S. 251 — Protecting Life in Health Savings Accounts Act

This section excludes from qualified medical expenses amounts paid for abortions other than excluded abortions—defined as those with respect to a pregnancy resulting from rape or incest, or certified by a physician as necessary to prevent the woman's death due to a physical disorder, injury, or illness (including a life-endangering condition caused by the pregnancy)—for (1) health savings accounts (HSAs), (2) Archer medical savings accounts, (3) health flexible spending arrangements (FSAs) and health reimbursement arrangements (HRAs), and (4) retiree health accounts under IRC §401(h). (Thus, such payments previously eligible for tax-free treatment will generally be taxable.) The changes apply to amounts paid or expenses incurred with respect to taxable years beginning after December 31, 2025.