The bill revises Montana's laws on medical savings accounts (MSAs) by extending tax deductions and designating direct primary care fees as eligible medical expenses. Key changes include a broadened definition of eligible medical expenses to include any direct fee associated with a direct patient care agreement. The tax exemption conditions for MSA contributions are modified to allow both principal and interest to be excluded from taxable income if used for eligible medical expenses or distributed to immediate family members. The bill also introduces a retroactive applicability date of January 1, 2024, for certain provisions, ensuring that the new definitions and tax exemptions are effective from that date.

Additionally, the legislation removes previous limitations on the amount of funds and interest that can be retained tax-free within an account for contributions made prior to January 1, 2024, while establishing a new annual contribution limit of $4,500 starting in tax year 2024, which will be adjusted for inflation. It outlines requirements for direct patient care agreements, mandating that they be in writing and specify services and fees, while prohibiting additional charges for included services and claims to health insurance. The act will take effect upon passage, with specific sections effective on January 1, 2024, and it applies retroactively to tax years beginning after December 31, 2022.

Statutes affected:
Introduced: 15-30-2120, 15-61-102, 15-61-202, 50-4-107