Hardworking Seniors Act

What it does

• •Amends the Internal Revenue Code to allow individuals entitled to Medicare Part A (by reason of age) to contribute to Health Savings Accounts (HSAs), which they currently cannot do.
• •Makes conforming changes to HSA rules regarding health insurance purchases and penalty distributions to accommodate Medicare Part A recipients as eligible HSA contributors.
• •Sets the effective date for these changes to apply beginning January 1, 2027.

Why it matters

• •Currently, Medicare Part A enrollment disqualifies individuals from HSA contributions; this change would allow Medicare-eligible seniors to accumulate tax-advantaged savings for medical expenses.
• •The bill's stated purpose, reflected in its title, is to enable seniors who continue working to benefit from HSA tax advantages despite being on Medicare.

Who is affected

• •Individuals age 65 and older who are entitled to Medicare Part A and wish to contribute to Health Savings Accounts.
• •Taxpayers using HSAs for health-related savings and expenses.

What happens next

The bill was referred to the House Committee on Ways and Means as of August 10, 2026, and awaits committee action.