Personalized Care Act of 2025
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill expands HSA eligibility by removing the high-deductible health plan requirement; anyone with any health coverage (including Medicare, Medicaid, CHIP, TRICARE, VA, FEHB) or health care sharing ministry participation can, expands raises HSA annual contribution limits from ,250/,500 (self/family) to ,800/,500, nearly a fivefold increase, with inflation adjustments beginning after 2026, and exempts allows HSA funds to be used to pay health plan and health insurance premiums, removing the current prohibition on using HSA distributions for insurance premiums. It relies on definition changes, exemptions, tax deductions, and tax rate changes. The main policy areas are Healthcare and Finance.
Who Benefits and How
Direct primary care physicians could gain revenue opportunities, Health care sharing ministries could gain revenue opportunities, and Health care sharing ministry members could see lower costs.
Who Bears the Burden and How
Federal Treasury could lose revenue opportunities.
Key Provisions
- Expands HSA eligibility by removing the high-deductible health plan requirement; anyone with any health coverage (including Medicare, Medicaid, CHIP, TRICARE, VA, FEHB) or health care sharing ministry participation can...
- Expands raises HSA annual contribution limits from ,250/,500 (self/family) to ,800/,500, nearly a fivefold increase, with inflation adjustments beginning after 2026.
- Exempts allows HSA funds to be used to pay health plan and health insurance premiums, removing the current prohibition on using HSA distributions for insurance premiums.
- Exempts makes direct primary care (DPC) and concierge medicine fees HSA-eligible qualified medical expenses, including periodic physician retainer fees and prepaid preventive/diagnostic services.
- Defines classifies periodic provider fees for defined medical services provided on an as-needed basis as amounts paid for medical care under IRC Section 213(d), making them tax-deductible.
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
The bill expands HSA eligibility by removing the high-deductible health plan requirement; anyone with any health coverage (including Medicare, Medicaid, CHIP, TRICARE, VA, FEHB) or health care sharing ministry participation can, expands raises HSA annual contribution limits from ,250/,500 (self/family) to ,800/,500, nearly a fivefold increase, with inflation adjustments beginning after 2026, and exempts allows HSA funds to be used to pay health plan and health insurance premiums, removing the current prohibition on using HSA distributions for insurance premiums.
Key Policy Areas
Healthcare, Finance
Primary Purpose
The bill expands HSA eligibility by removing the high-deductible health plan requirement; anyone with any health coverage (including Medicare, Medicaid, CHIP, TRICARE, VA, FEHB) or health care sharing ministry participation can, expands raises HSA annual contribution limits from ,250/,500 (self/family) to ,800/,500, nearly a fivefold increase, with inflation adjustments beginning after 2026, and exempts allows HSA funds to be used to pay health plan and health insurance premiums, removing the current prohibition on using HSA distributions for insurance premiums.
Policy Domains
HSA Eligibility Expansion (Sec. 2)
Identified Gains
- Direct primary care physicians
- Health care sharing ministries
- Health care sharing ministry members
- HSA custodians and financial services firms
- High-income individuals and families
Identified Costs
- Federal Treasury
Sponsors
Legislative Progress
In CommitteeMr. Cruz (for himself and Mr. Marshall) introduced the following …
Read twice and referred to the Committee on Finance.
Introduced in Senate
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
HSA account holders, HSA account holders making nonqualified withdrawals, Health care sharing ministries
HSA custodians and financial services firms, Health insurers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
Any individual covered under a group or individual health plan, health insurance, government plan (Medicare, Medicaid, CHIP, TRICARE, VA, IHS, FEHB), or a participant in a health care sharing ministry
An arrangement under which an individual is provided medical services in exchange for a fixed periodic fee or payment; not treated as a health plan for HSA purposes
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