Several changes are coming to health savings accounts (HSAs) that will expand the HSA footprint and impact employers and their health care benefits, industry experts said.

President Donald Trump’s massive tax and spending package, which Congress passed before he signed it into law July 4, contains changes that will expand HSA eligibility and likely result in more employers embracing the savings accounts, touting telehealth options, and adding direct primary care options for employees.

Several other reforms to HSAs — including increased contribution limits and allowing certain sports and fitness expenses to be HSA-eligible — were part of the House-passed budget reconciliation bill, but didn’t make it into law. After initially eliminating all of the HSA provisions in the House version of the bill, the Senate added back two HSA-related provisions and introduced another that did not appear in the House bill.

“The final bill does help modernize HSAs by expanding accessibility and usage to certain populations,” said Joseph Giordano, compliance manager for Dallas-based online retailer Health-E Commerce, the parent brand of FSA Store and HSA Store. “Considering there has been little legislative expansion since HSAs were first introduced, expanded access to potentially millions of Americans is a positive development.”

Many industry experts tout HSAs as a smart way for employees to save for medical expenses, even in retirement, citing their triple tax benefits: Contributions are...

Read Full Story: https://news.google.com/rss/articles/CBMinAFBVV95cUxQdlNiMThuQzRJbWpOSWZWODUy...