Working Families Tax Cuts Help More Americans Save for Health Care

Working Families Tax Cuts Help More Americans Save for Health Care

Washington, D.C.-The Working Families Tax Cuts are making it easier for Americans to save for health care expenses by expanding access to Health Savings Accounts (HSAs). Before the law took effect, only 2 percent of people insured through the federal Affordable Care Act marketplace were enrolled in HSA-eligible plans, which provides a tax-advantaged way to save for qualified medical expenses. By making bronze and catastrophic Affordable Care Act plans HSA-compatible and permanently allowing coverage of certain telehealth services before the deductible is met, the law has expanded HSA eligibility to an estimated 10 million Americans.

"Health savings accounts give families greater control over their health care decisions and how they spend their health care dollars," said U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho). "By expanding access to these important tax-advantaged tools, the Working Families Tax Cuts are giving millions more Americans the opportunity to save for the care that best meets their needs."

Key wins:

• Makes health insurance plans which cover telehealth and remote care services pre-deductible HSA-eligible
• Allows enrollees in bronze and catastrophic Affordable Care Act plans to contribute to an HSA
• Allows qualified individuals to contribute to an HSA while participating in a direct primary care service (DPC) arrangement, which allows patients to pay a flat recurring fee for routine care

What they are saying:

"In many cases, the DPC model allows physicians to offer enhanced access and more personalized care than is typically possible under a traditional fee-for-service system… The AAFP greatly appreciates that [the Working Families Tax Cuts] eliminated the prohibition on using health savings account (HSA) funds to pay for a DPC arrangement." - American Academy of Family Physicians Board Chair Dr. Jen Brull

"Catastrophic plans better reflect the core purpose of insurance-protection against high-cost, unpredictable events-while allowing consumers greater control over routine spending. Combined with expanded health savings account (HSA) eligibility contained in the Working Families Tax Cuts, expanded access to catastrophic plans enables consumers to direct premium savings into tax-advantaged accounts rather than inflated premiums." - Brian Blase, Gabrielle Minarik and Christopher Medrano of Paragon Health Institute

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.