HSAs and FSAs could cover parents' medical bills
In committeeH.R. 138Latest action
Sponsor: Vern Buchanan · Representative · FL
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Official title: Lowering Costs for Caregivers Act of 2025
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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Starting in 2025, you can use HSA, FSA, HRA, or Archer MSA funds tax-free to pay a parent's or in-law's medical bills.
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What does this do?
This bill lets people use money from tax-advantaged health accounts — HSAs, FSAs, HRAs, and Archer Medical Savings Accounts — to pay medical expenses for a parent or parent-in-law. Right now, those accounts can only be used tax-free for yourself, your spouse, and your dependents. Parents are generally not included unless they qualify as tax dependents, and this bill removes that restriction.
Who does it affect?
This affects working adults who help pay healthcare costs for a parent or parent-in-law and want to use pre-tax dollars from their health accounts to do so. The change applies to medical costs paid or incurred after December 31, 2024.
Why does it matter?
People who cover a parent's medical bills would be able to use pre-tax dollars from these accounts, which reduces the portion of that spending subject to income tax. Parents who are not tax dependents would now be included, which is a broader group than current law allows.
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Where does it stand?
- IntroducedJan 3, 2025
- House committeeYou are here · Jan 3, 2025
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the House Committee on Ways and Means.