This bill allows people to use tax-advantaged savings accounts to pay for their parents' medical expenses, expanding existing rules that currently cover only the account holder and their spouse. Specifically, the legislation modifies three types of accounts—Health Savings Accounts (HSAs), Flexible Spending Arrangements (FSAs), and Health Reimbursement Arrangements (HRAs)—to include parental care costs such as doctor visits, medications, and other medical care. The changes apply to expenses paid or incurred after December 31, 2025, meaning families who care for aging or disabled parents can reduce their out-of-pocket healthcare costs through pre-tax contributions to these accounts. The bill affects millions of Americans who provide financial support for their parents' healthcare while facing rising medical costs, though it requires no new federal funding as it primarily operates through the existing tax code.
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