This bill amends the Internal Revenue Code, with respect to health savings accounts (HSAs), to:

• eliminate the requirement that a participant in an HSA be enrolled in a high deductible health care plan;
• increase the maximum contribution amount to an HSA;
• permit both spouses in an HSA to make catch-up contributions to the same account;
• allow the use of HSAs to pay health insurance premiums and long-term care insurance premiums;
• treat fees paid in advance for the right to receive medical services as a deductible medical expense;
• permit Medicare recipients to participate in HSAs;
• repeal the restriction on payments from HSAs for nonprescription drugs;
• repeal the additional tax on distributions from HSAs and Archer Medical Savings Accounts; and
• repeal the $2,500 limitation on salary reduction contributions to a health flexible spending arrangement under a cafeteria plan.