Health Savings Act of 2016

Health Savings Act of 2016

This bill amends the Internal Revenue Code, with respect to the taxation of health savings accounts (HSAs), to:

• rename high deductible health plans as HSA-qualified health plans;
• allow spouses who have both attained age 55 to make increased catch-up contributions to the same HSA;
• make Medicare Part A (hospital insurance benefits) beneficiaries eligible to participate in an HSA;
• allow individuals eligible for hospital care or medical services under a medical care program of the Indian Health Service or of a tribal organization to participate in an HSA;
• allow individuals eligible to receive medical benefits under certain TRICARE plans to participate in an HSA;
• allow members of a health care sharing ministry to participate in an HSA;
• allow individuals who receive primary care services in exchange for a fixed periodic fee or payment, or who receive health care benefits from an onsite medical clinic of an employer, to participate in an HSA;
• include amounts paid for prescriptions and over-the-counter medicines or drugs as "qualified medical expenses" for which distributions from an HSA or an Archer Medical Savings Account may be used; and
• allow HSA distributions to be used to purchase health insurance coverage.

The bill amends the federal bankruptcy code to exempt HSAs from creditor claims in bankruptcy.

The bill amends the Social Security Act to reauthorize the use of Medicaid health opportunity accounts.

The bill allows a medical care tax deduction for: (1) exercise equipment, physical fitness programs, and membership at a fitness facility; (2) nutritional and dietary supplements; and (3) periodic fees paid to a primary care physician and amounts paid for pre-paid primary care services.

Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov