Bill > HR5933

This bill, known as the HSAs For Heroes Act, aims to expand Health Savings Account (HSA) eligibility and usage for veterans by making several key changes to the Internal Revenue Code. First, the bill removes the requirement that veterans must have a service-connected disability to contribute to an HSA, allowing all veterans who were discharged under honorable conditions to participate. The bill also eliminates the requirement that individuals must have a high-deductible health plan to contribute to an HSA and increases the annual contribution limit to $9,000 for individuals and $18,000 for joint returns. Additionally, the bill introduces a new provision allowing HSA distributions during periods of qualified caregiving, such as those outlined in the Family and Medical Leave Act, without tax penalties. The legislation ensures that these changes will not reduce or limit existing veterans' benefits and requires the Treasury Secretary to report annually to Congress on HSA usage by veterans, including the number of contributors, total contributions, types of medical expenses, and any potential issues with implementation. The bill is set to take effect for taxable years beginning after December 31, 2025, and includes provisions for the Treasury to estimate and report on the potential revenue effects of these amendments.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/5933/all-info