[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3655 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3655

    To amend the Internal Revenue Code of 1986 to allow individuals 
 eligible for veterans health benefits to contribute to health savings 
                               accounts.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 13, 2006

 Mr. Craig (for himself and Mr. Coburn) 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 allow individuals 
 eligible for veterans health benefits to contribute 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. ALLOWANCE OF INDIVIDUALS ELIGIBLE FOR VETERANS HEALTH 
              BENEFITS TO CONTRIBUTE TO HEALTH SAVINGS ACCOUNTS.

    (a) In General.--Section 223(c)(1) of the Internal Revenue Code of 
1986 (defining eligible individual) is amended by adding at the end the 
following new subparagraph:
                    ``(C) Special rule for individuals eligible for 
                veterans health benefits.--For purposes of subparagraph 
                (A)(ii), an individual shall not be treated as covered 
                under a health plan described in such subparagraph 
                merely because the individual receives periodic 
                hospital care or medical services under any law 
                administered by the Secretary of Veterans Affairs.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2006.
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