Health savings account eligibility

(a) In general Paragraph (1) of section 223(c) of the Internal Revenue Code of 1986 is amended to read as follows: (1) Eligible individual The term eligible individual means, with respect to any month, any individual if such individual is— (A) covered under— (i) a group or individual health plan, (ii) health insurance coverage, including a short term limited duration plan or medical indemnity plan, or (iii) a government plan, including coverage under the Medicare program under part A or part B of title XVIII of the Social Security Act, the Medicaid program under title XIX of such Act, the CHIP program under title XXI of such Act or a qualified CHIP look-alike program (as defined in section 2107(g) of such Act), medical coverage under chapter 55 of title 10, United States Code (including coverage under the TRICARE program), a health care program under chapter 17 or 18 of title 38, United States Code, as determined by the Secretary of Veterans Affairs in coordination with the Secretary of Health and Human Services and the Secretary, a medical care program of the Indian Health Service or a tribal organization, or coverage under chapter 89 of title 5, United States Code, or (B) a participant in a health care sharing ministry (as defined in section 5000A(d)(2)(B)(ii) without regard to subclause (IV) thereof), as of the 1st day of such month.. (b) Conforming amendments (1) Subsection (c) of section 223 of the Internal Revenue Code of 1986 is amended by striking paragraphs (2) and (3) and by redesignating paragraphs (4) and (5) as paragraphs (2) and (3), respectively. (2) Paragraphs (2)(A) and (2)(B) of section 223(b) of such Code are each amended by striking a high deductible health plan and inserting a health plan, insurance, or ministry described in subsection (c)(1). (3) Paragraph (8)(A)(ii) of section 223(b) of such Code is amended by striking high deductible health plan and inserting health plan, insurance, or ministry described in subsection (c)(1). (4) Section 223(g)(1) of such Code is amended— (A) by striking subsections (b)(2) and (c)(2)(A) both places it appears and inserting subsection (b)(2), and (B) by striking for calendar year 2016 in subparagraph (B) and all that follows through calendar year 2003. and inserting calendar year 1997 for calendar year 2016 in subparagraph (A)(ii) thereof.. (5) The heading of subparagraph (B) of section 223(b)(8) of such Code is amended by striking high deductible health plan. (6) Section 26(b)(2)(S) of such Code is amended by striking high deductible health plan. (7) The heading of paragraph (3) of section 106(e) of such Code is amended by striking high deductible health plan. (8) Clause (ii) of section 106(e)(5)(B) of such Code is amended by striking a high deductible health plan and inserting a health plan. (9) Paragraph (9) of section 408(d) of such Code is amended— (A) by striking the high deductible health plan covering in subparagraph (C)(i)(I) and inserting health plan, insurance, or ministry of, (B) by striking a high deductible health plan the first place it appears in subparagraph (C)(ii)(II) and inserting a health plan, insurance, or ministry described in section 223(c)(1), (C) by striking a high deductible health plan the second place it appears in subparagraph (C)(ii)(II) and inserting any such plan, insurance, or ministry, and (D) by striking high deductible health plan in the heading of subparagraph (D). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.