The Home Care for Seniors Act (H.R. 2898/S. 1399), which would allow tax-exempt distributions from health savings accounts (HSAs) to be used for qualified home care, will cost an estimated $202 million over the next 10 years. The cost, or “score,” is determined by the Congressional Budget Office (CBO), which estimates the impact of proposed legislation on the federal budget.
“The fact that the Home Care for Seniors Act has received a score from the CBO is a good sign – it could signal that the bill may begin moving through Congress on its way toward passage,” said HCAOA CEO Vicki Hoak. “HCAOA supports this bill, and all proposals that expand access to home-based care for seniors and people with disabilities.”
HSAs are tax-advantaged medical savings accounts available to taxpayers enrolled in a high-deductible health plan. HSA contributions are not subject to federal income tax at the time of deposit. Unlike a flexible spending account (FSA), HSA funds roll over annually if they are not spent. HSA funds may currently be used to pay for qualified medical expenses at any time without federal tax liability or penalty.
Speak up! Let your members of Congress know that you want them to move this bill! Click here to send a pre-written message to your Senators and Representatives.