Lowering Costs for Caregivers Act of 2025

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.