The measure would also permit HSAs to be used to purchase low-premium health and long-term care insurance, allow married couples to make catch-up contributions to the same HSA, and encourage exercise and good nutrition by redefining some qualified medical expenses.
Republicans support the accounts as a means to encourage consumers to be mindful of their healthcare spending while receiving a tax benefit. Opponents say the government loses necessary revenue on HSAs.
A companion House bill was introduced by Rep. Erik Paulsen (R-Minn.).
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