Paulsen Introduces Legislation to Expand Health Savings Accounts
Additional Coverage Option Has Been Shown to Expand Coverage of Previously Uninsured, Says Minnesota Congressman

FOR IMMEDIATE RELEASE: July 31, 2009

CONTACT: Luke Friedrich (952) 405-8510 / Andrew Foxwell (202) 225-2871

Washington, D.C. – Congressman Erik Paulsen (MN-03) today introduced legislation to expand and improve the benefits available to Americans who use Health Savings Accounts (HSAs) as part of their health care coverage portfolio.  The legislation will be included as one provision in the Medical Rights and Reform Act, a comprehensive health care reform alternative supported by Paulsen and being offered by a group of moderate House members.  Paulsen’s legislation expands HSAs by including: provisions for greater “catch-up” contributions, expanding HSA options for seniors, removing restrictions on veterans who use HSAs and expanding the number of medical expenses that can be covered to encourage a greater focus on prevention.

“If we are going to truly reform health care in a way that works, we must be sure consumers have both choice and control of their health care decisions,” Paulsen said.  “HSAs have been shown to help expand coverage for small businesses and the previously uninsured.  I am proud to introduce one important provision aimed at providing additional coverage options for Americans regardless of age or income.” 

HSAs continue to grow as a coverage option for Americans, with over eight million people covered by HSAs as of January 2009.  Minnesota is one of the top five states with the highest enrollment in HSA plans, which have been shown to cover many previously uninsured people.   

The key elements of Paulsen’s HSA legislation, which has 20 co-sponsors, are as follows: 

Allow Catch-up Contributions for Spousal Accounts
HSA account holders would be able to double their catch-up contributions to account for a loss that typically takes place when a spouse is eligible but has to deposit a contribution into a separate account.

Medicare Allowances
Allows for seniors enrolled in Medicare Part A to contribute to their Health Savings Accounts regardless of age.

Expand Opportunities for Veterans
Removes previous restrictions in current law that prohibit veterans from contributing to their HSAs if they have used a VA hospital in the past three months.  

Expand Opportunities for Native Americans
Removes previous restrictions that prohibit Native Americans from contributing to their HSAs if they have used the Indian Health Service.

Enables HSA-holders to rollover unused funds from Flexible Spending Accounts (FSAs) and HRAs and deposit them into their HSA
Removes restrictions and provides more opportunities to rollover unused funds.

Expand Opportunities for Purchasing Health Insurance
Allows HSA account funds to be used to pay premiums for HSA-qualified policies, regardless of their circumstances. 

Expansion of Preventative Coverage
Expands the definition of “preventative care” to include medications that prevent worsening of or complications from chronic conditions.  Under current law, HSA-qualified plans are only able to pay for “preventative care” and doesn’t provide a clear definition.

Expand Definition of “Qualified Medical Expenses”
This provisions is aimed at encouraging wellness and curbing obesity by including exercise and physical fitness programs, as well as nutrition and certain dietary supplements, as qualified expenses.   
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