Republican Congressman Blake Moore of Utah has reintroduced the federal Health Out-of-Pocket Expense Act, which would allow patients with insurance to save money in a tax-advantaged account for future health expenses. The legislation is co-authored by Democratic Congressmen Jimmy Panetta of California, Raul Ruiz of California, and Brad Schneider of Illinois and Republican Congressmen Brian Fitzpatrick of Pennsylvania and Adrian Smith of Nebraska.
Congressman Blake Moore of Utah
“Health care costs are one of the biggest issues I hear about from Utah patients, providers, and employers, and addressing this pressing issue is a top priority for me in Washington,” said Congressman Moore. “I am grateful to reintroduce 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.”
Patient advocates say that the proposal will help more patients save for out-of-pocket health care expenses and reduces the financial distress caused by high medical bills.
“The HOPE Act will empower patients to have greater control over our healthcare choices,” explains Terry Wilcox, Co-Founder & Chief Mission Officer at Patients Rising. “With a HOPE account, patients could build a safety net for unexpected health emergencies, or simply manage routine expenses without breaking the bank.”
“It’s a practical, patient-first solution that puts us in charge of our health care,” she added.
Builds on Success of HSAs, ROTH IRAs
Congress created Health Savings Accounts as a way to make it easier for patients to pay for their out-of-pocket medical expenses with tax-advantaged dollars. However, federal law limits access to this powerful financial tool to just a small percentage of the population.
H.R. 955 levels the playing field by allowing anyone with qualifying coverage, including patients with coverage from commercial insurance, Medicare, Medicaid, the Indian Health Service, and other sources to make tax-advantaged contributions to a HOPE Health Savings Account. As the account grows, the earnings remain tax-free, when used for qualified medical expenses.
Congressman Jimmy Panetta of California
“The rising cost of health care continues to challenge working families, making it even more important to have accessible ways to save for out-of-pocket medical expenses,” said Congressman Panetta. “This commonsense legislation would help ensure that individuals managing medical costs, regardless of their insurance type, have a better sense of security in their family’s finances and health care.”
Much like a ROTH IRA, a HOPE Account would provide tax advantages and investment options for individuals and families to save for future health care expenses. If passed, H.R. 955 would allow patients with self-only coverage to contribute up to $4,000 per year to a HOPE Account. That amount would rise to $8,000 for patients with family coverage. Earnings would remain tax-free when the funds are used for qualified medical expenses.
“This bipartisan legislation puts control back where it belongs—in the hands of families—by providing them with a powerful, tax-advantaged tool to manage their healthcare expenses,” said Congressman Fitzpatrick. “By lifting the financial strain of an increasingly unaffordable system, the HOPE Act ensures no family must choose between their health and their financial future.”
H.R. 955: Patient Priority Bill for 2025
The HOPE Act is getting strong support from patient advocates.
Every year, Patients Rising brings together passionate patient advocates from across the country at its annual “We the Patients” Fly-In on Capitol Hill. At this year’s Fly-In, held from June 9-11, Patients Rising has selected H.R. 955 as one of its patient priority bills and will encourage members of Congress to work quickly to pass the HOPE Act.
“If you’ve ever been denied an insurance claim, or forced into step therapy, you know how frustrating it can be to have your care dictated by an insurance company’s rules,” explains Wilcox of Patients Rising. “With a HOPE Account, patients will have more treatment options beyond the restrictions imposed by an insurance formulary.”