HSA Employer Flexibility Act

To amend the Internal Revenue Code of 1986 to allow certain kinds of insurance and health care for individuals allowed a deduction for contributions to a health savings account. 1. Short title This Act may be cited as the HSA Employer Flexibility Act 2. Excepted benefits allowed as permitted insurance (a) In general Paragraph (3) of section 223(c) (1) redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and (2) inserting the following new subparagraph: (B) insurance consisting of coverage of excepted benefits described in section 9832(c), . (b) Effective date The amendments made by this section shall apply to months in taxable years beginning after the date of the enactment of this Act. 3. On-site employee clinics and retail clinics (a) In general Paragraph (1) of section 223(c) (D) Special rule for qualified items and services (i) In general For purposes of subparagraph (A)(ii), an individual shall not be treated as covered under a health plan described in subclauses (I) and (II) of such subparagraph merely because the individual is eligible to receive, or receives, qualified items and services— (I) at a healthcare facility located at a facility owned or leased by the employer of the individual (or of the individual's spouse), (II) at a healthcare facility operated primarily for the benefit of employees of the employer of the individual (or of the individual's spouse), or (III) at a retail health clinic. (ii) Qualified items and services defined For purposes of this subparagraph, the term qualified items and services (I) Physical examination. (II) Immunizations, including injections of antigens provided by employees. (III) Drugs or biologicals other than a prescribed drug (as such term is defined in section 213(d)(3)). (IV) Treatment for injuries occurring in the course of employment. (V) Tests for conditions or infectious diseases. (VI) Management of chronic conditions or diseases. (VII) Drug testing. (VIII) Hearing or vision screen­ings and related services. (IX) Other similar items and services. (iii) Retail health clinic defined For purposes of this subparagraph, the term retail health clinic (iv) Aggregation For purposes of clause (i), all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer. . (b) Effective date The amendments made by this section shall apply to months in taxable years beginning after the date of enactment of this Act. 4. Safe harbor for absence of telehealth deductible (a) In general Section 223(c)(2) is amended by adding at the end the following new subparagraph: (E) Safe harbor for absence of telehealth deductible A plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for telehealth services. . (b) Effective date The amendment made by this section shall apply to months in taxable years beginning after the date of enactment of this Act.

Summary: HSA Employer Flexibility Act This bill amends the Internal Revenue Code to modify various requirements for health savings accounts (HSAs). The bill expands the definition of insurance that is permitted under an HSA to include insurance consisting of coverage for excepted benefits (Excepted benefits are not subject to certain requirements under the Patient Protection and Affordable Care Act.) The bill also allows: (1) individuals participating in an HSA to receive or be eligible to receive specified items and services at onsite employee clinics and retail health clinics, and (2) high deductible health plans that are required for an HSA to cover telehealth services without a deductible.