Advancing Health Savings Act of 2023

Bill: 118-hr-5690
Sponsor: full_name: Rep. Moore, Blake D. [R-UT-1]
Introduced: 2023-09-26
Policy area: Taxation
Latest action: action_date: 2024-12-17
text: Referred to the Subcommittee on Health.

Summaries:
action_date: 2023-09-26
action_desc: Introduced in House
text: <p><strong>Advancing Health Savings Act of 2023</strong></p><p>This bill excludes from taxable income any distributions from a health savings account (HSA) used to pay qualified medical expenses incurred before the HSA is established if the HSA is established within 60 days from the first day of coverage under a high-deductible health plan (HDHP).</p><p>Under current law, distributions from an HSA established in connection with a HDHP are excluded from taxable income if used to pay qualified medical expenses incurred on or after the date that the HSA is established. However, under current law, HSA distributions are taxable if used to pay otherwise qualified medical expenses incurred after enrolling in an HDHP but before establishing an HSA.</p><p>Under the bill, an HSA that is established within 60 days of the first day of coverage under an HDHP is treated as being established on the first date that coverage begins under the HDHP.&nbsp;</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 5690 IN THE HOUSE OF REPRESENTATIVES September 26, 2023 Mr. Moore of Utah introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow for certain distributions from a health savings account for medical expenses incurred during the 60-day period before the account was established.

1. Short title This Act may be cited as the Advancing Health Savings Act of 2023 . 2. Special rule for certain medical expenses incurred before establishment of health savings account (a) In general Section 223(d)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (E) Treatment of certain medical expenses incurred before establishment of account If a health savings account is established during the 60-day period beginning on the date that coverage of the account beneficiary under a high deductible health plan begins, then, solely for purposes of determining whether an amount paid is used for a qualified medical expense, such account shall be treated as having been established on the date that such coverage begins. . (b) Effective date The amendment made by this section shall apply with respect to coverage beginning after December 31, 2023.