Health Savings Freedom Act of 2022

To amend the Internal Revenue Code of 1986 to raise the limit on contributions to health savings accounts, to remove the requirement to maintain high deductible coverage with respect to such accounts, to include drugs and medicine as qualified medical expenses for the purposes of such accounts, and for other purposes. 1. Short title This Act may be cited as the Health Savings Freedom Act of 2022 2. Health savings accounts (a) Contribution limit increase (1) Individual coverage Section 223(b)(2)(A) $2,250 $6,000 (2) Family coverage Section 223(b)(2)(B) of such Code is amended by striking $4,500 $16,000 (b) Requirement To maintain coverage under a high deductible plan removed (1) Section 223(c)(1) (1) Eligible individual (A) In general The term eligible individual (B) Special rule for individuals eligible for certain veterans benefits An individual shall not fail to be treated as an eligible individual for any period merely because the individual receives hospital care or medical services under any law administered by the Secretary of Veterans Affairs for a service-connected disability (within the meaning of section 101(16) of title 38, United States Code). (C) Special rule for individuals receiving benefits subject to surprise billing statutes An individual shall not fail to be treated as an eligible individual for any period merely because the individual receives benefits for medical care subject to and in accordance with section 9816 or 9817, section 2799A–1 or 2799A–2 of the Public Health Service Act, or section 716 or 717 of the Employee Retirement Income Security Act of 1974, or any State law providing similar protections to such individual. . (2) Conforming amendments (A) Section 223 of such Code is amended— (i) in subsection (c), by striking paragraph (2), (ii) by striking high deductible (iii) in subsection (b)(8)(B), in the heading by striking high deductible (B) Section 106(e) of such Code is amended— (i) in paragraph (3), in the heading by striking high deductible (ii) in paragraph (5)(B)(ii), by striking high deductible (C) Section 408(d)(9) of such Code is amended— (i) by striking high deductible (ii) in subparagraph (D), in the heading by striking high deductible (D) Sections 1396e–1(b)(2)(B) and 1397ee(c)(10)(B)(ii)(II) are amended by striking section 223(c)(2) section 220(c)(2) (c) Including medicine and drugs as qualified medical expenses (1) Section 223(d)(2) of such Code is amended to read as follows: (2) Qualified medical expenses The term qualified medical expenses (A) With respect to an account beneficiary, amounts paid by such beneficiary for any of the following for such individual, the spouse of such individual, any dependent (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof), or of such individual, but only to the extent such amounts are not compensated for by insurance or otherwise: (i) Medical care (as defined in section 213(d)). (ii) Medicine and drugs. (iii) A tampon, pad, liner, cup, sponge, or similar product used by individuals with respect to menstruation or other genital-tract secretions. (B) With respect to an account beneficiary, amounts paid by such beneficiary for long-term care expenses for a parent of such individual, but only to the extent such amounts are not compensated for by insurance or otherwise. . (2) Conforming amendment Section 223(c) of such Code is amended by striking paragraph (3). (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Health Savings Freedom Act of 2022 This bill revises health savings account (HSA) provisions to (1) increase the limit on contributions to such accounts for individuals and families, (2) eliminate the requirement to maintain high deductible coverage as a condition of eligibility for participation in such accounts, and (3) expand the definition of qualified medical expenses for purposes of HSAs to include medicine and drugs and certain long-term care expenses.