Summary

Allows people who are enrolled only in Medicare Part A (hospital insurance) to contribute to Health Savings Accounts (HSAs). The change amends the Internal Revenue Code’s HSA eligibility rules so that being entitled solely to Part A no longer bars HSA contributions, effective for taxable years beginning after December 31, 2024.

Key Points

• Creates an exception to HSA ineligibility for individuals whose only Medicare coverage is Part A.
• Targets the HSA eligibility rule in the Internal Revenue Code without altering other HSA requirements.
• Takes effect for taxable years beginning after December 31, 2024.
• Does not appropriate funds or create new federal spending programs.
• May require IRS guidance and updates from plan administrators to implement.
• Primarily benefits seniors and Medicare beneficiaries who retain a high-deductible health plan and only Part A coverage.
• Could influence enrollment timing for Medicare Part B for some beneficiaries.
• Is a narrow, targeted tax law change rather than a broad policy overhaul.

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