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House Ways and Means Committee Turns Attention to Health Savings Accounts in Forthcoming Healthcare Tax Package

Following a Wednesday Ways and Means (W&M) Health Subcommittee hearing, Lowering Costs and Expanding Access to Health Care through Consumer-Directed Health Plans, W&M Chairman Kevin Brady (R-TX) announced that his committee would develop a healthcare tax package that focuses on health savings accounts (HSAs). According to Chairman Brady, the package would address “how do we make health savings accounts more user-friendly, more able to be used for preventative issues, and frankly even better used to drive healthcare costs down.”

During the Wednesday hearing, several bills were discussed by the subcommittee that would allow consumers to use their HSAs in additional ways or increase their contribution amounts. As high-deductible insurance plans have become increasingly common, more Americans have utilized HSAs.

Expanding access to HSAs has been prominent in most Republican proposals for changing or repealing the Affordable Care Act (ACA). During the current Congress, House Republicans have introduced more than 25 bills that refer to HSAs. Some Democrats oppose expansion of HSAs, arguing that the programs cost the federal government large amounts of tax revenue without doing much to help those who can’t afford care.

To watch the hearing, click here. We will keep you updated.