Bill > HR955

This bill establishes a new type of tax-advantaged medical savings account called a HOPE (Health Out-of-Pocket Expense) Account, designed to help individuals pay for qualified medical expenses. The account can be established by individuals who have minimum essential health coverage and are not simultaneously contributing to other health-related savings accounts like flexible spending arrangements or health savings accounts. Individuals can contribute up to $4,000 annually for self-only coverage or $8,000 for family coverage, with contributions from employers and state Medicaid programs limited to 50% of the total contribution limit. Contributions are tax-free for individuals with adjusted gross income below $100,000 ($200,000 for married couples), and funds can be used tax-free for qualified medical expenses. If funds are used for non-medical purposes, they will be subject to income tax and an additional 30% penalty. The account has specific rules about eligibility, contributions, distributions, and reporting, and is intended to provide individuals with more flexibility in managing their healthcare expenses while offering tax advantages.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/955/all-info