H.R. 5452, Native American Health Savings Improvement Act

H.R. 5452

Native American Health Savings Improvement Act

Committee
Ways and Means

Date
June 21, 2016 (114th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

On Tuesday, June 21, 2016, the House will consider H.R. 5452, the Native American Health Savings Improvement Act, under suspension of the rules. H.R. 5452 was introduced on June 10, 2016, by Rep. John Moolenaar (R-MI) and was referred to the Committee on Ways and Means, which ordered the bill reported, as amended, by voice vote on June 15, 2016.

Bill Summary

H.R. 5452 amends the Internal Revenue Code to specify that receiving hospital care or medical services under a medical care program of the Indian Health Service (IHS) or a tribal organization does not disqualify an individual from being eligible for a health savings account.

 

Background

An individual with a high deductible health plan and no other health plan (other than a plan that provides certain permitted insurance or permitted coverage) may establish a health savings account (HSA). HSA contributions made on behalf of an eligible individual by an employer are excludible from income and wages for employment tax purposes. Eligibility for HSA contributions is generally determined monthly, based on the individual’s status and health plan coverage as of the first day of the month.[1]

An individual with other coverage in addition to a high deductible health plan is still eligible to make HSA contributions if such other coverage is permitted insurance or permitted coverage. Under current IRS guidance, an individual who is eligible to receive medical services at an IHS facility, but who has not actually received such services during the previous three months, is an eligible individual for purposes of making contributions to an HSA. However, an individual generally is not an eligible individual if the individual has received medical services at an IHS facility at any time during the previous three months.[2]

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[1] See Joint Committee on Taxation, Description of H.R. 5452, a Bill to Amend the Internal Revenue Code of 1986 to Permit Individuals Eligible for Indian Health Service Assistance to Qualify for Health Savings Accounts (JCX-51-16), June 14, 2016.
[2] Id.

Cost

A Congressional Budget Office (CBO) estimate is not currently available. However, the Joint Committee on Taxation estimates enacting this legislation will result in $178 decrease in revenue for the 2017-2026 period.

Additional Information

For questions or further information please contact Jake Vreeburg with the House Republican Policy Committee by email or at 5-0190.