HSA Modernization Act
Sponsored By: Representative Van Duyne
Introduced
Summary
This bill would expand and modernize Health Savings Accounts by broadening who can contribute and increasing flexibility around contributions and qualifying expenses. It focuses on eligibility, plan definitions, spouse contributions, and what counts as qualified medical costs.
Show full summary
- Families and plan shoppers would get more HSA-friendly options because bronze and catastrophic plans would count as high-deductible health plans and the maximum contribution would track the deductible and out-of-pocket limits. The bill also creates a safe harbor that lets plans offer mental health benefits with no deductible for the first $500 of care.
- Veterans, people entitled to Medicare Part A by reason of age, and American Indian or Alaska Native people who receive Indian Health Service care would see new contribution access. The service-connected disability test for certain veterans would be removed and IHS care would not disqualify HSA eligibility. Many changes take effect for months or taxable years beginning after Dec. 31, 2025.
- Couples and savers would gain flexibility. Both spouses could make catch-up contributions to the same HSA under rules that split family limits and allow extra amounts for spouses aged 55 or older. The bill also treats certain pre‑establishment medical expenses and qualified long‑term care costs as eligible HSA distributions.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
Higher and more flexible HSA contributions
HSA contribution caps would follow your plan’s deductible and out‑of‑pocket limits, which could raise how much you can save, starting in 2026. If both spouses are HSA‑eligible and have family HDHP coverage, the family limit (after Archer MSA amounts) would be split between you by default. You could agree to a different split. If both spouses are 55 or older by year end, both catch‑up amounts would be included in the limit that gets divided.
More health plans qualify for HSAs
Bronze and catastrophic marketplace plans would count as high‑deductible health plans for HSA rules, starting in 2026. Plans could also cover up to the first $500 of mental health care before the deductible and still keep HSA‑eligible status, for plan years beginning in 2026. If passed, more people in these plans could open or contribute to an HSA.
Wider HSA eligibility for seniors and veterans
This bill would broaden who can put money into an HSA. Some people entitled to Medicare Part A by age could keep HSA eligibility, starting in 2026. Veterans who use certain VA benefits without a service‑connected disability would also remain eligible in 2026 and later. Care from the Indian Health Service or a tribal program would not count as disqualifying coverage. Most of these changes would apply to months and tax years beginning after December 31, 2025.
60-day window for new HSA expenses
If you start HDHP coverage and open an HSA within 60 days, the account would be treated as opened on your coverage start date. Bills you pay after coverage begins but before you open the HSA in that 60‑day window would count as qualified expenses. This would apply to coverage that begins after December 31, 2025.
HSAs could cover long-term care
You would be able to use HSA money tax‑free for qualified long‑term care services you pay for after enactment. This change would apply only to amounts paid after the bill becomes law.
Sponsors & CoSponsors
Sponsor
Van Duyne
TX • R
Cosponsors
Crenshaw
TX • R
Sponsored 1/16/2025
Meuser
PA • R
Sponsored 1/16/2025
Wittman
VA • R
Sponsored 2/10/2026
Bacon
NE • R
Sponsored 2/24/2026
Roll Call Votes
No roll call votes available for this bill.
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