[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 657 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 657

 To amend the Internal Revenue Code of 1986 to expand the availability 
          of medical savings accounts, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 18, 1999

  Mr. Inhofe 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 expand the availability 
          of medical 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 ``Medical Savings Account Expansion 
Act of 1999''.

SEC. 2. REPEAL OF RESTRICTIONS ON TAXPAYERS HAVING MEDICAL SAVINGS 
              ACCOUNTS.

    (a) Repeal of Numerical Limitations and Termination.--
            (1) In general.--Section 220 of the Internal Revenue Code 
        of 1986 (relating to medical savings accounts) is amended by 
        striking subsections (i) and (j).
            (2) Medicare+choice.--Section 138 of such Code (relating to 
        Medicare+Choice MSA) is amended by striking subsection (f).
            (3) Conforming amendment.--Section 220(c)(1) of such Code 
        is amended by striking subparagraph (D).
    (b) Repeal of Restrictions on Individuals Who Have Medical Savings 
Accounts.--
            (1) In general.--Section 220(c)(1)(A) of the Internal 
        Revenue Code of 1986 (relating to eligible individual) is 
        amended by inserting ``and'' at the end of clause (i), by 
        striking ``, and'' at the end of clause (ii)(II) and inserting 
        a period, and by striking clause (iii).
            (2) Conforming amendments.--
                    (A) Section 220(b) of such Code is amended by 
                striking paragraph (4) and by redesignating paragraphs 
                (5), (6), and (7) as paragraphs (4), (5), and (6), 
                respectively.
                    (B) Section 220(c)(1) of such Code, as amended by 
                subsection (a)(3), is amended by striking subparagraph 
                (C).
                    (C) Section 220(c) of such Code is amended by 
                striking paragraph (4) and by redesignating paragraph 
                (5) as paragraph (4).
    (c) Repeal of Restriction on Joint Employer-Employee 
Contributions.--Section 220(b) of the Internal Revenue Code of 1986 
(relating to limitations) is amended by striking paragraph (4), as 
redesignated by subsection (b)(2)(A), and by redesignating paragraphs 
(5) and (6) (as so redesignated) as paragraphs (4) and (5), 
respectively.
    (d) 100 Percent Funding of Account Allowed.--
            (1) In general.--Section 220(b)(2) of the Internal Revenue 
        Code of 1986 (relating to monthly limitation) is amended to 
        read as follows:
            ``(2) Monthly limitation.--The monthly limitation for any 
        month is the amount equal to \1/12\ of the annual deductible of 
        the high deductible health plan of the individual as of the 
        first of such month.''.
            (2) Conforming amendment.--Section 220(d)(1)(A) of such 
        Code is amended by striking ``75 percent of''.
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to months beginning 
        after the date of enactment of this Act.
            (2) Compensation limit repeal.--The amendments made by 
        subsection (b)(2)(A) shall apply to taxable years beginning 
        after December 31, 1999.

SEC. 3. REDUCTION IN HIGH DEDUCTIBLE PLAN MINIMUM ANNUAL DEDUCTIBLE.

    (a) In General.--Section 220(c)(2)(A) of the Internal Revenue Code 
of 1986 (relating to high deductible health plan) is amended--
            (1) by striking ``$1,500'' in clause (i) (relating to self-
        only coverage) and inserting ``$1,000'', and
            (2) by striking ``$3,000'' in clause (ii) (relating to 
        family coverage) and inserting ``$2,000''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2000.
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