Sponsors (8)
Expands HSA eligibility so anyone covered by an Exchange QHP or a group health plan can be an "eligible individual" for HSA purposes, replacing the high-deductible requirement.
The bill expands HSA eligibility to more health plans beginning in 2027—boosting tax‑advantaged savings and potentially lowering out‑of‑pocket costs for many—while increasing federal tax expenditures and raising distributional and compliance concerns.
Individuals enrolled in Exchange Qualified Health Plans (QHPs) or employer group plans can contribute to Health Savings Accounts (HSAs) starting in 2027, increasing their ability to accumulate tax‑advantaged savings for medical expenses.
Patients — including people with chronic conditions and lower‑income individuals — gain access to HSA tax benefits even if they are not in high‑deductible health plans, which could reduce out‑of‑pocket costs for routine and unexpected care.
Taxpayers and the IRS may see simpler administration and clearer taxpayer guidance due to streamlined cross‑references in the Internal Revenue Code.
Taxpayers could bear higher federal budgetary costs because broader HSA eligibility increases tax expenditures.
Wealthier individuals are likely to disproportionately benefit from expanded HSA tax advantages, which could worsen coverage and tax‑benefit equity for lower‑income Americans.
Small businesses, employers, and insurers will face plan redesign and compliance costs to integrate HSAs with Marketplace QHPs and employer group plans.
Based on analysis of 2 sections of legislative text.
Expands who can open and contribute to Health Savings Accounts (HSAs) by removing the current requirement that individuals be covered only by a high-deductible health plan. Under the change, anyone covered by a qualified health plan offered through an ACA Marketplace (an Exchange QHP) or by a group health plan becomes an "eligible individual" for HSA purposes. The law updates Internal Revenue Code cross-references, replaces multiple references to "high deductible health plan" with "covered health plan," and takes effect for taxable years beginning after December 31, 2026.
Official title: To amend the Internal Revenue Code of 1986 to expand eligibility for health savings accounts, and for other purposes.
Introduced February 25, 2026 by Aaron Bean · Last progress February 25, 2026