Right now, Health Savings Accounts (HSAs) — tax-free accounts used to pay medical bills — are only available to people enrolled in a high-deductible health insurance plan. This bill removes that requirement, opening the accounts to every American regardless of what insurance they carry, and renames them "Health Freedom Accounts." It also raises the annual contribution limit from roughly $4,150 (individual) and $8,300 (family) to $12,000 and $24,000, respectively, with an extra $5,000 allowed for people 55 and older. The bill also expands what the accounts can pay for, adding direct primary care memberships, health sharing ministries, and medical cost-sharing organizations as qualified expenses. Starting five years after enactment, employers hiring new workers would contribute to these accounts instead of providing traditional employer-sponsored health coverage.
Corporate Benefits
- HSA-equivalent contribution ceiling — Raised from ~$4,150/$8,300 to $12,000/$24,000, concentrating deduction benefits among higher-income earners who can maximize contributions
Average Household Impact
- Health savings account eligibility — Opened to all individuals regardless of insurance type, expanding access to tax-advantaged health accounts
- Qualified medical expense definition — Expanded to include direct primary care memberships and health-sharing ministry costs
- Employer-sponsored health coverage — New employees hired 5+ years post-enactment shifted from traditional employer health plans to employer HFA contributions
Congressional Summary
Healthcare Freedom Act of 2025This bill renames health savings accounts (HSAs) as health freedom accounts (HFAs), modifies the eligibility requirements and contribution limits for such accounts, and expands the definition of qualified medical expenses. The bill also eliminates the exclusion from income of employer contributions to a health plan for certain individuals.Under current law, individuals may establish and contribute to an HSA if covered under an HSA-eligible high-deductible health plan (HDHP). For 2025, HSA contributions are limited to $4,300 for self-only coverage or $8,550 for family coverage (adjusted annually). Individuals 55 or older may make an additional HSA contribution of up to $1,000 per year. Further, HSA distributions are tax-free if used to pay for qualified medical expenses.The bill allows individuals toestablish and contribute to an HFA without being enrolled in an HDHP,contribute up to $12,000 ($24,000 for joint filers) per year to an HFA (adjusted annually), andcontribute an additional $5,000 per year to an HFA if 55 or older.The bill also expands the definition of qualified medical expenses to include expenses related to direct primary care, health care sharing ministries, and medical cost sharing organizations.For individuals hired at least five years after the bill's enactment (1) employer contributions to an HFA may be excluded from the employee's income, and (2) the bill eliminates the exclusion from income of employer contributions to other health plans. (Under current law, employer contributions to a health plan generally are not included in the individual’s income.)
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-01-09
- Date Added
- 2026-04-30
- Source
- Congress.gov →
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