P4ESC Urges Senate to Preserve HSA Reforms in Budget Bill

As the Senate considers this year’s budget reconciliation package, the Partnership for Employer-Sponsored Coverage (P4ESC) — of which SHRM is a member — has called on the Senate Finance Committee to retain key House-passed provisions that modernize health savings account (HSA) rules and expand access to employer-sponsored coverage.

In a June 10 letter to Committee Chairman Mike Crapo, R-Idaho, and ranking member Ron Wyden, D-Ore., the P4ESC urged the committee to support a range of HSA reforms that reflect evolving workforce needs. Among the provisions highlighted are proposals to allow HSA funds to be used for wellness and physical activity expenses, permit both spouses ages 55 and older to make catch-up contributions to a single HSA, and enable working people enrolled in Medicare Part A to remain HSA-eligible.

Additional provisions would allow coverage of care received before an HSA is opened, permit first-dollar coverage of services at onsite employee clinics, and facilitate the conversion of flexible spending account (FSA) or health reimbursement arrangement (HRA) balances during plan transitions. The letter also supports clarifying that direct primary care arrangements are not considered insurance and may be offered alongside an HSA, even if a spouse has an FSA.

SHRM supports these updates as part of a broader effort to promote flexible, affordable benefit options for employers and workers. The reforms could ease benefit administration, expand access to care, and strengthen the role of HSAs in long-term financial planning.