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HSA Modernization Act
2/14/2025, 11:08 AM
Summary of Bill HR 548
The bill proposes several key changes to HSAs, including increasing the annual contribution limits for individuals and families, allowing for catch-up contributions for individuals over the age of 55, and expanding the list of eligible medical expenses that can be paid for using HSA funds.
Additionally, the bill seeks to simplify the process for individuals to use their HSA funds by allowing for direct payment of medical expenses from the account, rather than requiring reimbursement. It also includes provisions to allow for the use of HSA funds to pay for certain over-the-counter medications and menstrual care products. Overall, the goal of Bill 119 HR 548 is to modernize and improve the functionality of health savings accounts, making them more accessible and user-friendly for individuals looking to save for and pay for medical expenses.
Congressional Summary of HR 548
HSA Modernization Act
This bill increases health savings account (HSA) contribution limits, expands HSA eligibility, and makes other changes to HSAs and high-deductible health plans (HDHP).
The bill increases HSA contribution limits to equal the limits on out-of-pocket expenses under an HDHP (adjusted annually). Under the bill, the maximum annual HSA contribution for 2025 is $8,300 for self-only coverage and $16,600 for family coverage. (Under current law, the maximum annual HSA contribution for 2025 is $4,300 for self-only coverage and $8,550 for family coverage.)
The bill expands eligibility to make tax-deductible HSA contributions to include individuals who
- receive hospital care or medical services from the Department of Veterans Affairs and do not have a service-connected disability,
- receive hospital care or medical services provided by the Indian Health Service or a tribal organization,
- are at least 65 years old and enrolled in Medicare Part A, or
- have a bronze-level or catastrophic health insurance plan through a health insurance exchange.
The bill also allows eligible married individuals to make catch-up contributions to the same HSA.
Under the bill, HSA distributions may be used to pay for qualified medical expenses incurred before the HSA is established if the HSA is established within 60 days from the first day of coverage under an HDHP.
Further, the bill specifies that HSA distributions may be used to pay for expenses for qualified long-term care services.
Finally, the bill allows an HDHP to provide up to $500 of mental health benefits before the annual deductible is met.
Current Status of Bill HR 548
Bipartisan Support of Bill HR 548
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
0Democrat Cosponsors
0Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 548
Primary Policy Focus
Comments

Cecilia Link
1 year ago
I'm all for this bill! It's gonna make my life easier and save me some money in the long run. Can't wait to see how it plays out!


