Sponsors (7)
Allows people covered by Exchange QHPs or statutory group health plans to be eligible to contribute to HSAs by replacing the HDHP requirement with a "covered health plan" standard.
The bill expands HSA access to more health plan enrollees—boosting tax-advantaged savings and potentially lowering out-of-pocket costs for many—while increasing federal tax expenditures, risking greater benefits for higher-income people, and imposing administrative costs on employers and insurers.
People enrolled in Exchange QHPs or employer group plans can contribute to HSAs starting in 2027, giving those households increased tax-advantaged savings for medical expenses.
More non‑HDHP enrollees (including those with chronic conditions or lower incomes) gain access to HSA tax benefits, which may lower out-of-pocket costs for routine and unexpected care.
Clarifying and simplifying cross-references in the tax code reduces IRS administrative complexity and improves consistency of taxpayer guidance.
Broadening HSA eligibility is likely to increase federal tax expenditures, raising the budgetary cost that ultimately falls on taxpayers.
Wealthier individuals are likely to capture a disproportionate share of the new HSA tax benefits, worsening coverage and tax-equity for lower-income Americans.
Employers and insurers will face plan redesign and compliance costs to integrate HSA eligibility with QHPs and group plans, imposing administrative burdens especially on small firms and health systems.
Based on analysis of 2 sections of legislative text.
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
Expands who can contribute to health savings accounts (HSAs) by removing the requirement that a person be covered by a high-deductible health plan (HDHP). After the change, anyone covered under a “covered health plan” — defined to include Exchange qualified health plans (QHPs) and statutory group health plans — will be an “eligible individual” for HSA purposes for taxable years beginning after December 31, 2026. The bill updates Internal Revenue Code cross-references and replaces references to “high deductible health plan” with “covered health plan,” broadening HSA access to people on ACA marketplace plans and many employer group plans. The change is a substantive expansion of HSA eligibility and modifies tax law treatment of HSAs starting in 2027 tax years.