Protecting Life in Health Savings Accounts ActThis bill excludes expenses paid for an abortion from qualified medical expenses eligible for reimbursement from certain tax-exempt savings accounts. (Some exceptions apply.)Under the bill, amounts paid for an abortion, other than an excluded abortion, are not qualified medical expenses eligible for reimbursement from a health savings account, Archer medical savings account, health flexible spending arrangement, health reimbursement arrangement, or retiree health account.The bill defines excluded abortion as any abortion (1) related to a pregnancy that is the result of rape or incest; or (2) performed because a woman is suffering from a physical disorder, injury, or illness (including a life-endangering physical condition caused by or arising from the pregnancy itself) that would, as certified by a physician, place the woman in danger of death if an abortion were not performed.
The bill is expected to have significant ramifications on how medical expenses are treated under tax laws. By prohibiting reimbursements for most abortion procedures through HSAs and similar accounts, the legislation seeks to limit financial support for abortion services in contexts that proponents view as morally objectionable. This aligns with broader efforts by certain lawmakers to restrict access to abortion services through financial mechanisms. Consequently, women seeking these procedures may face increased out-of-pocket costs, potentially dissuading some from pursuing necessary care.
SB251, known as the 'Protecting Life in Health Savings Accounts Act', is designed to amend the Internal Revenue Code of 1986. The primary focus of this bill is the treatment of certain medical expenses related to abortions, particularly concerning Health Savings Accounts (HSAs), Archer MSAs, and Health Reimbursement Arrangements. Under this legislation, expenses incurred for most abortions would no longer be classified as qualified medical expenses, except for cases defined as 'excluded abortions' – those resulting from rape, incest, or necessitated by a serious medical condition threatening the woman's life.
SB251 has generated notable contention among legislators and advocacy groups. Supporters argue that the bill reinforces pro-life values by discouraging the use of tax-advantaged accounts for abortion-related expenses. They view this as a step towards aligning medical expense classifications with their moral and ethical stance on abortion. Conversely, opponents criticize the bill as an infringement on women's rights and access to healthcare. There are concerns that this legislation could exacerbate disparities in healthcare access, particularly for women in economically disadvantaged situations who may rely on HSAs to cover essential health services.