A new bill before Congress would widen employee reimbursement options under flexible spending and health savings accounts.
The Family and Retirement Health Investment Act of 2011 would:
- Allow a husband and wife to make catch-up contributions to the same HSA
- Remove new restrictions on the use of HSA and FSA dollars for the purchase of over-the-counter drugs
- Allow individuals to roll over up to $500 from their FSA accounts
- Clarify the use of prescription drugs as preventive care that will not be subject to an HSA-eligible plan deductible
- Reauthorize the use of Medicaid health opportunity accounts
- Expand the definition of qualified medical expenses to encourage more exercise and healthier eating habits
- Allow seniors enrolled in Medicare Part A to continue contributing to their HSAs
- Allow for the purchase of low-premium health insurance and long-term care insurance with HSA dollars.
- Repeal the recently enacted deductible limits of $2,000 for single coverage and $4,000 for family coverage for plans sold to small employers.
- Allow purchase of COBRA coverage, long-term care insurance, and HSA-qualified policies from an HSA.
The bill was introduced by Sen. Orrin Hatch (R-UT) and in the House by Rep. Erik Paulsen (R-MN).
For a look at the full proposed legislation, go here.