Bill > HR2667

This bill provides a mechanism for employees to transfer funds from their Health Flexible Spending Arrangements (FSAs) or Health Reimbursement Arrangements (HRAs) directly to a Health Savings Account (HSA) when establishing coverage under a High Deductible Health Plan (HDHP). Specifically, the bill allows employees who have not recently had health coverage to make a "qualified HSA distribution" with certain dollar limitations. The distribution is subject to caps based on IRS Section 125 limits, with higher limits for certain types of coverage. The bill also requires employers to report these qualified HSA distributions on employee W-2 forms and modifies the rules for HSA contribution deductions to account for these transfers. Additionally, the bill ensures that after making such a distribution, the remaining FSA or HRA becomes HSA-compatible for the rest of the plan year. These changes would take effect for distributions made after December 31, 2025, providing employees more flexibility in managing their healthcare savings and helping them transition to high-deductible health plans with health savings accounts.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2667/all-info