Bill Details
HR.317 - 119th Congress
Status
Latest action
2025-01-09 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-01-09
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (9)
- Rep. Weber, Randy K. Sr. [R-Texas-14]
- Rep. Cline, Ben [R-Virginia-6]
- Rep. Burlison, Eric [R-Missouri-7]
- Rep. Clyde, Andrew S. [R-Georgia-9]
- Rep. Greene, Marjorie Taylor [R-Georgia-14]
- Rep. Biggs, Andy [R-Arizona-5]
- Rep. Ogles, Andrew [R-Tennessee-5]
- Rep. Brecheen, Josh [R-Oklahoma-2]
- Rep. Higgins, Clay [R-Louisiana-3]
6
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would rename health savings accounts as “health freedom accounts” and make them available to all individuals, not just people who meet the current HSA rules. It would let people put in more money each year, use the accounts for a wider range of health costs, and move money from one account to another more easily. The bill would also change how employer contributions work for some future workers, so employers could add money to these accounts without that money counting as taxable income.
- Anyone could contribute to a health freedom account. The bill removes the current rule that limits these accounts to people who qualify under the existing health savings account rules.
- The annual contribution limit would be set at $12,000 for one person and $24,000 for a joint tax return. People age 55 or older could add another $5,000.
- The accounts could be used for more types of health expenses, including direct primary care, health care sharing ministries, and medical cost-sharing organizations. Money could also be rolled over into another health freedom account if it is deposited within 60 days.
- For employees hired at least 5 years after the law is enacted, employer contributions to these accounts would not count as taxable income. The bill also says certain employer health coverage rules would no longer apply to those future employees.
Official Summaries
Healthcare Freedom Act of 2025
This bill renames health savings accounts (HSAs) as health freedom accounts (HFAs), modifies the eligibility requirements and contribution limits for such accounts, and expands the definition of qualified medical expenses. The bill also eliminates the exclusion from income of employer contributions to a health plan for certain individuals.
Under current law, individuals may establish and contribute to an HSA if covered under an HSA-eligible high-deductible health plan (HDHP). For 2025, HSA contributions are limited to $4,300 for self-only coverage or $8,550 for family coverage (adjusted annually). Individuals 55 or older may make an additional HSA contribution of up to $1,000 per year. Further, HSA distributions are tax-free if used to pay for qualified medical expenses.
The bill allows individuals to
- establish and contribute to an HFA without being enrolled in an HDHP,
- contribute up to $12,000 ($24,000 for joint filers) per year to an HFA (adjusted annually), and
- contribute an additional $5,000 per year to an HFA if 55 or older.
The bill also expands the definition of qualified medical expenses to include expenses related to direct primary care, health care sharing ministries, and medical cost sharing organizations.
For individuals hired at least five years after the bill's enactment (1) employer contributions to an HFA may be excluded from the employee's income, and (2) the bill eliminates the exclusion from income of employer contributions to other health plans. (Under current law, employer contributions to a health plan generally are not included in the individual’s income.)
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 317 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 317
To amend the Internal Revenue Code of 1986 to create health freedom
accounts available to all individuals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 9, 2025
Mr. Roy (for himself, Mr. Weber of Texas, Mr. Cline, Mr. Burlison, Mr.
Clyde, Ms. Greene of Georgia, Mr. Biggs of Arizona, and Mr. Ogles)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to create health freedom
accounts available to all individuals.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Healthcare Freedom Act of 2025''.
SEC. 2. HEALTH FREEDOM ACCOUNTS.
(a) In General.--Section 223 of the Internal Revenue Code of 1986
is amended by striking ``health savings account'' and ``health savings
accounts'' each place such terms appear and inserting ``health freedom
account'' and ``health freedom accounts'', respectively.
(b) All Individuals Allowed Deductions for Contributions.--Section
223(a) of the Internal Revenue Code of 1986 is amended by striking
``who is an eligible individual for any month during the taxable
year''.
(c) No Limitation on Purchasing Health Coverage From Health Freedom
Accounts.--Section 223(d)(2) of the Internal Revenue Code of 1986 is
amended by striking subparagraphs (B) and (C) and the last sentence of
subparagraph (A) and by adding at the end the following new subsection:
``(B) Additional expenses.--The term `qualified
medical expenses' includes costs associated with direct
primary care, health care sharing ministries, and
medical cost sharing organizations.''.
(d) Transfers Allowed to Other Health Freedom Accounts.--Section
223(f)(5) of the Internal Revenue Code of 1986 is amended to read as
follows:
``(5) Rollover contribution.--An amount paid or distributed
from a health freedom account is a rollover contribution to the
extent the amount received is paid into any other health
freedom account not later than the 60th day after the date of
such payment or distribution.''.
(e) Increase in Contribution Limits.--Section 223(b)(1) of such
Code is amended by striking ``the sum of the monthly'' and all that
follows through ``eligible individual'' and inserting ``$12,000 (twice
such amount in the case of a joint return)''.
(f) Conforming Amendments.--
(1) Section 223(b) of such Code is amended by striking
paragraphs (2), (5), (7), and (8) and by redesignating
paragraphs (3), (4), and (6) as paragraphs (2), (3), and (4),
respectively.
(2) Section 223(b)(2) of such Code (as redesignated by
paragraph (2)) is amended to read as follows:
``(2) Additional contributions for individuals 55 or
older.--In the case of an individual who has attained age 55
before the close of the taxable year, the limitation under
paragraph (1) shall be increased by $5,000.''.
(3) Section 223(b)(3) of such Code (as redesignated by
subparagraph (A)) is amended by striking the last sentence.
(4) Section 223 of such Code is amended by striking
subsection (c).
(5) Section 223(d)(1)(A) of such Code is amended by
striking ``will be accepted'' and all that follows through the
period at the end and inserting ``will be accepted unless it is
in cash.''.
(6) Section 223(f) of such Code is amended by striking
paragraphs (7) and (8).
(7) Section 223(g)(1) of such Code is amended--
(A) by striking ``Each dollar amount in subsections
(b)(2) and (c)(2)(A)'' and inserting ``The dollar
amount in subsection (b)(1)'';
(B) by striking ``thereof'' and all that follows in
subparagraph (B) through ```calendar year 2003'.'' and
inserting ```calendar year 1997'.''; and
(C) by striking ``under subsections (b)(2) and
(c)(2)(A)'' and inserting ``under subsection (b)(1)''.
(8) The table of sections for part VII of subchapter B of
chapter 1 of the Internal Revenue Code of 1986 is amended in
the item relating to section 223 by striking ``savings'' and
inserting ``freedom''.
(g) Effective Date.--The amendments made by this section shall
apply with respect to months in taxable years beginning after the date
of the enactment of this Act.
SEC. 3. EXCLUSION FOR EMPLOYER CONTRIBUTIONS TO HEALTH FREEDOM
ACCOUNTS.
(a) Employer Exclusion.--
(1) In general.--The Internal Revenue Code of 1986 is
amended by inserting after section 106 the following new
section:
``SEC. 106A. CONTRIBUTIONS BY EMPLOYERS TO HEALTH FREEDOM ACCOUNTS.
``In the case of any employee hired by an employer on or after the
date that is 5 years after the date of the enactment of this section,
gross income of such employee does not include amounts contributed by
such employer to a health freedom account of such employee.''.
(2) Exclusion for contributions by employer to accident and
health plans.--Section 106 of such Code is amended by adding at
the end the following new subsection:
``(h) Termination.--In the case of any employee hired by an
employer on or after the date that is 5 years after the date of the
enactment of this section, this section shall not apply to coverage
provided by such employer with respect to such employee.''.
(3) Conforming amendment.--The table of sections for part
III of subchapter B of chapter 1 of such Code is amended by
striking the item relating to section 106 and inserting the
following:
``Sec. 106A. Contributions by employers to health freedom accounts.''.
(4) Effective date.--The amendments made by this subsection
shall apply with respect to employees hired on or after the
date that is 5 years after the date of the enactment of this
Act.
(b) Transition Rule.--
(1) In general.--Section 106(d)(1) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(1) In general.--Amounts contributed by an employee's
employer to any health freedom account (as defined in section
223(d)) of such employee shall be treated as employer-provided
coverage for medical expenses under an accident or health
plan.''.
(2) In general.--The amendment made by this subsection
shall apply with respect to taxable years beginning after the
date of the enactment of this Act.
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