I
119THCONGRESS
1
STSESSION H. R. 810
To amend the Internal Revenue Code of 1986 to expand and improve health
savings accounts, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY28, 2025
Mr. R
OY(for himself, Mr. CRANE, Mr. BURLISON, Ms. HAGEMAN, Mr. HAR-
RISof Maryland, Mr. MOOREof Alabama, Mr. TIFFANY, Mr. OGLES, and
Mr. W
EBERof Texas) introduced the following bill; which was referred
to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to expand
and improve health savings accounts, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Personalized Care Act 4
of 2025’’. 5
SEC. 2. HEALTH SAVINGS ACCOUNT ELIGIBILITY. 6
(a) I
NGENERAL.—Paragraph (1) of section 223(c) 7
of the Internal Revenue Code of 1986 is amended to read 8
as follows: 9
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‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 1
individual’ means, with respect to any month, any 2
individual if such individual is— 3
‘‘(A) covered under— 4
‘‘(i) a group or individual health plan, 5
‘‘(ii) health insurance coverage, in-6
cluding a short term limited duration plan 7
or medical indemnity plan, or 8
‘‘(iii) a government plan, including 9
coverage under the Medicare program 10
under part A or part B of title XVIII of 11
the Social Security Act, the Medicaid pro-12
gram under title XIX of such Act, the 13
CHIP program under title XXI of such 14
Act or a qualified CHIP look-alike pro-15
gram (as defined in section 2107(g) of 16
such Act), medical coverage under chapter 17
55 of title 10, United States Code (includ-18
ing coverage under the TRICARE pro-19
gram), a health care program under chap-20
ter 17 or 18 of title 38, United States 21
Code, as determined by the Secretary of 22
Veterans Affairs in coordination with the 23
Secretary of Health and Human Services 24
and the Secretary, a medical care program 25
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of the Indian Health Service or a tribal or-1
ganization, or coverage under chapter 89 2
of title 5, United States Code, or 3
‘‘(B) a participant in a health care sharing 4
ministry (as defined in section 5
5000A(d)(2)(B)(ii) without regard to subclause 6
(IV) thereof), 7
as of the 1st day of such month.’’. 8
(b) C
ONFORMINGAMENDMENTS.— 9
(1) Subsection (c) of section 223 of such Code 10
is amended by striking paragraphs (2) and (3) and 11
by redesignating paragraphs (4) and (5) as para-12
graphs (2) and (3), respectively. 13
(2) Paragraphs (2)(A) and (2)(B) of section 14
223(b) of such Code are each amended by striking 15
‘‘a high deductible health plan’’ and inserting ‘‘a 16
health plan, insurance, or ministry described in sub-17
section (c)(1)’’. 18
(3) Paragraph (8)(A)(ii) of section 223(b) of 19
such Code is amended by striking ‘‘high deductible 20
health plan’’ and inserting ‘‘health plan, insurance, 21
or ministry described in subsection (c)(1)’’. 22
(4) Section 223(g)(1) of such Code is amend-23
ed— 24
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(A) by striking ‘‘subsections (b)(2) and 1
(c)(2)(A)’’ both places it appears and inserting 2
‘‘subsection (b)(2)’’, and 3
(B) in subparagraph (B), by striking ‘‘for 4
‘calendar year 2016’’’ and all that follows 5
through ‘‘‘calendar year 2003’.’’ and inserting 6
‘‘‘calendar year 1997’ for ‘calendar year 2016’ 7
in subparagraph (A)(ii) thereof.’’. 8
(5) The heading of subparagraph (B) of section 9
223(b)(8) of such Code is amended by striking 10
‘‘
HIGH DEDUCTIBLE HEALTH PLAN ’’. 11
(6) Section 26(b)(2)(S) of such Code is amend-12
ed by striking ‘‘high deductible health plan’’. 13
(7) The heading of paragraph (3) of section 14
106(e) of such Code is amended by striking ‘‘
HIGH 15
DEDUCTIBLE HEALTH PLAN ’’. 16
(8) Clause (ii) of section 106(e)(5)(B) of such 17
Code is amended by striking ‘‘a high deductible 18
health plan’’ and inserting ‘‘a health plan’’. 19
(9) Paragraph (9) of section 408(d) of such 20
Code is amended— 21
(A) by striking ‘‘the high deductible health 22
plan covering’’ in subparagraph (C)(i)(I) and 23
inserting ‘‘health plan, insurance, or ministry 24
of’’, 25
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(B) by striking ‘‘a high deductible health 1
plan’’ the first place it appears in subparagraph 2
(C)(ii)(II) and inserting ‘‘a health plan, insur-3
ance, or ministry described in section 4
223(c)(1)’’, 5
(C) by striking ‘‘a high deductible health 6
plan’’ the second place it appears in subpara-7
graph (C)(ii)(II) and inserting ‘‘any such plan, 8
insurance, or ministry’’, and 9
(D) by striking ‘‘
HIGH DEDUCTIBLE 10
HEALTH PLAN’’ in the heading of subparagraph 11
(D). 12
(c) E
FFECTIVEDATE.—The amendments made by 13
this section shall apply to taxable years beginning after 14
December 31, 2024. 15
SEC. 3. INCREASE IN HSA CONTRIBUTION LIMITS. 16
(a) I
NGENERAL.—Paragraph (2) of section 223(b) 17
of the Internal Revenue Code of 1986 is amended— 18
(1) by striking ‘‘$2,250’’ in subparagraph (A) 19
and inserting ‘‘$10,800’’, and 20
(2) by striking ‘‘$4,500’’ in subparagraph (B) 21
and inserting ‘‘$29,500’’. 22
(b) C
OST-OF-LIVINGADJUSTMENT.—Paragraph (1) 23
of section 223(g) of the Internal Revenue Code of 1986, 24
as amended by section 2, is amended— 25
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(1) by striking ‘‘Each’’ and inserting ‘‘In the 1
case of a taxable year beginning after 2024, each’’, 2
and 3
(2) by striking ‘‘calendar year 1997’’ and in-4
serting ‘‘calendar year 2023’’. 5
(c) E
FFECTIVEDATE.—The amendments made by 6
this section shall apply to taxable years beginning after 7
December 31, 2024. 8
SEC. 4. PAYMENT OF HEALTH PLAN AND HEALTH INSUR-9
ANCE PREMIUMS FROM HSA. 10
(a) I
NGENERAL.—Paragraph (2) of section 223(d) 11
of the Internal Revenue Code of 1986 is amended— 12
(1) by striking subparagraph (B), 13
(2) by redesignating subparagraphs (C) and 14
(D) as subparagraphs (B) and (C), respectively, 15
(3) by striking ‘‘Subparagraph (B) shall not 16
apply to any expense for coverage under’’ in sub-17
paragraph (B), as so redesignated, and inserting 18
‘‘Subparagraph (A) shall not apply to any payment 19
for insurance other than’’, and 20
(4) in subparagraph (B), as so redesignated— 21
(A) by striking ‘‘or’’ at the end of clause 22
(iii), 23
(B) by striking the period at the end of 24
clause (iv) and inserting ‘‘, or’’, and 25
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(C) by adding at the end the following new 1
clause: 2
‘‘(v) a health plan or health insurance 3
coverage described in subsection 4
(c)(1)(A).’’. 5
(b) E
FFECTIVEDATE.—The amendments made by 6
this section shall apply to taxable years beginning after 7
December 31, 2024. 8
SEC. 5. TREATMENT OF MEDICAL CARE SERVICE ARRANGE-9
MENTS. 10
(a) I
NCLUSION ASMEDICALEXPENSES.—Paragraph 11
(2) of section 223(d) of the Internal Revenue Code of 12
1986, as amended by section 4, is further amended by 13
adding at the end the following new subparagraph: 14
‘‘(D) I
NCLUSION OF MEDICAL CARE SERV -15
ICE ARRANGEMENTS.—The term ‘qualified med-16
ical expenses’ shall include— 17
‘‘(i) periodic fees paid to a physician 18
for a defined set of medical services or for 19
the right to receive medical services on an 20
as-needed basis, and 21
‘‘(ii) amounts prepaid for medical 22
services designed to screen for, diagnose, 23
cure, mitigate, treat, or prevent disease 24
and promote wellness.’’. 25
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(b) ARRANGEMENT NOTTOBETREATED AS 1
H
EALTHINSURANCE.—Subsection (c) of section 223 of 2
the Internal Revenue Code of 1986, as amended by section 3
2(b), is further amended by adding at the end the fol-4
lowing new paragraph: 5
‘‘(4) T
REATMENT OF MEDICAL CARE SERVICE 6
ARRANGEMENTS.—An arrangement under which an 7
individual is provided medical services in exchange 8
for a fixed periodic fee or payment for such services 9
shall not be treated as a health plan, insurance, or 10
arrangement described in paragraph (1).’’. 11
(c) E
FFECTIVEDATE.—The amendments made by 12
this section shall apply to taxable years beginning after 13
December 31, 2024. 14
SEC. 6. PERIODIC PROVIDER FEES TREATED AS MEDICAL 15
CARE. 16
(a) I
NGENERAL.—Section 213(d) of the Internal 17
Revenue Code of 1986 is amended by adding at the end 18
the following new paragraph: 19
‘‘(12) P
ERIODIC PROVIDER FEES .—Periodic 20
fees paid for a defined set of medical services pro-21
vided on an as-needed basis shall be treated as 22
amounts paid for medical care.’’. 23
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(b) EFFECTIVEDATE.—The amendment made by 1
this section shall apply to taxable years beginning after 2
December 31, 2024. 3
SEC. 7. RESTORING LOWER PENALTY FOR NONQUALIFIED 4
DISTRIBUTIONS. 5
(a) I
NGENERAL.—Section 223(f)(4)(A) of the Inter-6
nal Revenue Code of 1986 is amended by striking ‘‘20 per-7
cent’’ and inserting ‘‘10 percent’’. 8
(b) E
FFECTIVEDATE.—The amendments made by 9
this section shall apply to distributions made in taxable 10
years beginning after December 31, 2024. 11
SEC. 8. TREATMENT OF HEALTH CARE SHARING MIN-12
ISTRIES. 13
(a) I
NCLUSION ASMEDICALEXPENSES.—Paragraph 14
(2) of section 223(d) of the Internal Revenue Code of 15
1986, as amended by sections 4 and 5, is further amended 16
by adding at the end the following new subparagraph: 17
‘‘(E) I
NCLUSION OF HEALTH CARE SHAR -18
ING MINISTRIES.—The term ‘qualified medical 19
expenses’ shall include amounts paid by a mem-20
ber of a health care sharing ministry (as de-21
fined in section 5000A(d)(2)(B)(ii) without re-22
gard to subclause (IV) thereof) for— 23
‘‘(i) the sharing of medical expenses 24
among members, and 25
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‘‘(ii) administrative fees of the min-1
istry.’’. 2
(b) H
EALTHCARESHARINGMINISTRYNOTTOBE 3
T
REATED ASHEALTHINSURANCE.—Subsection (c) of 4
section 223 of the Internal Revenue Code of 1986, as 5
amended by sections 2 and 5, is further amended by add-6
ing at the end the following new paragraph: 7
‘‘(5) T
REATMENT OF HEALTH CARE SHARING 8
MINISTRIES.—A health care sharing ministry (as de-9
fined in section 5000A(d)(2)(B)(ii) without regard 10
to subclause (IV) thereof) shall not be treated as a 11
health plan or insurance for purposes of this title.’’. 12
(c) E
FFECTIVEDATE.—The amendments made by 13
this section shall apply to taxable years beginning after 14
December 31, 2024. 15
SEC. 9. HEALTH CARE SHARING MINISTRY FEES TREATED 16
AS MEDICAL CARE. 17
(a) I
NGENERAL.—Section 213(d) of the Internal 18
Revenue Code of 1986, as amended by section 6, is further 19
amended by adding at the end the following new para-20
graph: 21
‘‘(13) H
EALTH CARE SHARING MINISTRIES .— 22
Amounts paid for membership in a health care shar-23
ing ministry (as defined in section 24
5000A(d)(2)(B)(ii) without regard to subclause (IV) 25
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thereof) shall be treated as amounts paid for medical 1
care.’’. 2
(b) E
FFECTIVEDATE.—The amendment made by 3
this section shall apply to taxable years beginning after 4
December 31, 2024. 5
Æ
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