S.251 - Protecting Life in Health Savings Accounts Act (119th Congress)
Summary
S.251, the "Protecting Life in Health Savings Accounts Act," aims to amend the Internal Revenue Code of 1986 to prohibit the use of Health Savings Accounts (HSAs), Archer MSAs, Health Flexible Spending Arrangements, Health Reimbursement Arrangements, and Retiree Health Accounts for abortions, except in cases of rape, incest, or when the woman's life is endangered. The bill specifies that distributions and reimbursements for abortions, outside the defined exceptions, will not be considered qualified medical expenses. The changes would apply to amounts paid or expenses incurred in taxable years beginning after December 31, 2025.
Expected Effects
The primary effect of this bill would be to restrict the use of tax-advantaged healthcare accounts for abortion services, potentially increasing the out-of-pocket costs for individuals seeking such services. Healthcare providers may also see a shift in how patients pay for abortion services. This could disproportionately affect low-income individuals who rely on these accounts for healthcare expenses.
Potential Benefits
- May align federal tax policy more closely with the moral or religious beliefs of some citizens regarding abortion.
- Could potentially reduce the number of abortions performed, based on the assumption that increased costs may deter some individuals.
- Reinforces existing federal policies that restrict funding for abortions in certain circumstances.
- May lead to increased funding for other healthcare services as individuals are incentivized to use their health accounts for other medical needs.
- Could be seen as promoting responsible use of healthcare funds by preventing their use for procedures deemed morally objectionable by some.
Potential Disadvantages
- Restricts access to abortion services for individuals who rely on tax-advantaged healthcare accounts, potentially creating financial barriers.
- May disproportionately affect low-income individuals and those without comprehensive health insurance.
- Introduces administrative complexity for healthcare providers and account administrators in determining eligibility for exceptions.
- Could be viewed as an infringement on individual autonomy and reproductive rights.
- May lead to increased unintended pregnancies if individuals are unable to afford or access abortion services.
Constitutional Alignment
The bill's constitutionality is subject to debate, particularly concerning the right to privacy and reproductive freedom as potentially inferred from the Fourteenth Amendment, as interpreted in Roe v. Wade and subsequent cases, although the bill does include exceptions for rape, incest, and life endangerment. Congress has broad power to tax and spend under Article I, Section 8, but this power is limited by individual rights. The bill does not directly prohibit abortions but regulates the use of certain funds, which may be subject to scrutiny under the Equal Protection Clause if it disproportionately affects certain groups.
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).