Health Savings Accounts for Working Seniors
While still being negotiated by the Senate, the House-approved One Big Beautiful Bill Act contains a provision that would expand access to Health Savings Accounts (HSAs) and the corresponding tax benefits. Currently, Medicare eligibility is an HSA-disqualifying coverage.
Under new proposed rules, working seniors who are Medicare A eligible and are also enrolled in a high deductible health plan (HDHP) would be allowed to contribute to an HSA. This includes individuals receiving social security benefits, but excludes anyone enrolled in other parts of Medicare.
As this could have a financial impact on our Health Directions community in 2026, we’ll continue to watch what happens in Congress and report back on the outcome.
Update: The One Bill Beautiful Bill was signed into law on July 4, 2025. The final version did not include the HSA provision above. We will alert our readers if Congress takes up this matter again.
Sources: bipartisanpolicy.org; waysandmeans.house.gov