Skip to content
Congress·In Committee·about 1 year ago

Biden-era bill targets caregiver costs by letting health accounts pay parents’ medical bills

Also known as: Lowering Costs for Caregivers Act of 2025

Legislative Progress

Filed
Review
House
Senate
President

Impacts

Positive Impacts(1)
Chronic Illness
Helps

Key Points

  • Lets you use your Health Savings Account to pay for your parent’s medical care, not just your own or your spouse’s.
  • Lets workplace health spending accounts and employer health reimbursement funds pay for a parent’s medical bills without making it taxable income.
  • Applies to money spent or expenses incurred after December 31, 2024, so it would cover costs starting in 2025.
  • Could help families caring for aging parents by letting them use pre-tax dollars, which can lower out-of-pocket costs.
  • This does not create new benefits for everyone—it mainly helps people who already have these health accounts through work or their insurance setup.
TaxesHealthcareLabor Employment

Milestones

3 milestones3 actions
Jan 3, 2025House

Referred to the House Committee on Ways and Means.

Jan 3, 2025

Introduced in House

Jan 3, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Within the first plan year after the law takes effect

Employers and benefits administrators may update plan documents and claims systems to reflect parent-eligible reimbursements

You might not see the change in your workplace portal right away; your employer may need time to update rules, forms, and customer support guidance.

Throughout 2025 and later years

Families start using the expanded rules during the year as parent medical bills come up

The real savings show up when you pay or get reimbursed for your parent’s care (for example, prescriptions, doctor visits, or equipment) using these accounts instead of after-tax cash.

Related News

7 articles

Source Information

Document Type

Congressional Bill

Official Title

Lowering Costs for Caregivers Act of 2025

Bill NumberHR 138
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(14)
D: 5R: 9

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.