The House passed a bill Tuesday that would add health savings accounts to a list of property protected from creditors attempting to garnish, levy or attach to an individual’s account.
Approved on a 123-0 vote, HF2391, sponsored by Rep. Mary Franson (R-Alexandria), would protect up to $25,000 in health or medical savings accounts, joining the ranks of the family Bible, farming equipment worth less than $13,000, public assistance and other protected property.
The exemption would not apply to debts from marital assets divisions or support orders.
The bill goes to the Senate, where Sen. Roger Chamberlain (R-Lino Lakes) is the sponsor.
“There’s nothing in [statutory] exceptions that protect health care savings accounts,” Franson said. “With the advent of changes in health care policy over the past decade, these policies have become increasingly common … people’s health care should be protected.”
The bill would recognize any health savings account defined by the federal government’s Internal Revenue Code of 1986.