The Health Savings for Families Act would allow one spouse to make HSA contributions if their spouse has a health FSA, as long as that health FSA does not reimburse the expenses of the spouse paying into the HSA. (Photo: Getty)
A bipartisan bill introduced by Congress-members Jennifer Wexton, D-VA, Earl Blumenauer, D-OR and Mike Kelly, R-PA, would allow families to take advantage of the tax benefits of both health savings accounts and health flexible spending accounts—and save money on health care in the process.
According to a release from Wexton's office, while at present couples who have two different health insurance plans and access to both an HSA and an FSA cannot take advantage of both, lest they incur a tax penalty, the proposed bill would eliminate that penalty.
These days it's a common occurrence for working spouses to be covered under two different health care plans, but that's not necessarily a good thing, since, Wexton's office says, "more employers are restricting spousal coverage if the spouse has access to insurance through their own employer." The benefits provided by FSAs and HSAs allow families to save on health care costs, but at present they're subject to restrictions and can't both be utilized freely and without penalty by one family.
The Health Savings for Families Act would allow one spouse to make HSA contributions if their spouse has a health FSA, as long as that health FSA does not reimburse the expenses of the spouse paying into the HSA. That would then allow families to save up to $7,000, pretax, to an HSA to help pay for qualified medical expenses. In 2019, $7,000 is the maximum HSA contribution a family can make.
In a statement, Wexton said, "Instead of penalizing families for responsibly managing their money—as the existing law does—my bill allows couples to save and spend in the way that's easiest and most affordable for them."
"This bill would fix a flaw and ensure that families are not penalized for investing in their care," Blumenauer said. Kelly pointed out that the bill removes "barriers to investments in Health Savings Accounts and Flexible Spending Accounts for married couples."
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
