Health Savings Account Expansion Act

The Health Savings Account Expansion Act modifies tax rules to allow individuals with government-sponsored health plans, such as Medicare or Medicaid, and those in health care sharing ministries to contribute to Health Savings Accounts. It also clarifies that payments for these specific types of coverage can be made using HSA funds and expands the definition of eligible medical expenses to include membership fees and administrative costs for health care sharing ministries. Additionally, the bill permits the use of HSA funds to purchase over-the-counter drugs and insulin without a prescription. These changes are scheduled to take effect for taxable years beginning after December 31, 2026.