of 2023.

For media inquiries, please contact Geoff Holtzman; gholtzman@afphq.org.

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