In a Congress addicted to bad ideas and bloated spending—something we saw again last week—it's rare to find a tax policy with broad, bipartisan support that also happens to be good policy. Health Savings Accounts (HSA) are one of those rare gems. They promote individual responsibility, reduce health care costs, and enjoy overwhelming support from voters across the political spectrum.
The good news is that for all its flaws, the "Big Beautiful Bill" that was just signed by the president includes several expansions to the program.
In a perfect world, we wouldn't need tax-protected health care savings accounts. The tax code wouldn't punish saving in the first place. Income would only be taxed once and not a second time after we save it and it generates returns. Families could set aside money for future expenses without being hit with additional penalties.
