Health Equity Act of 2011 - Amends the Internal Revenue Code to: (1) make permanent the tax deduction allowed to self-employed individuals for health insurance costs; (2) allow a new tax deduction for the health care insurance costs of a taxpayer, the taxpayer's spouse, and dependents; and (3) expand the tax deduction for medical expenses to include costs for a membership in a fitness program or athletic club, fitness equipment, or weight loss program up to $1,200 in a taxable year and allow tax-free reimbursements for such expenses up to $1,200 a year under flexible spending arrangements and health reimbursement arrangements.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2662 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2662
To amend the Internal Revenue Code of 1986 to provide for equity
relating to medical costs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 26, 2011
Mr. Ribble introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for equity
relating to medical costs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Health Equity Act of 2011''.
SEC. 2. DEDUCTION FOR HEALTH INSURANCE COSTS IN COMPUTING SELF-
EMPLOYMENT TAXES MADE PERMANENT.
(a) In General.--Subsection (l) of section 162 of the Internal
Revenue Code of 1986 is amended by striking paragraph (4) and by
redesignating paragraph (5) as paragraph (4).
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2010.
SEC. 3. DEDUCTION FOR QUALIFIED HEALTH INSURANCE COSTS OF INDIVIDUALS.
(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to additional itemized
deductions for individuals) is amended by redesignating section 224 as
section 225 and by inserting after section 223 the following new
section:
``SEC. 224. COSTS OF QUALIFIED HEALTH INSURANCE.
``(a) In General.--In the case of an individual, there shall be
allowed as a deduction an amount equal to the amount paid during the
taxable year for coverage for the taxpayer, his spouse, and dependents
under qualified health insurance.
``(b) Qualified Health Insurance.--For purposes of this section--
``(1) In general.--The term `qualified health insurance'
means insurance which constitutes medical care.
``(2) Exception.--
``(A) In general.--Paragraph (1) shall not apply to
insurance substantially all of the coverage of which is
of excepted benefits described in section 9832(c).
``(B) Vision and dental benefits allowed.--
Subparagraph (A) shall not apply to benefits described
in section 9832(c)(2)(A).
``(c) Special Rules.--
``(1) Coordination with medical deduction, etc.--Any amount
paid by a taxpayer for insurance to which subsection (a)
applies shall not be taken into account in computing the amount
allowable to the taxpayer as a deduction under section 162(l)
or 213(a). Any amount taken into account in determining the
credit allowed under section 35 or 36B shall not be taken into
account for purposes of this section.
``(2) Deduction not allowed for self-employment tax
purposes.--The deduction allowable by reason of this section
shall not be taken into account in determining an individual's
net earnings from self-employment (within the meaning of
section 1402(a)) for purposes of chapter 2.''.
(b) Deduction Allowed in Computing Adjusted Gross Income.--
Subsection (a) of section 62 of such Code is amended by inserting
before the last sentence the following new paragraph:
``(22) Costs of qualified health insurance.--The deduction
allowed by section 224.''.
(c) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by redesignating the
item relating to section 224 as an item relating to section 225 and
inserting before such item the following new item:
``Sec. 224. Costs of qualified health insurance.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2010.
SEC. 4. FITNESS PROGRAMS, ATHLETIC CLUBS, FITNESS EQUIPMENT, AND WEIGHT
LOSS PROGRAMS TREATED AS MEDICAL CARE.
(a) Tax Benefits Using Definition of Medical Care.--Subsection (d)
of section 213 of the Internal Revenue Code of 1986 is amended by
adding at the end the following:
``(12) Fitness programs, athletic clubs, fitness equipment,
weight loss programs.--
``(A) In general.--An amount paid in connection
with a membership in a fitness program or athletic
club, fitness equipment, or weight loss program shall
be treated as an amount paid for medical care.
``(B) Limitation.--The amount taken into account
under subsection (a) by reason of subparagraph (A) for
any taxable year shall not exceed $1,200.''.
(b) Flexible Spending Arrangements and Health Reimbursement
Arrangements.--Section 106 of such Code is amended by adding at the end
the following:
``(g) Fitness Programs, Athletic Clubs, Fitness Equipment, Weight
Loss Programs.--For purposes of this section and section 105--
``(1) In general.--Reimbursement for expenses incurred for
membership in a fitness program or athletic club, fitness
equipment, or weight loss program shall be treated as a
reimbursement for medical expenses.
``(2) Limitation.--The amount taken into account under
paragraph (1) for any taxable year shall not exceed $1,200.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid in taxable years beginning after December 31,
2010.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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