[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3628 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3628

   To amend the Internal Revenue Code of 1986 to allow individuals a 
       deduction for amounts paid for insurance for medical care.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 1998

  Mr. Green 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 allow individuals a 
       deduction for amounts paid for insurance for medical care.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEDUCTION FOR AMOUNTS PAID FOR INSURANCE FOR MEDICAL CARE.

    (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 222 as 
section 223 and by inserting after section 221 the following new 
section:

``SEC. 222. INSURANCE FOR MEDICAL CARE.

    ``(a) Deduction Allowed.--
            ``(1) In general.--In the case of an individual, there 
        shall be allowed as a deduction for any taxable year an amount 
        equal to the applicable percentage of the amount paid during 
        the taxable year for insurance (including amounts paid as 
        premiums under part B of title XVIII of the Social Security 
        Act, relating to supplementary medical insurance for the aged) 
        covering medical care (as defined in section 213(d)(1)) or for 
        any qualified long-term care insurance contract (as defined in 
        section 7702B(b)) for the taxpayer, and his spouse and 
        dependents.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage shall be determined under the 
        following table:

        ``For taxable years beginning
                                                         The applicable
          in calendar year--                            percentage is--
            1999...............................................    45  
            2000 and 2001......................................    50  
            2002...............................................    60  
            2003 through 2005..................................    80  
            2006...............................................    90  
            2007 and thereafter................................  100.  
    ``(b) Coordination of Deduction.--No amount taken into account 
under subsection (a) shall be taken into account in computing the 
amount allowable to the taxpayer as a deduction under section 162(l) or 
213(a).
    ``(c) Coordination With Exclusion.--No amount excluded from income 
under section 125 shall be taken into account under subsection (a).''.
    (b) Deduction Allowed if Individual Does Not Itemize.--Subsection 
(a) of section 62 of the Internal Revenue Code of 1986 (relating to 
general rule for adjusted gross income defined) is amended by inserting 
after paragraph (17) the following new paragraph:
            ``(18) Insurance for medical care.--The deduction allowed 
        by section 222.''.
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 222 and inserting the following new items:

                              ``Sec. 222. Insurance for medical care.
                              ``Sec. 223. Cross reference.''.
    (d) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1998.
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