S.276

Personalized Care Act of 2025 expands health savings accounts and modifies tax treatment of health care sharing ministries.

The Personalized Care Act of 2025 amends the Internal Revenue Code to expand health savings accounts (HSAs) and modify the tax treatment of health care sharing ministries. It increases HSA contribution limits, allows payment of health plan and insurance premiums from HSAs, and treats periodic provider fees as medical care. The act also reduces the penalty for nonqualified distributions from HSAs and ensures health care sharing ministries are not treated as health insurance. These changes apply to taxable years beginning after December 31, 2025.