# Health Freedom and Flexibility Act: What It Actually Does

This bill makes significant changes to Health Savings Accounts (HSAs), which are special savings accounts that let people set aside money tax-free to pay for medical expenses. Right now, HSAs come with a lot of restrictions. This bill removes most of those restrictions, making them much more flexible and easier to use.

Currently, you can only open an HSA if you're enrolled in a specific type of high-deductible health insurance plan. This bill eliminates that requirement entirely. Under the new rules, anyone could open and contribute to an HSA regardless of what health insurance they have—or even if they have no health insurance at all. This is a major change because it transforms HSAs from accounts tied to a particular type of insurance into standalone savings accounts for medical expenses that almost anyone could use.

The bill also dramatically expands what counts as a "qualified medical expense" that you can pay for with HSA money tax-free. Currently, the list is fairly narrow. This bill adds several new categories: menstrual care products (tampons, pads, cups, etc.), over-the-counter medicines and drugs, exercise equipment, dental care items like toothbrushes and floss, and direct primary care arrangements (where you pay a doctor a flat monthly fee for basic care). You'd also be able to use HSA funds for medical expenses you incurred before you even opened the account, as long as you open it within a certain timeframe. Additionally, the bill includes a controversial provision prohibiting HSA funds from being used for health insurance that covers abortion or for abortion procedures themselves.

The bill also makes HSAs easier to pass down to family members. If your spouse or child inherits your HSA when you die, they can now treat it as their own account and continue using it for medical expenses, rather than having to withdraw the money immediately.

Health Freedom and Flexibility Act

Rosendale, Matthew M.

Health Freedom and Flexibility Act This bill revises provisions relating to health savings accounts (HSAs), including to <ul> <li>eliminate the requirement that a participant in an HSA be enrolled in a high deductible health plan; </li> <li>repeal certain limitations on deductions for contributions to HSAs; </li> <li>repeal rules relating to eligible individuals who participate in HSAs;</li> <li>repeal the limitation on use of HSAs to purchase health insurance; </li> <li>include certain medical items as medical expenses for HSA purposes, including menstrual care products, over-the-counter medicines, and medically necessary items;</li> <li>include as HSA-eligible medical expenses, direct primary care, exercise equipment, and dental care items; and </li> <li>prohibit the use of HSAs to pay for abortions or for insurance that includes coverage for abortions.</li> </ul>