Personalized Care Act of 2025

Senate Bill

S. 276

119th Congress

Personalized Care Act of 2025

In Committee

Introduced:Jan 28, 2025

Primary Sponsor

Ted Cruz

Senator

Republican

TX

Cosponsors

1

Quick Stats

Policy Area

Taxation

Summary

This bill dramatically expands Health Savings Account eligibility and benefits. It removes the high-deductible health plan requirement, increases contribution limits to 10,800 dollars for individuals and 29,500 dollars for families, and expands qualified expenses to include insurance premiums and direct care fees.

Latest Action

Read twice and referred to the Committee on Finance.

SponsorTed Cruz (R-TX)

Introduced1/28/2025

StatusRead twice and referred to the Committee on Finance.

ChamberSenate

Data from Congress.gov

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Vote Prediction

Personalized Care Act of 2025

This bill dramatically expands Health Savings Account eligibility and benefits. It removes the high-deductible health plan requirement, increases contribution limits to 10,800 dollars for individuals and 29,500 dollars for families, and expands qualified expen

Community Breakdown

Pass

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Fail

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0 predictions

This bill dramatically expands Health Savings Account eligibility and benefits. It removes the high-deductible health plan requirement, increases contribution limits to 10,800 dollars for individuals and 29,500 dollars for families, and expands qualified expenses to include insurance premiums and direct care fees.

Bill Number: 276
Sponsor: Ted Cruz (R-TX)
Introduced: 1/28/2025
Status: Read twice and referred to the Committee on Finance.
Policy Area: Taxation

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: Personalized Care Act of 2025
Bill Number: 276
Sponsor: Ted Cruz (R-TX)
Status: Read twice and referred to the Committee on Finance.
Introduced: 1/28/2025
Summary: This bill dramatically expands Health Savings Account eligibility and benefits. It removes the high-deductible health plan requirement, increases contribution limits to 10,800 dollars for individuals and 29,500 dollars for families, and expands qualified expenses to include insurance premiums and di

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

This bill dramatically expands Health Savings Account eligibility and benefits. It removes the high-deductible health plan requirement, increases contribution limits to 10,800 dollars for individuals and 29,500 dollars for families, and expands qualified expenses to include insurance premiums and direct care fees.

Last updated: 1/5/2026

Official Summary

Congressional Research Service summary

Personalized Care Act of 2025This bill expands health saving account (HSA) eligibility, increases HSA contribution limits, and makes other HSA-related changes. The bill also expands the definition of medical care for purposes of the itemized tax deduction for unreimbursed medical expenses.The bill eliminates the requirement that an individual must be covered by a high-deductible health plan to establish and contribute to an HSA. Under the bill, an eligible individual is defined as (1) a health care sharing ministry participant, or (2) individual covered under<ul><li>a group or individual health plan;</li><li>health insurance (including a short-term limited duration and medical indemnity plan); or</li><li>a government plan (including Medicare Part A and B, Medicaid, the Children’s Health Insurance Program, certain military and government employee health benefit programs, and the Indian Health Service and tribal organization programs).</li></ul>The bill increases annual HSA contribution limits to $10,800 (from $4,300 in 2025) for self-only coverage and $29,500 (from $8,550 in 2025) for family coverage, adjusted annually for inflation.The bill expands the qualified medical expenses that may be paid for with HSA distributions to include health insurance payments (e.g., premiums), direct care fees, and certain amounts paid by health care sharing ministry participants.The bill decreases the penalty to 10% (from 20%) for nonqualified HSA distributions. Finally, under the bill, direct care fees and fees paid for membership in a health care sharing ministry qualify as medical care for purposes of the itemized tax deduction for unreimbursed medical expenses.

Key Points

Main provisions of the bill

Removes high-deductible plan requirement for HSAs
Increases contribution limits significantly
Expands qualified medical expenses to include premiums
Reduces penalty for nonqualified distributions to 10 percent
Extends HSA eligibility to Medicare and Medicaid enrollees

How This Impacts Americans

Potential effects on citizens and communities

More Americans could open and contribute to HSAs regardless of insurance type. Families could save more tax-free for healthcare costs. Direct primary care and health sharing ministry participants would benefit from expanded HSA access.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

276, 119th Congress (2025). "Personalized Care Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-s-276

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