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HR 138119th CongressIntroduced
Lowering Costs for Caregivers Act of 2025
Introduced: Oct 29, 2025
Economy & TaxesHealthcareSocial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The bill 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 Medical Savings Accounts, effective for expenses incurred after December 31, 2024.
Key Points
- 1Amends Health Savings Account rules to explicitly include parents of taxpayers or spouses as eligible medical expense recipients under section 223(d)(2).
- 2Modifies Flexible Spending and Health Reimbursement Arrangements to allow tax-free reimbursement for parents' medical care without violating section 105 requirements.
- 3Updates Archer MSA provisions to cover parental medical expenses by revising section 220(d)(2) with identical language to the HSA amendment.
Impact Areas
Taxpayers providing care for elderly parentsAdult children covering parents' medical costsHealth Savings Accounts and Flexible Spending Accounts administratorsFederal tax revenue from healthcare account distributions
Generated by legislative-analyst-v3 on Nov 6, 2025