Senate bill would open health savings accounts to all Americans

What does this do?

S 3362 removes the requirement that HSA holders carry a high-deductible health plan, raises annual contribution limits, and expands eligible spending to include vitamins, supplements, gym memberships, and fitness trackers. The bill also allows HSA funds to be inherited by a child or parent, not only a spouse, and protects those funds from creditors in bankruptcy. A second provision creates "health marketplace pools," letting individuals, self-employed people, and small businesses join together to purchase group health insurance the way large employers currently do.

Who does it affect?

The roughly 28 million Americans who are uninsured or who buy individual health insurance would be most directly affected, along with self-employed workers and small business employees who lack access to employer-sponsored coverage. People who already hold HSAs would also gain expanded saving and spending options.

Why does it matter?

Removing the high-deductible plan requirement and raising contribution limits would change how Americans can set aside pre-tax money for medical expenses. Creating health marketplace pools could shift how individuals and small businesses access group insurance rates that are currently available mainly through large employers.

Where does it stand?