WEAR IT Act
Summary
What This Bill Does
The WEAR IT Act amends the Internal Revenue Code so certain wearable devices and related software, including subscriptions, count as medical care up to $375 per taxable year. The device must be worn on the body or used primarily with a body-worn device and must either collect and analyze physiological data for diagnosis, cure, mitigation, treatment, or prevention of disease, impairment, or health condition, or assist diagnosis or provide treatment, mitigation, or cure. The change applies to HSA and Archer MSA qualified medical expenses for amounts paid after December 31, 2025, and to employer health plan expense rules under sections 105 and 106 for expenses incurred after that date.
Who Benefits and How
HSA account holders benefit because up to $375 of qualifying wearable device costs can be paid as medical care. Patients using health-monitoring wearables benefit because tax-preferred funds can cover qualifying devices, software, and subscriptions. Wearable device manufacturers benefit from a tax-advantaged market for products that collect physiological data or support treatment. Employer health plan participants benefit because qualifying wearable expenses can be treated as medical care under sections 105 and 106.
Who Bears the Burden and How
The Internal Revenue Service must administer a new annual dollar cap and wearable-device definition. HSA administrators must update eligibility systems for wearable purchases after 2025. Federal revenue officials bear reduced tax revenue if more expenses receive tax-preferred treatment. Nonmedical consumer wearable sellers must distinguish products that do not meet the statutory health-function test.
Key Provisions
- Adds up to $375 per taxable year of qualifying wearable devices as HSA and Archer MSA medical care.
- Defines wearable devices to include body-worn devices, related software, and subscriptions.
- Requires the wearable to collect physiological data for health purposes or assist diagnosis, treatment, mitigation, or cure.
- Applies the tax change to amounts paid or expenses incurred after December 31, 2025.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Treats up to $375 per year of qualified wearable devices, software, and subscriptions as medical care for HSAs, Archer MSAs, and employer health reimbursement rules after 2025.
Key Policy Areas
Tax, Digital Health, Consumer Health
Primary Purpose
Treats up to $375 per year of qualified wearable devices, software, and subscriptions as medical care for HSAs, Archer MSAs, and employer health reimbursement rules after 2025.
Policy Domains
Resolution provisions
Identified Gains
- HSA account holders
- Patients using health-monitoring wearables
- Wearable device manufacturers
- Employer health plan participants
Identified Costs
- Internal Revenue Service
- HSA administrators
- Federal revenue officials
- Nonmedical consumer wearable sellers
Sponsors
Legislative Progress
In CommitteeMr. Schweikert (for himself and Mr. Bera) introduced the following …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Patients using health-monitoring wearables, Wearable device manufacturers
Federal revenue officials, Internal Revenue Service
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology