[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2835 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2835

  To amend the Internal Revenue Code of 1986 to allow the purchase of 
     health insurance with pre-tax dollars, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 9, 2008

 Mr. DeMint (for himself, Mr. Kyl, Mr. Burr, Mr. Coburn, Mr. Isakson, 
Mr. Vitter, Mr. Inhofe, Mr. Graham, Mr. Chambliss, Mrs. Hutchison, Mr. 
    Corker, Mr. Martinez, Mr. Craig, and Mr. Thune) 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 the purchase of 
     health insurance with pre-tax dollars, 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. ABOVE-THE-LINE DEDUCTION FOR HEALTH INSURANCE PREMIUMS.

    (a) In General.--Section 62(a) of the Internal Revenue Code of 1986 
(defining adjusted gross income) is amended by inserting after 
paragraph (21) the following new paragraph:
            ``(22) Health insurance payments.--
                    ``(A) In general.--Any amount allowable as a 
                deduction under section 213 (determined without regard 
                to any income limitation under subsection (a) thereof) 
                by reason of subsection (d)(1)(D) thereof for qualified 
                health insurance.
                    ``(B) Qualified health insurance.--For purposes of 
                this paragraph--
                            ``(i) In general.--The term `qualified 
                        health insurance' means insurance which 
                        constitutes medical care as defined in 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.
                            ``(ii) Exclusion of certain other 
                        contracts.--Such term shall not include 
                        insurance if a substantial portion of its 
                        benefits are excepted benefits (as defined in 
                        section 9832(c)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.

SEC. 2. USE OF HEALTH SAVINGS ACCOUNTS FOR NON-GROUP HIGH DEDUCTIBLE 
              HEALTH PLAN PREMIUMS.

    (a) In General.--Section 223(d)(2)(C) of the Internal Revenue Code 
of 1986 (relating to exceptions) is amended by striking ``or'' at the 
end of clause (iii), by striking the period at the end of clause (iv) 
and inserting ``, or'', and by adding at the end the following new 
clause:
                            ``(v) a high deductible health plan, other 
                        than a group health plan (as defined in section 
                        5000(b)(1)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.
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