Legislative Alert

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Hatch/Paulsen Introduce Family and Retirement Health Investment Act of 2011

Late last week, Senator Orrin Hatch (R-UT), Ranking Member, Senate Finance Committee and Representative Erik Paulsen (R-3rd, MN) introduced the “Family and Retirement Health Investment Act of 2011.”  The bill numbers are not yet available.  The legislation makes a number of changes to strengthen and expand health savings accounts (HSAs) and flexible spending accounts (FSAs).  Specific provisions in the legislation would:

  • allow a husband and wife to make catch-up contributions to the same HSA;
    remove the requirement that an individual have a physician’s prescription to obtain HSA or FSA reimbursement for OTC drugs;
  • allow individuals to roll-over up to $500 from their FSA accounts;
  • clarify the use of prescription drugs as preventive care that will not be subject to an HSA-eligible plan deductible;
  • reauthorize the use of Medicaid health opportunity accounts;
    promote wellness by expanding the definition of qualified medical expenses to encourage more exercise and better diet;
  • allow seniors enrolled in Medicare Part A to continue contributing to their HSAs; and
  • allow for the purchase of low-premium health insurance and long-term care insurance with HSA dollars.

For more details or summaries you can access them in PDF format as follows: Legislative Text, Short Summary and Long Summary. We will discuss the legislation in greater detail during out next Members Primary Contacts call which will take place on June 14th. 

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