HSA Modernization Act of 2023

The HSA Modernization Act of 2023 expands eligibility for Health Savings Accounts (HSAs) to specific groups: veterans receiving non-service-connected benefits, Medicare Part A beneficiaries (by age), and individuals receiving Indian Health Service assistance. It also allows both spouses to contribute to the same HSA, increases contribution limits to match deductible amounts, and permits bronze/catastrophic health plans to qualify as high deductible plans. Key provisions include a safe harbor for mental health services without deductibles and rules for treating medical expenses incurred before an HSA is established. These changes, effective for 2026 tax years, aim to make HSAs more accessible while maintaining their tax-advantaged structure.