Health Savings for Families Act of 2026
- Sponsor
- Rep. LaHood, Darin [R-IL-16]
- Committees
- Ways and Means Committee (primary)
- Last action
- Jun 29, 2026
Bottom line
The bill expands eligibility for Health Savings Accounts by removing a specific disqualifier related to a spouse's Flexible Spending Arrangement, potentially increasing access to tax-advantaged health savings for certain families.
What it actually does
This bill amends the Internal Revenue Code of 1986 to permit individuals to contribute to a Health Savings Account (HSA) even if their spouse participates in a Health Flexible Spending Arrangement (FSA). Currently, a spouse's FSA can disqualify an individual from HSA eligibility if the FSA can be used to reimburse the individual's medical expenses. This bill clarifies that an individual remains HSA-eligible if their spouse's FSA is not used for the individual's expenses.
Proponents argue
Proponents argue that the current rules create an unnecessary barrier for families, preventing individuals from utilizing HSAs simply because their spouse has an FSA, even if the FSA is not used for the individual's expenses. They contend this bill simplifies tax rules, provides greater flexibility for families to manage healthcare costs, and encourages more people to save for future medical expenses through tax-advantaged accounts.
Opponents contend
Opponents might argue that expanding HSA eligibility could lead to a further erosion of the tax base, as HSAs offer significant tax advantages. They might also contend that the existing rules encourage families to choose one type of tax-advantaged account (HSA or FSA) rather than potentially combining benefits in ways that could be seen as loopholes or overly complex.
The bill is very short and can be read quickly, allowing ample time for understanding its direct impact.
Section 2(a), amending Section 223(c)(1)(B) of the Internal Revenue Code of 1986.
Allowing HSA Contributions When Spouse Has a Health FSA (If Not Used for Individual's Expenses)
This provision modifies the rules for Health Savings Account (HSA) eligibility. Previously, if an individual's spouse had a Health Flexible Spending Arrangement (FSA) that could cover the individual's medical expenses, the individual was generally ineligible to contribute to an HSA. This amendment creates an exception: an individual can now contribute to an HSA even if their spouse has an FSA, provided that the spouse's FSA is not used to reimburse the individual's medical expenses. This change aims to prevent a spouse's FSA from inadvertently disqualifying an otherwise eligible individual from contributing to an HSA.
Supporters argue
Supporters argue this change removes an arbitrary barrier that prevents many families from fully utilizing the tax benefits of HSAs. They assert it provides greater financial flexibility for families to save for healthcare costs, aligning with the intent of HSAs to promote consumer-directed healthcare.
Critics contend
Critics might argue that this change further complicates the tax code and could lead to increased administrative burdens for employers and individuals trying to ensure compliance. They may also raise concerns about the potential for increased tax expenditures without a clear, broad public health benefit.
Tradeoffs
The bill balances the desire to expand access to tax-advantaged savings vehicles with concerns about tax code complexity and potential revenue loss. It aims to resolve a specific technical conflict between two different types of health savings accounts.