II 109th CONGRESS 2d Session S. 3655 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.

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.