H.R. 2419: Patient Fairness Act of 2025

This bill, known as the Patient Fairness Act of 2025, aims to amend the Internal Revenue Code related to Health Savings Accounts (HSAs). The key provisions of the bill are as follows:

Modifications to Health Savings Accounts

• Expanded Deduction Eligibility: The bill allows all individuals to be eligible for tax deductions when contributing to HSAs, removing previous restrictions based on eligibility statuses. This means anyone can contribute and deduct those contributions from their taxable income.
• No Limitations on Health Coverage Purchases: The bill eliminates limitations on the types of health insurance coverage that individuals can purchase with HSA funds, providing more flexibility in how individuals can use their contributions.
• Increased Contribution Limits:
  • Individuals can contribute a maximum of $8,000 annually to their HSAs, with the limit being $16,000 for those who file jointly. Additionally, for each dependent, taxpayers can contribute an extra $3,000 (with double that amount for joint returns).
  • For individuals aged 55 and older, there is an additional contribution allowance of $3,000, increasing to $6,000 for those filing jointly.
• Transfer of Accounts Upon Death: The bill introduces a provision that allows amounts transferred to relatives after the death of the HSA owner to be paid into the relative’s HSA within 60 days without incurring penalties. This facilitates easier inheritance of HSA funds.
• Conforming Amendments: Various conforming changes will be made to ensure the legislation is cohesive and updates previous references in the tax code related to HSAs. This includes updating the law for cost-of-living adjustments applicable to contribution limits.
• Effective Date: These changes will take effect for taxable years beginning after December 31, 2025.

Hospital Price Transparency

The bill also seeks to codify existing regulations concerning hospital price transparency, requiring hospitals to publicly disclose prices for their services, thus enhancing consumer awareness regarding healthcare costs.

Impact on Implementation

The effects of this bill are intended to broaden access to HSAs, facilitate easier contributions, and ensure that consumers are better informed about healthcare pricing.

Relevant Companies

• UNH (UnitedHealth Group Inc.): May be affected as providers and customers leverage HSAs for managing healthcare expenditures.
• CNC (Centene Corporation): Could see changes in enrollment patterns as more individuals utilize HSAs for healthcare funding.
• ANTM (Anthem, Inc.): Might be impacted by shifts in health insurance purchasing as limitations on HSA usage decrease.