This bill aims to significantly expand and improve Health Savings Accounts (HSAs) by broadening eligibility, substantially increasing contribution limits, and expanding the types of expenses that can be paid with HSA funds. These comprehensive changes are designed to make HSAs more accessible and flexible for a wider range of individuals, promoting greater control over healthcare spending. A key provision is the dramatic expansion of HSA eligibility , which removes the previous requirement for individuals to be covered by a high-deductible health plan. Under the proposed changes, eligibility extends to nearly anyone covered under a group or individual health plan, various health insurance types including short-term and medical indemnity plans, and government programs such as Medicare, Medicaid, and TRICARE. Individuals participating in a health care sharing ministry would also become eligible to contribute to an HSA. The legislation also proposes a substantial increase in HSA contribution limits . For self-only coverage, the maximum annual contribution would rise from $2,250 to $10,800, while for family coverage, it would increase from $4,500 to $29,500. These significantly higher limits would be subject to cost-of-living adjustments, ensuring their value keeps pace with inflation. Furthermore, the bill broadens the definition of qualified medical expenses that can be paid from an HSA. It explicitly allows funds to be used for premiums for any health plan or health insurance coverage, a notable expansion from prior restrictions. Additionally, it includes periodic fees for direct primary care or prepaid medical services, and amounts paid to health care sharing ministries for medical expenses and administrative fees. Finally, the bill clarifies that medical care service arrangements and health care sharing ministries are not treated as health plans or insurance for HSA eligibility purposes, preventing them from disqualifying individuals. It also reduces the penalty for non-qualified HSA distributions from 20 percent to 10 percent, offering more flexibility. All these amendments are set to apply to taxable years beginning after December 31, 2024.