Lower Bucks Today

WASHINGTON, DC – Congressman Brian Fitzpatrick (PA-1) was joined by Representatives Blake Moore (UT-1), Jimmy Panetta (CA-19), Brad Schneider (IL-10), Adrian Smith (NE-3), and Raul Ruiz (CA-35) to introduce the Health Out-of-Pocket Expense (HOPE) Act. This bipartisan legislation aims to establish a tax-advantaged account that allows millions of Americans with most types of insurance coverage to save for health care costs through individual and employer contributions.

“The HOPE Act will directly help individuals in my community and nationwide battling soaring medical costs,” said Congressman Fitzpatrick. “Through this bipartisan legislation, HOPE Accounts will deliver an alternative option that lets our hard-working families take control of their health expenses—free from the crushing weight of the high cost of healthcare in our country.”

“One of the biggest issues I hear about from Utah patients, providers, and employers alike is the cost of health care, and addressing this pressing challenge remains a top priority for me in Washington,” said Congressman Moore. “I am grateful to introduce the bipartisan HOPE Act to create a new tax-advantaged savings account that will help families plan and save for medical expenses. The HOPE Act is a step in the right direction in making health care more affordable for Utahns and Americans across the country.”

“Working families need additional ways to plan and save for unexpected out-of-pocket health expenses,” said Congressman Panetta. “This bipartisan legislation would create tax-preferred Health Out-of-Pocket Expense Accounts that incentivize Americans to save for future medical expenses not covered by their insurance. Through commonsense, straightforward action we can ensure that individuals and working families around our country are planning for their financial well-being and future health needs.”

“I am proud to introduce the HOPE Act, which will create a new tax-advantaged savings account for healthcare expenses geared specifically towards working-class individuals and families,” said Congressman Schneider. “Importantly, HOPE Accounts are compatible with any type of comprehensive health insurance plan, allowing account holders to maintain robust coverage while they save. As healthcare costs continue to rise, enabling families to efficiently save for future expenses via HOPE Accounts will promote both financial and physical well-being.”

“Unexpected health care bills can be devastating for hard-working families, but most health coverage options don’t come with built-in ways to help families prepare for an emergency," said Congressman Smith. "HOPE Accounts would give American families a new tool to protect themselves and their household finances from a surprise illness or injury."

"The HOPE Act is a crucial advancement in assisting families with the increasing costs of medical care,” said Congressman Ruiz MD. “HOPE Accounts provide hardworking families with a new way to save for health expenses, independent of costly high-deductible plans."

Background:

Healthcare costs continue to climb, often outpacing the national rate of inflation and the average annual growth in GDP. The HOPE Act will help families across the country manage their out-of-pocket costs and save for future medical care.

A HOPE Account would be similar to a Roth savings account and provide certain tax advantages and investment options for individuals and families to save for future healthcare expenses:

Anyone with qualifying coverage, including in the commercial market, Medicare, Medicaid, the Indian Health Service, and other sources of healthcare coverage is eligible to contribute to a HOPE Account.

An individual’s contributions would not be tax deductible; however employer contributions are deductible to the employer as well as excludable from income and employment tax for individuals with an adjusted gross income of $100,000 or less or $200,000 or less for a family.

Employers and state programs may annually make contributions up to 50% of the annual limit.

The maximum annual contribution from all sources is $4,000 for those with self-only coverage or married individuals with separate accounts. For those with family coverage, it is $8,000.

Contributions made into an HSA, FSA or HRA reduce this maximum contribution.

As funds grow within these accounts they remain tax-free if used on qualified medical expenses.

The full text of this legislation can be found here.

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