Committee rejects bill to allow HSA payments for medical marijuana

2350049 · February 19, 2025

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Summary

The House Insurance & Commerce Committee heard testimony on House Bill 1408, which would have clarified that health savings accounts may be used to purchase medical marijuana; the committee rejected the measure in a voice vote.

Representative Aaron Poughton, District 45, told the House Insurance & Commerce Committee that House Bill 1408 ‘‘just clarifies that you can use a health savings account to buy medical marijuana’’ and described the measure as ‘‘a very simple bill with no opposition.’’

The bill’s sponsor said the change was intended to add clarity to existing HSA rules and encourage people to save for health expenses. ‘‘I think HSAs are a vital part of making sure people are more personally responsible for their health care,’’ Poughton said, noting HSAs ‘‘roll over’’ and can be used for later health spending.

Committee members raised concerns about safeguards and potential misuse. Representative Tosh asked about ‘‘check and balances to make sure that these caregivers aren’t actually using this avenue . . . for their own personal use,’’ noting the risk when a caregiver picks up medication for a patient. Representative Baker said a more traceable mechanism for transactions would be desirable and argued that moving purchases away from cash and into recordable HSA transactions ‘‘actually makes this more of a . . . safety net mechanism for the dispensing of those.’’

Poughton responded that the bill does not change caregiver rules and that existing laws can be used to prosecute misuse in the same way they are used for other prescription medications. The committee recorded no audience testimony for or against the bill.

The committee voted on the motion to take up the bill by voice; the noes prevailed and the measure failed to advance. The transcript records the vote as a voice vote with the chairman calling for ayes and noes; no roll-call tally or named mover/second was recorded.