The Lowering Costs for Caregivers Act of 2023 allows Americans to use tax-advantaged savings accounts to pay for their parents' medical expenses. Specifically, the bill expands three types of accounts—Health Savings Accounts, Flexible Spending Arrangements, and Health Reimbursement Arrangements, as well as Archer Medical Savings Accounts—to include parent care costs alongside existing coverage for spouses and dependents. This change affects anyone who contributes to these accounts and has aging parents with medical expenses. The legislation takes effect on January 1, 2024, and allows people to use previously contributed funds for qualifying parental medical care without incurring tax penalties. The bill has no specific appropriation amounts because it works through the tax code by expanding existing account eligibility rather than creating new federal spending.
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