"With the tax-free money in a health savings account, a person can pay for eyeglasses or medical exams, as well as a $1,700 baby bassinet or a $300 online parenting workshop. Those same dollars can't be used, though, to pay for most baby formulas, toothbrushes - or insurance premiums. President Donald Trump and some Republicans are pitching the accounts as an alternative to expiring enhanced federal subsidies that have lowered insurance premium payments for most Americans with Affordable Care Act coverage."
"The Republican proposals come on the heels of a White House-led change to extend HSA eligibility to more ACA enrollees. One group that would almost certainly benefit: a slew of companies selling expensive wellness items that can be purchased with tax-free dollars from the accounts. There is also deep skepticism, even among conservatives who support the proposals, that the federal government can pull off such a major policy shift in just a few weeks."
Health savings accounts (HSAs) allow tax-free funds to cover items such as eyeglasses, medical exams, a $1,700 baby bassinet, or a $300 online parenting workshop, but not most baby formula, toothbrushes, or insurance premiums. President Donald Trump and some Republicans propose using HSAs as an alternative to enhanced Affordable Care Act (ACA) subsidies that lowered premiums for many enrollees. Legal restrictions on permissible HSA spending and the predominantly low-income makeup of ACA enrollees raise doubts that expansion would provide equivalent protection. A White House-led change would extend HSA eligibility to more ACA enrollees, and sellers of expensive wellness items would likely benefit. Skepticism exists about implementing such a rapid policy shift before enhanced subsidies expire at year end.
Read at Fortune
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