The One Big Beautiful Bill Act, passed by the House of Representatives on May 22 and currently being debated in the Senate, contains an additional tax benefit designed to help Americans pay for medical expenses.
This provision expands eligibility for health savings accounts (HSAs), which allow Americans to use pre-tax money to pay for certain medical costs. Contributions to HSAs have so-called “triple tax advantages,” according to Bank of America: contributions to HSAs are tax-deductible, funds in the account can be invested without taxes on gains, and withdrawals for qualified medical expenses are also not taxed.
