Wearable Equipment Adoption and Reinforcement and Investment in Technology Act; WEAR IT Act
Summary
The Wearable Equipment Adoption and Reinforcement and Investment in Technology Act (WEAR IT Act) aims to amend the Internal Revenue Code of 1986. It seeks to allow certain wearable devices to be purchased using health savings accounts (HSAs), Archer MSAs, health flexible spending arrangements, and health reimbursement arrangements. The bill defines 'wearable device' and sets a limit of $375 for eligible expenses.
Expected Effects
If enacted, the WEAR IT Act would expand the definition of qualified medical expenses to include certain wearable devices. This change would allow individuals to use their HSAs, Archer MSAs, and other spending arrangements to purchase these devices, up to a limit of $375 per year. The provisions would apply to amounts paid or expenses incurred after December 31, 2025.
Potential Benefits
- Increased access to health monitoring technology.
- Potential for earlier disease detection and prevention.
- Greater flexibility in using health savings accounts.
- May incentivize healthier lifestyles through technology.
- Could reduce overall healthcare costs in the long term.
Most Benefited Areas:
Potential Disadvantages
- Limited scope of eligible devices (only those meeting specific criteria).
- The $375 limit may not cover the full cost of some devices.
- Potential for increased healthcare costs if devices are misused or overused.
- Administrative burden for determining eligibility.
- Possible inequities if lower-income individuals cannot afford the devices even with HSA/MSA benefits.
Constitutional Alignment
The WEAR IT Act appears to align with the Constitution's broad goals of promoting the general welfare (Preamble). Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). This bill uses the tax code to incentivize the use of technology for health purposes, which can be argued as promoting the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).