Lowering Costs for Caregivers Act of 2023

S 3254, the Lowering Costs for Caregivers Act of 2023, expands eligibility for tax-advantaged health accounts to include parents of the account holder or their spouse. The bill amends the Internal Revenue Code to allow individuals using Health Savings Accounts (HSAs), Flexible Spending Arrangements (FSAs), and Archer MSAs to cover medical expenses for their parents, not just spouses. This change applies to expenses incurred after December 31, 2023, directly affecting caregivers who use these accounts to pay for their parents' medical costs. The policy modifies existing tax rules without creating new government programs or altering benefit amounts.