This bill aims to significantly expand and improve Health Savings Accounts (HSAs) by broadening eligibility criteria and increasing contribution limits. It removes the current requirement for individuals to be covered by a high-deductible health plan to qualify for an HSA. Instead, eligibility would extend to individuals covered by a wide array of health plans, including group or individual health insurance, short-term limited duration plans, government programs like Medicare and Medicaid, and even participants in health care sharing ministries . A key provision of the bill is the substantial increase in annual HSA contribution limits, raising them from $2,250 to $10,800 for individuals and from $4,500 to $29,500 for families . Furthermore, the bill allows HSA funds to be used for a broader range of expenses, specifically permitting payments for health plan and health insurance premiums. It also includes periodic fees for direct primary care or concierge medical services and amounts paid to health care sharing ministries as qualified medical expenses. The legislation clarifies that medical care service arrangements, such as direct primary care, and health care sharing ministries are not to be treated as traditional health plans or insurance for tax purposes, while explicitly recognizing their fees as medical care expenses. Finally, the bill reduces the penalty for nonqualified HSA distributions from 20 percent to 10 percent , making HSAs more forgiving for those who withdraw funds for non-medical purposes. These comprehensive changes are set to take effect for taxable years beginning after December 31, 2025.