[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3006 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 3006

 To amend the Internal Revenue Code of 1986 to improve health savings 
                   accounts, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 9, 2015

 Mr. Fleming 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 improve health savings 
                   accounts, 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, ETC.

    (a) Short Title.--This Act may be cited as the ``Helping Save 
Americans' Health Care Choices Act of 2015''.
    (b) Table of Sections.--The table of sections for this Act is as 
follows:

Sec. 1. Short title, etc.
Sec. 2. Elimination of requirement that coverage must be under a high 
                            deductible health plan.
Sec. 3. Increase the maximum contribution limit to an HSA.
Sec. 4. Allow both spouses to make catch-up contributions to the same 
                            HSA account.
Sec. 5. HSA funds may be used for health insurance premiums.
Sec. 6. Increased portability of health savings accounts.
Sec. 7. Certain physician fees to be treated as medical care.
Sec. 8. Special rule for certain medical expenses incurred before 
                            establishment of account.
Sec. 9. Medicare recipients made eligible for HSAs.
Sec. 10. FSA funds may be used for long-term care insurance premiums.
Sec. 11. Repeal of limitation on deductions making non-prescription 
                            drugs non-qualifying distributions from 
                            tax-preferred accounts.
Sec. 12. Repeal of additional tax from distributions from HSAs and 
                            MSAs.
Sec. 13. Repeal of limitation on health flexible spending arrangements 
                            under cafeteria plans.

SEC. 2. ELIMINATION OF REQUIREMENT THAT COVERAGE MUST BE UNDER A HIGH 
              DEDUCTIBLE HEALTH PLAN.

    (a) In General.--Section 223(c) of the Internal Revenue Code of 
1986 is amended by striking paragraphs (1) and (2) and inserting the 
following new paragraphs:
            ``(1) Eligible individual.--The term `eligible individual' 
        means, with respect to any month, any individual if such 
        individual is covered under a eligible health plan as of the 
        1st day of such month.
            ``(2) Eligible health plan.--The term `eligible health 
        plan' means any health plan (including membership in a health 
        care sharing ministry as defined in section 5000A(d)(2)(B)) 
        other than coverage consisting solely of excepted benefits as 
        defined in section 9832(c).''.
    (b) Conforming Amendments.--
            (1) In general.--The following sections of the Internal 
        Revenue Code of 1986 are each amended by striking ``high 
        deductible health plan'' each place it appears, as the case may 
        be, and inserting ``eligible health plan'':
                    (A) Section 26(b)(2)(S).
                    (B) Paragraphs (3) and (5)(B)(ii) of section 
                106(e).
                    (C) Section 223.
                    (D) Section 408(d)(9).
            (2) Special rules.--With respect to the amendments made by 
        this section, the matter being inserted shall bear the same 
        case, number, font, and font size as the matter being replaced.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. INCREASE THE MAXIMUM CONTRIBUTION LIMIT TO AN HSA.

    (a) Self-Only Coverage.--Section 223(b)(2)(A) of the Internal 
Revenue Code of 1986 is amended by striking ``$2,250'' and inserting 
``$6,450''.
    (b) Family Coverage.--Section 223(b)(2)(B) of such Code is amended 
by striking ``$4,500'' and inserting ``$12,900''.
    (c) Inflation Adjustment.--Section 223(g)(1) of such Code is 
amended--
            (1) by striking ``subsections (b)(2) and (c)(2)(A)'' and 
        inserting ``subsection (b)(2)'', and
            (2) by amending subparagraph (B) thereof to read as 
        follows:
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins determined by substituting 
                `calendar year 2014' for `calendar year 1992' in 
                subparagraph (B) thereof.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 4. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CONTRIBUTIONS TO THE SAME 
              HSA ACCOUNT.

    (a) In General.--Section 223(b)(3) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(C) Special rule where both spouses are eligible 
                individuals with 1 account.--If--
                            ``(i) an individual and the individual's 
                        spouse have both attained age 55 before the 
                        close of the taxable year, and
                            ``(ii) the spouse is not an account 
                        beneficiary of a health savings account as of 
                        the close of such year,
                the additional contribution amount shall be 200 percent 
                of the amount otherwise determined under subparagraph 
                (B).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 5. HSA FUNDS MAY BE USED FOR HEALTH INSURANCE PREMIUMS.

    (a) In General.--Section 223(d)(2) of the Internal Revenue Code of 
1986 is amended by striking subparagraphs (B) and (C).
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 6. INCREASED PORTABILITY OF HEALTH SAVINGS ACCOUNTS.

    (a) Treatment After Death of Account Beneficiary.--Section 
223(f)(8)(A) of the Internal Revenue Code of 1986 is amended to read as 
follows:
                    ``(A) Treatment if designated beneficiary is family 
                member.--If a surviving spouse or lineal descendant of 
                the spouse or the account beneficiary acquires the 
                account beneficiary's interest in a health savings 
                account by reason of being the designated beneficiary 
                of such account at the death of the account 
                beneficiary, such health savings account shall be 
                treated as if the designated beneficiary were the 
                account beneficiary.''.
    (b) Qualified Medical Expenses.--So much of subparagraph (A) of 
section 223(d)(2) of the Internal Revenue Code of 1986 as precedes 
``Such term'' is amended to read as follows:
                    ``(A) In general.--The term `qualified medical 
                expenses' means amounts paid for medical care (as 
                defined in section 213(d)), but only to the extent such 
                amounts are not compensated for by insurance or 
                otherwise.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 7. CERTAIN PHYSICIAN FEES TO BE TREATED AS MEDICAL CARE.

    (a) In General.--Section 213(d) of the Internal Revenue Code of 
1986 is amended by redesignating paragraph (4) as paragraph (5) and by 
inserting after paragraph (3) the following new paragraph:
            ``(4) Pre-paid physician fees.--The term `medical care' 
        shall include amounts paid by patients to their primary 
        physician in advance for the right to receive medical services 
        on an as-needed basis.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 8. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE 
              ESTABLISHMENT OF ACCOUNT.

    (a) In General.--Section 223(d) of the Internal Revenue Code of 
1986, as amended by the preceding provisions of this Act, is amended by 
redesignating paragraph (5) as paragraph (6) and by inserting after 
paragraph (4) the following new paragraph:
            ``(5) Treatment of account established before tax return 
        due for tax year.--For purposes of this section, if, before the 
        time prescribed by law for filing the return of tax for a 
        taxable year (not including extensions thereof), a taxpayer--
                    ``(A) establishes a health savings account,
                    ``(B) makes contributions to a health savings 
                account on account of such taxable year, or
                    ``(C) makes payments or distributions from a health 
                savings account for such taxable year,
        the health savings account shall be deemed to be established on 
        the last day of such taxable year and such contributions and 
        distributions shall be deemed to have been made on account of 
        such taxable year if the taxpayer elects the application of 
        this paragraph for such taxable year.''.
    (b) Conforming Amendment.--Section 223(d)(6) of such Code, as 
redesignated by subsection (a), is amended by striking subparagraph (B) 
and redesignating subparagraphs (C) through (E) as subparagraphs (B) 
through (D), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to health savings accounts established, and 
contributions to and distributions from health savings accounts after, 
the date of the enactment of this Act.

SEC. 9. MEDICARE RECIPIENTS MADE ELIGIBLE FOR HSAS.

    (a) Medicare Recipients May Contribute to HSAs.--Section 223(b) of 
the Internal Revenue Code of 1986 is amended by striking paragraph (7).
    (b) Medicare Beneficiaries Participating in Medicare Advantage MSA 
May Contribute Their Own Money to Their MSA.--Section 138(b) of such 
Code is amended by striking paragraph (2) and by redesignating 
paragraphs (3) and (4) as paragraphs (2) and (3), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 10. FSA FUNDS MAY BE USED FOR LONG-TERM CARE INSURANCE PREMIUMS.

    (a) In General.--Subsection (c) of section 106 of the Internal 
Revenue Code of 1986 is amended by redesignating paragraph (2) as 
paragraph (3) and by amending so much of such subsection as precedes 
such paragraph (3) to read as follows:
    ``(c) Long-Term Care Benefits Provided Through Flexible Spending 
Arrangements.--
            ``(1) In general.--Gross income of an employee shall not 
        include employer-provided coverage for qualified long-term care 
        services (as defined in section 7702B(c)) to the extent that 
        such coverage is provided through a flexible spending or 
        similar arrangement.
            ``(2) Premiums for long-term care.--Qualified medical 
        expenses for which reimbursement may be made by distributions 
        from a flexible spending arrangement shall include amounts paid 
        for long-term care coverage.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 11. REPEAL OF LIMITATION ON DEDUCTIONS MAKING NON-PRESCRIPTION 
              DRUGS NON-QUALIFYING DISTRIBUTIONS FROM TAX-PREFERRED 
              ACCOUNTS.

    (a) HSAs.--Section 223(d)(2)(A) of the Internal Revenue Code of 
1986 is amended by striking the last sentence.
    (b) Archer MSAs.--Section 220(d)(2)(A) of such Code is amended by 
striking the last sentence.
    (c) Health Flexible Spending Arrangements and Health Reimbursement 
Arrangements.--Section 106 of such Code is amended by striking 
subsection (f).
    (d) Effective Dates.--
            (1) Distributions from savings accounts.--The amendments 
        made by subsections (a) and (b) shall apply to amounts paid 
        with respect to taxable years beginning after the date of the 
        enactment of this Act.
            (2) Reimbursements.--The amendment made by subsection (c) 
        shall apply to expenses incurred with respect to taxable years 
        beginning after the date of the enactment of this Act.

SEC. 12. REPEAL OF ADDITIONAL TAX FROM DISTRIBUTIONS FROM HSAS AND 
              MSAS.

    (a) HSAs.--Section 223(f)(4)(A) of the Internal Revenue Code of 
1986 is amended by striking ``20 percent'' and inserting ``10 
percent''.
    (b) Archer MSAs.--Section 220(f)(4)(A) of such Code is amended by 
striking ``20 percent'' and inserting ``15 percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after the date of the enactment of this 
Act.

SEC. 13. REPEAL OF LIMITATION ON HEALTH FLEXIBLE SPENDING ARRANGEMENTS 
              UNDER CAFETERIA PLANS.

    (a) In General.--Section 125 of the Internal Revenue Code of 1986 
is amended--
            (1) by striking subsection (i), and
            (2) by redesignating subsections (j), (k), and (l) as 
        subsections (i), (j), and (k), respectively.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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