Latest Updates on the “One Big Beautiful Bill Act”
On May 22, 2025, the U.S. House of Representatives narrowly passed the “One Big Beautiful Bill Act” (H.R. 1). The “One Big Beautiful Bill Act” aims to promote economic growth, simplify the tax code, and give individuals greater control over their financial and healthcare decisions. This significant legislative package seeks to overhaul tax policies, simplify financial regulations, and make substantial changes to healthcare programs, including expansions to Health Savings Accounts (HSAs).
Current Status of the Bill
As of June 2025, the Senate is still reviewing the bill. Senate Republicans hold a slim majority and have drafted their own version of the legislation. Notably, this version excludes several key HSA-related provisions passed by the House. Negotiations are ongoing, with Senate leaders aiming for a resolution by early July.
Key HSA Provisions: Included vs. Excluded
The original House bill proposed several significant HSA changes:
- Medicare Part A Enrollees: Seniors still working past age 65 could continue contributing to HSAs if enrolled in their employer’s high-deductible health plan.
- ACA Bronze and Catastrophic Plans: These marketplace plans would become HSA-eligible, opening HSAs to many more Americans, including early retirees and young adults.
- Fitness Expenses: Allow tax-free HSA withdrawals of up to $500 per individual or $1,000 per family annually for fitness and wellness expenses.
- Joint Catch-Up Contributions: Married couples over age 55 could make their annual $1,000 catch-up contributions into a single spouse’s account.
However, these expansions are currently excluded from the Senate version. Advocates continue urging the Senate to include these beneficial measures in the final bill.
Comparison of HSA Provisions: House vs. Senate
|
HSA Provision |
House Version (Passed May 22, 2025) ✅ |
Senate Version (Current) ⚠️ |
|
Medicare Part A Contributions |
Included: Allow contributions if enrolled in employer HDHP |
Not Included |
|
ACA Bronze/Catastrophic Plans HSA Eligibility |
Included: Plans eligible for HSA contributions |
Not Included |
|
Fitness Expense Withdrawals |
Included: Up to $500 individual / $1,000 family annually |
Not Included |
|
Joint Catch-Up Contributions for Couples |
Included: Spouses allowed combined catch-up contributions in one account |
Not Included |
What’s Next?
The Senate continues negotiations on the bill’s details. If differences remain between the House and Senate versions, a joint conference committee will be necessary before a final version is sent to the President for signature.
Stay tuned, as the outcomes could have significant implications for how millions of Americans manage their healthcare expenses and financial planning.