H.R. 548 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Jan 16, 2025
What this bill does
In plain words · AI-written from the official summaryExpands and increases health savings accounts
Health savings accounts (HSAs) are special savings accounts that let people set aside money for medical expenses, often with tax benefits. This bill would roughly double how much money people can contribute to these accounts each year. It would also expand who can open an HSA to include some veterans, people using tribal health services, Medicare enrollees, and those with certain basic health plans. The bill also allows HSAs to cover long-term care expenses and lets high-deductible health plans cover up to $500 in mental health care before the annual deductible kicks in.
How it affects you
If you have a high-deductible health plan, you'd be able to save significantly more money in an HSA each year—roughly double what current law allows. Veterans using VA health care, people receiving care through the Indian Health Service, seniors on Medicare Part A, and people with bronze or catastrophic plans would gain new eligibility to open an HSA. These changes make it easier for more people to set aside pre-tax money for medical costs.
Read the official summary (Introduced in House, Jan 16, 2025)
HSA Modernization Act
This bill increases health savings account (HSA) contribution limits, expands HSA eligibility, and makes other changes to HSAs and high-deductible health plans (HDHP).
The bill increases HSA contribution limits to equal the limits on out-of-pocket expenses under an HDHP (adjusted annually). Under the bill, the maximum annual HSA contribution for 2025 is $8,300 for self-only coverage and $16,600 for family coverage. (Under current law, the maximum annual HSA contribution for 2025 is $4,300 for self-only coverage and $8,550 for family coverage.)
The bill expands eligibility to make tax-deductible HSA contributions to include individuals who
• receive hospital care or medical services from the Department of Veterans Affairs and do not have a service-connected disability,
• receive hospital care or medical services provided by the Indian Health Service or a tribal organization,
• are at least 65 years old and enrolled in Medicare Part A, or
• have a bronze-level or catastrophic health insurance plan through a health insurance exchange.
The bill also allows eligible married individuals to make catch-up contributions to the same HSA.
Under the bill, HSA distributions may be used to pay for qualified medical expenses incurred before the HSA is established if the HSA is established within 60 days from the first day of coverage under an HDHP.
Further, the bill specifies that HSA distributions may be used to pay for expenses for qualified long-term care services.
Finally, the bill allows an HDHP to provide up to $500 of mental health benefits before the annual deductible is met.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 548
A BILL
HSA Modernization Act
Sponsor: Rep. Beth Van Duyne (R-TX-24) · Introduced Jan 16, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Jan 16, 2025: “Referred to the House Committee on Ways and Means.”
Sections
Sections · 10
- Sec. 1Short titleNo change
- Sec. 2Individuals without service-connected disability and eligible for certain veterans benefits permitted to contribute to health savings accountsNo change
- Sec. 3Individuals entitled to part A of Medicare by reason of age allowed to contribute to health savings accountsNo change
- Sec. 4Individuals eligible for Indian Health Service assistance not disqualified from health savings accountsNo change
- Sec. 5Allowance of bronze and catastrophic plans in connection with health savings accountsNo change
- Sec. 6Safe harbor for absence of deductible for mental health servicesNo change
- Sec. 7Special rule for certain medical expenses incurred before establishment of health savings accountNo change
- Sec. 8Allow both spouses to make catch-up contributions to the same health savings accountNo change
- Sec. 9Maximum contribution limit to health savings account increased to amount of deductible and out-of-pocket limitationNo change
- Sec. 10Clarification of treatment of distributions from health savings account for long-term care servicesNo change