New legislation aimed at increasing the ease and value of Health Savings Accounts (HSAs) has
been proposed, and if passed, would be a welcomed improvement for many employees
currently enrolled in high deductible health plans (HDHPs).
HSAs are employee owned accounts, which have no annual ‘use it or lose it’ rule, and have
annual contribution limits set much higher than traditional FSAs. In order to open or contribute to
an HSA, an employee must be enrolled in a high deductible health plan, meaning there is no
first dollar coverage prior to satisfying the plan’s deductible (for 2018, the minimum deductible
for a plan to be qualified as an HDHP is $1350 for an individual tier, and $2,700 for a family tier).
The proposed legislation would make several changes to HSA plans, such as:
- Allowing HSA-qualified plans to offer pre-deductible coverage of health services at onsite employee clinics and retail health clinics
- Allowing the use of HSA funds for wellness benefits like gym memberships
- Making it clear that telehealth (such as Teladoc), will not affect employees’ HSA eligibility
- Ensuring that an FSA enrollment by an employee’s spouse will no longer disqualify the employee from HSA enrollment and contributions
The increased flexibility offered by this proposed legislation would be a welcome change for
many employees, as the number of HDHPs offered by employers grows every year.