Washington, D.C. – Congressman Erik Paulsen (MN-03) and Senate Finance Committee Chairman Orrin Hatch (Utah) today introduced the Health Savings Act of 2017. This initiative simplifies and expands Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), health care accounts that provide Americans opportunities to save for medical costs through tax-deductible contributions.

“Millions of Americans rely on HSAs and FSAs because of the choice, control, and flexibility it offers them and their families when it comes to their health care decisions,” said Congressman Paulsen. “By expanding and updating this popular health care option, this initiative will provide families with greater flexibility to save and pay for medical expenses.”

“Health Savings Accounts and Flexible Spending Accounts are critical to providing Americans with flexibility and control over their personal health spending,” said Senator Hatch.“These plans have been in place for over a decade and while they’ve grown in popularity, they are in need of crucial updates. This bill provides those necessary updates and, as we work to repeal and replace Obamacare, sets a marker for how we can make it easier for American families and workers to grow and access tax-free savings for future medical costs.”

Health care costs in the U.S. are projected to rise by an average of 5.6percent each year from now until 2025. HSAs and FSAs provide individuals with opportunities to put away tax free savings for everyday medical costs. When Congress first made HSAs available, these plans only covered 454,000 lives. In 2016, 20.2million individuals were covered under a health plan that is eligible for an HSA.

Text of the bill can be found here.

Congressman Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee, the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.

For more information on Congressman Paulsen’s work in Congress visit paulsen.house.gov. 

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