Health Marketplace and Savings Accounts for All Act

Key Points

• The bill would dramatically raise the annual limit on Health Savings Account contributions, setting the new cap equal to the 401(k) contribution limit (currently $23,500 for those under 50). People 50 and older would get an additional catch-up contribution. This means individuals could save far more money tax-free for healthcare expenses.
• The bill removes the requirement that you must have a high-deductible health plan to open or contribute to an HSA. This opens Health Savings Accounts to virtually anyone, regardless of what type of insurance they have or even if they have no insurance at all.
• HSA funds could be used for a much wider range of expenses, including gym memberships, wearable fitness trackers, vitamins, dietary supplements, health insurance premiums, and direct primary care arrangements. This goes well beyond what current HSAs allow.
• The bill creates "health marketplace pools" that let individuals and small businesses band together to buy group health insurance or group health plans, including drug-only coverage. This could help people who don't have employer-sponsored insurance access group rates typically reserved for large companies.
• HSA holders could roll over their accounts to children, parents, or grandparents upon death, and HSAs would receive the same bankruptcy protections as retirement accounts like IRAs. Medical expenses incurred before an HSA is established could also qualify retroactively.