Sponsors (3)
The bill makes certain health-monitoring wearables more affordable for people with HSAs/FSAs/HRAs and encourages employer reimbursement, improving access for account holders but leaving out uninsured/low-income people, risking limited impact for those needing higher-cost devices and creating modest budget and administrative trade-offs.
People with chronic conditions who have HSAs/FSAs/HRAs can pay for monitoring or treatment-related wearable devices or subscriptions tax-free (up to $375/year), lowering their out-of-pocket cost for tools that help manage health.
Taxpayers who hold HSAs, Archer MSAs, FSAs, or HRAs get a lower after-tax price for qualifying wearables or subscriptions (up to $375/year), making consumer-grade health technology more affordable for account holders.
Employers that offer FSAs/HRAs can reimburse employees for eligible wearables, which may improve employee wellness and reduce workplace health risks or downstream healthcare use.
Low-income, uninsured, or workers without access to HSAs/FSAs/HRAs are largely excluded, so the benefit primarily helps those with employer-sponsored accounts and may widen disparities in access to health technology.
The $375 annual cap may be insufficient for many medically necessary or higher-cost devices, leaving patients to cover remaining costs out-of-pocket.
Vague or ambiguous definitions of what qualifies as a 'wearable device' (including related software/subscriptions) could create paperwork and compliance burdens for employers, plan administrators, and taxpayers.
Based on analysis of 2 sections of legislative text.
Allows up to $375/year for qualifying wearable health devices and related software to be treated as medical expenses for HSAs, Archer MSAs, FSAs, and HRAs.
Official title: To amend the Internal Revenue Code of 1986 to allow certain wearable devices to be purchased using health savings accounts and other spending arrangements and reimbursement accounts.
Introduced June 26, 2025 by David Schweikert · Last progress June 26, 2025
Allows a limited amount of spending on certain wearable devices and related software/subscriptions to be treated as qualified medical expenses for tax-advantaged accounts and employer health plans. The bill adds a $375 per tax year cap for amounts paid for defined “wearable devices” to be eligible for Health Savings Accounts (HSAs), Archer MSAs, and reimbursements from employer flexible spending arrangements (FSAs) and health reimbursement arrangements (HRAs). Effective for payments or expenses after December 31, 2025.