Health Savings Accounts For All Act of 2025

Key Points

• The bill would open Health Savings Accounts to all Americans, removing the current requirement that you must have a high-deductible health plan (HDHP). Right now, only people with specific insurance plans can use HSAs. This change would make tax-free medical savings available to millions more people, including those on employer plans, ACA marketplace plans, or Medicare.
• Contribution limits would jump dramatically, matching the 401(k) retirement plan limit (currently $23,500 per year). People age 50 and older would also get extra catch-up contribution room. Current HSA limits are $4,300 for individuals and $8,550 for families, so this is roughly a fivefold increase for single filers.
• HSA funds could be used for gym memberships, fitness trackers, vitamins, dietary supplements, direct primary care arrangements, and health insurance premiums. These are all currently ineligible expenses. The bill also lets you use HSA money for medical expenses incurred before the account was even opened, as long as they happened in the same or prior tax year.
• HSAs could be passed to children, parents, or grandparents upon death, not just spouses as under current law. The accounts would also receive the same bankruptcy protections as retirement accounts like IRAs, meaning creditors could not seize HSA funds during bankruptcy proceedings.
• Administrative errors in HSA contributions (like payroll mistakes) could be corrected without penalty as long as the fix happens before the tax filing deadline. This gives workers and employers a safety net for honest mistakes that currently trigger excise taxes.

Votes

No votes have been recorded for this legislation yet.