Stop Penalizing Working Seniors Act
Summary
The "Stop Penalizing Working Seniors Act" (H.R. 6577) aims to amend the Internal Revenue Code of 1986, specifically Section 223(b)(7). The proposed change would allow individuals enrolled only in Medicare Part A to contribute to health savings accounts (HSAs). This act seeks to remove a perceived penalty for working seniors who choose to enroll only in Medicare Part A.
Expected Effects
If enacted, this bill would expand the eligibility for contributing to HSAs. It would specifically benefit seniors over 65 who are enrolled only in Medicare Part A. The change would apply to taxable years beginning after December 31, 2024.
Potential Benefits
- Allows seniors enrolled only in Medicare Part A to contribute to HSAs, potentially increasing their healthcare savings.
- Provides greater flexibility for seniors in managing their healthcare expenses.
- May incentivize some seniors to remain in the workforce longer, contributing to the economy.
- Could lead to increased competition among healthcare providers, potentially lowering costs.
- Simplifies the tax code by removing a restriction on HSA contributions.
Most Benefited Areas:
Potential Disadvantages
- May disproportionately benefit higher-income seniors who can afford to contribute to HSAs.
- Could slightly increase the complexity of the tax code for those administering HSAs.
- Potential for minimal impact if few seniors are affected by the current restriction.
- May lead to a small decrease in government revenue due to tax-deductible HSA contributions.
- The bill does not address broader issues related to healthcare access and affordability.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to improve the financial well-being of a specific group of citizens (working seniors). Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under the power of Congress to modify the tax code.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).