Healthcare Freedom Act of 2025
Sponsored By: Representative Roy
Introduced
Summary
Health Freedom Accounts (HFAs) would replace Health Savings Accounts across the tax code and reshape tax-advantaged health saving by expanding who can deduct contributions and what counts as medical expenses.
Show full summary
- Families and individuals: Would raise the individual contribution limit to $12,000 and double that for joint filers, letting more money be saved tax-advantaged for health.
- Older savers: Would add a $5,000 catch-up for people 55 or older, encouraging larger pre-tax health savings as they age.
- Account rules and expenses: Would allow rollovers into another HFA if redeposited within 60 days and remove the monthly "eligible individual" requirement so more people can deduct contributions. Would expand qualified expenses to include direct primary care and health care sharing ministries.
- Employers and workers: Would create a phased tax exclusion so employer contributions to HFAs are excluded from employee income for workers hired five years after enactment.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
Bigger HFA contributions for individuals
If enacted, you could put more money into a Health Freedom Account. The annual cap would be $12,000 for single filers and $24,000 for joint filers. If you are 55 or older, you could add an extra $5,000 each year. You could also deduct HFA contributions even if you were not eligible every month. These changes would apply to months in tax years starting after enactment.
New tax rules for employer HFA money
Starting with tax years after enactment, employer HFA contributions would be treated as employer health coverage for tax purposes. For employees hired on or after 5 years after enactment, employer HFA contributions would be tax‑free income. For those future hires, the usual tax break for employer health insurance would not apply; instead, the HFA money would be excluded. Employers and workers would need to plan for these timing rules.
Use HFA for direct care and sharing
If passed, you could use HFA dollars to pay for direct primary care and health care sharing ministries. This would expand what counts as qualified medical expenses. It would apply to months in tax years starting after enactment.
More flexible HFA rollovers and deposits
You would get a 60‑day window to roll HFA money into another HFA without tax. Non‑cash contributions to HFAs would be allowed; cash would not. These rules would apply to months in tax years starting after enactment.
Sponsors & CoSponsors
Sponsor
Roy
TX • R
Cosponsors
Weber (TX)
TX • R
Sponsored 1/9/2025
Cline
VA • R
Sponsored 1/9/2025
Burlison
MO • R
Sponsored 1/9/2025
Clyde
GA • R
Sponsored 1/9/2025
Greene (GA)
GA • R
Sponsored 1/9/2025
Biggs (AZ)
AZ • R
Sponsored 1/9/2025
Ogles
TN • R
Sponsored 1/9/2025
Brecheen
OK • R
Sponsored 1/13/2025
Higgins (LA)
LA • R
Sponsored 10/10/2025
Roll Call Votes
No roll call votes available for this bill.
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