New Law Boosts HSA Limits to $8,000, Requires Hospitals to Post Prices

The Patient Fairness Act of 2025 is poised to shake up how many of us save for healthcare, primarily by giving a massive upgrade to Health Savings Accounts (HSAs) and making hospital pricing more transparent.

The HSA Overhaul: More Money, Fewer Headaches

Starting in 2026, the rules around HSAs—those tax-advantaged accounts tied to high-deductible health plans—get a lot simpler and significantly more generous. Currently, the maximum amount you can contribute is based on whether you were eligible every single month of the year. This bill scraps that monthly eligibility requirement. If you qualify for an HSA at any point during the tax year, you can now claim the full annual tax deduction for that year. This is a huge simplification for people who switch jobs or insurance plans mid-year.

But the biggest change is the contribution limit. The new standard base limit is set at $8,000. On top of that, you can contribute an extra $3,000 for every dependent you have. For someone with a spouse and two kids, that’s potentially a much higher limit than before, giving families a significant boost in tax-free savings power. If you’re 55 or older, you still get an additional $3,000 catch-up contribution on top of the new limits. This change recognizes that healthcare costs are rising faster than the old, indexed limits allowed.

Passing Down Savings Without a Tax Hit

Another practical change deals with what happens to your HSA money after you pass away. Right now, if someone inherits an HSA, it often triggers complicated tax rules similar to inheriting a retirement account, which can be a headache. The Patient Fairness Act adds an exception: if a relative inherits the HSA funds, they have 60 days to roll that money directly into their own HSA. This means the money keeps its tax-advantaged status, making it much easier to transfer wealth intended for healthcare expenses within the family.

Making Hospital Prices Official Law

Section 3 of the bill addresses hospital price transparency. For a while now, there have been federal regulations requiring hospitals to publish their prices for standard services—things like the cost of an MRI or a routine procedure. Hospitals have been slow to comply, arguing about the scope of the administrative rules. This bill takes those exact regulations and officially writes them into federal law. This isn't a new rule, but it is a major power move: by codifying the existing requirements, the government is solidifying the requirement for hospitals to be open about their prices, meaning these rules now carry the full weight of statutory law, not just administrative guidance.

The Real-World Impact

For the average person juggling bills and a high-deductible plan, this bill is mostly good news. The higher contribution limits mean you can shield more of your income from taxes while saving for future medical costs. For a small business owner or self-employed person, the relaxed eligibility rules mean less time spent calculating monthly pro-rata deductions and more certainty when filing taxes. The price transparency piece, now legally cemented, theoretically gives consumers more power to shop around and compare costs before a procedure, which is crucial when you’re paying out-of-pocket to meet a deductible.

However, it’s worth noting that the biggest beneficiaries of these increased limits will likely be higher earners who can afford to max out the new, much higher contribution cap. While this promotes savings, it also means a greater loss of tax revenue for the federal government due to the increased deductions. The bill is clear, low on vagueness, and largely focuses on expanding existing benefits and solidifying consumer protection rules.