WASHINGTON, D.C. – Today, Congressman Brian Fitzpatrick (PA-1), was joined by Congressmen Blake Moore (UT-1), Jimmy Panetta (CA-19), Raul Ruiz (CA-25), Adrian Smith (NE-3), and Brad Schneider (IL-10), introduced the bipartisan Health Out-of-Pocket Expense (HOPE) Act.

This commonsense, forward-looking legislation establishes HOPE Accounts, a tax-advantaged savings tool designed to help millions of Americans to manage their healthcare expenses with greater flexibility and security. Whether individuals have private insurance, Medicare, Medicaid, or other qualifying coverage, the HOPE Act provides a practical, long-overdue solution to rising medical costs.

By allowing both individual and employer contributions, this bipartisan measure equips families with a powerful financial resource to prepare for future healthcare expenses, avoid crushing out-of-pocket burdens, and regain control over their financial well-being.

“The HOPE Act offers a crucial option to the people of PA-1 and families across the nation struggling under the crushing weight of skyrocketing medical costs,” said Rep. Fitzpatrick. “This bipartisan legislation puts control back where it belongs—in the hands of families—by providing them with a powerful, tax-advantaged tool to manage their healthcare expenses. By lifting the financial strain of an increasingly unaffordable system, the HOPE Act ensures no family must choose between their health and their financial future.”

“Health care costs are one of the biggest issues I hear about from Utah patients, providers, and employers, and addressing this pressing issue is a top priority for me in Washington,” said Rep. Moore. “I am grateful to reintroduce the bipartisan HOPE Act to create a new tax-advantaged savings account that will help families plan and save for medical expenses. The HOPE Act is a step in the right direction in making health care more affordable for Utahns and Americans across the country.”

“The rising cost of health care continues to challenge working families, making it even more important to have accessible ways to save for out-of-pocket medical expenses,” said Rep. Panetta. “By reintroducing the bipartisan HOPE Act, we’re providing Americans with a tax-advantaged savings tool that allows them to plan for their future health care needs. This commonsense legislation would help ensure that individuals managing medical costs, regardless of their insurance type, have a better sense of security in their family’s finances and health care.”

"Hardworking families need better options to address their health expenses given the rising cost of care," said Rep. Ruiz, MD. "The HOPE Act is a key step forward, allowing families to save money for health care expenses in a tax-free account—without being tied to expensive high-deductible insurance plans.”

“This bipartisan bill will help families better plan for unexpected health emergencies,” said Rep. Smith. “HOPE Accounts are a strong solution to empower Americans to save money and address the high cost of healthcare. I thank Rep. Moore and my other colleagues for working with me to reintroduce this important legislation.”

"Empowering families to efficiently save for future expenses via HOPE accounts, especially as healthcare costs continue to rise, will promote Americans' financial and physical well-being,” said Rep. Schneider. “That’s why I am proud to reintroduce the HOPE Act, which creates a new tax-advantaged savings account for healthcare expenses geared specifically towards working-class individuals and families.”

Addressing the Rising Cost of Healthcare with HOPE Accounts

As healthcare costs outpace inflation and wage growth, the HOPE Act provides a long-overdue solution to help families manage out-of-pocket medical expenses.

How HOPE Accounts Work:

Similar to a Roth savings account, HOPE Accounts offer key tax advantages and investment options for individuals and families to save for future health care expenses:

1. Anyone with qualifying coverage, including in the commercial market, Medicare, Medicaid, the Indian Health Service, and other sources of health care coverage are eligible to contribute to a HOPE Account.
2. An individual’s contributions would not be tax deductible, though employer contributions are deductible to the employer, as well as excludible from income and employment tax for individuals with an adjusted gross income of $100,000 or less or $200,000 or less for a family.
3. Employers and state programs may annually make contributions to a HOPE Account of up to 50% of the annual limit. 
4. The maximum annual contribution from all sources to a HOPE Account is $4,000 for those with self-only coverage, or for married individuals with separate HOPE Accounts.  For those with family coverage, that amount is $8,000 for a head of household or married individuals filing jointly who elect to set up a family account. Any contributions to an HSA, FSA, or HRA reduce the maximum contribution to a HOPE Account that year.
5. As the account grows, the earnings remain tax-free if the funds are used for qualified medical expenses.

The HOPE Act delivers real relief by giving Americans a powerful new way to save for medical expenses, ensuring that no family has to choose between their health and their financial well-being.

The text of this legislation can be found here.

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