[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 145 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 145

   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

                            January 6, 1999

Mr. Green of Texas 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 covering medical care or for any 
        qualified long-term care insurance contract 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.  
            ``(3) Definitions.--For purposes of paragraph (1)--
                    ``(A) Insurance.--The term `insurance' includes 
                amounts paid as premiums under part B of title XVIII of 
                the Social Security Act (relating to supplementary 
                medical insurance for the aged).
                    ``(B) Medical care.--The term `medical care' has 
                the meaning given to such term by section 213(d)(1).
                    ``(C) Qualified long-term care insurance 
                contract.--The term `qualified long-term care insurance 
                contract' has the meaning given to such term by section 
                7702B(b).
    ``(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 such Code (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.
                                 <all>