June 27, 2025
Mr. Smith of Nebraska (for himself and Mr. Panetta) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to allow qualified distributions from health savings accounts for certain home care expenses.
Section 1. Short title
This Act may be cited as the Homecare for Seniors Act
.
Sec. 2. Certain home care expenses treated as qualified distributions from health savings accounts
(a) In general
Section 223(d)(2) of the Internal Revenue Code of 1986 is amended—
(1)
by striking medical care (as defined in section 213(d))
in subparagraph (A) and inserting specified medical care
, and
(2)
by adding at the end the following new subparagraph:
(E) Specified medical care
For purposes of this paragraph—
(i) In general
The term
specified medical caremeans medical care (as defined in section 213(d)) and qualified home care.(ii) Qualified home care
The term
qualified home caremeans a contract to provide 3 or more of the following services in the residence of the service recipient:(I)
Assistance with eating.
(II)
Assistance with toileting.
(III)
Assistance with transferring.
(IV)
Assistance with bathing.
(V)
Assistance with dressing.
(VI)
Assistance with continence.
(VII)
Medication adherence.
Such term shall not include any contract unless the services provided pursuant to such contract are provided by a service provider which is licensed by the State to provide such services or such services are otherwise provided in a manner that is consistent with State requirements.
(iii) Related parties
The term
qualified home careshall not include any contract which is, directly or indirectly, between a service provider and a service recipient who are related within the meaning of section 267(b) or 707(b).
(b) Effective date
The amendments made by this section shall apply to amounts paid with respect to taxable years beginning after the date of the enactment of this Act.
(c) Promotion of public awareness of in-Home service expenses eligible for tax-Free distribution from health savings accounts
The Secretary of Health and Human Services, in consultation with the Secretary of the Treasury, shall carry out a campaign to increase public awareness of the in-home service expenses that are eligible for tax-free distribution from health savings accounts.