WASHINGTON, D.C. - Today, Rep. French Hill’s (R-AR) introduced the Catch-Up Act, which he co-leads with Rep. Greg Steube (R-FL),
Rep. Hill said, “Health savings accounts are a smart way for families to plan for medical expenses, but the current rules do not reflect how real families make decisions and manage daily life. Right now, spouses can use their HSA to pay for each other’s medical care, but they cannot make catch-up contributions to each other’s accounts. It is a ridiculous rule that needs to be changed. We need to give Americans the flexibility to plan, save, and make health care decisions that work for their families. That is why I am glad to partner with Representative Steube on this commonsense fix that will make it easier for families to support each other and take control of both their health and their finances.”
Rep. Steube said, "Health Savings Accounts have expanded access for millions of Americans to the quality healthcare their families deserve. However, existing laws have hamstrung the ability of families to respond to healthcare emergencies with pointless regulations blocking individuals from utilizing their HSA to cover a loved one's medical expenses. It only makes sense for us to build upon the success of HSAs with a focus on family economics and freedom. My bill with Congressman Hill will allow Americans to make catch-up contributions to their spouse's HSA, ensuring financial security and better healthcare outcomes by expanding freedom."
Further Background:
Under current law, Health Savings Accounts (HSAs) can be used by an individual to cover qualifying medical expenses for themselves, their spouse, and their family. However, a married couple cannot contribute catch-up contributions to the same account. This inconsistency has no rational basis. The Catch-Up Act is a commonsense bill that would fix this gap by allowing married individuals to make catch-up contributions to their spouse’s HSA.
HSAs are individual savings accounts used to pay for qualifying health care expenses. Contributions can be made by the account holder, employers, spouses, and other individuals, including family members or friends. However, only individuals aged 55 and older may make additional catch-up contributions—and those contributions can currently be made only to their own HSA. They are not permitted to make catch-up contributions to a spouse’s account, even though HSA funds can already be used to cover a spouse’s medical expenses.
Catch-up contributions are designed to help individuals aged 55 and older set aside additional savings for future health care costs. This bill would update the contribution rules to allow families to save even more for their health care needs and provide greater flexibility and financial security in planning for the future.
