[stylin19a]

...many Americans have had to rely on savings to cover their day-to-day medical expenses. Additionally, the bill would increase the maximum annual contribution to HSAs from $3,650 to $12,000, or to $24,000 for a joint contribution.

need more details..

who is making these contributions ? the individual ? the tax break is great but the bills have to be paid now..then what's the difference between the family paying out of savings or paying into an HSA ?

and if it 's not the individual but the employer making the contributions, how can that be mandated onto the empoyers ? other than relaxed restrictions, how is this different than an FSA ? Why not just remover the FSA restirctions ?

[rb22982]

HSA’s are tax deductible, grow tax free, and withdraw tax free. that’s the main benefit long term.

[Malsua]

>>who is making these contributions ? the individual ?

I’ve have/had a “high deductible Health care plan” through my employer for some years until I departed that company for semi-retirement.

Part of that was the HSA. You take money out of your salary, pre-tax, right into the HSA. You get a debit card that you can use against that sum.

You can pay for drugs, doctor visits, what have you, just like an FSA. The difference is, it’s your money. Unlike an FSA(had one of those before the HSA) in which they confiscate any unspent balance.

I was released from my job on 12/31/21 and burned through the remaining balance on the FSA a few weeks ago.

I never once hit the deductible on my shitty health care plan($7k), but it was only $50/week, so it was just a catastrophic plan. All of my health care spending went on the HSA which I maxxed out.

[TropicanaRose]

IMO the main difference is with FSA you lose the $ you put in if you don’t spend it all that year vs. with the HSA the $ stays in & you can spend it in future years. Since it can be impossible to know what your medical expenses will be next year when you are making the decision in the fall of the previous year, I always estimate low so as not to lose any $ but I also miss out on tax savings if I don’t estimate high enough.