Homecare for Seniors Act

This bill would let people use money from their Health Savings Accounts (HSAs) tax-free to pay for certain in-home care. To qualify, the care must be under a contract that provides at least three services in the person’s home, such as help with eating, toileting, transferring, bathing, dressing, continence, or taking medications, and the provider must be licensed or meet state rules. The care cannot be provided under a contract with a relative of the person receiving services.

These changes would start for expenses in tax years after the law takes effect. The federal government would also run a public awareness campaign to explain which in-home care costs can be paid from HSAs tax-free.

Key points

• Who is affected: People with HSAs and those who need help at home; licensed home care providers.
• What changes: Certain in-home care becomes an HSA-qualified, tax-free expense if the contract covers 3+ listed daily living services and is not with a relative; providers must be licensed or meet state standards.
• When: Applies to tax years after the law is enacted; an outreach campaign will explain the eligible expenses.