[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 37 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                 H. R. 37

  To amend the Internal Revenue Code of 1986 to allow a deduction for 
  premiums for high deductible health plans required with respect to 
                        health savings accounts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 2005

  Mr. King of Iowa (for himself, Ms. Harris, Mr. Paul, Mr. Rogers of 
Michigan, Mr. Sessions, Mr. Burgess, Mr. Weldon of Florida, Mr. Terry, 
 Mr. Miller of Florida, Mr. Garrett of New Jersey, Mr. Sam Johnson of 
Texas, and Mr. Kline) 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 
  premiums for high deductible health plans required with respect to 
                        health savings accounts.

    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 2005''.

SEC. 2. DEDUCTION OF PREMIUMS FOR HIGH DEDUCTIBLE HEALTH PLANS.

    (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 224 as 
section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. PREMIUMS FOR HIGH DEDUCTIBLE HEALTH PLANS.

    ``(a) Deduction Allowed.--In the case of an individual, there shall 
be allowed as a deduction for the taxable year the aggregate amount 
paid by such individual as premiums under a high deductible health plan 
with respect to months during such year for which such individual is an 
eligible individual with respect to such health plan.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Eligible individual.--The term `eligible individual' 
        has the meaning given such term by section 223(c)(1).
            ``(2) High deductible health plan.--The term `high 
        deductible health plan' has the meaning given such term by 
        section 223(c)(2).
    ``(c) Special Rules.--
            ``(1) Deduction allowable for only 1 plan.--For purposes of 
        this section, in the case of an individual covered by more than 
        1 high deductible health plan for any month, the individual may 
        only take into account amounts paid for 1 of such plans for 
        such month.
            ``(2) Employer provided coverage.--
                    ``(A) In general.--No deduction shall be allowed to 
                an individual under subsection (a) for any amount paid 
                for coverage under a high deductible health plan for a 
                month if that individual participates in any coverage 
                for such month that is excluded (in whole or in part) 
                from the gross income of the individual or the 
                individual's spouse under section 106.
                    ``(B) Cafeteria plans, etc.--Employer contributions 
                to a cafeteria plan or a flexible spending or similar 
                arrangement which are excluded from gross income under 
                section 106 shall be treated for purposes of this 
                section as paid by the employer.
            ``(3) Contributions to health savings account required.--A 
        deduction shall not be allowed under subsection (a) for a 
        taxable year with respect to such individual if such individual 
        is not allowed a deduction under section 223 for such taxable 
        year.
            ``(4) Medical and health savings accounts.--Subsection (a) 
        shall not apply with respect to any amount which is paid or 
        distributed out of an Archer MSA or a health savings account 
        which is not included in gross income under section 220(f) or 
        223(f), as the case may be.
            ``(5) 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.
            ``(6) 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.''.
    (b) Deduction Allowed Whether or not Individual Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting before the flush sentence at the end the following new 
paragraph:
            ``(21) Premiums for high deductible health plans.--The 
        deduction allowed by section 224.''.
    (c) 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. 224. Premiums for high deductible health plans.
``Sec. 225. Cross reference.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
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