Senators Cruz, Braun Introduce Legislation to Expand HSAs

Senators Ted Cruz (R-TX) and Mike Braun (R-IN) have announced the introduction of the Personalized Care Act of 2019. The legislation is intended to make health savings accounts (HSAs) accessible to more Americans, and to enhance HSA provisions. (This legislation has not yet been posted to the official congressional website. The provisions listed below are based on legislative text provided by the office of Sen. Cruz.)

The legislation as released by the senators would do the following.

  • End the restriction that requires health coverage only by a high-deductible health plan (HDHP) in order to make HSA contributions.
  • Permit those participating in Medicare and certain other health care financing programs to contribute to HSAs.
  • Permit use of HSA assets to pay health insurance premiums.
  • Allow HSA assets to be used for direct primary care and certain other direct medical care arrangements.
  • Increase maximum annual HSA contribution limits from $3,550 (2020) to $10,800 for those with individual insurance coverage, and from $7,100 (2020) to $29,500 for those with family coverage.
  • Expand HSA qualified medical expense coverage of over-the-counter (OTC) medicines.
  • Allow HSAs to pay the costs of participation in certain health care sharing ministries.
  • Reduce penalties for use of HSA assets for certain nonqualifying expenses.