This bill significantly expands and simplifies Health Savings Accounts (HSAs), tax-advantaged savings accounts typically paired with high-deductible health plans. The legislation increases contribution limits substantially—to $10,000 annually for individual coverage and $20,000 for family coverage under lower-cost plans, with adjustments for different plan types and automatic cost-of-living increases starting in 2025. It broadly expands who can contribute to and benefit from HSAs by allowing anyone with any health insurance (including Medicare, Medicaid, and short-term plans) to open an account, eliminating current restrictions that limit HSAs mainly to high-deductible plan enrollees. The bill also allows one-time rollovers from Flexible Spending Accounts, Health Reimbursement Arrangements, and older Archer MSAs into HSAs, gives employers expanded ability to contribute to employee HSAs, and lets people use excess premium tax credits from the health insurance marketplace to fund HSAs. Additionally, it creates a $5 million annual grant program to help organizations educate the public about HSAs and assist with enrollment. The changes take effect for tax years beginning after the bill's enactment, with some provisions phasing in over one to three years.
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