Bill > A09384

This bill establishes the New York State Health Care Savings Program, which allows residents to create health care savings accounts (HCSAs) to save money for qualified health care expenses. The program enables individuals, families, local governments, and nonprofit organizations to open accounts where they can contribute funds to cover medical costs like premiums, deductibles, copays, and long-term care expenses. Account owners can contribute cash or tax refunds, with annual contribution limits of $5,000 for individuals and $10,000 for married couples filing jointly. The accounts will be managed by financial organizations selected by the New York State Comptroller, who will oversee the program's implementation and ensure proper administration. Notably, the accounts provide tax benefits, allowing contributors to exclude contributions from state income tax and withdraw funds tax-free for qualified health care expenses. The bill also includes provisions to prevent misuse, such as limiting investment direction to twice per calendar year and prohibiting using account funds as loan collateral. While the accounts offer a flexible savings mechanism, the bill explicitly states that the state does not guarantee investment returns or account performance, and contributors assume the financial risk associated with their investments.

Health and Social Services

https://www.nysenate.gov/legislation/bills/2025/A9384