This bill would let people use money from health savings accounts (HSAs) tax-free to pay for certain in-home care services. It changes the Internal Revenue Code to add "qualified home care" to the list of allowed medical expenses. Qualified home care must be a contract that provides three or more listed services in the recipient's home, and the services must be provided by a state-licensed provider or otherwise meet state requirements. Contracts between close relatives (as defined in the tax code) are not eligible. The rule would apply to tax years beginning after the bill becomes law. The bill also directs the Secretary of Health and Human Services, working with the Treasury Secretary, to run a public awareness campaign about these eligible HSA distributions.
If you have an HSA and need in-home care, this bill would allow you to withdraw HSA funds tax-free for qualified home care when all conditions are met: the care is under a contract, includes at least three of the listed services, and is provided by a state-licensed provider or in a way that meets state rules. Payments under contracts with close relatives would not qualify. The change would only apply for tax years starting after the bill becomes law.
Eligible in-home services listed in the bill include: assistance with eating; toileting; transferring; bathing; dressing; continence; and medication adherence. The contract must cover three or more of these services and be with a provider licensed by the State or otherwise consistent with State requirements. The bill does not include any publicly available information on federal budgetary costs or fiscal impacts.
No publicly available information.
No publicly available information.