H.R. 7242 allows seniors to make contributions to Health Saving Accounts (HSA) after enrolling in Medicare and will make it easier for them to pay for healthcare items such as prescription drug co-pays, vision exams, and over-the-counter healthcare expenses.
August 26, 2020
The Honorable John Curtis
Utah 3rd Cong. District
House of Representatives
125 Cannon House Office Building
Washington, DC 20515
The Honorable Kendra Horn
Oklahoma 5th Cong. District
House of Representatives
2418 Rayburn House Office Building
Washington, DC 20515
Dear Representatives Curtis and Horn,
On behalf of the Association of Mature American Citizens, representing 2.2 million seniors across the country, I write in support of the HR 7242, a bill to amend the Internal Revenue Code of 1986 to permit expenditures from health savings accounts for gym memberships and costs of home gym equipment, to repeal the requirement that health plan be high deductible, and for other purposes.
This bill modifies requirements for health savings accounts (HSAs) to allow payments from such accounts for gym memberships, home gym equipment, and dietary nutritional supplements. It also eliminates the prohibition against Medicare recipients participating in an HSA and the requirement that HSA participants be covered under a high deductible health plan.
We certainly agree with enabling the use of HSAs to pay for gym memberships, home gym equipment, and dietary supplements to encourage physical fitness and better health for all Americans. In addition, allowing seniors to make contributions to Health Saving Accounts (HSA) after enrolling in Medicare will make it easier for seniors to pay for healthcare items such as prescription drug copay, vision exams, and over-the-counter healthcare expenses. Fidelity Investments estimated the average Medicare-enrolled senior pays about $5,000 in after-tax income on expenses not covered by Medicare.
Under current law Americans are forced to stop building their Health Saving Accounts at age 65. This restriction is unfortunate for many seniors since Medicare does not cover necessities like dental, hearing-aids, and vision care. Allowing seniors to continue to contribute to Health Saving Accounts will help them handle these out-of-pocket expenses using before-tax dollars. Unexpected health expenses often put seniors on fixed incomes in a vulnerable financial state. Seniors having the eligibility of tax-deductible benefits can make a significant difference in a retiree’s standard of living by providing financial security.
The Association of Mature American Citizens strongly supports your efforts to help seniors by introducing HR 7242 and we support its enactment. Seniors deserve to reap the full benefits of their hard work from life-long contributions to their Health Saving Accounts. This legislation provides a commonsense solution which will help Americans better manage their health throughout retirement.
Sincerely,
Bob Carlstrom
President, AMAC Action
