U.S. Representative Michael C. Burgess (TX_26) cosponsored the Tax-Free Health Savings Act, H.R. 5262, to build on the success of Health Savings Accounts (HSAs). HSAs are allowing more Americans to access quality, affordable health care and have more control over their health care costs and decisions.

Today, Dr. Burgess, alongside U.S. Department of Treasury Secretary John W. Snow and bill author Deputy Majority Whip Eric Cantor (R-VA), addressed members of the press about the particulars of the bill.

“The time is right for Health Savings Accounts in this country,” said Congressman Michael Burgess. “When I had my own practice back in Texas, and medical savings accounts were made available, I jumped at the chance to have one. HSAs provide patients with great control over their health care costs bringing more transparency and lower expenses.”

The Tax Free Health Savings Act will help to make Health Savings Accounts an even more affordable and attractive health coverage option by:

· Increasing HSA contribution limits;

· Making premiums for HSA-compatible insurance tax-deductible;

· Providing a low-income tax credit the purchase of HSA-compatible insurance;

· Allowing employers to make greater HSA contributions for chronically ill employees;

· Allowing flexibility to coordinate HSAs with existing health coverage options like Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs);

· Allowing early retirees to use HSA savings to pay for insurance coverage premiums;

· Providing an income tax credit equal to amount of payroll taxes paid on HSA-compatible insurance premiums;

· Providing an income tax credit equal to the amount of payroll taxes paid on HSA contributions, and

· Providing pre-tax treatment of health care expenses incurred under HSA-compatible health plans before an individual establishes an HSA.