Congressman Owens has introduced legislation to correct what he says is an oversight of the Affordable Care Act (ACA) that excludes young adults from coverage by Health Savings Accounts (HSAs).
Under the ACA young adults may remain on their parents’ health insurance through age 26, but the law inadvertently excluded expenditures from HSAs for young adults, according to a press release from Owens.
Although the ACA allows parents to keep children on their health plans through age 26, the Internal Revenue Service has not changed its definition of a dependent under an HSAs. As a result, an individual with children under the age of twenty-six on their HSA-qualified high-deductible health plan cannot use funds from the HSA to pay medical bills for their children.
The new legislation would allow individuals with HSAs to spend funds on health services for their children until age 26 without incurring a tax penalty, Owens said.
“Allowing young people to stay on their parents insurance longer is good policy that can help many individuals get a better start on their adult life,” Owens said. “My legislation ensures parents with Health Savings Accounts are able to use those funds to pay for medical care for their children without penalty.”
Congressman Owens introduced the legislation after the issue was brought to his attention by Ticonderoga Town Supervisor Debra Malaney.
“It is only logical that parents who use Health Savings Accounts should be able to spend those funds for a child’s care in accordance with the health care reform law,” Owens said. “This legislation gets us there.”