Washington, D.C.  – Seeking to expand access to Health Savings Accounts (HSAs), U.S. Representative Charles W. Boustany, Jr. (R-LA) today introduced legislation that builds intergenerational “wealth for health” savings by allowing adult children to inherit health investment plans.  The Promoting Health for Future Generations Act of 2007 (H.R. 2639) also aims to remove current hurdles that limit veterans and seniors in Medicare from accessing HSAs.

“HSAs have greatly expanded coverage, but this bill makes them more practical for the working families, veterans, and Medicare seniors who benefit from them,” said Boustany, a retired cardiovascular surgeon.  “By allowing adult children to inherit an HSA in the same way that a spouse can, this measure will help working families build ‘wealth for health’ savings that can be passed on to other generations.”
 
Under current law, families and individuals are unable to deposit their own money in an HSA after they receive care through Medicare or the VA.  Boustany’s legislation would eliminate this inequity, providing for increased growth and greater control over personal Health Savings Accounts.

“In removing these barriers, we are putting healthcare decisions back in the hands of the seniors and veterans who know best,” Boustany added.  “When you consider Medicare’s looming financial problems, the affordable coverage and savings contained in this bill make it practical for patients and providers alike.”

Click here for video of Congressman Boustany’s remarks on the Promoting Health for Future Generations Act of 2007.

Other important provisions of the Promoting Health for Future Generations Act of 2007:

• Permit an adult child to inherit funds from an HSA or Medical Savings Account (MSA) without tax penalties.

• Increase the annual HSA contribution limit to $5,500 for individual coverage and $11,000 for family coverage.

• Allow seniors age 50 and over to make catch-up contributions of up to $2000 over the annual contribution limit.

• Allow Medicare eligible seniors and VA beneficiaries to continue to contribute to an HSA.  

• Permit employees to contribute to an HSA even if their spouse has a Flexible Spending Account (FSA).  (Under current law, an individual may not contribute to an HSA if his spouse has a FSA, even if the individual never seeks to be reimbursed for any medical expenses from the spouse’s FSA.)  

• Permit HSA funds to be spent or used to purchase coverage under a Medicare supplemental policy.

• Permit families to receive a tax deduction for premiums for high deductible health plans purchased on the individual market, and allow coverage for prescription drugs before the deductible must be met.  

• Permit Medicare Advantage MSA plans to provide coverage before the deductible for Medicare-covered preventive services.  

• Allow individuals enrolled in Medicare MSAs to make contributions into the account.

• Permit seniors to use Medicare Advantage MSA funds for wellness and fitness programs.