HSA’s For All Act
- Sponsor
- Rep. Bean, Aaron [R-FL-4]
- Committees
- Ways and Means Committee (primary)
- Last action
- Feb 25, 2026
Bottom line
The bill broadens eligibility for tax-advantaged Health Savings Accounts to nearly all insured individuals, including those with ACA exchange plans and employer-sponsored group health plans, by eliminating the high-deductible requirement.
What it actually does
This bill significantly expands eligibility for Health Savings Accounts (HSAs) by amending the Internal Revenue Code of 1986. It removes the existing requirement that an individual must be covered under a "high deductible health plan" to be considered an "eligible individual" for an HSA. Instead, it allows any individual covered under a "covered health plan," which is broadly defined to include qualified health plans offered through an Affordable Care Act (ACA) Exchange or any group health plan, to be eligible.
Proponents argue
Proponents argue that expanding HSA eligibility empowers more Americans to save for healthcare expenses with significant tax advantages, promoting consumer-driven healthcare and increasing financial flexibility for individuals to manage their health finances. They emphasize that this change democratizes access to a valuable savings tool previously limited to those with high-deductible plans, making it available to a wider range of insured individuals.
Opponents contend
Opponents might contend that this expansion primarily benefits wealthier individuals who can afford to contribute to HSAs, potentially exacerbating healthcare disparities and creating a new tax shelter rather than a broad health savings tool. They could also argue that it might further erode the federal tax base without necessarily improving health outcomes for the broader population, or that it could incentivize less comprehensive insurance coverage if people prioritize HSA eligibility over robust benefits.
The bill is very short and straightforward, allowing ample time for a thorough evaluation of its provisions and implications.
Section 2(a) of H.R. 7681, amending Section 223(c)(1) of the Internal Revenue Code of 1986.
Redefining HSA Eligible Individual
This provision changes the definition of an "eligible individual" for a Health Savings Account (HSA). Previously, an individual had to be covered under a "high deductible health plan" to qualify. This amendment removes that restriction, stating that an individual is eligible if they are covered under a "covered health plan" as of the first day of any month, significantly broadening the pool of potential HSA participants.
Supporters argue
Supporters argue this change broadens access to HSAs, allowing more people to benefit from tax-free savings for healthcare, regardless of their specific health plan's deductible structure. This promotes greater financial autonomy for healthcare decisions.
Critics contend
Critics might argue that this change disproportionately benefits higher-income individuals who are more likely to have disposable income to contribute to HSAs, potentially creating a new tax shelter rather than a broad health savings tool for all.
Tradeoffs
This provision balances the goal of expanding tax-advantaged savings opportunities with concerns about equity and potential federal revenue loss.
Section 2(b) of H.R. 7681, amending Section 223(c)(2) of the Internal Revenue Code of 1986.
Defining 'Covered Health Plan'
This section defines what constitutes a "covered health plan" for HSA eligibility. It explicitly includes any "qualified health plan" offered through an Affordable Care Act (ACA) Exchange (as defined in section 1301(a) of the Patient Protection and Affordable Care Act) and any "group health plan" (as defined in section 2791 of the Public Health Service Act). This comprehensive definition ensures that most insured Americans would now qualify for an HSA.
Section 2(c) of H.R. 7681.
Conforming Amendments to the Internal Revenue Code
This section makes several technical and conforming amendments throughout the Internal Revenue Code (specifically sections 26, 223, and 408) to replace all references to "high deductible health plan" with "covered health plan." It also strikes obsolete paragraphs related to the previous HSA eligibility rules and updates indexing language. These changes are crucial for ensuring consistency and proper application of the new expanded eligibility criteria across the tax code.
Section 2(d) of H.R. 7681.
Effective Date of Amendments
This provision specifies that the amendments made by the bill will apply to taxable years beginning after December 31, 2026. This provides a clear timeline for when the new HSA eligibility rules will take effect, allowing individuals, employers, health plans, and the Internal Revenue Service sufficient time to understand, plan for, and adjust to the new regulations.