Press Releases

WASHINGTON, D.C. – This week, Rep. Jason Smith reintroduced H.R. 7435, the Health Savings for Seniors Act, bipartisan legislation that would allow seniors covered under Medicare to continue using existing or create new Health Savings Accounts (HSAs). Current law prohibits Medicare beneficiaries from contributing to or opening a new HSA; they may only draw funds from accounts that were previously created.

“The federal government should make it easier – not harder – for older Americans to access health care,” said Representative Smith. “The threat of rising inflation underscores the need to give seniors more flexibility with how and when they can pay for their out-of-pocket health care expenses. Allowing Medicare-enrolled seniors to contribute to Health Savings Accounts will help seniors struggling with high costs to afford needed health care. I’m grateful for Rep. Bera’s partnership in helping to bring this bipartisan legislation forward to protect America’s seniors.”

“As a doctor who has cared for our seniors, I know firsthand how stretched our seniors are with their medical bills,” said Representative Ami Bera, the lead Democrat sponsor of the bill. “Unfortunately, seniors covered under Medicare are currently prohibited from contributing to a Health Savings Account, a critical tool that many individuals routinely use before they are on Medicare. HSAs would particularly help seniors pay for services such as dental and vision care that is currently not covered under Medicare, leading to a healthier and happier life, and a more dignified retirement. I’m proud to work with Rep. Smith to introduce bipartisan legislation to end this unnecessary constraint on our nation’s seniors.”

An HSA permits individuals to save pre-tax money to pay for out-of-pocket medical expenses. These funds remain in the account and are not “use it or lose it” like other types of flexible savings accounts. Additionally, HSAs are interest-bearing accounts, further encouraging individuals to save for future unexpected health care expenses.

The legislation is supported by Association of Mature American Citizens, Better Medicare Alliance, Corporate Health Care Coalition, Employers Council on Flexible Compensation, Healthcare Leadership Council, and the National Association of Health Underwriters.

Click here to read the full text of the bill.

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