May 1, 2025
Ms. Rosen (for herself and Mr. Cassidy) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to allow expenses for parents to be taken into account as medical expenses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Lowering Costs for Caregivers Act of 2025
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Sec. 2. Health savings accounts
(a) In general
Subparagraph (A) of section 223(d)(2) of the Internal Revenue Code of 1986 is amended by inserting , any parent of either such individual or such spouse
after the spouse of such individual
.
(b) Effective date
The amendment made by this section shall apply to amounts paid after December 31, 2025.
Sec. 3. Flexible spending and health reimbursement arrangements
(a) In general
Subsection (b) of section 105 of the Internal Revenue Code of 1986 is amended by adding at the end the following: A health flexible spending arrangement or health reimbursement arrangement shall not fail to be treated as meeting the requirements of this subsection or section 106, and no amount shall be included in gross income of the taxpayer, solely because, under the arrangement, the taxpayer may use amounts contributed to such arrangement for medical care (as defined in section 213(d), without regard to paragraph (1)(D) thereof) for a parent of the taxpayer or of the spouse of the taxpayer.
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(b) Effective date
The amendment made by this section shall apply to expenses incurred after December 31, 2025.
Sec. 4. Archer MSAs
(a) In general
Subparagraph (A) of section 220(d)(2) of the Internal Revenue Code of 1986 is amended by inserting , any parent of either such individual or such spouse
after the spouse of such individual
.
(b) Effective date
The amendment made by this section shall apply to amounts paid after December 31, 2025.