We have not used our HSA in this way, but apparently alot of Freepers do. I don’t think that they use a great amount a year. It just helps them with the OTC they do need.
If I did this, and this was taken away from me, I would be howling too.
I do wonder how much longer we can use our HSA the way we like. We try to keep it up to cover our now very high yearly deductible of $8K. Even if we gave the max, it doesn’t add up to the $8K in a year. So, it takes us more than a year to save up an amount that could be gone in one year. sigh.
A couple earning $55,800 and contributing $5800 to an HSA, who have $2800 in medical expenses (with, of course, no other adjustments to income) could reduce their TXI to $50,000, pay their $2800 medical expenses (%5 approx.) from the HSA, and still have $3000 in the HSA earning tax free interest. No HSA, and they have $55,800 TXI, with no medical deduction since they did not exceed %8.75 of their AGI for medical costs, and, of course, no savings.
These are the tax features of HSAs that are so disliked by Democrats. Less tax, more savings. It should be obvious that HSAs most benefit younger people with fewer medical issues who are more likely to be able to save from year to year.