SBE Council Supports HSA Improvement and Modernization: Letter to Ways & Means Committee

By at 28 September, 2023, 9:34 am

The Honorable Jason Smith


Ways and Means Committee

U.S. House of Representatives

1100 Longworth House Office Building

Washington, D.C.  20515


The Honorable Richard Neal

Ranking Member

Ways and Means Committee

U.S. House of Representatives

1100 Longworth House Office Building

Washington, D.C. 20515


Dear Chairman Smith and Ranking Member Neal:

On behalf of the Small Business & Entrepreneurship Council (SBE Council), I am writing to express our organization’s support for the HSA Modernization Act (H.R. 5687) and Bipartisan HSA Improvement Act (H.R. 5688). Over SBE Council’s 30-year history, we have long championed and advocated for solutions that strengthen and improve affordable health coverage and insurance options for entrepreneurs, small businesses and their employees. Bolstering and improving what works in the marketplace to achieve affordability and quality access, while enabling competition and choice, such as HSAs do, are practical strategies to help small business owners and their employees navigate high costs and diminishing choices.

Only one-in-five (17%) of small business owners in our most recent Morning Consult healthcare survey strongly agree that the health care solutions available to them have kept up with changing times. While high out-of-pocket costs, including deductibles, have vastly increased, the tools available to cope with higher costs have not. H.R. 5687 and H.R. 5688 infuse needed reforms that recognize the power and effectiveness of HSAs in providing relief, choice, and the needed resources/savings that will allow more consumers to access the health care they need.

The mix of reform measures included in H.R. 5687 and H.R. 5688 instill improvements that reflect where small businesses, their employees, and consumers are accessing and funding their healthcare services. Therefore, we believe changes such as allowing HRA and FSA funds to be converted to HSA dollars; permitting direct primary care arrangements and on-site employee clinics; granting Bronze and catastrophic ACA enrollees an HSA component; and expanding coverage and allowed expenses for veterans, Medicare eligible individuals, and Indian Health Service participants broadens the benefits of HSAs to more individuals. The measures that allow for up to $500 for mental health services (pre-deductible), and for both spouses to make catch up contributions are important and practical changes that reflect modern conditions.

Both H.R. 5687 and H.R. 5688 are solid reforms that leverage and expand the financial power and effectiveness of HSAs. SBE Council supports these important measures, and looks forward to working with the Committee on efforts to further expand and strengthen HSAs to help small business owners, their employees, and all consumers more effectively finance and access health care and coverage for both their short-term and long-term needs.


Karen Kerrigan, President & CEO

cc: Members of the Committee on Ways and Means



News and Media Releases