Kentucky’s U.S. Senator Rand Paul has introduced new legislation aimed at making every American eligible for Health Savings Accounts (HSAs). The bill is titled the Health Marketplace and Savings Accounts for All Act.
Eko Hot News reports that the bill seeks to expand Association Health Plans, enabling membership-based entities such as Costco or Amazon to negotiate lower insurance premiums on behalf of members. Paul said the measure is designed to reduce healthcare costs and protect Americans from high medical bills.
The senator explained that the legislation would broaden access to HSAs, raise annual contribution limits, and expand eligible uses. He noted that the changes would give Americans more choice, flexibility, and purchasing power in managing their healthcare expenses.
The bill proposes opening HSAs to all Americans regardless of income or insurance status. It also raises the annual HSA contribution cap to $24,500 starting in 2026, compared to the current limits of $4,400 for individuals and $8,750 for families.
Additionally, the bill broadens HSA coverage to include health insurance premiums, vitamins, dietary supplements, gym memberships, and wearable fitness trackers. The goal is to allow Americans to invest more in preventive care and wellness.
HSAs already provide tax-free options for saving and paying for medical expenses not covered by insurance. Balances grow tax-free and stay with individuals regardless of employment.
There is currently no timeline for when the bill will be heard in committee.
