To amend the Internal Revenue Code of 1986 to allow distributions from a health flexible spending arrangement or health reimbursement arrangement directly to a health savings account in connection with establishing coverage under a high deductible health plan.
Latest Action
Referred to the Subcommittee on Health.
Official Summary
Official summary has not been imported yet.
GovScope Watchdog™
AI Government Intelligence™This bill proposes an amendment to the Internal Revenue Code of 1986 to permit direct transfers of funds from health flexible spending arrangements (FSAs) or health reimbursement arrangements (HRAs) to health savings accounts (HSAs) when establishing coverage under a high deductible health plan (HDHP). This change aims to facilitate the use of pre-tax health funds by allowing easier movement of money into HSAs, which are linked to HDHPs and offer tax advantages for medical expenses.
The bill seeks to enhance flexibility in managing pre-tax health funds by enabling direct transfers from FSAs or HRAs to HSAs, potentially simplifying the process for individuals enrolling in high deductible health plans.
- Amends the Internal Revenue Code of 1986 to allow direct distributions from FSAs or HRAs to HSAs.
- Applies specifically in the context of establishing coverage under a high deductible health plan.
- Aims to improve the coordination of tax-advantaged health accounts by permitting fund transfers without requiring intermediate steps.
['Individuals enrolled or planning to enroll in high deductible health plans who use FSAs or HRAs.', 'Employers offering health benefit plans that include FSAs, HRAs, and HSAs.', 'Health insurance providers and administrators managing these accounts.']
['Implementation complexity in coordinating transfers between different types of health accounts.', 'Potential administrative costs for employers and plan administrators to update systems and processes.', 'Oversight challenges to ensure compliance with tax code provisions and prevent misuse of funds.']
The bill was introduced in the House during the 118th Congress and referred to the Subcommittee on Health. It relates to ongoing legislative efforts to refine tax-advantaged health savings mechanisms and improve consumer flexibility in managing health care expenses. The bill status is marked as Failed / Expired, indicating it did not advance to enactment during the session.
Hidden impact flags detected: 2
GovScope reviewed 2 policy-risk categories. Hover for a quick definition. Click detected flags for bill-specific details.
['May encourage greater enrollment in high deductible health plans by simplifying fund management.', 'Could lead to increased use of HSAs, potentially affecting health care spending patterns.', 'Employers might adjust health benefits offerings to incorporate the new transfer option.']
The bill lacks a publicly available official summary and full text, limiting detailed analysis. Its failure to advance past subcommittee stage suggests limited legislative momentum. Transparency on administrative cost estimates and oversight mechanisms would be important for future consideration.
GovScope Intelligence Roadmap
Future bill intelligence will connect sponsors, committee referrals, related votes, campaign finance, disclosures, and stock trades into one legislative intelligence view.