[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 218 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 218

  To amend the Internal Revenue Code of 1986 to allow a deduction for 
   amounts paid for health insurance and prescription drug costs of 
                              individuals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 2005

 Mr. Stearns 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 a deduction for 
   amounts paid for health insurance and prescription drug 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 Care Tax Deduction Act of 
2005''.

SEC. 2. DEDUCTION FOR HEALTH INSURANCE AND PRESCRIPTION DRUG COSTS OF 
              INDIVIDUALS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 224 
as section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. HEALTH INSURANCE AND PRESCRIPTION DRUG COSTS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction an amount equal to the sum of the amount paid 
during the taxable year for--
            ``(1) insurance which constitutes medical care for the 
        taxpayer and the taxpayer's spouse and dependents, plus
            ``(2) unreimbursed prescription drug expenses paid by the 
        taxpayer for the taxpayer and the taxpayer's spouse and 
        dependents.
    ``(b) Limitations and Special Rules.--
            ``(1) Employer contributions to cafeteria plans, flexible 
        spending arrangements, and medical savings accounts.--Employer 
        contributions to a cafeteria plan, a flexible spending or 
        similar arrangement, a medical savings account, or a health 
        savings account which are excluded from gross income under 
        section 106 shall be treated for purposes of subsection (a) as 
        paid by the employer.
            ``(2) Deduction not available for payment of ancillary 
        coverage premiums.--Any amount paid as a premium for insurance 
        which provides for--
                    ``(A) coverage for accidents, disability, dental 
                care, vision care, or a specified illness, or
                    ``(B) making payments of a fixed amount per day (or 
                other period) by reason of being hospitalized,
        shall not be taken into account under subsection (a).
            ``(3) Coordination with deduction for health insurance of 
        self-employed individuals.--The amount taken into account by 
        the taxpayer in computing the deduction under section 162(l) 
        shall not be taken into account under this section.
            ``(4) Coordination with medical expense deduction.--The 
        amount taken into account by the taxpayer in computing the 
        deduction under this section shall not be taken into account 
        under section 213.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Medical care.--
                    ``(A) In general.--The term `medical care' has the 
                meaning given such term by section 213(d) without 
                regard to--
                            ``(i) paragraph (1)(C) thereof, and
                            ``(ii) so much of paragraph (1)(D) thereof 
                        as relates to qualified long-term care 
                        insurance contracts.
                    ``(B) Exclusion of certain other contracts.--The 
                term `medical care' shall not include insurance if a 
                substantial portion of its benefits are excepted 
                benefits (as defined in section 9832(c)).
            ``(2) Unreimbursed prescription drug expenses.--The term 
        `unreimbursed prescription drug expenses' means amounts paid or 
        incurred for a prescribed drug (as defined by section 
        213(d)(3)) the cost of which to the taxpayer is not reimbursed 
        by insurance or otherwise.
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out this section.''.
    (b) Deduction Allowed Whether or not Taxpayer Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting after paragraph (19) the following new item:
            ``(20) Health insurance and prescription drug costs.--The 
        deduction allowed by section 223.''.
    (c) Clerical Amendments.--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. 224. Health insurance and prescription drug costs.
``Sec. 225. Cross reference.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.
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