| Blog
SIGN UP

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

Written by: PeopleKeep Team
March 31, 2010 at 10:00 AM

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.

hra-whitepaper-101

Topics: Health Savings Accounts, HSA, Affordable Care Act, Healthcare Reform

Comments