Summary of HR 5933: HSAs For Heroes Act

Overview

The HSAs For Heroes Act (HR 5933) was introduced in the House of Representatives on November 7, 2025. The bill aims to enhance the accessibility of Health Savings Accounts (HSAs) for veterans, particularly those who have served in the military, by expanding eligibility and modifying certain provisions related to HSA contributions and distributions.

Main Purpose

The primary intent of the HSAs For Heroes Act is to:
- Broaden eligibility for HSA contributions to include veterans who do not have a service-connected disability.
- Facilitate the use of HSA funds for medical expenses incurred during periods of caregiving.
- Eliminate the requirement for a high-deductible health plan to contribute to an HSA.

Key Provisions

1. Contribution Eligibility

• The bill amends Section 223(c)(1)(C) of the Internal Revenue Code to allow any veteran who has served in active military service to contribute to an HSA, regardless of whether they have a service-connected disability.
• This change is effective for taxable years beginning after December 31, 2025.

2. Distributions During Caregiving

• The bill allows HSA distributions to be excluded from gross income if used for qualified medical expenses or during periods of qualified caregiving.
• A "period of qualified caregiving" is defined as any time an individual is on leave or not employed due to caregiving responsibilities as outlined in the Family and Medical Leave Act of 1993.

3. No High Deductible Health Plan Required

• The requirement for individuals to have a high-deductible health plan to contribute to an HSA is removed.
• The contribution limit for HSAs is increased to $9,000 for individuals, with a double limit for joint returns.

4. Regulatory Authority and Reporting

• The Secretary of the Treasury, in consultation with the Secretary of Veterans Affairs, is tasked with issuing regulations to implement the amendments and prevent abuse of the system.
• Annual reports to Congress will summarize the contributions and distributions made by eligible veterans under the new provisions.

Impact

Who Would Be Affected?

• Veterans: The bill directly benefits veterans who are currently ineligible to contribute to HSAs due to the existing service-connected disability requirement.
• Caregivers: Individuals providing care for veterans will have more flexibility in using HSA funds for medical expenses during caregiving periods.

Procedural Aspects

• The bill has been referred to the House Committee on Ways and Means for further consideration.
• If enacted, the provisions will take effect for taxable years starting after December 31, 2025.

Conclusion

The HSAs For Heroes Act seeks to improve healthcare financial options for veterans by expanding HSA eligibility and usage, thereby enhancing their ability to manage medical expenses effectively. This legislation represents a significant step toward recognizing and supporting the healthcare needs of veterans and their caregivers.