US SB276

Expands HSA eligibility to individuals covered under any health plan, including Medicare, Medicaid, CHIP, TRICARE, VA health programs, FEHB, short-term plans, and health care sharing ministries, eliminating the current high-deductible health plan requirement

Increases annual HSA contribution limits from $2,250 to $10,800 for self-only coverage and from $4,500 to $29,500 for family coverage, with cost-of-living adjustments beginning after 2026

Allows HSA funds to be used for health insurance and health plan premiums, periodic fees paid to physicians for direct primary care arrangements, and prepaid medical services for screening, diagnosis, or treatment

Reduces the penalty for non-qualified HSA distributions from 20% to 10%

Treats health care sharing ministry membership fees and expense-sharing contributions as qualified medical expenses eligible for HSA distributions and medical expense deductions, effective for taxable years beginning after December 31, 2025