S-403 : Still Just a Bill

Health Savings Act of 2017

This bill amends the Internal Revenue Code, with respect to health savings accounts (HSAs), to:

• rename high deductible health plans as HSA-qualified health plans;
• allow spouses who have both attained age 55 to make catch-up contributions to the same HSA;
• make Medicare Part A (hospital insurance benefits) beneficiaries eligible to participate in an HSA;
• allow individuals eligible for hospital care or medical services under a program of the Indian Health Service or a tribal organization to participate in an HSA;
• allow members of a health care sharing ministry to participate in an HSA;
• allow individuals who receive primary care services in exchange for a fixed periodic fee or payment, or who receive health care benefits from an onsite medical clinic of an employer, to participate in an HSA;
• include amounts paid for prescription and over-the-counter medicines or drugs as "qualified medical expenses" for which distributions from an HSA or other tax-preferred savings accounts may be used;
• increase the limits on HSA contributions to match the sum of the annual deductible and out-of-pocket expenses permitted under a high deductible health plan; and
• allow HSA distributions to be used to purchase health insurance coverage.

The bill also: (1) amends the federal bankruptcy code to exempt HSAs from creditor claims in bankruptcy, and (2) amends the Social Security Act to reauthorize Medicaid health opportunity accounts.

The bill allows a medical care tax deduction for: (1) exercise equipment, physical fitness programs, and membership at a fitness facility; (2) nutritional and dietary supplements; and (3) periodic fees paid to a primary care physician and amounts paid for pre-paid primary care services.