Government
President signs HSA bill
NEWS IN BRIEF — Posted Jan. 15, 2007
President Bush last month signed into law a measure that increases the contribution limits and flexibility of health savings accounts.
Under the Tax Relief and Health Care Act of 2006, HSA contribution limits are now $2,850 for individual plans and $5,650 for families. Previously, contributions could not exceed the lesser of the deductible or $2,700 for an individual and $5,450 for families. The law also allows one-time contributions to HSAs from individual retirement accounts, health reimbursement arrangements and flexible spending accounts.
Employers now can contribute different amounts to employees. Previously, employers had to contribute the same amount to all workers.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/01/15/gvbf0115.htm.
