ATR today led a coalition of 30 organizations and activists in support of efforts to expand tax-advantaged Health Savings Accounts (HSAs). The legislation being considered today by the House Ways and Means Committee will build on the success of HSAs in many ways including by doubling the contribution limit, ending the prohibition on purchasing over-the-counter medications, expanding access to HSAs, and allowing HSAs to be used by working seniors.
You can read the letter here or below:
Dear Chairman Brady & Chairman Roskam:
On behalf of the undersigned organizations, we write in support of your Committee’s efforts to expand tax-advantaged Health Savings Accounts (HSAs). HSAs promote consumer driven healthcare, reduce taxes for families, and encourage lower healthcare spending.
There are numerous important pieces of legislation that your Committee is considering that will improve HSAs including proposals to double the contribution limit, end the prohibition on purchasing over-the-counter medications, expand access to HSAs, and allow HSAs to be used by working seniors.
Since they were created in 2004, HSAs have become a popular and successful vehicle that promotes patient choice in health care. HSAs are used in conjunction with low premium, high deductible health insurance plans and provide a vehicle for individuals to spend and control their own money on their own health needs. Today, HSAs are used by over 25 million American families and individuals.
HSAs contribute to lower healthcare spending by promoting consumer driven healthcare. HSA funds are completely controlled by the individual and follow them between jobs creating an incentive to spend funds wisely.
Research shows that families and individuals that utilize HSAs spend less on health care and use fewer medical services without forgoing necessary primary and preventative care.
HSAs are already a significant vehicle to pay for healthcare expenses. An HSA user can accumulate as much as $360,000 after contributing to an account for 40 years assuming a rate of return of just 2.5 percent, according to the Employee Benefit Research Institute. With a rate of return of 5 percent, an HSA user can accumulate $600,000 over 40 years.
HSAs also reduce taxes for American families. HSAs offer triple tax benefits to users – contributions made are tax free, interest and investment is earned tax free, and payments made to qualifying health expenses are tax free. Expanding HSAs will provide additional tax reduction for American families and will promote saving and investment.
Since they were created almost 15 years ago, HSAs have proven successful in promoting healthcare choice, lowering taxes and lowering healthcare costs. Expanding HSAs will build on this success.
President, Americans for Tax Reform
James L. Martin
Founder/Chairman, 60 Plus Association
Saulius “Saul” Anuzis
President, 60 Plus Association
Founder and President, Association of Mature American Citizens
Ashley N. Varner
Executive Director, ALEC Action
Lisa B. Nelson
CEO, American Legislative Exchange Council
Brent Wm. Gardner
Chief Government Affairs Officer, Americans for Prosperity
President, Campaign for Liberty
President, The Carlstrom Group
President, Council for Citizens Against Government Waste
Executive Director, Digital Liberty
President, Family Business Coalition
Director of Legislative Affairs, Faith & Freedom Coalition
Executive Vice President, Freedom Partners Chamber of Commerce
Vice President of Legislative Affairs, FreedomWorks
Grace Marie Turner
Founder and President, Galen Institute (Affiliation listed for information purposes only.)
Naomi Lopez Bauman
Director of Healthcare Policy, Goldwater Institute
Co-founder, Health Freedom Hub
Mario H. Lopez
President, Hispanic Leadership Fund
Executive Director, HSA Coalition
President, HSAs for All
President, Independent Women’s Forum
Heather R Higgins
CEO, Independent Women’s Voice
President, Institute for Liberty
President, The LIBRE Initiative
Gov. Gary Johnson
Honorary Chairman, Our America Initiative
President, National Taxpayers Union
President, Taxpayers Protection Alliance
Executive Director, Virginians for Quality Healthcare