Congress·In Committee·S. 1565

Bipartisan Bill Allows Americans to Use Tax-Free Health Accounts for Parents' Medical Bills

Lowering Costs for Caregivers Act of 2025

11 months ago·View on Congress.gov·Read full text

Part of: New Legislation Expands HSA and FSA Benefits for Caregivers

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Stalled

No legislative action in over 90 days.

Legislative Progress

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House

President

Law

Key Points

This bill would change tax laws to let people use money from their health savings accounts or flexible spending accounts to pay for their parents' medical care. Currently, these tax-free accounts are generally limited to the person who owns the account, their spouse, and their children.
If this becomes law, you could use your pre-tax health dollars to pay for doctor visits, medications, and other medical needs for your own parents or your spouse's parents. This is designed to help families who are caring for aging relatives by lowering their out-of-pocket costs.
The goal is to make caregiving more affordable for the millions of Americans who support their aging parents. By using these special accounts, families can save money on taxes while covering the rising costs of senior healthcare.
These new rules would take effect on January 1, 2026. The change would apply to several types of health-related tax accounts, including those offered through workplaces and those individuals set up on their own.

TaxesHealthcare

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Broader Impacts

DomainScoreShort-termLong-termReversibilityConfidence

Score

Scores: -5 (harmful) to +5 (beneficial)Short-term: 0-2 yearsLong-term: 10-30 years

Milestones

2 milestones2 actions

May 1, 2025Senate

Read twice and referred to the Committee on Finance.

May 1, 2025

Introduced in Senate

Related News

1 article

InsuranceNewsNet·8 months ago

The bipartisan kindness of caregiving

The Lowering Costs for Caregivers Act (S. 1565 & HR 138), introduced by a bipartisan group of lawmakers, would allow caregivers to use their individual tax-free health savings accounts and flexible spending accounts to pay medical expenses of their parents and other loved ones.

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