On Monday, U.S. Sens. Cory Gardner and Kyrsten Sinema, D-Ariz., introduced a bill to let senior citizens use money from tax-free health savings accounts to pay for some home healthcare expenses.
“Current law keeps seniors from being able to use the money they have saved in a health savings account to access homecare services,” Gardner said. “Without homecare support, seniors can be forced to decide to move into a more restrictive, expensive setting."
A corresponding bill in the U.S. House of Representatives was introduced in May 2019 and is awaiting a committee hearing.
The proposal would allow HSA money to pay for home healthcare if at least three of the following assistance services are provided: eating, toileting, transferring, bathing, dressing, continence and medication adherence.
America's Health Insurance Plans, which represents insurance companies, estimated that 22 million Americans have an HSA. “The increase in popularity of these plans tells an important story about consumer-centric care,” said Jeanette Thornton, AHIP’s senior vice president. The association generally supports additional flexibility in spending for those with savings accounts.
The Senate bill has the endorsement of multiple home care and hospice organizations.