Health savings account eligibility

(a) In general Subparagraph (A) of section 223(c)(1) of the Internal Revenue Code of 1986 is amended— (1) by striking if— and inserting if, as of the 1st day of such month— (2) by striking as of the 1st day of such month in clause (i), (3) by redesignating subclauses (I) and (II) of clause (ii) as items (aa) and (bb), respectively, and by moving such items 2 ems to the right, (4) by redesignating clause (ii) as subclause (II) and by moving such subclause 2 ems to the right, (5) by striking such individual in subclause (II), as so redesignated, (6) by striking such individual is covered in clause (i) and inserting “such individual— (I) is covered, (7) by striking the period at the end and inserting, or, and (8) by adding at the end the following new clause: (ii) such individual— (I) is covered under a government plan, including coverage under the Medicare program under part A, part B, or part C 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), or coverage under chapter 89 of title 5, United States Code, or (II) is a participant in a health care sharing ministry (as defined in section 5000A(d)(2)(B)(ii) without regard to subclause (IV) thereof).. (b) Conforming amendments (1) Section 223(c)(1)(B) of the Internal Revenue Code of 1986 is amended by striking (A)(ii) and inserting (A)(i)(II). (2) Section 223(c)(1)(E)(i) of such Code is amended by striking (A)(ii) and inserting (A)(i)(II). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2026.