Arlington, VA – A coalition of leading taxpayer, consumer, and free-market organizations is urging Congress to expand Health Savings Accounts (HSAs) in this year’s reconciliation bill. Since their creation, HSAs have empowered millions of Americans with greater control over their healthcare expenses, allowing individuals and families to save tax-free for medical costs. With over 35.5 million HSAs covering nearly 72 million people, broadening access to these accounts would provide even greater financial flexibility and security for consumers while reducing healthcare spending.
Expanding HSAs would decouple them from high-deductible health plans, making them accessible to all Americans, including the uninsured. Research shows that HSAs help reduce healthcare costs by encouraging consumer-driven spending. Additionally, HSAs offer significant tax advantages—contributions, earnings, and withdrawals for qualified expenses are all tax-free—making them an effective tool for financial security and retirement planning.
Key Takeaways:
- Expanding Access: Decoupling HSAs from high-deductible plans would allow more Americans to benefit, including those not on high deductible health plans.
- Lower Healthcare Costs: Studies indicate that HSA enrollees spend 5-7 percent less on total healthcare costs and 6-9 percent less on prescription drugs.
- Greater Savings Potential: An HSA user contributing over 40 years could accumulate between $360,000 and $600,000, depending on investment returns.
- Broad Support & Bipartisan Legislation: Several existing bills—such as the Personalized Care Act, HSA Modernization Act, and Bipartisan HSA Improvement Act—offer pathways to expand HSAs and enhance their benefits.
Congress has a historic opportunity to build on the success of HSAs and increase access to tax-advantaged healthcare savings. The coalition urges lawmakers to prioritize expanding access to HSAs over merely increasing contribution limits to maximize the impact for American families. By passing key HSA reforms, Congress can promote personal choice in healthcare, reduce costs, and provide lasting financial benefits to millions of Americans.
Read the letter below.
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