Bill > S276

This bill, the Personalized Care Act of 2025, significantly expands and modifies Health Savings Accounts (HSAs) by broadening eligibility, increasing contribution limits, and allowing more flexible use of funds. Specifically, the bill dramatically increases the annual contribution limits for HSAs from $2,250 to $10,800 for individual coverage and from $4,500 to $29,500 for family coverage, starting in 2026. It expands HSA eligibility to include a wider range of health coverage options, such as short-term insurance plans, government health programs, and health care sharing ministries. The bill also allows HSA funds to be used for periodic physician fees, prepaid medical services, and wellness programs, and reduces the penalty for non-qualified distributions from 20% to 10%. Additionally, the legislation treats health care sharing ministry fees and expenses as qualified medical expenses and clarifies that these ministries are not considered traditional health insurance. These changes aim to provide individuals with more flexibility and options for managing their healthcare expenses, with all provisions taking effect for taxable years beginning after December 31, 2025.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/276/all-info