Lowering Costs for Caregivers Act of 2025

Health Savings Accounts: Under Section 2, the bill updates Health Savings Accounts so that they include any parent of the individual or the individual's spouse. This is positive because it lets people use these accounts to cover medical expenses for their parents.

Flexible Spending and Health Reimbursement Arrangements: Under Section 3, taxpayers can use amounts in their health flexible spending arrangements or health reimbursement arrangements for the medical care of a parent of the taxpayer or the taxpayer's spouse without the amounts being included in gross income. This is positive because it provides tax-advantaged ways to help pay for parents' healthcare costs.

Archer MSAs: Under Section 4, the bill updates Archer MSAs to include any parent of the individual or the individual's spouse. This is positive because it expands account uses to cover parents.