Phase 1: Enactment & build · Step 1.11

Rewrite insurance & benefits law

Effective in stages with each enrollment wave · Congress; DOL EBSA; Treasury; state insurance commissionersDiscuss this step

← All system changes for this step

Health Savings Accounts (IRC §223) and high-deductible plans

endsBy waveFederal tax code

Today

About 38M accounts; triple tax advantage; requires a high-deductible plan.

Under the plan

New contributions end when the owner's wave enrolls (no HDHP exists); existing balances may be used for non-covered care or rolled into retirement accounts without penalty.

Trade-off

Ends a tax shelter mostly used by higher earners; savers lose a tax-advantaged account.