HR 317
Healthcare Freedom Act of 2025
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Bill overview
The Healthcare Freedom Act of 2025 proposes to expand access to healthcare savings accounts by allowing anyone to contribute, increasing contribution limits to $12,000 per year (or $24,000 for joint filers), and adding an extra $5,000 for those age 55 or older. The bill also broadens the definition of qualified medical expenses to include direct primary care, health care sharing ministries, and medical cost sharing organizations. Furthermore, it introduces a provision allowing employers to exclude contributions to these accounts from an employee's income after the employer has employed the employee for five years.
Key provisions
- Renames Health Savings Accounts (HSAs) as Health Freedom Accounts (HFAs).
- Allows anyone to contribute to an HFA, regardless of whether they are enrolled in an HSA-eligible high-deductible health plan.
- Increases HFA contribution limits to $12,000 per year ($24,000 for joint filers) with an additional $5,000 for those 55 or older.
- Expands the definition of qualified medical expenses to include direct primary care, health care sharing ministries, and medical cost sharing organizations.
- Allows employers to exclude contributions to HFAs from an employee's income after five years of employment.
- Establishes a mechanism for rolling over excess contributions to other HFAs.
- Clarifies that contributions to HFAs are treated as employer-provided coverage for medical expenses.
Who is affected
- Individuals seeking to save for healthcare expenses
- Employers offering health benefits
- Healthcare providers (particularly those offering direct primary care)
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119th CONGRESS — 1st Session
H. R. 317
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to create health freedom accounts available to all individuals.
This Act may be cited as the Healthcare Freedom Act of 2025
.
health savings accountand
health savings accountseach place such terms appear and inserting
health freedom accountand
health freedom accounts, respectively.
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
.
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:
Section 223(f)(5) of the Internal Revenue Code of 1986 is amended to read as follows:
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)
.
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.
Section 223(b)(2) of such Code (as redesignated by paragraph (2)) is amended to read as follows:
Section 223 of such Code is amended by striking subsection (c).
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.
.
Section 223(f) of such Code is amended by striking paragraphs (7) and (8).
Section 223(g)(1) of such Code is amended—
by striking Each dollar amount in subsections (b)(2) and (c)(2)(A)
and inserting The dollar amount in subsection (b)(1)
;
thereofand all that follows in subparagraph (B) through
and insertingcalendar year 2003.
; andcalendar year 1997.
under subsections (b)(2) and (c)(2)(A)and inserting
under subsection (b)(1).
savingsand inserting
freedom.
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.
The Internal Revenue Code of 1986 is amended by inserting after section 106 the following new section:
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.
Section 106 of such Code is amended by adding at the end the following new subsection:
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:
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.
Section 106(d)(1) of the Internal Revenue Code of 1986 is amended to read as follows:
The amendment made by this subsection shall apply with respect to taxable years beginning after the date of the enactment of this Act.