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S 1565119th CongressIntroduced
Lowering Costs for Caregivers Act of 2025
Introduced: Oct 29, 2025
Economy & TaxesHealthcareSocial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Lowering Costs for Caregivers Act of 2025 amends the Internal Revenue Code to expand tax-advantaged healthcare accounts by permitting medical expenses for parents to qualify as deductible medical expenses under Health Savings Accounts, Flexible Spending Arrangements, and Archer MSAs, effective January 1, 2026, reducing financial burdens for family caregivers.
Key Points
- 1Expands Health Savings Account eligibility to cover medical expenses for parents of the account holder or their spouse under Section 223(d)(2).
- 2Allows Flexible Spending and Health Reimbursement Arrangements to reimburse parents' medical care without triggering taxable income for employees per Section 105(b).
- 3Amends Archer Medical Savings Accounts to include parents as qualifying dependents for medical expense coverage under Section 220(d)(2).
Impact Areas
Adult children providing medical care for elderly parentsParents requiring assisted medical services not covered by MedicareEmployers administering tax-advantaged healthcare benefit programsFederal tax revenue through expanded medical expense deductions
Generated by legislative-analyst-v1 on Nov 2, 2025