Sen. Rand Paul (R-KY) introduced legislation on Friday that would expand Health Savings Accounts (HSAs) for all Americans.
Paul introduced S. 4367, the Health Savings Accounts for All Act of 2020. The legislation would eliminate contribution limits for HSAs and allow more Americans to qualify for HSAs.
Paul, an ophthalmologist, said his bill would expand healthcare access for Americans to cover their medical costs.
He said in a statement on Friday:
As Americans’ health care costs continue to rise, my plan puts more power in the people’s hands, getting rid of unnecessary restrictions, expanding access, and trusting Americans to make the decisions that are best for their families with the money they have worked hard to earn.
Current law caps annual contributions to HSAs for individuals at $3,600 and $7,200 for families in 2021. Most Americans do not qualify for an HSA plan because they do not have a high-deductible health insurance plan.
The Centers for Disease Control statistics found that 45.8 percent of Americans who had health insurance had a high-deductible plan.
Paul’s bill would also allow individuals in any type of health coverage, including Medicare, VA benefits, TriCare, and Indian Health Service care, to max tax-deductible HSA contributions.
Further, the bill would allow patients to use their HSA for other health-related expenses, such as physical trainers, nutrition trainers, health coaches, exercise equipment, and nutritional and dietary supplements.
Americans would also be allowed to use their HSAs to pay for health insurance premiums and direct primary care (DPC) agreements.
Paul had praised the IRS for proposing a rule in June that would permit employers to craft health reimbursement arrangements (HRAs) to subsidize their employees’ direct primary care (DPC) and healthcare sharing ministries (HCSMs).
Paul told Breitbart News:
It’s long past time for the American government to trust the American people to design the terms of their own care. That means expanding HRAs, as well as other patient-centered arrangements like association health plans (AHPs) and health savings accounts (HSAs).
Read Paul’s Health Savings Accounts for All Act of 2020 here.
Sean Moran is a congressional reporter for Breitbart News. Follow him on Twitter @SeanMoran3.