Patient Fairness Act of 2025
The Patient Fairness Act of 2025 would make HSAs available to all individuals, not just those currently eligible under existing rules. It broadens who can contribute and deduct to an HSA, lifts certain restrictions related to health coverage while contributing, and substantially increases the annual contribution limits (with additional catch-up amounts for those age 55 and older). The bill also adds a provision to allow relatives to receive trust proceeds from an HSA after a deceased account holder and then transfer those funds into the relative’s own HSA within 60 days. In addition, it codifies hospital price transparency rules into law. The changes would take effect for months in taxable years beginning after December 31, 2025 (i.e., starting in 2026). Overall, the bill aims to expand access to HSAs, potentially broaden tax-advantaged savings for healthcare, and reinforce price transparency in hospitals.
Key Points
- 1All individuals may contribute to and deduct contributions to health savings accounts (removing the prior monthly eligibility restriction).
- 2Removing limitations on purchasing health coverage in connection with HSA contributions (the bill changes rules that restricted participation based on certain health coverage circumstances).
- 3Higher contribution limits: base limit becomes $8,000 for an individual (up to $16,000 for joint filers), plus $3,000 ($6,000 for joint filers where both are dependent) for each dependent; catch-up contributions for those age 55 or older increase by $3,000 (or $6,000 for a joint return where both are 55+).
- 4Special rule for transfers after death: if a relative receives funds from the deceased account holder, those funds can be paid into the relative’s HSA within 60 days, with an exception for relatives.
- 5Hospital price transparency: codifies existing price-transparency rules (as part of the CFR) into law.