Congress expands tax-free savings for working seniors on Medicare Part A
H.R. 6577 — Stop Penalizing Working Seniors Act · Filed by Robert Latta (R-OH) · 3 cosponsors · Introduced Dec 10, 2025 · Referred to committee
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What it does
This bill allows people over 65 who are enrolled only in Medicare Part A (hospital insurance) to contribute to Health Savings Accounts (HSAs). Current law bars HSA contributions for anyone on Medicare, but this bill carves out an exception for seniors who have only Part A coverage and are still working. The benefit flows to working seniors who want to save for medical expenses tax-free.
Why we flagged it
The bill's sole operative mechanism is a targeted tax-code amendment that expands HSA eligibility for a specific demographic (working seniors on Part A only), enabling tax-deferred savings. It is a straightforward tax benefit, not a broad policy reform.
What the text implies
- The exception applies only to seniors with Part A coverage alone; those also enrolled in Part B, C, or D remain barred from HSAs, creating a narrow eligibility window that may be difficult for seniors to navigate.
- HSA contributions require a qualifying high-deductible health plan (HDHP); the bill does not address whether Part A–only seniors can obtain such plans, so the practical benefit may be limited by plan availability.
The full analysis lists 3 implications of this text.
Who stands to gain
working seniors over 65 with Part A coverage; health savings account administrators and custodians