Manatee Review

Washington – Congressman Vern Buchanan and Congressman Mike Thompson have introduced the Lowering Costs for Caregivers Act (H.R. 7222), a bipartisan legislation aimed at reducing the financial burden on caregivers. The bill would allow individuals to utilize tax-free health savings accounts and flexible spending accounts to cover medical expenses for their parents and loved ones. Currently, caregivers are only eligible for these tax-free accounts if their parents are classified as dependents for tax purposes.

Congressman Buchanan emphasized the importance of caregiving assistance, stating, "As millions of Americans learn every year, caring for aging parents or loved ones in their later years can become a significant financial strain for you and your family. With nearly 200,000 seniors in my district, caregiving assistance is critical for many families to give their loved ones a dignified quality of life in their golden years."

Congressman Thompson echoed this sentiment, recognizing the financial burden faced by caregivers and the need to make care more affordable. He stated, "Allowing Americans to use their HSAs to pay for caregiving for their parents is a commonsense step that will make this care more affordable. Proud to work with Rep. Buchanan on this important bipartisan effort to lower costs associated with senior care."

The bill has gained support in the Senate, where companion legislation was introduced last year by Senators Bill Cassidy and Jackie Rosen. Additionally, the American Association of Retired Persons (AARP) and Fidelity Investments have endorsed the legislation. Nancy Leamond of AARP commended Buchanan and Thompson for their bipartisan efforts to ease the financial challenges faced by family caregivers. AARP also highlighted the bill as an important step in alleviating the financial burdens experienced by the increasing number of "sandwich generation" caregivers who juggle caring for their parents and children.

Karen Volo, Head of Health and Benefit Accounts at Fidelity Investments, expressed support for the legislation, stating, "Americans are increasingly providing caregiving for loved ones, including aging parents or partners, which is why Fidelity is pleased to support this legislation. Many households increasingly turn to savings options such as HSAs and FSAs to save for health care, and this proposal will allow individuals to use these funds for medical expenses relating to caregiving costs."

This bill builds on Buchanan's previous efforts to improve retirement savings options for Americans. He played a significant role in the passage of the Setting Every Community up for Retirement Enhancement Act (SECURE 1.0) and the SECURE 2.0 Act, which incentivize savings for lower- and middle-income Americans and expand automatic enrollment for retirement accounts.

By introducing the Lowering Costs for Caregivers Act, Congressmen Buchanan and Thompson aim to provide much-needed financial relief for caregivers across the country. The bill's provisions for tax-free health savings accounts and flexible spending accounts will allow caregivers to better manage the expenses associated with providing care for their aging parents and loved ones.