Health Care Freedom Act: New HSAs, Coverage Restrictions, and Medicaid Changes.
This Act creates a new government-funded Health Savings Account (Exchange plan HSA) with annual contributions up to $1,500 for individuals enrolled in Bronze or Catastrophic ACA plans who meet income requirements. Crucially, the law prohibits federal funding (Medicaid, CHIP, and ACA Essential Health Benefits) for gender transition procedures and restricts the use of the new HSA funds for these procedures and most abortions. It also expands access to lower-premium Catastrophic plans for all individual market purchasers.
Key points
Individuals purchasing cheaper ACA plans (Bronze/Catastrophic) may receive tax-free government contributions (up to $1,500 annually) into a new Exchange plan HSA during 2026 and 2027.
Federal funding for Medicaid, CHIP, and ACA Exchange plans will be prohibited from covering gender transition procedures; the new HSA funds cannot be used for these procedures or most abortions.
All individuals buying insurance on the individual market gain the option to purchase lower-premium Catastrophic health plans, regardless of age or hardship status.
States providing health coverage to certain non-qualified aliens face a reduction in their federal Medicaid matching funds (FMAP).
VOTING RESULTS
2025-12-11
52%
For
51
Against
48
Abstain
0
Failed
Citizen Poll