Lowering Costs for Caregivers Act of 2025

Overview: This bill allows taxpayers to use funds from pre-tax health savings account (HSA) or flexible spending account (FSA) to pay for their parents’ long-term services and supports. (Current law already allows taxpayers to use pre-tax funds from these accounts to pay for their own qualified medical expenses, including LTSS for themselves.) The amount the taxpayer uses from these accounts on their parents’ behalf will not be included in the calculation of the taxpayers’ gross income.

Eligibility: Any taxpayer with an HSA or FSA who incurs expenses related to the care they provide for a parent who needs LTSS can access funds on a pre-tax basis.