Senator Paul Introduces HSA for All Act

Kentucky Senator Rand Paul introduced the Health Savings Account for All Act of 2020 on Wednesday.

After the introduction of the bill, Paul said that he has worked hard to lower the cost of health care, reduce government interference and red tape, and emphasize putting patients first as Congress debates the issue.

He explained that one of the best ways that Americans can have more control over their health care dollar is to expand access to Health Savings Accounts (HSAs), where they can save money, and their employers can contribute, tax-free to spend on qualified health-related needs.

Paul said it also means getting rid of unnecessary government caps on individual and employer contributions, as well as the restriction that requires Americans to have a high-deductible health plan before they can open an HSA, which cuts out far too many.

According to the CDC’s National Center for Health Statistics, 45.8% of Americans “under age 65 with private health insurance” had a high-deductible plan in 2018.

Among its reforms, the bill would allow unlimited individual and employer contributions, and it would enable anyone carrying any type of health coverage, including Medicare, VA benefits, etc., (and not just a high-deductible plan), to open an HSA.

It also would allow use of an HSA to pay for health insurance premiums and direct primary care, and it expands what counts as a "qualified expense," so it would cover health expenses incurred in the prior or current tax year before the HSA was established. 

Paul stressed that as health care costs continue to rise, this plan puts more power in the people’s hands, getting rid of unnecessary restrictions, expanding access, and trusting them to make the decisions that are best for their families with the money they have worked hard to earn.