Bill > HR5687

This bill, the HSA Modernization Act of 2023, aims to modernize health savings accounts (HSAs) by making several changes to the Internal Revenue Code. Key provisions include: 1. Allowing individuals without service-connected disabilities who are eligible for certain veterans' benefits to contribute to HSAs. 2. Permitting individuals entitled to Medicare Part A due to age to contribute to HSAs, with adjustments to ensure coordination with the penalty on distributions not used for qualified medical expenses. 3. Clarifying that individuals eligible for Indian Health Service assistance are not disqualified from contributing to HSAs. 4. Treating bronze and catastrophic plans as high-deductible health plans eligible for HSA contributions. 5. Providing a safe harbor for plans that fail to have a deductible for up to $500 of mental health benefits. 6. Allowing health savings accounts to be treated as established on the date the account beneficiary's high-deductible health plan coverage begins, for purposes of determining qualified medical expenses. 7. Enabling both spouses to make catch-up contributions to the same HSA. 8. Increasing the maximum contribution limit to the amount of the high-deductible health plan's deductible and out-of-pocket limitation. 9. Clarifying that distributions from HSAs can be used for qualified long-term care services.