Sending Office: Honorable Paul A. Gosar
Veterans Health Savings Account Act of 2019
I invite you to cosponsor the Veterans Health Savings Account Act of 2019, an important amendment to the Internal Revenue Code of 1986. This legislation will provide all Veterans the eligibility to make uninterrupted contributions to health savings accounts
(HSA) and receive medical benefits through the Department of Veterans Affairs (VA). Senator Todd Young will introduce a Senate companion bill.
In 2003, Congress approved HSAs. HSAs are tax-advantaged individual accounts that encourage participants to save for qualified medical expenses for themselves and their families, while agreeing to carry only a high deductible health plan (HDHP) for medical
insurance. Contributions to HSAs are an above-the-line income tax deduction, and qualified distributions are never taxed. They can help reduce the growth of health care costs and increase the efficiency of the health care system.
In 2004, the IRS issued a notice stating the “[a]n individual is not eligible to make HSA contributions for any month…if the individual has received medical benefits from the VA at any time during the previous three months (the “three month rule”) which
caused countless numbers of Veterans and their families to make difficult decision to receive the VA care they deserved or be disqualified from saving in a HSA for other medical expenses or save in a HSA and not receive the VA medical benefits they deserve.
All Veterans and their families can benefit greatly from HSAs. In 2016, a provision added by the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 [IRC section 223 (c) (1) (C)] states that in 2016 and future years, Veterans with
a disability rating (service connected disability) and receiving VA hospital care and medical services will be eligible to make HSA regular contributions for the months surrounding such care and services while other Veterans will not (e.g. non-service connected
Currently only service connected Veterans are eligible to receive VA hospital and medical services and continue to make regular HSA contributions while receiving this care. This bill would allow all Veterans who are eligible for VA health care uninterrupted
access to HSA contributions while receiving VA health care. As such, the IRS should promulgate a provision of the IRS code of 186 that eligibility to contribute to HSAs is not affected by receipt of or payment for hospital care or medical services under any
law administered by the Secretary of Veterans Affairs.
Please contact Bonita McClenny at (202) 225-2315 or firstname.lastname@example.org to support this bill or with questions.
Paul A. Gosar, D.D.S.
Member of Congress
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