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How Health Care Insurance Reform Affects HSAs (Health Saving Accounts)

Written by: PeopleKeep Team
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Originally published on March 31, 2010. Last updated October 26, 2020.

Yesterday, we talked about how health care reform affects flexible spending accounts (FSAs).

Beginning in 2011, new health care reform legislation will affect Health Savings Acccounts (HSAs) in the following ways:

  1. The tax penalty on distributions from HSAs not used for qualified medical expenses will be increased from 10% to 20%
  2. Non-prescribed over-the-counter drugs will no longer be qualified medical expenses

The health care reform bill makes no changes to how employers and employees make contributions to an HSA.

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Originally published on March 31, 2010. Last updated October 26, 2020.
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