HSA Modernization Act

This bill updates Health Savings Accounts (HSAs) so more people can use them, more health plans qualify, and families can save and spend HSA money more flexibly.

Key changes

• Veterans who use certain VA benefits, even without a service‑connected disability, could still contribute to an HSA.
• People who get Medicare Part A because of age could keep putting money into an HSA.
• Receiving care through the Indian Health Service would not knock you out of HSA eligibility.
• Bronze and catastrophic marketplace plans would count as “high‑deductible” plans, making them HSA‑eligible.
• Plans could cover up to the first $500 of mental health care before the deductible without losing HSA status.
• If you open your HSA within 60 days after your high‑deductible plan starts, you could use it for medical bills from that start date, even if the account was opened later.
• Married couples could put both spouses’ contributions—including catch‑up amounts if both are 55+—into the same HSA and choose how to split the limit.
• The annual HSA contribution cap would increase, tying it to your plan’s deductible/out‑of‑pocket limits (higher than today’s fixed caps).
• It clarifies how HSA withdrawals for long‑term care services are treated, starting once the bill becomes law.

When this starts

• Most changes apply to months or tax years after December 31, 2025 (generally starting in 2026) .
• The mental health deductible rule applies to plan years beginning after December 31, 2025.
• The long‑term care clarification applies to amounts paid after the date the bill is enacted.

Introduced January 16, 2025 by Beth Van Duyne · Last progress January 16, 2025