Ways and Means Okays Bill to Boost HSA Limits

The House Ways and Means Committee has approved a bill that would increase the contribution limit for health savings accounts (HSAs).

H.R. 5445, approved on a 23-15 vote, says that workers enrolled in high-deductible plans and opting for single coverage could contribute up to $6,500 to their HSAs, next year, while those with family coverage could contribute up to $13,100.

Under current law, the 2017 maximum HSA contribution is $3,400 for employees with single coverage and $6,750 for family coverage.

The bill would also expand catch-up contributions to HSAs. Under current law, employees age 55 and older can make an extra $1,000 annual “catch-up” contribution to their HSAs. The new bill provides an additional $1,000 HSA catch-up contribution if the employee has an age-55 or older spouse.

The bill was just one of seven passed by the Ways and Means Committee. The others were:

  • The Small Business Health Care Relief Act (H.R. 5447), sponsored by Reps. Charles Boustany (R-La.) and Mike Thompson (D-Calif.), which allows employers to provide employer payment arrangements.
  • The Veterans TRICARE Choice Act (H.R. 5458), sponsored by Rep. Chris Stewart (R-Utah), which provides more options for those eligible for TRICARE.
  • The Native Americans Health Savings Improvement Act (H.R. 5452), sponsored by Rep. John Moolenaar (R-Mich.), which improves access to Health Savings Accounts for those who receive services at Indian Health Service facilities.
  • The Tribal Employment and Jobs Protection Act (H.R. 3080), sponsored by Rep. Kristi Noem (R-S.D.), which eliminates Obamacare’s employer mandate for tribally owned businesses.
  • The Student Worker Exemption Act of 2015 (H.R. 210), sponsored by Rep. Mark Meadows (R-N.C.), which provides universities relief from the employer mandate for hours worked by student workers.
  • The Halt Tax Increases on the Middle Class and Seniors Act (H.R. 3590), sponsored by Martha McSally (R-Ariz.), which repeals a provision of the Affordable Care Act that makes it harder to deduct high-cost medical expenses.

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