Amend the HSA rules (which are included below under Current HSA information)
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Provide increased options for deductibles with insurance plans that qualify. Offer insurance plans that are emergency care and catastrophic or chronic condition care only.
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Allow for contributions that are equivalent to insurance premiums or the cost of medical care and wellness care. The current amount does not meet any of these criteria.
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Allow HSA’s without a connected insurance plan. Individuals who are not covered under an insurance plan at work for various reasons such as part time employment only offered, independent business owner, professional independent contractor, etc should not be unable to obtain an HSA. If someone changes jobs and does not have insurance they should not lose their HSA or ability to have one.
Below are rules already in place:
Current HSA information:
Health Savings Accounts (HSAs) are tax-advantaged accounts that allow individuals with high-deductible health plans to save for medical expenses. Here are some key rules for HSA contributions:
Contribution Limits: The annual contribution limits for HSAs are set by the IRS. For 2024, the limits are $4,150 for individual coverage and $8,300 for family coverage. For 2025, the limits are $4,300 for individual coverage and $8,550 for family coverage.
Catch-up Contributions: Individuals 55 or older can contribute an additional $1,000 to their HSA as a catch-up contribution.
Employer Contributions: Employer contributions to an HSA are not considered income and are not taxed. However, they are listed on the employee’s W-2 form in Box 12 and confer a tax benefit to the employer.
Prorated Contributions: If an individual is only eligible to contribute to an HSA for part of the year, their contribution limit is prorated based on the number of months they are eligible.
Last-Month Rule: If an individual is eligible to contribute to an HSA on the first day of the last month of their tax year, they are considered eligible for the entire year.
Here are some current additional rules for HSAs:
Eligibility: To be eligible for an HSA, an individual must have a high-deductible health plan and not be covered by any other health insurance plan.
Ownership: HSAs are owned by the individual, not the employer.
Portability: HSAs are portable, meaning that the individual can take the account with them if they change jobs or retire.
Required Minimum Distributions: HSAs do not have required minimum distributions, meaning that the individual is not required to take withdrawals from the account at a certain age.
Current Insurance Premium data
The cost of a health insurance premium for one person per month varies based on several factors, including age, location, plan type, and metal tier. Here are some average monthly health insurance premiums for one person:
Benchmark Plan: The national average health insurance premium for a benchmark plan in 2024 is $477.
Metal-Tier Plans:
Bronze Plan: $364 monthly premium with a $7,258 deductible.
Silver Plan: $468 monthly premium with a $5,241 deductible.
Gold Plan: $488 monthly premium with a $1,430 deductible.
Platinum Plan: Higher monthly premiums, but the lowest deductibles.
Group Plans: The average monthly cost of health insurance for a single person in group plans was around $703 in 2023, and costs are expected to rise by 8.9% in 2024.
ACA Marketplace Plans: The premium for an ACA health insurance plan is $635 per month on average without subsidies.
State-Specific Plans: Average monthly health insurance premiums for one person vary by state, ranging from $57 in Hawaii to $889 in Alaska.
Prices are subject to change and may not reflect the actual cost of health insurance premiums for one person per month in your specific situation.