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Congressman Blake Moore Introduces Bipartisan Legislation To Boost Savings And Health Care Affordability For American Families

Office of US Rep. Blake Moore

27 Aug 2024

WASHINGTON– Last week, Congressman Blake Moore (R-UT) introduced the Health Out-of-Pocket Expense (HOPE) Act, a bipartisan piece of legislation that will create a tax-advantaged account that enables millions of Americans with most types of insurance coverage to save for health care costs through both individual and employer contributions. Congressman Moore was joined by Congressman Jimmy Panetta (D-CA), Congressman Brian Fitzpatrick (R-PA), Congressman Brad Schneider (D-IL), Congressman Adrian Smith (R-NE), and Congressman Raul Ruiz (D-CA) in introducing this bill.


“One of the biggest issues I hear about from Utah patients, providers, and employers alike is the cost of health care, and addressing this pressing challenge remains a top priority for me in Washington,” said Congressman Moore. “I am grateful to introduce the bipartisan HOPE Act to create a new tax-advantaged savings account that will help families plan and save for medical expenses. The HOPE Act is a step in the right direction in making health care more affordable for Utahns and Americans across the country.”


“Working families need additional ways to plan and save for unexpected out-of-pocket health expenses,” said Congressman Panetta. “This bipartisan legislation would create tax-preferred Health Out-of-Pocket Expense Accounts that incentivize Americans to save for future medical expenses not covered by their insurance. Through commonsense, straightforward action we can ensure that individuals and working families around our country are planning for their financial well-being and future health needs.”


“The HOPE Act will directly help individuals in my community and nationwide battling soaring medical costs,” said Congressman Fitzpatrick. “Through this bipartisan legislation, HOPE Accounts will deliver an alternative option that lets our hardworking families take control of their health expenses—free from the crushing weight of the high cost of healthcare in our country.”


“I am proud to introduce the HOPE Act, which will create a new tax-advantaged savings account for healthcare expenses geared specifically towards working class individuals and families,” said Congressman Schneider. “Importantly, HOPE Accounts are compatible with any type of comprehensive health insurance plan, allowing account holders to maintain robust coverage while they save. As healthcare costs continue to rise, enabling families to efficiently save for future expenses via HOPE Accounts will promote both financial and physical well-being.”


“Unexpected health care bills can be devastating for hard-working families, but most health coverage options don’t come with built-in ways to help families prepare for an emergency,” said Congressman Smith. "HOPE Accounts would give American families a new tool to protect themselves and their household finances from a surprise illness or injury. I thank Rep. Moore for leading the effort to introduce this bipartisan legislation.”


"The HOPE Act is a crucial advancement in assisting families with the increasing costs of medical care,” said Congressman Ruiz MD. “HOPE Accounts provide hardworking families with a new way to save for health expenses, independent of costly high-deductible plans."


Background:


Health care costs continue to climb, often outpacing the national rate of inflation and the average annual growth in GDP. The HOPE Act will help families in Utah and across the country manage their out-of-pocket costs and save for future medical care.


A HOPE Account would be similar to a Roth savings account and provide certain tax advantages and investment options for individuals and families to save for future health care expenses:


  • Anyone with qualifying coverage, including in the commercial market, Medicare, Medicaid, the Indian Health Service, and other sources of health care coverage are eligible to contribute to a HOPE Account.

  • An individual’s contributions would not be tax deductible, though employer contributions are deductible to the employer, as well as excludible from income and employment tax for individuals with an adjusted gross income of $100,000 or less or $200,000 or less for a family.

  • Employers and state programs may annually make contributions to a HOPE Account of up to 50% of the annual limit. 

  • The maximum annual contribution from all sources to a HOPE Account is $4,000 for those with self-only coverage, or for married individuals with separate HOPE Accounts.  For those with family coverage, that amount is $8,000 for a head of household or married individuals filing jointly who elect to set up a family account. Any contributions to an HSA, FSA, or HRA reduce the maximum contribution to a HOPE Account that year.

  • As the account grows, the earnings remain tax-free if the funds are used for qualified medical expenses. 


The full text of this legislation can be found here.

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