[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4801 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4801

  To amend the Internal Revenue Code of 1986 to provide a 100 percent 
        deduction for the health insurance costs of individuals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2002

  Mr. Chabot 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 provide a 100 percent 
        deduction for the health insurance costs of individuals.

    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 Insurance Affordability Act 
of 2002''.

SEC. 2. DEDUCTION FOR QUALIFIED HEALTH INSURANCE COSTS OF EMPLOYEES AND 
              SELF-EMPLOYED INDIVIDUALS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions) is amended by redesignating section 223 as section 224 and 
by inserting after section 222 the following new section:

``SEC. 223. COSTS OF QUALIFIED HEALTH INSURANCE.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction an amount equal to the amount paid during the 
taxable year for coverage for the taxpayer, his spouse, and dependents 
under qualified health insurance.
    ``(b) Qualified Health Insurance.--For purposes of this section, 
the term `qualified health insurance' means insurance which constitutes 
medical care; except that such term shall not include any insurance if 
substantially all of its coverage is of excepted benefits described in 
section 9832(c).
    ``(c) Special Rules.--
            ``(1) Coordination with medical deduction, etc.--Any amount 
        paid by a taxpayer for insurance to which subsection (a) 
        applies shall not be taken into account in computing the amount 
        allowable to the taxpayer as a deduction under section 162(l) 
        or 213(a).
            ``(2) Deduction not allowed for self-employment tax 
        purposes.--The deduction allowable by reason of this section 
        shall not be taken into account in determining an individual's 
        net earnings from self-employment (within the meaning of 
        section 1402(a)) for purposes of chapter 2.''.
    (b) Deduction for Health Insurance Costs of Self-Employed 
Individuals Increased.--
            (1) In general.--Section 162(l)(1) of such Code (relating 
        to special rules for health insurance costs of self-employed 
        individuals) is amended to read as follows:
            ``(1) Allowance of deduction.--In the case of an individual 
        who is an employee within the meaning of section 401(c)(1), 
        there shall be allowed as a deduction under this section an 
        amount equal to the amount paid during the taxable year for 
        insurance which constitutes medical care for the taxpayer, the 
        taxpayer's spouse, and dependents.''.
            (2) Clarification of limitations on other coverage.--The 
        first sentence of section 162(l)(2)(B) (relating to other 
        coverage) is amended to read as follows: ``Paragraph (1) shall 
        not apply to any taxpayer for any calendar month for which the 
        taxpayer participates in any subsidized health plan maintained 
        by any employer (other than an employer described in section 
        401(c)(4)) of the taxpayer or the spouse of the taxpayer.
    (c) Deduction Allowed in Computing Adjusted Gross Income.--
Subsection (a) of section 62 of such Code is amended by inserting after 
paragraph (18) the following new paragraph:
            ``(19) Costs of qualified health insurance.--The deduction 
        allowed by section 223.''.
    (d) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by striking the last 
item and inserting the following new items:

                              ``Sec. 223. Costs of qualified health 
                                        insurance.
                              ``Sec. 224. Cross reference.''
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.
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