“To amend the Internal Revenue Code of 1986 to allow qualified distributions from health savings accounts for certain home care expenses.”
No CRS summary available for this bill.
This section expands the definition of qualified expenses for tax-free distributions from health savings accounts (HSAs)—currently limited to medical care as defined in IRC §213(d)—to also include qualified home care. Qualified home care means a contract to provide three or more specified services (assistance with eating, toileting, transferring, bathing, dressing, continence, or medication adherence) in the recipient's residence, if provided by a state-licensed service provider (or consistent with state requirements) and not involving related parties as defined in IRC §§267(b) or 707(b). (Thus, HSA holders may use account funds tax-free for such home care beginning with taxable years after enactment.) This section further directs the Secretary of Health and Human Services, in consultation with the Secretary of the Treasury, to conduct a public awareness campaign on these eligible in-home service expenses.