Personalized Care Act of 2025
Sponsored By: Representative Roy
Introduced
Summary
Expands who can use Health Savings Accounts (HSAs). This bill removes the requirement that HSA contributors have a high-deductible health plan and explicitly lists many other types of coverage that make someone eligible to contribute.
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- Removes the HDHP requirement so more employees and families with group or individual health plans can open and contribute to HSAs even if their plan is not a traditional high-deductible plan.
- Includes people covered by Medicare Part A or Part B, Medicaid, CHIP, and qualified CHIP look-alike programs, letting seniors and low-income families access HSA tax-preferred savings.
- Adds TRICARE, VA health programs, Indian Health Service and tribal programs, federal employee coverage under chapter 89 of title 5, and participation in health care sharing ministries as qualifying coverage. The changes apply to tax years beginning after December 31, 2024.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Higher HSA contribution limits
For tax years beginning after December 31, 2024, the bill would raise the statutory HSA contribution caps to $10,800 for individual coverage and $29,500 for family coverage. If enacted, HSA accountholders could save and shelter much more money each year under these new limits.
More people eligible for HSAs
This bill would let many more people count months as HSA-eligible. If, on the first day of a month, you are covered by a group or individual plan, a short-term or medical indemnity plan, Medicare Part A or B, Medicaid, CHIP or a qualified CHIP look-alike, TRICARE, certain VA programs, Indian Health Service or tribal coverage, or you participate in a health care sharing ministry, that month would count for HSA purposes. The bill would also replace references to a 'high deductible health plan' with the broader coverage definition and say ministries and fixed periodic-fee arrangements are not treated as insurance for some tax rules. These changes would apply for taxable years beginning after December 31, 2024.
Pay ministry and prepaid care with HSAs
If enacted, HSA money could pay for health care sharing ministry amounts, ministry administrative fees, certain periodic physician fees, and some prepaid medical services. The bill would also let HSA distributions pay for certain health plans previously barred from HSA payments. In addition, taxpayers who itemize could treat those ministry memberships and allowed periodic or prepaid medical fees as deductible medical expenses. These changes would apply for taxable years beginning after December 31, 2024.
Lower HSA withdrawal penalty
The bill would cut the extra tax on nonqualified HSA withdrawals from 20% to 10% for distributions in tax years after December 31, 2024. For example, a $1,000 nonqualified withdrawal would cost $100 instead of $200 in extra tax.
New base year for HSA limits
The bill would change the year used to compute cost-of-living adjustments for HSA limits from calendar year 1997 to calendar year 2023 and adjust the rule's wording for years after 2024. If enacted, this would affect how future HSA limits grow with inflation for tax years beginning after December 31, 2024.
Sponsors & CoSponsors
Sponsor
Roy
TX • R
Cosponsors
Crane
AZ • R
Sponsored 1/28/2025
Burlison
MO • R
Sponsored 1/28/2025
Hageman
WY • R
Sponsored 1/28/2025
Harris (MD)
MD • R
Sponsored 1/28/2025
Moore (AL)
AL • R
Sponsored 1/28/2025
Tiffany
WI • R
Sponsored 1/28/2025
Ogles
TN • R
Sponsored 1/28/2025
Weber (TX)
TX • R
Sponsored 1/28/2025
Gosar
AZ • R
Sponsored 1/31/2025
Harris (NC)
NC • R
Sponsored 3/3/2025
McCormick
GA • R
Sponsored 5/8/2025
Fulcher
ID • R
Sponsored 11/12/2025
Roll Call Votes
No roll call votes available for this bill.
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