Health Reform and HSAs

In reviewing the 1018-page House Bill on health reform there appear to be a few issues that could negatively impact health savings accounts. There is a limit on the out-of-pocket costs that could effectively narrow the plan design for HSAs. The limits set in the bill set a max-out-of pockets (single/family) of  $5,000 and $10,000. There is a provision to increase them annually based on the CPI.

It is possible that the penalty for non-medical withdrawals from the HSA could increase from 10% to 20%. For most HSA owners this would be a non-issue.

And it is possible that the over-the-counter drug expense allowance would be repealed.

In any case, it appears that nothing will be done until September when Congress returns form its recess.