Bipartisan HSA Improvement Act of 2023

The Bipartisan HSA Improvement Act of 2023 simplifies Health Savings Account (HSA) usage by clarifying tax treatment for specific healthcare arrangements. It allows direct primary care service fees (a fixed monthly payment for primary care, without insurance) to be paid using HSA funds, while setting a monthly fee limit ($150, or $300 for family coverage) and excluding certain services like prescription drugs. The bill also permits individuals to contribute to an HSA even if their spouse has a health flexible spending arrangement (FSA), and creates a process for transferring funds from a health flexible spending arrangement (FSA) or health reimbursement arrangement (HRA) to an HSA when switching to a high-deductible health plan. These changes primarily affect individuals enrolled in HSAs, direct primary care patients, and employees with employer-run clinics or FSA coverage.