To amend the Internal Revenue Code of 1986 to expand and improve health savings accounts, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
This bill, called the Personalized Care Act of 2025, would make Health Savings Accounts (HSAs) available to nearly everyone with health coverage, not just people with high-deductible plans. It would raise the amount you can put into an HSA from about ,300 to ,800 for individuals and from ,550 to ,500 for families. It would also let you use HSA money to pay health insurance premiums, pay for direct primary care memberships, and cover health care sharing ministry fees. The penalty for taking money out of an HSA for non-medical expenses would be cut in half, from 20% to 10%. All changes would take effect for tax years after December 31, 2024.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Dramatically expand Health Savings Account (HSA) eligibility and utility by removing the High Deductible Health Plan (HDHP) requirement, raising contribution limits roughly 5-6x, allowing HSA funds to pay insurance premiums, accommodating direct primary care and health care sharing ministries, and reducing the penalty for non-qualified withdrawals from 20% to 10%.
Who Benefits
- High-income individuals and families (who can maximize the significantly higher contribution limits for tax savings)
- HSA administrators and financial services companies (expanded eligible population and higher balances)
- Direct primary care physicians and concierge medicine providers (HSA-eligible payment for their services)
Who Bears Costs
- Federal Treasury / taxpayers (significant revenue loss from expanded tax deductions and higher contribution limits)
- Traditional employer-sponsored health insurance (competitive pressure from expanded HSA flexibility)
- Medicare Trust Fund (potential reduction in taxable income base)
Key Policy Areas
Healthcare, Tax Policy
Primary Purpose
Dramatically expand Health Savings Account (HSA) eligibility and utility by removing the High Deductible Health Plan (HDHP) requirement, raising contribution limits roughly 5-6x, allowing HSA funds to pay insurance premiums, accommodating direct primary care and health care sharing ministries, and reducing the penalty for non-qualified withdrawals from 20% to 10%.
Policy Domains
Legislative Strategy
"Transform HSAs from a niche tax vehicle tied to high-deductible plans into a universal health savings instrument usable by anyone with any form of health coverage, while dramatically increasing tax-advantaged saving capacity and broadening qualified expenses to include direct primary care and health care sharing ministries."
Sponsors
Legislative Progress
IntroducedMr. Roy (for himself, Mr. Crane, Mr. Burlison, Ms. Hageman, …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
HSA account holders, Health care sharing ministries, Health care sharing ministry members
HSA account holders making non-medical withdrawals, HSA custodians and administrators, HSA custodians and financial advisors
Health insurance companies, High-deductible health plan insurers, Traditional health insurance companies
Positive-direction: Health insurance companies
Negative-direction: High-deductible health plan insurers, Traditional health insurance companies
Concierge medicine providers, Direct primary care physicians
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury (IRS)
Key Definitions
Terms defined in this bill
Any individual covered under a group or individual health plan, health insurance (including short-term limited duration or medical indemnity), a government plan (Medicare, Medicaid, CHIP, TRICARE, VA, IHS, FEHB), or a participant in a health care sharing ministry.
Periodic fees paid to a physician for a defined set of medical services or for the right to receive medical services on an as-needed basis, and amounts prepaid for medical services to screen for, diagnose, cure, mitigate, treat, or prevent disease and promote wellness.
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