Bill > HR548

This bill aims to modernize Health Savings Accounts (HSAs) by making several key changes to the Internal Revenue Code. The bill would allow individuals who are entitled to Medicare, receive Indian Health Service assistance, or have veterans benefits to contribute to HSAs, which was previously restricted. It expands the types of health insurance plans that qualify for HSAs to include Bronze and Catastrophic plans, and creates a safe harbor provision allowing plans to cover up to $500 of mental health services without a deductible. The bill increases the maximum HSA contribution limit to match the health plan's deductible and out-of-pocket maximum, permits both spouses to make catch-up contributions to the same HSA, and clarifies that distributions can be used for qualified long-term care services. Additionally, the bill allows individuals to establish an HSA within 60 days of beginning high-deductible health plan coverage and treat it as retroactively established from the coverage start date. These changes are designed to provide more flexibility and accessibility for HSA holders and are set to take effect for taxable years beginning after December 31, 2025.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/548/all-info