H.R. 317 — Healthcare Freedom Act of 2025

This section revises the rules governing health savings accounts (HSAs)—tax-advantaged accounts for qualified medical expenses that require coverage under a high-deductible health plan without other disqualifying coverage—by renaming them health freedom accounts (HFAs) throughout the Internal Revenue Code and making the following changes, effective for taxable years beginning after enactment: (1) eliminates the eligible individual requirement under former IRC §223(a) and (c) (i.e., removes the high-deductible health plan coverage requirement for deductible contributions); (2) sets the annual contribution limit at $12,000 ($24,000 in the case of a joint return), replacing prior limits based on monthly coverage under a qualifying high-deductible health plan (approximately $4,150 for individuals and $8,300 for families in 2024); (3) increases the additional contribution limit for individuals age 55 or older to $5,000 (from $1,000); (4) expands the definition of qualified medical expenses to include costs associated with direct primary care, health care sharing ministries, and medical cost sharing organizations, and removes prior restrictions on using account funds to purchase health coverage; (5) permits rollover contributions from one HFA to another HFA within 60 days; and (6) makes conforming and technical changes, including prohibiting cash contributions to HFAs and revising inflation adjustments.

This section excludes from gross income employer contributions to health freedom accounts for employees hired on or after five years after enactment (via new IRC §106A), terminates the existing exclusion under IRC §106 for employer-provided accident or health coverage for such employees (via new §106(h)), and makes conforming changes to the Code's table of sections—with such amendments applying to employees hired on or after that date. (Thus, five years after enactment, new hires receive tax-free employer health benefits only via contributions to health freedom accounts rather than traditional group health plans.) Separately, this section amends IRC §106(d)(1) to treat employer contributions to health freedom accounts as employer-provided coverage under an accident or health plan, effective for taxable years beginning after enactment.