The House has passed healthcare bills to delay the health insurance tax in Obamacare and to expand the use of Health Savings Accounts ahead of its summer recess.
Though the measures received support from members of both parties, they were largely framed by Republicans during floor debate as a fix to Obamacare while Democrats said they did little to build on the healthcare system or fix the “sabotage” that occurred under the Trump administration and GOP lawmakers.
The Restoring Access to Medication and Modernizing Health Savings Accounts Act would allow the HSA funds to be used before a deductible is met, and would allow them to go toward paying for more over-the counter drugs or for gym memberships. It passed 277-142.
Rep. Lynn Jenkins, R-Kansas, said from the House floor that the bill provided “simple but much needed” changes to HSAs so that consumers have more choices and more control over healthcare spending.
Rep. Earl Blumenauer, D-Ore., agreed the bill would make improvements to the existing system but added that he was disappointed that the House didn’t add government funding to the measure and warned it would not lower healthcare costs.
The other legislation, the Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act passed 242-176. It delays the tax on health insurance from taking effect by two years. It also allows people to contribute more money to their HSAs and allows them to be added to bronze or catastrophic Obamacare plans, which have higher deductibles or amounts that patients must pay before insurance coverage kicks in. The legislation also allows people to roll over more leftover funds that they place in Flexible Spending Accounts.
Health Savings Accounts, or HSAs, can be filled with workers’ pre-tax earnings up to a limit. As with tax-deferred Individual Retirement Accounts or IRAs, the funds placed in HSAs can be invested long-term, but they also remain completely tax-free as long as they are used to pay medical expenses. Under federal law, HSAs must be paired with health insurance plans that have high deductibles, but a quirk in Obamacare’s language has made it illegal to use them with catastrophic insurance plans.
Rep. Judy Chu, D-Calif., blasted the bill, referring to the coverage as “junk plans” and said it would “do very little to help Americans access quality healthcare coverage.”
The Trump administration supports the passage of the Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act, according to a statement of administration policy issued Tuesday.
“This commonsense package of healthcare reforms would give Americans greater ability and incentive to save for healthcare expenses,” the White House wrote. “It would allow them more control over how to spend their resources to best improve their healthcare and health and it would lower insurance premiums for millions of Americans.”
The letter blamed Obamacare for rising premiums and said the measure was “consistent with this administration’s commitment to give back greater control over healthcare choices to American patients and families.”
