Your HSA Might Get a Glow-Up

THIS ARTICLE AT A GLANCE

Legislation currently under review proposes several HSA improvements, including the doubling of contribution limits, expansion of what qualifies as a medical expense, and allowing HSA contributions even for those on Medicare.

Your HSA might get a makeover soon. Recent legislation passed by the House and now heading to the Senate is making some bold proposals for how we save for healthcare. There will potentially be significant increases to contribution limits and what qualifies as a “medical expense.”

We’ve always found it odd that healthcare savings are so limited. We love that the floodgates might open for HSA contributions. Legislation currently under review proposes doubling current contribution limits. Fingers crossed! If this legislation is passed and you have investments elsewhere, you might consider contributing some of those funds to your HSA and then reinvest them to benefit from tax-free growth.

Additional changes may include:

HSA Contributions Allowed Even on Medicare

Under current rules, enrolling in Medicare usually means waving goodbye to your HSA contribution days. But this bill wants to change that. If passed, folks 65 and older enrolled in Medicare Part A could still fund their HSA. Hello, golden years and tax-free healthcare savings.

Bigger Bucks for Lower Incomes

For individuals earning under $75,000 (or families under $150,000), contribution limits could double. That’s right—more room to save if you’re not raking in a Wall Street bonus every year. And yes, there’s a phase-out for higher incomes (but we’ll leave the math to your accountant).

Married? Older? Get Ready to Combine and Conquer

Spouses aged 55+ could finally make catch-up contributions into the same HSA, instead of juggling two. Simpler and cleaner.

And if your spouse has a Flexible Spending Account (FSA)? That used to block your HSA contributions. Not anymore! This bill says, “Why not both?”

Yoga, Gym Memberships, & Reimbursements

The list of what qualifies as an “eligible medical expense” could be expanding, too:

• Gym memberships and fitness classes? Eligible.
• Direct Primary Care memberships? Yep—up to $150/month.
• Employer onsite clinic visits? Covered.
• Medical expenses from up to 60 days before opening your HSA? Retroactively reimbursable. (Yes, really.)

In short, your HSA might start acting more like a wellness account and a rainy-day fund.

But Wait: It’s Not Law Just Yet

This bill cleared the House, but it’s currently in the hands of the Senate, where it could still be tweaked, trimmed, or turbocharged. Some Senators are raising eyebrows about budget impacts and Medicaid provisions, so stay tuned. The goal is to finalize it by the Fourth of July—because nothing says “freedom” like boosting your healthcare savings.

Final Thoughts

If passed, these changes would make HSAs more accessible, more flexible, and more valuable—especially for retirees and middle-income families. This aligns with MotivHealth’s purpose: making healthcare more affordable for consumers. HSAs have long been one of the best ways to lower the costs of healthcare, and better accessibility will benefit MotivHealth members and consumers nationwide.

Whatever happens with HSA legislation, stay tuned. We will always educate you on how to make the most out of your HSA.

Learn all about your MotivHSA here.

Learn about HSAs in general here.

Get a quote for affordable individual insurance here.