Restoring Consumer-driven Health Care Act of 2011

Restoring Consumer-driven Health Care Act of 2011 - Repeals provisions of the Internal Revenue Code, as added by the Patient Protection and Affordable Care Act, that: (1) limit payments from health and medical savings accounts and health flexible spending arrangements solely to medications that are prescribed drugs or insulin, and (2) increase taxes on distributions from health and medical savings accounts that are not used for qualified medical expenses.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 524 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 524

To amend the Internal Revenue Code of 1986 to repeal the provisions of 
the Patient Protection and Affordable Care Act that limit distributions 
 from medical-related tax-preferred accounts for medicines only if the 
medicines are prescribed drugs or insulin and to repeal the increase in 
additional tax on distributions from health savings accounts and Archer 
             MSAs not used for qualified medical expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 8, 2011

  Mr. Quayle 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 repeal the provisions of 
the Patient Protection and Affordable Care Act that limit distributions 
 from medical-related tax-preferred accounts for medicines only if the 
medicines are prescribed drugs or insulin and to repeal the increase in 
additional tax on distributions from health savings accounts and Archer 
             MSAs not used for qualified medical expenses.

    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 ``Restoring Consumer-driven Health 
Care Act of 2011''.

SEC. 2. REPEAL OF PATIENT PROTECTION AND AFFORDABLE CARE ACT RULE 
              LIMITING DISTRIBUTIONS FOR MEDICINE QUALIFIED ONLY IF FOR 
              PRESCRIBED DRUG OR INSULIN.

    (a) HSAs.--Subparagraph (A) of section 223(d)(2) of the Internal 
Revenue Code of 1986 is amended by striking the last sentence.
    (b) Archer MSAs.--Subparagraph (A) of section 220(d)(2) of such 
Code is amended by striking the last sentence.
    (c) Health Flexible Spending Arrangements and Health Reimbursement 
Arrangements.--Section 106 of such Code is amended by striking 
subsection (f).
    (d) Effective Dates.--
            (1) Distributions from savings accounts.--The amendments 
        made by subsections (a) and (b) shall apply to amounts paid 
        with respect to taxable years beginning after December 31, 
        2010.
            (2) Reimbursements.--The amendment made by subsection (c) 
        shall apply to expenses incurred with respect to taxable years 
        beginning after December 31, 2010.

SEC. 3. REPEAL OF INCREASE IN ADDITIONAL TAX ON DISTRIBUTIONS FROM HSAS 
              AND ARCHER MSAS NOT USED FOR QUALIFIED MEDICAL EXPENSES.

    (a) HSAs.--Section 223(f)(4)(A) of the Internal Revenue Code of 
1986 is amended by striking ``20 percent'' and inserting ``10 
percent''.
    (b) Archer MSAs.--Section 220(f)(4)(A) of such Code is amended by 
striking ``20 percent'' and inserting ``15 percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2010.
                                 <all>