On February 12, the White House released its federal budget proposals for the 2019 fiscal year. The budget includes a provision that, if passed, could be a welcome change for beneficiaries of Medicare payments.
The proposal would create a new option for Medicare beneficiaries to save for out of pocket healthcare expenses by allowing tax-deductible contributions to health savings accounts (HSAs) and Medicare Savings Accounts (MSAs) associated with high deductible health plans. Currently, these individuals are prohibited from makings such contributions.
Also under the proposed budget, those enrolled in MSAs would be allowed to contribute the same amounts applicable to HSAs annually and also have a one-time opportunity to roll over funds from their HSAs to the MSA.
The changes would need to be passed by Congress before taking any affect. Nyhart is monitoring the budget proposal and will update our clients on any new developments. Please contact your Nyhart Consumer Driven Healthcare consultant for more information.