Florida Republican Congressman Vern Buchanan is introducing legislation that would allow individuals to use tax-free health savings accounts and flexible spending accounts on medical expenses for their parents and loved ones. Buchanan says this would help lower the cost for caregivers.
As it stands, caregivers are unable to take advantage of these tax-free accounts unless their parents are classified as dependents for tax purposes. Buchanan, who is Vice Chairman of the House Ways and Means Committee and Chairman of the Healthcare Subcommittee, says his bill, the Lowering Costs for Caregivers Act (H.R. 7222), will help families not bear a financial strain.
“With nearly 200,000 seniors in my district, caregiving assistance is critical for many families to give their loved ones a dignified quality of life in their golden years,” said Congressman Buchanan
Buchanan’s bill is getting support from all sides. U.S. Sen. Jackie Rosen (D-NV) is sponsoring the legislation in the U.S. Senate.
This legislation has the support of the American Association of Retired Persons (AARP) and Fidelity Investments.
Karen Volo, with Fidelity Investments says too many households are increasingly turning to savings options such as HSAs and FSAs to save for health care, and this proposal will allow individuals to use these funds for medical expenses relating to caregiving costs.
Over the years, Congressman Buchanan has sponsored legislation that benefits consumers and families.
Previously helped secure the passage of legislation to increase opportunities for retirement savings, including the Setting Every Community up for Retirement Enhancement Act (SECURE 1.0) and the SECURE 2.0 Act. These crucial pieces of legislation help to incentivize savings for lower- and middle-income Americans as well as expand automatic enrollment for retirement accounts.
