Payment of health plan and health insurance premiums from HSA

(a) In general Paragraph (2) of section 223(d) of the Internal Revenue Code of 1986 is amended— (1) by striking subparagraph (B), (2) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively, (3) by striking Subparagraph (B) shall not apply to any expense in subparagraph (B), as so redesignated, and inserting Subparagraph (A) shall not apply to any payment for insurance other than, and (4) in subparagraph (B), as so redesignated— (A) by striking or at the end of clause (iv), (B) by striking the period at the end of clause (v) and inserting, or, and (C) by adding at the end the following new clause: (vi) a health plan or health insurance coverage described in subsection (c)(1)(A).. (b) Inclusion of medical care service arrangements as medical expenses Paragraph (2) of section 223(d) of the Internal Revenue Code of 1986, as amended by subsection (a), is further amended by adding at the end the following new subparagraph: (D) Inclusion of medical care service arrangements The term qualified medical expenses shall include— (i) periodic fees paid to a physician for a defined set of medical services or for the right to receive medical services on an as-needed basis, and (ii) amounts prepaid for medical services designed to screen for, diagnose, cure, mitigate, treat, or prevent disease and promote wellness.. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2026.