HR 7681
HSA’s For All Act
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Bill overview
This bill, the HSA’s For All Act, expands eligibility for Health Savings Accounts (HSAs). It removes the requirement that individuals must have a high-deductible health plan to be eligible for an HSA, instead allowing coverage under any qualified health plan or group health plan. The changes also update references to ‘high deductible health plan’ to ‘covered health plan’ throughout the Internal Revenue Code. These changes will take effect starting in 2027.
Key provisions
- Expands HSA eligibility to include individuals covered by any qualified health plan or group health plan.
- Removes the requirement of a high-deductible health plan for HSA eligibility.
- Replaces references to ‘high deductible health plan’ with ‘covered health plan’ in various sections of the Internal Revenue Code.
- Updates definitions related to health plans within the code.
- Modifies rules regarding HSA contribution limits and eligibility based on income.
Who is affected
- Individuals with health insurance coverage
- Health insurance plan providers
- Healthcare Savings Account holders
- Taxpayers
Notable changes
- The bill broadens the definition of a ‘covered health plan’ to include all qualified health plans and group health plans.
- It eliminates the requirement of a high-deductible health plan for HSA eligibility.
- The changes are effective starting in 2027.
Sponsors
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Primary sponsor
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119th CONGRESS — 2d Session
H. R. 7681
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to expand eligibility for health savings accounts, and for other purposes.
This Act may be cited as the HSA’s For All Act
.
Section 223(c)(2) of such Code is amended to read as follows:
any qualified health plan (as defined in section 1301(a) of the Patient Protection and Affordable Care Act) offered through an Exchange established under such Act, or
any group health plan (as defined in section 2791 of the Public Health Service Act).
high deductible health planand inserting
covered health plan.
Section 223 of such Code, as amended by the preceding provisions of this Act, is amended by striking high deductible health plan
each place it appears and inserting covered health plan
in each such place.
high deductible health planin the heading and inserting
covered health plan.
Section 223(c) of such Code, as amended by the preceding provisions of this Act, is amended—
by striking paragraph (3), and
by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
Section 223(g)(1) of such Code is amended—
in the matter preceding subparagraph (A), by striking subsections (b)(2), (c)(2)(A), and in the case of taxable years beginning after 2026, (c)(1)(E)(ii)(II)
and inserting subsection (b)(2)
,
in subparagraph (B), by striking for
and all that follows through calendar year 2016
and inserting calendar year 2025
.
, andcalendar year 1997
for calendar year 2016
in subparagraph (A)(ii) thereof.
in the flush sentence at the end, by striking subsections (b)(2), (c)(1)(E)(ii)(II), and (c)(2)(A)
and inserting subsection (b)(2)
.
Section 408(d)(9) of such Code is amended—
by striking high deductible health plan
each place it appears and inserting covered health plan
in each such place, and
in subparagraph (D), by striking high deductible health plan
in the heading and inserting covered health plan
.
The amendments made by this section shall apply to taxable years beginning after December 31, 2026.