HSA Modernization Act

Expanded HSA Access for Veterans: Individuals who have certain veterans benefits but do not have a service-connected disability can now contribute to an HSA (Section 2).

Expanded HSA Access for Seniors: Individuals entitled to Medicare Part A due to age are permitted to contribute to an HSA (Section 3).

Protection for Indian Health Service Recipients: People receiving medical services through an Indian Health Service or tribal organization will not be disqualified from having an HSA (Section 4).

Increased Plan Options: Bronze and catastrophic plans will now be treated as high deductible health plans, allowing for more plan choices (Section 5).

Mental Health Coverage Flexibility: Plans can now have a deductible of up to $500 for mental health benefits without losing their status as a high deductible health plan (Section 6).

Easier Account Setup for Expenses: This provision allows medical expenses incurred just before an account is established to be treated as qualified expenses if the account is set up within a 60-day period (Section 7).

Benefits for Married Couples: Spouses can now divide contribution limitations and share catch-up contributions for those age 55 or older (Section 8).

Increased Contribution Limits: The maximum contribution amounts for self-only and family coverage are adjusted to align with the amount of the deductible and out-of-pocket limitations (Section 9).

Long-Term Care Support: HSA distributions can now include amounts paid for qualified long-term care services (Section 10).