Senate bill would open HSAs to all Americans, raise contribution caps

What does this do?

S 3248 removes the requirement that a person must have a high-deductible health insurance plan to open or contribute to a Health Savings Account. The bill raises annual HSA contribution limits to match the higher caps used for workplace retirement accounts like 401(k)s, with additional contributions allowed for people 50 and older. It also expands eligible HSA spending to include vitamins, dietary supplements, gym memberships, wearable fitness trackers, and direct primary care arrangements.

Who does it affect?

The changes would affect anyone who currently has or wants an HSA, employers who contribute to employee HSAs, and people managing HSA funds after a family member's death. People without any health insurance would also become eligible to open an HSA for the first time.

Why does it matter?

Removing the high-deductible plan requirement and raising contribution limits would alter how a broader population interacts with tax-advantaged medical savings. Expanding eligible expenses and inheritance options would change spending and estate decisions for current and future HSA holders.

Where does it stand?