(From the Office of Congressman Bob Latta)

Congressman Bob Latta (OH-5) re-introduced the Stop Penalizing Working Seniors Act, a bill to expand access to health savings accounts (HSAs) and fix a technicality prohibiting individuals who are receiving social security benefits from contributing to their HSA accounts. Congresswomen Stephanie Bice (OK-5) and Ashley Hinson (IA-2) are co-sponsors of this legislation.  

Health Savings Accounts (HSAs) allow individuals to make tax-advantaged contributions and use the funds for qualified medical expenses. To contribute to an HSA, an individual must be enrolled in a High-Deductible Health Plan (HDHP). Under current law, once an individual begins collecting Social Security benefits, they are automatically enrolled in Medicare Part A, which disqualifies them from making further contributions to an HSA. This bill would allow individuals enrolled only in Medicare Part A to continue contributing to an HSA. 

“Seniors deserve the flexibility to keep saving for both their current and long-term health care needs. Right now, many seniors who are still working and enrolled in Medicare Part A are unfairly prevented from contributing to their Health Savings Accounts. This needless restriction reduces their health care choices. That’s why I introduced the Stop Penalizing Working Seniors Act, to give seniors the freedom to plan for and afford the care they need,” Latta said.  

“I am proud to once again be an original cosponsor of Congressman Latta’s legislation, the Stop Penalizing Working Seniors Act. This bill broadens eligibility for Health Savings Accounts (HSAs) and addresses a technical issue that prevents people receiving Social Security benefits from adding to their HSAs. I will continue to support legislation which provides relief for those living on fixed incomes,” Bice said.  

“Under current law, some seniors are unable to contribute to, or use, HSAs simply because they have chosen to remain in the workforce. This legislation fixes this technicality that unfairly punishes seniors who wish to use HSAs. I’ll continue working to lower costs and increase health care options for Iowans, especially our seniors,” Hinson said.  

NOTE: Congressman Latta first introduced this legislation during the 116th Congress after hearing directly from constituents impacted by the issue. He has since reintroduced the bill in the 117th and 118th Congresses.