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119-s-1565119th CongressWALLET

Lowering Costs for Caregivers Act of 2025

Sponsored By: Senator Rosen, Jacky [D-NV]

Introduced

Summary

Expands tax-free coverage so a taxpayer or their spouse can use pre-tax medical accounts to pay for a parent’s medical expenses. The bill would amend the tax code to treat a parent of the taxpayer or of the taxpayer’s spouse as an eligible recipient of medical care for Health Savings Accounts, health Flexible Spending Accounts and Health Reimbursement Arrangements, and Archer Medical Savings Accounts. These changes would apply to amounts paid or expenses incurred after December 31, 2025.

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  • Families and caregivers: Parents’ medical bills could be paid from HSAs, FSAs/HRAs, or Archer MSAs without creating taxable income, lowering after-tax cost for households that support aging parents.
  • Account holders: People who use HSAs, FSAs, HRAs, or Archer MSAs would be able to claim a wider set of qualifying medical expenses, expanding what those accounts can cover.
  • Employers and plan administrators: Employer-run FSAs and HRAs would be allowed to reimburse employee payments for a parent’s care on a tax-free basis, requiring plan updates to reflect the expanded eligibility.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

FSA and HRA reimburse parent care

If enacted, employer health FSAs and HRAs could reimburse medical care for a parent without making that reimbursement taxable. This would apply to expenses incurred after December 31, 2025. The plan must meet the usual tax rules.

Tax-free health accounts for parents

If enacted, amounts you pay for a parent could count as qualified medical expenses for HSAs and Archer MSAs. This would apply to amounts paid after December 31, 2025. You would only get this if you have those accounts.

Sponsors & CoSponsors

Sponsor

Rosen, Jacky [D-NV]

NV • D

Cosponsors

  • Sen. Cassidy, Bill [R-LA]

    LA • R

    Sponsored 5/1/2025

  • Sen. Blackburn, Marsha [R-TN]

    TN • R

    Sponsored 3/4/2026

  • Sen. Klobuchar, Amy [D-MN]

    MN • D

    Sponsored 4/20/2026

  • Sen. Murkowski, Lisa [R-AK]

    AK • R

    Sponsored 4/27/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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