WASHINGTON, D.C. – U.S. Rep. Mike Thompson’s (CA-5) bipartisan legislation to help veterans and their families save for and afford health care passed the Senate on Thursday and will be signed into law by the president.

The bill, titled the Help Veterans Save for Health Care Act, passed as part of H.R. 3236, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.

Thompson’s bill will allow veterans who have supplemental health care coverage and also receive Veterans Administration (VA) care for a service-connected disability to enroll or participate in a Health Savings Account (HSA). 

Currently, under IRS regulations, veterans and their families are prohibited from making and/or receiving contributions to a HSA for three months after receiving health care services through the Veterans VA for a service-connected disability.

The bill was co-authored by U.S. Rep. Sam Johnson (TX-3).

“This is a commonsense, bipartisan bill that will help make sure veterans and their families aren’t left on the hook for health care expenses they’d otherwise be covered for just because they received care from the VA,” said Thompson. “Making sure veterans have the same rights as other taxpayers to pay for their health care costs is the right thing to do for those who served our country in uniform.”

A HSA is a tool to help individuals and families to save and pay for health care expenses. However under the IRS regulations veterans and their families are being unfairly excluded from an important health care savings tool.

For example, a veteran with a service-connected disability may be enrolled in an employer-sponsored health plan with an HSA that provides health insurance coverage for their family.

Under current IRS regulations, the veteran would be barred from participating in his or her HSA for three months after receiving care at the VA for a service-connected disability – even if that HSA is used to cover out-of-pocket health care costs for non-VA care and for their spouse or children.

Congressman Mike Thompson is proud to represent California’s Fifth Congressional District, which includes all or part of Contra Costa, Lake, Napa, Solano and Sonoma counties.