H.R.317 - Healthcare Freedom Act of 2025 (119th Congress)
Summary
H.R.317, the Healthcare Freedom Act of 2025, aims to amend the Internal Revenue Code of 1986 by renaming and modifying health savings accounts (HSAs) into health freedom accounts (HFAs). The bill seeks to broaden access to these accounts, increase contribution limits, and expand the types of medical expenses that can be covered. The bill also introduces provisions related to employer contributions to HFAs for employees hired five years after the enactment of the act.
Expected Effects
If enacted, this bill would likely lead to increased individual control over healthcare spending through HFAs. It could also shift some employer-sponsored healthcare coverage towards individual accounts, particularly for new hires. The changes could affect the utilization of different types of healthcare services and the overall healthcare market.
Potential Benefits
- Increased individual control over healthcare funds.
- Expanded coverage to include direct primary care and health care sharing ministries.
- Higher contribution limits, allowing for greater tax-advantaged savings.
- Rollover contributions to other health freedom accounts, providing flexibility.
- Potential for greater competition and innovation in the healthcare market.
Most Benefited Areas:
Potential Disadvantages
- Potential for adverse selection if healthier individuals opt for HFAs, leaving sicker individuals in traditional insurance pools.
- Increased complexity in the healthcare system with the introduction of new account types.
- Possible reduction in employer-sponsored health coverage for new employees after five years, potentially shifting costs to individuals.
- The changes might disproportionately benefit higher-income individuals who can afford to contribute more to HFAs.
- Potential for misuse of funds if not properly regulated.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on healthcare and taxation falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8). The expansion of healthcare options could be argued to align with the pursuit of the general welfare. However, the specific provisions regarding employer contributions and potential shifts in healthcare coverage may raise questions about equal protection and access to healthcare, potentially implicating the Fifth Amendment's due process clause.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).