S. 1565: Lowering Costs for Caregivers Act of 2025
This bill, known as the Lowering Costs for Caregivers Act of 2025, aims to amend the Internal Revenue Code to provide tax benefits related to medical expenses for caregivers. The key aspects of the bill include:
1. Health Savings Accounts
The bill would allow parents of individuals who have health savings accounts (HSAs) to use funds from those accounts to cover medical expenses. Previously, only spouses were eligible for this option. This change expands the accessibility of HSAs to include a broader range of family members, specifically parents.
Effective Date: The amendment would apply to amounts paid after December 31, 2025.
2. Flexible Spending and Health Reimbursement Arrangements
The bill proposes that funds contributed to flexible spending arrangements (FSAs) and health reimbursement arrangements (HRAs) can also be used for the medical care of a taxpayer's parents or the parents of their spouse. This means that caregivers would not face tax penalties when using these funds for their parents' medical expenses.
Effective Date: This provision would be effective for expenses incurred after December 31, 2025.
3. Archer Medical Savings Accounts (MSAs)
Effective Date: The amendments would apply to amounts paid after December 31, 2025.
Overall, the bill aims to reduce the financial burden on caregivers by expanding the eligibility of tax-advantaged accounts to cover their parents' medical expenses, thereby helping families manage the costs associated with caregiving.
Relevant Companies
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Sponsors
2 bill sponsors
Actions
2 actions
| Date | Action |
|---|---|
| May. 01, 2025 | Introduced in Senate |
| May. 01, 2025 | Read twice and referred to the Committee on Finance. |
Corporate Lobbying
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Potentially Relevant Congressional Stock Trades
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