U.S. Rep. Bob Latta (R-OH) is among a group of Republican lawmakers who introduced legislation that would expand access to health savings accounts (HSAs).
HSAs permit individuals to make tax-free contributions to pay qualified medical expenses. To contribute to an HSA, an individual must be enrolled in a High-Deductible Health Plan. Under the current law, once an individual begins to collect Social Security benefits, they are automatically enrolled in Medicare Part A. At that point, they are disqualified from further contributing to their HSA account.
The Stop Penalizing Working Seniors Act would remove the prohibition on contributions to an HSA if an individual was enrolled solely in Medicare Part A.
“Seniors should have the ability to continue saving for their present and future health care costs,” Latta said. “Unfortunately, many working seniors who are enrolled in Medicare Part A are currently not allowed to continue contributing to their crucial Health Savings Accounts. This unnecessary barrier limits our seniors’ health care options, which is why I am leading the Stop Penalizing Working Seniors Act to ensure seniors are able to access and pay for their health care needs.”
Along with Latta, U.S. Reps. Ashley Hinson (R-IA) and Stephanie Bice (R-OK) are also sponsors of this legislation.
“Under current law, some seniors are unable to contribute to, or use, HSAs simply because they are still in the workforce,” Hinson said. “This legislation fixes this technicality that unfairly punishes seniors who wish to use HSAs. I’ll continue working to lower costs and increase health care options for Iowans, especially our seniors.”
Latta has introduced this bill in each of the last two Congresses, but it failed to advance both times.
“I am proud to be an original cosponsor of Rep. Latta’s legislation, the Stop Penalizing Working Seniors Act,” Bice said. “This legislation would expand access to Health Savings Accounts (HSAs) and fix a technicality that currently prohibits individuals who receive Social Security benefits from contributing to their HSAs. With rising inflation, we must continue to provide relief for those on fixed incomes.”