Bill Would Provide Tax Incentives for HSAs

Rep. Eric Cantor (R-Va.) on Wednesday introduced a bill (HR 5262) that would provide tax incentives to people enrolled in HSAs, CQ HealthBeat reports. Tax incentives would be provided for premium payments and contributions to HSAs and would include a credit of up to $3,000 for purchases by low-income families.

Cantor in a statement said, "For years, people in Washington have been looking for a solution to achieve universal health coverage. Rather than forcing a one-size-fits-all government program on workers and families, the Tax-Free Health Savings Act empowers individuals with making their own health care decisions."

Department of the Treasury Secretary John Snow, who joined Cantor at a press conference to introduce the legislation, said more than three million U.S. residents are covered under HSA-qualified plans, "a large portion of whom were previously uninsured."

President Bush on Monday in a speech to the American Hospital Association urged Congress to approve various health care proposals, including Cantor's bill (Sedlar, CQ HealthBeat, 5/3).