Individuals eligible for Indian Health Service assistance not disqualified from health savings accounts

(a) In general Section 223(c)(1) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (E) Special rule for individuals eligible for assistance under Indian Health Service programs For purposes of subparagraph (A)(ii), an individual shall not be treated as covered under a health plan described in such subparagraph merely because the individual receives hospital care or medical services under a medical care program of the Indian Health Service or of a tribal organization.. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2025.