Health Savings Account Expansion Act of 2021
This bill permits individuals who are not enrolled in a high deductible health plan to participate in health savings accounts (HSAs). It also increases the allowable amount of the deduction for contributions to HSAs.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2099 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 2099
To amend the Internal Revenue Code of 1986 to allow individuals who are
not enrolled in a high deductible health plan to have access to health
savings accounts, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 17, 2021
Mr. Sasse introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow individuals who are
not enrolled in a high deductible health plan to have access 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.
This Act may be cited as the ``Health Savings Account Expansion Act
of 2021''.
SEC. 2. EXPANSION OF HEALTH SAVINGS ACCOUNT ELIGIBILITY.
(a) In General.--Section 223 of the Internal Revenue Code of 1986
is amended--
(1) in subsection (b)--
(A) in paragraph (2)--
(i) in subparagraph (A), by striking ``high
deductible health plan as of the first day of
such month, $2,250'' and inserting ``qualified
health plan as of the first day of such month,
$5,000'', and
(ii) in subparagraph (B), by striking
``high deductible health plan as of the first
day of such month, $4,500'' and inserting
``qualified health plan as of the first day of
such month, twice the dollar amount under
subparagraph (A)'', and
(B) in paragraph (8)--
(i) in subparagraph (A)(ii), by striking
``high deductible health plan'' and inserting
``qualified health plan'', and
(ii) in the heading of subparagraph (B), by
striking ``high deductible health plan'' and
inserting ``qualified health plan'',
(2) in subsection (c)--
(A) in paragraph (1)(A), by striking ``high
deductible health plan'' each place it appears and
inserting ``qualified health plan'', and
(B) in paragraph (2)--
(i) in the heading, by striking ``High
deductible health plan'' and inserting
``Qualified health plan'',
(ii) by amending subparagraph (A) to read
as follows:
``(A) In general.--The term `qualified health plan'
means a health plan that provides a level of coverage
that is designed to provide benefits that are
actuarially equivalent to not greater than 80 percent
of the full actuarial value of the benefits provided
under the plan.'',
(iii) by amending subparagraph (C) to read
as follows:
``(C) Absence of deductible.--A health plan shall
not fail to be treated as a qualified health plan by
reason of failing to have a deductible for any care,
services, or coverage, such as preventive care, primary
care, or prescription drug coverage.'',
(iv) by striking subparagraph (D),
(v) by striking ``high deductible health
plan'' each place it appears in subparagraphs
(E) and (F) and inserting ``qualified health
plan'', and
(vi) by redesignating subparagraphs (E) and
(F), as amended by clause (v), as subparagraphs
(D) and (E), respectively,
(3) in subsection (g)(1)--
(A) by striking ``Each dollar amount in subsections
(b)(2) and (c)(2)(A)'' and inserting ``The dollar
amount in subsection (b)(2)(A)'',
(B) by amending subparagraph (B) to read as
follows:
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
such taxable year begins, determined by substituting
`2003' for `2016' in subparagraph (A)(ii) thereof.'',
and
(C) by striking ``adjusted amounts under
subsections (b)(2) and (c)(2)(A)'' and inserting
``adjusted amounts under subsection (b)(2)'', and
(4) in subsection (h)(2), by striking ``high deductible
health plan'' and inserting ``qualified health plan''.
(b) Conforming Amendments.--
(1) Section 26(b)(2)(S) of the Internal Revenue Code of
1986 is amended by striking ``high deductible health plan'' and
inserting ``qualified health plan''.
(2) Section 106(e) of such Code is amended--
(A) in the heading of paragraph (3), by striking
``high deductible health plan'' and inserting
``qualified health plan'', and
(B) in paragraph (5)(B)(ii), by striking ``high
deductible health plan'' and inserting ``qualified
health plan''.
(3) Section 408(d)(9) of such Code is amended--
(A) in subparagraph (C)--
(i) in clause (i)(I), by striking ``high
deductible health plan'' and inserting
``qualified health plan'', and
(ii) in clause (ii)(II), by striking ``high
deductible health plan'' each place it appears
and inserting ``qualified health plan'', and
(B) in the heading of subparagraph (D), by striking
``high deductible health plan'' and inserting
``qualified health plan''.
(4) Section 1906A(b)(2)(B) of the Social Security Act (42
U.S.C. 1396e-1(b)(2)(B)) is amended by striking ``high
deductible health plan'' and inserting ``qualified health
plan''.
(5) Section 1938(a)(3) of the Social Security Act (42
U.S.C. 1396u-8(a)(3)) is amended by inserting ``(as in effect
on the day before the date of the enactment of the Health
Savings Account Expansion Act of 2021)'' after ``section
223(c)(2)(C) of the Internal Revenue Code of 1986''.
(6) Section 2105(c)(10)(B)(ii)(II) of the Social Security
Act (42 U.S.C. 1397ee(c)(10)(B)(ii)(II)) is amended by striking
``high deductible health plan'' and inserting ``qualified
health plan''.
(7) Section 1101(c)(2)(B)(ii) of the Patient Protection and
Affordable Care Act (42 U.S.C. 18001(c)(2)(B)(ii)) is amended
by striking ``section 223(c)(2)'' and inserting ``section
223(b)(2)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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