Personalized Care Act of 2025

Expanded Eligibility: The bill expands the definition of an "eligible individual" to include those covered by government plans like Medicare, Medicaid, and CHIP, as well as the Indian Health Service and health care sharing ministries (Section 2).

Higher Savings Limits: HSA contribution limits are increased, raising the individual limit from $2,250 to $10,800 and the family limit from $4,500 to $29,500 (Section 3).

Flexible Premium Payments: The bill allows for the payment of various health plans, insurance, or ministries from an HSA (Section 4).

Broader Definition of Medical Expenses: "Qualified medical expenses" are expanded to include periodic fees for medical services and amounts prepaid for services designed to prevent or treat disease (Section 5).

Treatment of Provider Fees: Periodic fees paid for a defined set of medical services on an as-needed basis are treated as amounts paid for medical care (Section 6).

Reduced Penalties: The penalty for nonqualified distributions is lowered from 20 percent to 10 percent (Section 7).

Support for Sharing Ministries: Payments made by members of a health care sharing ministry for medical expense sharing or administrative fees are included as qualified medical expenses (Section 8).

Membership Inclusion: Amounts paid for membership in a health care sharing ministry are treated as amounts paid for medical care (Section 9).