WASHINGTON, DC – U.S. Senator Pat Roberts (R-Kan.) today announced the Senate passed legislation he introduced that gives veterans and their families more freedom when saving for health care. The legislation passed by a vote of 91-4 and will now head to the president to be signed into law.

“This commonsense legislation provides clarity and relief to veterans with a service-connected disability by allowing them to make contributions to a health savings account while receiving care at the VA. The funds in this account can also be used by the veteran’s family,” said Roberts. “At a time when the VA is struggling to provide veterans the service they need, our veterans deserve better access to health care and the ability to save for health care expenses.”

Currently, an individual with a high deductible health plan and no other health plan is generally eligible to make tax deductible contributions to a health savings account (HSA). These HSA contributions are excludible from income and wages for employment tax purposes. However, under IRS guidance, veterans and their families are prohibited from making and/or receiving contributions to an HSA for three months after receiving health care services through the Veterans Administration.

The Helping Veterans Save for Health Care Act, S. 1880, would ensure an individual with a service related disability is eligible to contribute to a health savings account while he or she is receiving care at the VA for any period of time. The HSA can be used to pay for the cost of health care for the veteran, veteran’s spouse or children.

The legislation has received strong support from veterans groups.

Maj. Gen. Gus Hargett, president of The National Guard Association of the United States said, “Senator Roberts is asking for a small change that could make a big difference in the lives of our service-connected, disabled veterans and their families. These people have given so much to our country; they deserve this small amount of extra consideration. We applaud and enthusiastically support this legislation.”

Raymond Kelley, the National Legislative Director for the Veterans of Foreign Wars said, “The Helping Veterans Save for Health Care Act is a significant step towards addressing a detrimental inequity in current law. This legislation would ensure veterans who utilize their earned VA benefits for service-connected health care are not precluded from saving for future health care needs. The VFW applauds Senator Roberts for his leadership in addressing this important issue. We look forward to working with Congress to address other inequities to ensure veterans are not negatively impacted when they use their earned VA benefits.”

Similar legislation was introduced by Rep. Sam Johnson (R-Texas) in the U.S. House of Representatives. It was approved by the full House as part of H.R. 3262, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.

Roberts is the most senior Marine in the U.S. Congress and a member of the Senate Finance Committee.