Sponsors (3)
The bill broadens HSA-eligible preventive services and clarifies tax treatment—improving access and certainty for patients and HSA holders—while producing modest federal revenue loss and leaving some provider/payer implementation uncertainty.
People with chronic conditions can use Health Savings Accounts (HSAs) to pay for additional preventive services listed in IRS Notice 2019-45, increasing affordable access to care.
HSA holders and taxpayers receive clearer, more certain tax treatment for these preventive services, reducing confusion and compliance risk.
Hospitals, health systems, and payers may still face uncertainty about coverage and implementation beyond HSAs because the bill limits inferences from the cited guidance.
Taxpayers could see slightly lower federal tax receipts as expanding qualified HSA expenses allows more pre-tax spending on care.
Based on analysis of 2 sections of legislative text.
Codifies IRS Notice 2019-45 by treating its expanded list of chronic-condition preventive items and services as HSA-qualified preventive care under section 223(c)(2)(C).
Official title: To codify Internal Revenue Service guidance relating to treatment of certain services and items for chronic conditions as meeting the preventive care deductible safe harbor for purposes of high deductible health plans in connection with health savings accounts.
Introduced February 4, 2025 by Vernon G. Buchanan · Last progress March 5, 2025
Treats the preventive-care items and services for chronic conditions listed in IRS Notice 2019-45 as preventive care for purposes of Health Savings Accounts (HSAs) under section 223(c)(2)(C) of the Internal Revenue Code. It gives the Notice the same force as if those items were enacted in the statute while saying this treatment does not otherwise override unrelated IRS guidance. The law is short and technical: it does not create new programs or spending, but clarifies that people with HSAs may use HSA funds tax-free for the expanded list of chronic-condition preventive items and services described in the IRS notice.