In October, following a less than enthusiastic reception among many Republicans to the bipartisan HELP Committee proposal, the House Ways and Means Committee Chairman Kevin Brady (R-TX) and Senate Finance Committee Chairman Orrin Hatch (R-UT) announced their proposal to extend cost-sharing reduction (CSR) payments, while providing significant Affordable Care Act (ACA) reforms. Importantly, their proposal also includes HSA expansion, which had not been in the recent bipartisan proposal from the HELP Committee. However, that expansion to the HSA contribution limit is only through 2022, due to constraints that limit the budgetary impact this bill can produce. Details on this provided below.
Read more about the HELP Committee proposal: Senators Strike Bipartisan Deal on Short-Term ACA Fix
According to the press release from both Committees, the agreement would fund Democratic-supported CSRs and include Republican-supported “structural reforms to the ACA.” The proposal includes:
The short-term HSA expansion is included on the final page of the bill, Section 5: The maximum contribution limit will be increased to the out-of-pocket maximum, a provision included in all of the GOP healthcare reform proposals. However, the expansion will only be in effect between December 31, 2017 and January 1, 2023.
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