Health Savings Freedom Act of 2022
Bill: H.R.6474 | Sponsor: Rep. Van Duyne, Beth (R-TX)
Policy area: Taxation

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.

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.

    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 ``Health Savings Freedom Act of 
2022''.

SEC. 2. HEALTH SAVINGS ACCOUNTS.

    (a) Contribution Limit Increase.--
            (1) Individual coverage.--Section 223(b)(2)(A) of the 
        Internal Revenue Code of 1986 is amended by striking ``$2,250'' 
        and inserting ``$6,000''.
            (2) Family coverage.--Section 223(b)(2)(B) of such Code is 
        amended by striking ``$4,500'' and inserting ``$16,000''.
    (b) Requirement To Maintain Coverage Under a High Deductible Plan 
Removed.--
            (1) Section 223(c)(1) of the Internal Revenue Code of 1986 
        is amended to read as follows:
            ``(1) Eligible individual.--
                    ``(A) In general.--The term `eligible individual' 
                means, with respect to any month, any individual if 
                such individual is covered under any health plan as of 
                the 1st day of such month.
                    ``(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'' each 
                        place such term appears, and
                            (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'', and
                            (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'' each 
                        place such term appears, and
                            (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)'' and inserting ``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' means the following:
                    ``(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.
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