[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2499 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2499
To amend the Internal Revenue Code of 1986 to extend the exclusion from
gross income for employer-provided health coverage for employees'
spouses and dependent children to coverage provided to other eligible
designated beneficiaries of employees.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 25, 2013
Mr. McDermott (for himself, Ms. Ros-Lehtinen, Mr. Blumenauer, and Mr.
Hanna) 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 extend the exclusion from
gross income for employer-provided health coverage for employees'
spouses and dependent children to coverage provided to other eligible
designated beneficiaries of employees.
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 ``Tax Parity for Health Plan
Beneficiaries Act of 2013''.
SEC. 2. APPLICATION OF ACCIDENT AND HEALTH PLANS TO ELIGIBLE
BENEFICIARIES.
(a) Exclusion of Contributions.--Section 106 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subsection:
``(g) Coverage Provided for Eligible Beneficiaries of Employees.--
``(1) In general.--Subsection (a) shall apply with respect
to employer-provided coverage under an accident or health plan
for any eligible beneficiary of the employee.
``(2) Eligible beneficiary.--For purposes of this
subsection, the term `eligible beneficiary' means any
individual who is eligible to receive benefits or coverage
under an accident or health plan.''.
(b) Exclusion of Amounts Expended for Medical Care.--The first
sentence of section 105(b) of the Internal Revenue Code of 1986 is
amended--
(1) by striking ``and any child'' and inserting ``any
child'', and
(2) by inserting ``, and any eligible beneficiary (within
the meaning of section 106(g)) with respect to the taxpayer''
after ``age 27''.
(c) Payroll Taxes.--
(1) Section 3121(a)(2) of the Internal Revenue Code of 1986
is amended--
(A) by striking ``or any of his dependents'' in the
matter preceding subparagraph (A) and inserting ``, any
of his dependents, or any eligible beneficiary (within
the meaning of section 106(g)) with respect to the
employee'',
(B) by striking ``or any of his dependents,'' in
subparagraph (A) and inserting ``, any of his
dependents, or any eligible beneficiary (within the
meaning of section 106(g)) with respect to the
employee,'', and
(C) by striking ``and their dependents'' both
places it appears and inserting ``and such employees'
dependents and eligible beneficiaries (within the
meaning of section 106(g))''.
(2) Section 3231(e)(1) of such Code is amended--
(A) by striking ``or any of his dependents'' and
inserting ``, any of his dependents, or any eligible
beneficiary (within the meaning of section 106(g)) with
respect to the employee,'', and
(B) by striking ``and their dependents'' both
places it appears and inserting ``and such employees'
dependents and eligible beneficiaries (within the
meaning of section 106(g))''.
(3) Section 3306(b)(2) of such Code is amended--
(A) by striking ``or any of his dependents'' in the
matter preceding subparagraph (A) and inserting ``, any
of his dependents, or any eligible beneficiary (within
the meaning of section 106(g)) with respect to the
employee,'',
(B) by striking ``or any of his dependents'' in
subparagraph (A) and inserting ``, any of his
dependents, or any eligible beneficiary (within the
meaning of section 106(g)) with respect to the
employee'', and
(C) by striking ``and their dependents'' both
places it appears and inserting ``and such employees'
dependents and eligible beneficiaries (within the
meaning of section 106(g))''.
(4) Section 3401(a) of such Code is amended by striking
``or'' at the end of paragraph (22), by striking the period at
the end of paragraph (23) and inserting ``; or'', and by
inserting after paragraph (23) the following new paragraph:
``(24) for any payment made to or for the benefit of an
employee or any eligible beneficiary (within the meaning of
section 106(g)) if at the time of such payment it is reasonable
to believe that the employee will be able to exclude such
payment from income under section 106 or under section 105 by
reference in section 105(b) to section 106(g).''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
SEC. 3. EXPANSION OF DEPENDENCY FOR PURPOSES 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 is amended by striking ``and'' at the end of
subparagraph (C), by striking the period at the end of subparagraph (D)
and inserting a comma and by adding at the end the following new
subparagraphs:
``(E) any individual who--
``(i) satisfies the age requirements of
section 152(c)(3)(A),
``(ii) bears a relationship to the taxpayer
described in section 152(d)(2)(H), and
``(iii) meets the requirements of section
152(d)(1)(C), and
``(F) one individual who--
``(i) is at least age 19,
``(ii) bears a relationship to the taxpayer
described in section 152(d)(2)(H), and
``(iii) is not the spouse of the taxpayer
and does not bear any relationship to the
taxpayer described in subparagraphs (A) through
(G) of section 152(d)(2).''.
(b) Conforming Amendment.--Subparagraph (B) of section 162(l)(2) of
such Code is amended by inserting ``, (E), or (F)'' after
``subparagraph (D)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
SEC. 4. EXTENSION TO ELIGIBLE BENEFICIARIES 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 is amended by inserting : ``and any individual who is an eligible
beneficiary (within the meaning of section 106(g)), as determined under
the terms of a medical benefit, health insurance, or other program''
after ``age 27''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2013.
SEC. 5. FLEXIBLE SPENDING ARRANGEMENTS AND HEALTH REIMBURSEMENT
ARRANGEMENTS.
The Secretary of Treasury shall issue guidance of general
applicability within 180 days after the date of the enactment of this
Act providing that medical expenses that otherwise qualify--
(1) for reimbursement from a flexible spending arrangement
under regulations in effect on such date of enactment may be
reimbursed from an employee's flexible spending arrangement,
notwithstanding the fact that such expenses are attributable to
any individual who is not the employee's spouse or dependent
(within the meaning of section 105(b) of the Internal Revenue
Code of 1986) but is an eligible beneficiary (within the
meaning of section 106(g) of such Code) under the flexible
spending arrangement with respect to the employee, and
(2) for reimbursement from a health reimbursement
arrangement under regulations in effect on such date of
enactment may be reimbursed from an employee's health
reimbursement arrangement, notwithstanding the fact that such
expenses are attributable to an individual who is not a spouse
or dependent (within the meaning of section 105(b) of such
Code) but is an eligible beneficiary (within the meaning of
section 106(g) of such Code) under the health reimbursement
arrangement with respect to the employee.
SEC. 6. EXTENSION OF QUALIFIED MEDICAL EXPENSES FROM HEALTH SAVINGS
ACCOUNTS.
(a) In General.--Subparagraph (A) of section 223(d)(2) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``and any dependent'' and inserting ``any
dependent'', and
(2) by inserting ``, and any qualified beneficiary'' after
``thereof)''.
(b) Qualified Beneficiary.--Paragraph (2) of section 223(d) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subparagraph:
``(D) Qualified beneficiary.--For purposes of
subparagraph (A), the term `qualified beneficiary'
means any individual who is described in subparagraph
(D) or (E) of section 162(l)(1).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
SEC. 7. EXTENSION OF FUNDING MECHANISM FOR MEDICAL BENEFITS FOR
RETIREES AND THEIR FAMILIES.
(a) In General.--Section 401(h) of the Internal Revenue Code of
1986 is amended by inserting ``, and any eligible beneficiary (within
the meaning of section 106(g)) of the retired employee'' after ``age
27''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2013.
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