Lowering Costs for Caregivers Act of 2025

Overview

This bill amends the tax code to allow taxpayers to use certain tax-advantaged health accounts to pay for medical expenses of their parents. It expands the eligible family members for Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), and Archer Medical Savings Accounts (MSAs).

Key Provisions

• Allows HSA funds to be used for medical expenses of the account holder's parents or their spouse's parents
• Permits FSAs and HRAs to cover medical care costs for parents without tax penalties
• Extends parent coverage to Archer MSAs
• Changes take effect for expenses incurred after December 31, 2024

Potential Impact

This would reduce tax burdens for adult children caring for aging parents by allowing them to use pre-tax dollars from health accounts to pay for their parents' medical expenses. It could provide significant financial relief for families managing eldercare costs.