Helping Save Americans' Health Care Choices Act of 2013 - Amends the Patient Protection and Affordable Care Act (PPACA) to repeal: (1) the 20% penalty for distributions from a health savings account (HSA) or an Archer medical savings account (Archer MSA) not used for qualified medical expenses, (2) the prohibition on distributions from an HSA for over-the-counter drugs, and (3) the limitation on health flexible spending arrangements under cafeteria plans. Allows the treatment of a high deductible health plan as a qualified health plan under PPACA.
Amends the Internal Revenue Code (IRC) to allow: (1) a retirement savings tax credit for contributions to an HSA; (2) payment of premiums for high deductible health plans from an HSA; (3) a tax deduction for medical expenses incurred prior to the establishment of an HSA; (4) an increase of the HSA maximum allowable contribution amount to match the limit on deductible and out-of-pocket expenses under an HSA; (5) an exclusion from gross income of employer-provided coverage for qualified long-term care services that is provided through a flexible spending or similar arrangement; (6) eligibility for veterans with a service-connected disability, participants in Tricare, and certain Medicare beneficiaries for participation in an HSA; (7) both spouses to make catch-up contributions to the same HSA account; and (8) a tax deduction for amounts paid by patients to their primary physician in advance for the right to receive medical services on an as-needed basis. Renames IRC section headings relating to high deductible health plans as HSA qualified health plans.
Directs the Secretary of the Treasury, through regulations or other guidance, to encourage administrators of health plans and trustees of HSAs to provide for simultaneous enrollment in high deductible health plans and setup of HSAs.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1342 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1342
To repeal provisions of the Patient Protection and Affordable Care Act
relating to health savings accounts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 21, 2013
Mr. Fleming introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on Energy
and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To repeal provisions of the Patient Protection and Affordable Care Act
relating to health savings accounts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the ``Helping Save
Americans' Health Care Choices Act of 2013''.
(b) Table of Sections.--The table of sections for this Act is as
follows:
Sec. 1. Short title, etc.
Sec. 2. Repeal of additional tax from distributions from HSAs and MSAs.
Sec. 3. Repeal of limitation on deductions making non-prescription
drugs non-qualifying distributions from
tax-preferred accounts.
Sec. 4. Treatment of high deductible health plans as qualified health
plan under the Patient Protection and
Affordable Care Act.
Sec. 5. Repeal of limitation on health flexible spending arrangements
under cafeteria plans.
Sec. 6. Saver's credit for contributions to health savings accounts.
Sec. 7. HSA funds for premiums for high deductible health plans.
Sec. 8. Requiring greater coordination between high deductible health
plan administrators and HSA account
administrators so that enrollees can enroll
in both at the same time.
Sec. 9. Special rule for certain medical expenses incurred before
establishment of account.
Sec. 10. Provisions relating to medicare.
Sec. 11. Individuals eligible for veterans benefits for a service-
connected disability.
Sec. 12. Increase the maximum contribution limit to an HSA to match
deductible and out-of-pocket expense
limitation.
Sec. 13. FSA funds may be used for long-term care insurance premiums.
Sec. 14. Individuals eligible for TRICARE.
Sec. 15. Certain physician fees to be treated as medical care.
Sec. 16. Allow both spouses to make catch-up contributions to the same
HSA account.
Sec. 17. High deductible health plans renamed as HSA qualified health
plans.
SEC. 2. REPEAL OF ADDITIONAL TAX FROM DISTRIBUTIONS FROM HSAS AND MSAS.
Section 9004 of the Patient Protection and Affordable Care Act is
hereby repealed, and effective as of the date of the enactment of such
Act the provisions of the Internal Revenue Code of 1986 amended by such
section are amended to read as such provisions would read if such
section had never been enacted.
SEC. 3. REPEAL OF LIMITATION ON DEDUCTIONS MAKING NON-PRESCRIPTION
DRUGS NON-QUALIFYING DISTRIBUTIONS FROM TAX-PREFERRED
ACCOUNTS.
Section 9003 of the Patient Protection and Affordable Care Act is
hereby repealed, and effective as of the date of the enactment of such
Act the provisions of the Internal Revenue Code of 1986 amended by such
section are amended to read as such provisions would read if such
section had never been enacted.
SEC. 4. TREATMENT OF HIGH DEDUCTIBLE HEALTH PLANS AS QUALIFIED HEALTH
PLAN UNDER THE PATIENT PROTECTION AND AFFORDABLE CARE
ACT.
Subparagraph (B) of section 1301(a)(1) of the Patient Protection
and Affordable Care Act is amended by inserting ``or meets the
requirements for a high deductible health plan under section 223(c)(2)
of the Internal Revenue Code of 1986'' after ``section 1302(a)''.
SEC. 5. REPEAL OF LIMITATION ON HEALTH FLEXIBLE SPENDING ARRANGEMENTS
UNDER CAFETERIA PLANS.
Sections 9005 and 10902 of the Patient Protection and Affordable
Care Act are hereby repealed, and effective as of the date of the
enactment of such Act the provisions of the Internal Revenue Code of
1986 amended by such sections are amended to read as such provisions
would read if such sections had never been enacted.
SEC. 6. SAVER'S CREDIT FOR CONTRIBUTIONS TO HEALTH SAVINGS ACCOUNTS.
(a) Allowance of Credit.--Subsection (a) of section 25B of the
Internal Revenue Code of 1986 is amended by inserting ``aggregate
qualified HSA contributions and'' after ``so much of the''.
(b) Qualified HSA Contributions.--Subsection (d) of section 25B of
such Code is amended by redesignating paragraph (2) as paragraph (3)
and by inserting after paragraph (1) the following new paragraph:
``(2) Qualified hsa contributions.--The term `qualified HSA
contribution' means, with respect to any taxable year, a
contribution of the eligible individual to a health savings
account (as defined in section 223(d)(1)) for which a deduction
is allowable under section 223(a) for such taxable year.''.
(c) Conforming Amendment.--The first sentence of section
25B(d)(3)(A) of such Code (as redesignated by subsection (b)) is
amended to read as follows: ``The aggregate qualified retirement
savings contributions determined under paragraph (1) and qualified HSA
contributions determined under paragraph (2) shall be reduced (but not
below zero) by the aggregate distributions received by the individual
during the testing period from any entity of a type to which
contributions under paragraph (1) or paragraph (2) (as the case may be)
may be made.''.
(d) Effective Date.--The amendments made by this section shall
apply to contributions made after December 31, 2013.
SEC. 7. HSA FUNDS FOR PREMIUMS FOR HIGH DEDUCTIBLE HEALTH PLANS.
(a) In General.--Subparagraph (C) of section 223(d)(2) of the
Internal Revenue Code of 1986 is amended by striking ``or'' at the end
of clause (iii), by striking the period at the end of clause (iv) and
inserting ``, or'', and by adding at the end the following:
``(v) a high deductible health plan if--
``(I) such plan is not offered in
connection with a group health plan,
and
``(II) no portion of any premium
(within the meaning of applicable
premium under section 4980B(f)(4)) for
such plan is excludable from gross
income under section 106.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to premiums for a high deductible health plan for periods
beginning after December 31, 2013.
SEC. 8. REQUIRING GREATER COORDINATION BETWEEN HIGH DEDUCTIBLE HEALTH
PLAN ADMINISTRATORS AND HSA ACCOUNT ADMINISTRATORS SO
THAT ENROLLEES CAN ENROLL IN BOTH AT THE SAME TIME.
The Secretary of the Treasury, through the issuance of regulations
or other guidance, shall encourage administrators of health plans and
trustees of health savings accounts to provide for simultaneous
enrollment in high deductible health plans and setup of health savings
accounts.
SEC. 9. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE
ESTABLISHMENT OF ACCOUNT.
(a) In General.--Subsection (d) of section 223 of the Internal
Revenue Code of 1986 is amended by redesignating paragraph (4) as
paragraph (5) and by inserting after paragraph (3) the following new
paragraph:
``(4) Treatment of account established before tax return
due for tax year.--For purposes of this section, if, before the
time prescribed by law for filing the return of tax for a
taxable year (not including extensions thereof), a taxpayer--
``(A) establishes a health savings account,
``(B) makes contributions to a health savings
account on account of such taxable year, or
``(C) makes payments or distributions from a health
savings account for such taxable year,
the health savings account shall be deemed to be established on
the last day of such taxable year and such contributions and
distributions shall be deemed to have been made on account of
such taxable year.''.
(b) Conforming Amendment.--Paragraph (5) of section 223(d) of such
Code, as redesignated by subsection (a), is amended by striking
subparagraph (B) and redesignating subparagraphs (C) through (E) as
subparagraphs (B) through (D), respectively.
(c) Effective Date.--The amendments made by this section shall
apply with respect to health savings accounts established, and
contributions to and distributions from health savings accounts after,
the date of the enactment of this Act.
SEC. 10. PROVISIONS RELATING TO MEDICARE.
(a) Individuals Over Age 65 Only Enrolled in Medicare Part A.--
Section 223(b)(7) of the Internal Revenue Code of 1986 (relating to
contribution limitation on Medicare eligible individuals) is amended by
adding at the end the following new sentence: ``This paragraph shall
not apply to any individual during any period the individual's only
entitlement to such benefits is an entitlement to hospital insurance
benefits under part A of title XVIII of such Act pursuant to an
enrollment for such hospital insurance benefits under section 226(a)(1)
of such Act.''.
(b) Medicare Beneficiaries Participating in Medicare Advantage MSA
May Contribute Their Own Money to Their MSA.--Subsection (b) of section
138 of such Code is amended by striking paragraph (2) and by
redesignating paragraphs (3) and (4) as paragraphs (2) and (3),
respectively.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 11. INDIVIDUALS ELIGIBLE FOR VETERANS BENEFITS FOR A SERVICE-
CONNECTED DISABILITY.
(a) In General.--Section 223(c)(1) of the Internal Revenue Code of
1986 (defining eligible individual) is amended by adding at the end the
following new subparagraph:
``(C) Special rule for individuals eligible for
certain veterans benefits.--For purposes of
subparagraph (A)(ii), an individual shall not be
treated as covered under a health plan described in
such subparagraph merely because the individual
receives periodic hospital care or medical services for
a service-connected disability under any law
administered by the Secretary of Veterans Affairs but
only if the individual is not eligible to receive such
care or services for any condition other than a
service-connected disability.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 12. INCREASE THE MAXIMUM CONTRIBUTION LIMIT TO AN HSA TO MATCH
DEDUCTIBLE AND OUT-OF-POCKET EXPENSE LIMITATION.
(a) Self-Only Coverage.--Subparagraph (A) of section 223(b)(2) of
the Internal Revenue Code of 1986 is amended by striking ``$2,250'' and
inserting ``the amount in effect under subsection (c)(2)(A)(ii)(I)''.
(b) Family Coverage.--Subparagraph (B) of section 223(b)(2) of such
Code is amended by striking ``$4,500'' and inserting ``the amount in
effect under subsection (c)(2)(A)(ii)(II)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 13. FSA FUNDS MAY BE USED FOR LONG-TERM CARE INSURANCE PREMIUMS.
(a) In General.--Subsection (c) of section 106 of the Internal
Revenue Code of 1986 is amended by redesignating paragraph (2) as
paragraph (3) and by amending so much of such subsection as precedes
such paragraph (3) to read as follows:
``(c) Long-Term Care Benefits Provided Through Flexible Spending
Arrangements.--
``(1) In general.--Effective on and after January 1, 2013,
gross income of an employee shall not include employer-provided
coverage for qualified long-term care services (as defined in
section 7702B(c)) to the extent that such coverage is provided
through a flexible spending or similar arrangement.
``(2) Premiums for long-term care.--Qualified medical
expenses for which reimbursement may be made by distributions
from a flexible spending arrangement shall include amounts paid
for long-term care coverage.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2013.
SEC. 14. INDIVIDUALS ELIGIBLE FOR TRICARE.
(a) In General.--Section 223(c)(1) of the Internal Revenue Code of
1986 (defining eligible individual), as amended by section 11, is
amended by adding at the end the following new subparagraph:
``(D) Special rule for individuals eligible for
assistance under tricare.--For purposes of subparagraph
(A)(ii), an individual shall not be treated as covered
under a health plan described in such subparagraph
merely because the individual is eligible to receive
hospital care, medical services, or prescription drugs
under TRICARE Extra or TRICARE Standard and such
individual is not enrolled in TRICARE Prime.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 15. CERTAIN PHYSICIAN FEES TO BE TREATED AS MEDICAL CARE.
(a) In General.--Subsection (d) of section 213 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
``(12) Pre-paid physician fees.--The term `medical care'
shall include amounts paid by patients to their primary
physician in advance for the right to receive medical services
on an as-needed basis.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 16. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CONTRIBUTIONS TO THE SAME
HSA ACCOUNT.
(a) In General.--Paragraph (3) of section 223(b) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(C) Special rule where both spouses are eligible
individuals with 1 account.--If--
``(i) an individual and the individual's
spouse have both attained age 55 before the
close of the taxable year, and
``(ii) the spouse is not an account
beneficiary of a health savings account as of
the close of such year,
the additional contribution amount shall be 200 percent
of the amount otherwise determined under subparagraph
(B).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 17. HIGH DEDUCTIBLE HEALTH PLANS RENAMED AS HSA QUALIFIED HEALTH
PLANS.
(a) In General.--The following sections of the Internal Revenue
Code of 1986 are each amended by striking ``high deductible health
plan'' each place it appears and inserting ``HSA qualified health
plan'':
(1) Section 26(b)(2)(S).
(2) Paragraphs (3) and (5)(B)(ii) of section 106(e).
(3) Section 223.
(4) Section 408(d)(9).
(b) Special Rules.--The amendments made by this section, the matter
being inserted shall bear the same case, number, font, and font size as
the matter being replaced.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Health.
Referred to the Subcommittee on Health.
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