Personalized Care Act of 2023
The legislation proposes to raise the contribution limits for HSAs dramatically. Under the new provisions, individuals could contribute up to $10,800, and families could contribute up to $29,500. This adjustment not only aims to accommodate rising healthcare costs but also seeks to encourage more individuals to utilize HSAs as a means of managing their healthcare expenses more efficiently. Additionally, periodic provider fees for medical services will be recognized as qualified medical expenses, further increasing the utility of HSAs for consumers.
SB2621, known as the Personalized Care Act of 2023, proposes significant amendments to the Internal Revenue Code to enhance health savings accounts (HSAs). The bill aims to broaden the eligibility for HSAs, allowing individuals covered by a variety of health plans—including government programs like Medicare and Medicaid—to contribute to their HSAs. This expanded definition is designed to increase access to HSAs for more Americans, thereby incentivizing savings for medical expenses.
Notably, the bill also addresses the treatment of health care sharing ministries, excluding them from being classified as health insurance while allowing fees paid to these ministries to be categorized as medical expenses under HSAs. This aspect of the bill is contentious as it could affect how such ministries are perceived and regulated. Critics may argue that this creates ambiguities in health care coverage and could undermine traditional health insurance markets. The changes signify a shift towards recognizing alternative healthcare arrangements and could spark debate on the implications of such frameworks.