H.R. 4243: Homecare for Seniors Act

This bill, known as the Homecare for Seniors Act, proposes changes to the Internal Revenue Code concerning health savings accounts (HSAs). The main points of the bill are as follows:

Modification of Health Savings Accounts

The bill aims to amend Section 223 of the Internal Revenue Code to allow for specific home care expenses to be treated as qualified distributions from HSAs. This means that individuals with HSAs would be able to use their funds for certain home care services without incurring tax penalties.

Definition of Specified Medical Care

Under the proposed amendment, the term "specified medical care" will be defined to include:

• Traditional medical care as outlined in existing tax law.
• Qualified home care services that involve a contract to provide three or more of the following services:
• Assistance with eating
• Assistance with toileting
• Assistance with transferring (moving from one place to another)
• Assistance with bathing
• Assistance with dressing
• Assistance with continence (manage bowel and bladder functions)
• Medication adherence (support with taking medications as prescribed)

Requirements for Qualified Home Care Services

It specifies that these home care services must be provided by licensed service providers and must comply with state regulations. Additionally, the contract for service cannot be between parties who are related, ensuring that the services are treated as legitimate care rather than personal assistance among family members.

Public Awareness Campaign

The bill also mandates a campaign by the Secretary of Health and Human Services, in consultation with the Secretary of the Treasury, to raise public awareness about which in-home service expenses are eligible for tax-free distribution from health savings accounts. This aims to inform seniors and their families about their options for funding home care services through HSAs.

Effective Date

The provisions of this bill would take effect for taxable years starting after the legislation is enacted.

Relevant Companies

None found