Your HSA Could be in for a Big Upgrade

by | Jun 10, 2025 | HSAs

Your HSA Could Be in for a Big Upgrade

THIS ARTICLE AT A GLANCE

Proposed legislation could mean significant improvement for HSAs. We are looking at potentially doubled HSA contribution limits, an expanded definition of “qualified medical expenses,” and contributions even in retirement.

Start Health has been staying on top of the latest proposed healthcare legislation and HSAs are looking at possible improvements.

The House already passed a bill packed with big changes to Health Savings Accounts. It’s now heading to the Senate, and if it sticks the landing, your HSA could become way more flexible and generous.

More Money In

At Start Health, we’ve always thought HSA contribution limits were a little too stingy. Why can’t you contribute as much as you want to your HSA?  Congress is starting to see our point of view. One of the boldest moves on the table? Doubling contribution limits. If you’ve got investments parked elsewhere, it may soon make sense to shift some of that cash into your HSA to benefit from tax-free growth.

Income‑based higher limits

  • Individuals with incomes under $75,000 could contribute an additional $4,300 (totaling about $8,600) annually.
  • Families earning under $150,000 could contribute an extra $8,550 (totaling over $17,100) annually.
  • These boosts phase out at $100k/$200k income levels and are indexed for inflation

Almost doubling contribution caps

  • Current limits (2025): $4,300 for individuals, $8,550 for families.
  • The bill would effectively double those for eligible earners.

Expanded catch‑up contributions

  • Married couples aged 55+ would be allowed to pool their $1,000 catch-up into a single HSA account.

Medicare Part A & eligibility tweaks

  • Seniors enrolled in Medicare Part A could continue contributing—currently prohibited.
  • HSA eligibility broadened to include those with direct primary care memberships, on-site employer clinics, or spouses with FSAs.

Fitness and retroactive reimbursement

  • Annual HSA-eligible gym/fitness expenses: up to $500 for individuals and $1,000 for families.
  • Allows reimbursement for medical expenses incurred up to 60 days before HSA establishment.

What Else is on the Table?

HSA Contributions–Even on Medicare

Currently, once you enroll in Medicare, you can’t contribute to your HSA. If the proposed legislation is passed, Medicare Part A enrollees 65 and older would be able to keep contributing.

Bigger Limits for Modest Incomes

If your annual income is under $75K (or $150K for families), the bill doubles your HSA contribution cap. That’s a win for middle-income Americans who want to save more without hitting a wall. High earners? There’s a phase-out, but that’s what accountants are for.

Married and Over 55? Combine Forces

Spouses aged 55 and up could finally make “catch-up” contributions into a single HSA. Less paperwork, more simplicity.

Got an FSA? No Problem

Previously, if your spouse had a Flexible Spending Account (FSA), it blocked your HSA eligibility. This bill says: why not both? And we agree.

Fitness, Wellness, and Retroactive Reimbursements

Healthcare is more than doctor visits. The bill acknowledges that—and proposes expanding what qualifies as a “medical expense.”

  • Gym memberships and fitness classes? Eligible.
  • Direct Primary Care memberships? Covered (up to $150/month).
  • Onsite employer clinic visits? Included.
  • Medical expenses from up to 60 days before opening your HSA? Retroactively reimbursable.

In other words, your HSA might evolve into part emergency fund, part wellness budget.

One Catch: It’s Not Law Yet

The House passed the bill, but it’s now up to the Senate to hash out the details. There’s still back-and-forth happening—mainly around budget impact and Medicaid language. Final votes are expected by the Fourth of July—how fitting.

 

 

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