What does Preamble of Healthcare Freedom Act of 2025 do?

This bill aims to amend the Internal Revenue Code of 1986 The amendment creates health freedom accounts for all individuals

What does SHORT TITLE. of Healthcare Freedom Act of 2025 do?

This bill is formally titled the Healthcare Freedom Act of 2025.

What does HEALTH FREEDOM ACCOUNTS. of Healthcare Freedom Act of 2025 do?

This section amends the Internal Revenue Code of 1986 to replace references to 'health savings account' with 'health freedom account'. It allows all individuals to make deductions for contributions to health freedom accounts, removing the prior eligibility requirement. The legislation removes limitations on purchasing health coverage from health freedom accounts and expands the definition of 'qualified medical expenses' to include costs associated with direct primary care, health care sharing ministries, and medical cost sharing organizations. Transfers between health freedom accounts are permitted as rollover contributions if deposited within 60 days. Contribution limits for health freedom accounts are increased to $12,000 ($24,000 for joint returns). Several sections of the Internal Revenue Code related to health savings accounts are redesignated and amended to reflect the change to health freedom accounts. The legislation modifies certain dollar amounts and calendar year references within the code. The amendments apply to taxable years beginning after the date of enactment of this Act.

What does EXCLUSION FOR EMPLOYER CONTRIBUTIONS TO HEALTH FREEDOM of Healthcare Freedom Act of 2025 do?

This section amends the Internal Revenue Code of 1986 to exclude employer contributions to health freedom accounts from an employee's gross income. The exclusion applies to employees hired on or after the date that is 5 years after the enactment of this section. The section also amends the exclusion for contributions by employer to accident and health plans to terminate for employees hired on or after the specified date.

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Healthcare Freedom Act of 2025

Last updated: 1/9/2025 · Introduced: 1/9/2025

Author: Chip Roy (R-TX)

TL;DR (AI)

The bill creates health freedom accounts for all individuals, allowing them to make tax-deductible contributions and use the funds for a broader range of qualified medical expenses.
The legislation increases contribution limits for health freedom accounts to $12,000 for individual returns and $24,000 for joint returns, and permits transfers between accounts as rollover contributions.
Employer contributions to health freedom accounts are excluded from an employee's gross income, but this exclusion only applies to employees hired on or after 5 years after the enactment of the bill.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

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