Bill would expand HSA eligibility to veterans, Medicare enrollees and tribal members

What does this do?

This bill changes who can open a Health Savings Account and how much money can go into one each year, starting in 2026. It also lets married couples who are both 55 or older put both of their catch-up contributions into one shared HSA, which current rules do not allow. People with certain lower-cost insurance plans could now qualify, and a new 60-day lookback window would let new account holders use HSA funds for bills from just before the account opened.

Who does it affect?

These changes would affect veterans using VA health benefits without a service-connected disability, people on Medicare Part A still working, Native Americans receiving care through the Indian Health Service, people with bronze or catastrophic ACA marketplace plans, and married couples nearing retirement. People who currently cannot contribute to an HSA because of their coverage type would gain new access under this bill.

Why does it matter?

Expanding eligibility means more people could use a tax-free account to set aside money for medical expenses. Raising the annual contribution limit to match the out-of-pocket maximum under a person's health plan means existing HSA holders could potentially store more money tax-free.

Where does it stand?