[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1360 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1360

To amend the Internal Revenue Code of 1986 to extend the exclusion from 
 gross income for employer-provided health coverage to designated plan 
          beneficiaries of employees, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 30, 2005

   Mr. Smith (for himself, Mr. Schumer, Mr. Jeffords, and Mr. Wyden) 
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 extend the exclusion from 
 gross income for employer-provided health coverage to designated plan 
          beneficiaries of employees, 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 ``Domestic Partner Health Benefits 
Equity Act''.

SEC. 2. EXTENSION OF EXCLUSION FOR AMOUNTS RECEIVED BY AN EMPLOYEE 
              THROUGH ACCIDENT OR HEALTH INSURANCE AS REIMBURSEMENT FOR 
              EXPENSES FOR MEDICAL CARE.

    (a) In General.--Section 105(b) of the Internal Revenue Code of 
1986 (relating to amounts expended for medical care) is amended by 
adding at the end the following new sentence: ``For the purposes of 
this subsection, the term `dependents' shall include any individual who 
is an eligible beneficiary as defined in the employer's accident or 
health insurance arrangement.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2005.

SEC. 3. EXTENSION OF EXCLUSION FOR CONTRIBUTIONS BY EMPLOYER TO 
              ACCIDENT AND HEALTH PLANS.

    (a) In General.--Section 106 of the Internal Revenue Code of 1986 
(relating to contributions by employer to accident and health plans) is 
amended by adding at the end the following new subsection:
    ``(e) Coverage Provided for Eligible Beneficiaries of Employees.--
Subsection (a) shall not fail to apply by reason of the coverage of an 
eligible beneficiary as defined in the employer's accident or health 
plan.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2005.

SEC. 4. EXTENSION OF DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-
              EMPLOYED INDIVIDUALS.

    (a) In General.--Paragraph (1) of section 162(l) of the Internal 
Revenue Code of 1986 (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, his 
        spouse, and dependents. For the purposes of this subparagraph, 
        the term `dependents' shall include any individual who is an 
        eligible beneficiary as defined in the insurance arrangement 
        which constitutes medical care.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2005.

SEC. 5. EXTENSION OF SICK AND ACCIDENT BENEFITS PROVIDED TO MEMBERS OF 
              A VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION AND THEIR 
              DEPENDENTS.

    (a) In General.--Section 501(c)(9) of the Internal Revenue Code of 
1986 (relating to list of exempt organizations) is amended by adding at 
the end the following new sentence: ``For purposes of providing for the 
payment of sick and accident benefits to members of such an association 
and their dependents, the term `dependents' shall include any 
individual who is an eligible beneficiary as determined under the terms 
of a medical benefit, health insurance, or other program under which 
members and their dependents are entitled to sick and accident 
benefits.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2005.

SEC. 6. AMENDMENTS TO VARIOUS DEFINITIONS.

    (a) FICA.--
            (1) In general.--Section 3121 of the Internal Revenue Code 
        of 1986 (relating to definitions) is amended by adding at the 
        end the following new subsection:
    ``(z) Exclusion of Certain Amounts From Wages.--For purposes of 
applying subsection (a) with respect to expenses described in paragraph 
(2)(B) of such subsection, the term `dependents' shall include any 
individual who is an eligible beneficiary as defined in the plan or 
system established by the employer.''.
            (2) Conforming amendment.--Section 209 of the Social 
        Security Act (42 U.S.C. 409) is amended by adding at the end 
        the following new subsection:
    ``(l) For purposes of applying subsection (a) with respect to 
medical or hospitalization expenses described in paragraph (2) thereof, 
the term `dependents' shall include any individual who is an eligible 
beneficiary as defined in the plan or system established by the 
employer.''.
    (b) Railroad Retirement.--
            (1) In general.--Section 3231(e) of the Internal Revenue 
        Code of 1986 (defining compensation) is amended by adding at 
        the end the following new paragraph:
            ``(13) Treatment of certain dependents.--For purposes of 
        applying this subsection with respect to medical or 
        hospitalization expenses described in paragraph (1)(I), the 
        term `dependents' shall include any individual who is an 
        eligible beneficiary as defined in the plan or system 
        established by the employer.''.
            (2) Conforming amendment.--Section 1(h) of the Railroad 
        Retirement Act of 1974 (45 U.S.C. 231(h)) is amended by adding 
        at the end the following new paragraph:
    ``(9) For purposes of applying this subsection, with respect to 
medical or hospitalization expenses described in paragraph (6)(v), the 
term `dependents' shall include any individual who is an eligible 
beneficiary as defined in the plan or system established by the 
employer.''.
    (c) FUTA.--Section 3306 of the Internal Revenue Code of 1986 
(relating to definitions) is amended by adding at the end the following 
new subsection:
    ``(v) Exclusion of Certain Amounts From Wages.--For purposes of 
applying subsection (b) with respect to expenses described in paragraph 
(2)(B) of such subsection, the term `dependents' shall include any 
individual who is an eligible beneficiary as defined in the plan or 
system established by the employer.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to remuneration paid after December 31, 2005.
                                 <all>