[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6311 Engrossed in House (EH)]

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115th CONGRESS
  2d Session
                                H. R. 6311

_______________________________________________________________________

                                 AN ACT


 
 To amend the Internal Revenue Code of 1986 and the Patient Protection 
 and Affordable Care Act to modify the definition of qualified health 
  plan for purposes of the health insurance premium tax credit and to 
allow individuals purchasing health insurance in the individual market 
                to purchase a lower premium copper plan.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Increasing Access 
to Lower Premium Plans and Expanding Health Savings Accounts Act of 
2018''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Carryforward of health flexible spending arrangement account 
                            balances.
Sec. 3. Individuals entitled to part A of Medicare by reason of age 
                            allowed to contribute to health savings 
                            accounts.
Sec. 4. Maximum contribution limit to health savings account increased 
                            to amount of deductible and out-of-pocket 
                            limitation.
Sec. 5. Allow both spouses to make catch-up contributions to the same 
                            health savings account.
Sec. 6. Special rule for certain medical expenses incurred before 
                            establishment of health savings account.
Sec. 7. Allowance of bronze and catastrophic plans in connection with 
                            health savings accounts.
Sec. 8. Allowing all individuals purchasing health insurance in the 
                            individual market the option to purchase a 
                            lower premium copper plan.
Sec. 9. Delay of reimposition of annual fee on health insurance 
                            providers.

SEC. 2. CARRYFORWARD OF HEALTH FLEXIBLE SPENDING ARRANGEMENT ACCOUNT 
              BALANCES.

    (a) In General.--Section 106 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(h) Carryforward of Health Flexible Spending Arrangement Account 
Balances.--A plan shall not fail to be treated as a health flexible 
spending arrangement under this section or section 105 merely because 
the lesser of--
            ``(1) such arrangement's account balance (or any portion 
        thereof) determined as of the end of any plan year, or
            ``(2) the product of the dollar limitation in effect under 
        section 125(i) for such plan year (determined without regard to 
        paragraph (2) thereof) multiplied by 3,
may be carried forward to the succeeding plan year.''.
    (b) Coordination With Limitation on Salary Reduction 
Contributions.--
            (1) In general.--Section 125(i) of such Code is amended by 
        redesignating paragraph (2) as paragraph (3) and by inserting 
        after paragraph (1) the following new paragraph:
            ``(2) Coordination with carryforward of account balances.--
        The dollar amount otherwise in effect under paragraph (1) for 
        any plan year shall be reduced (but not below zero) by the 
        excess (if any) of--
                    ``(A) the amount of any account balance which is 
                carried forward to such plan year from the preceding 
                plan year, over
                    ``(B) twice the dollar limitation in effect under 
                paragraph (1) (determined without regard to this 
                paragraph).''.
            (2) Conforming amendments.--Section 125(i) of such Code is 
        amended by striking ``taxable year'' each place it appears in 
        paragraphs (1) and (3) (as redesignated by paragraph (1) of 
        this subsection) and inserting ``plan year''.
    (c) Coordination With Cafeteria Plan Limitation on Deferred 
Compensation.--Section 125(d)(2) of such Code is amended by adding at 
the end the following new subparagraph:
                    ``(E) Exception for health flexible spending 
                arrangements.--Subparagraph (A) shall not apply to a 
                plan to the extent of amounts in a health flexible 
                spending arrangement which may be carried forward as 
                described in section 106(h).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2018.

SEC. 3. INDIVIDUALS ENTITLED TO PART A OF MEDICARE BY REASON OF AGE 
              ALLOWED TO CONTRIBUTE TO HEALTH SAVINGS ACCOUNTS.

    (a) In General.--Section 223(c)(1)(B) of the Internal Revenue Code 
of 1986 is amended by striking ``and'' at the end of clause (ii), by 
striking the period at the end of clause (iii) and inserting ``, and'', 
and by adding at the end the following new clause:
                            ``(iv) entitlement to hospital insurance 
                        benefits under part A of title XVIII of the 
                        Social Security Act by reason of section 226(a) 
                        of such Act.''.
    (b) Conforming Amendment.--Section 223(b)(7) of such Code is 
amended by inserting ``(other than an entitlement to benefits described 
in subsection (c)(1)(B)(v))'' after ``Social Security Act''.
    (c) Effective Date.--The amendments made by this section shall 
apply to months beginning after December 31, 2018, in taxable years 
ending after such date.

SEC. 4. MAXIMUM CONTRIBUTION LIMIT TO HEALTH SAVINGS ACCOUNT INCREASED 
              TO AMOUNT OF DEDUCTIBLE AND OUT-OF-POCKET LIMITATION.

    (a) Self-Only Coverage.--Section 223(b)(2)(A) of the Internal 
Revenue Code of 1986 is amended by striking ``$2,250'' and inserting 
``the amount in effect under subsection (c)(2)(A)(ii)(I)''.
    (b) Family Coverage.--Section 223(b)(2)(B) of such Code is amended 
by striking ``$4,500'' and inserting ``the amount in effect under 
subsection (c)(2)(A)(ii)(II)''.
    (c) Conforming Amendments.--Section 223(g)(1) of such Code is 
amended--
            (1) by striking ``subsections (b)(2) and'' both places it 
        appears and inserting ``subsection'', and
            (2) in subparagraph (B), by striking ``determined by'' and 
        all that follows through ```calendar year 2003'.'' and 
        inserting ``determined by substituting `calendar year 2003' for 
        `calendar year 2016' in subparagraph (A)(ii) thereof.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.

SEC. 5. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CONTRIBUTIONS TO THE SAME 
              HEALTH SAVINGS ACCOUNT.

    (a) In General.--Section 223(b)(5) of the Internal Revenue Code of 
1986 is amended to read as follows:
            ``(5) Special rule for married individuals with family 
        coverage.--
                    ``(A) In general.--In the case of individuals who 
                are married to each other, if both spouses are eligible 
                individuals and either spouse has family coverage under 
                a high deductible health plan as of the first day of 
                any month--
                            ``(i) the limitation under paragraph (1) 
                        shall be applied by not taking into account any 
                        other high deductible health plan coverage of 
                        either spouse (and if such spouses both have 
                        family coverage under separate high deductible 
                        health plans, only one such coverage shall be 
                        taken into account),
                            ``(ii) such limitation (after application 
                        of clause (i)) shall be reduced by the 
                        aggregate amount paid to Archer MSAs of such 
                        spouses for the taxable year, and
                            ``(iii) such limitation (after application 
                        of clauses (i) and (ii)) shall be divided 
                        equally between such spouses unless they agree 
                        on a different division.
                    ``(B) Treatment of additional contribution 
                amounts.--If both spouses referred to in subparagraph 
                (A) have attained age 55 before the close of the 
                taxable year, the limitation referred to in 
                subparagraph (A)(iii) which is subject to division 
                between the spouses shall include the additional 
                contribution amounts determined under paragraph (3) for 
                both spouses. In any other case, any additional 
                contribution amount determined under paragraph (3) 
                shall not be taken into account under subparagraph 
                (A)(iii) and shall not be subject to division between 
                the spouses.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.

SEC. 6. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE 
              ESTABLISHMENT OF HEALTH SAVINGS ACCOUNT.

    (a) In General.--Section 223(d)(2) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(D) Treatment of certain medical expenses 
                incurred before establishment of account.--If a health 
                savings account is established during the 60-day period 
                beginning on the date that coverage of the account 
                beneficiary under a high deductible health plan begins, 
                then, solely for purposes of determining whether an 
                amount paid is used for a qualified medical expense, 
                such account shall be treated as having been 
                established on the date that such coverage begins.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to coverage beginning after December 31, 2018.

SEC. 7. ALLOWANCE OF BRONZE AND CATASTROPHIC PLANS IN CONNECTION WITH 
              HEALTH SAVINGS ACCOUNTS.

    (a) In General.--Section 223(c)(2) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(E) Bronze and catastrophic plans treated as high 
                deductible health plans.--
                            ``(i) In general.--The term `high 
                        deductible health plan' shall include any plan 
                        described in subsection (d)(1)(A) or (e) of 
                        section 1302 of the Patient Protection and 
                        Affordable Care Act.
                            ``(ii) Certain rules not applicable.--
                        Subparagraphs (C) and (D) shall not apply with 
                        respect to any plan described in clause (i).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to months beginning after December 31, 2018, in taxable years ending 
after such date.

SEC. 8. ALLOWING ALL INDIVIDUALS PURCHASING HEALTH INSURANCE IN THE 
              INDIVIDUAL MARKET THE OPTION TO PURCHASE A LOWER PREMIUM 
              COPPER PLAN.

    (a) In General.--Section 1302(e) of the Patient Protection and 
Affordable Care Act (42 U.S.C. 18022(e)) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating clauses (i) and (ii) of 
                subparagraph (B) as subparagraphs (A) and (B), 
                respectively, and adjusting the margins accordingly;
                    (B) by striking ``plan year if--'' and all that 
                follows through ``the plan provides--'' and inserting 
                ``plan year if the plan provides--''; and
                    (C) in subparagraph (A), as redesignated by 
                paragraph (1), by striking ``clause (ii)'' and 
                inserting ``subparagraph (B)'';
            (2) by striking paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).
    (b) Risk Pools.--Section 1312(c)(1) of the Patient Protection and 
Affordable Care Act (42 U.S.C. 18032(c)(1)) is amended by inserting 
``and enrollees in catastrophic plans described in section 1302(e)'' 
after ``Exchange''.
    (c) Conforming Amendment.--Section 1312(d)(3)(C) of the Patient 
Protection and Affordable Care Act (42 U.S.C. 18032(d)(3)(C)) is 
amended by striking ``, except that in the case of a catastrophic plan 
described in section 1302(e), a qualified individual may enroll in the 
plan only if the individual is eligible to enroll in the plan under 
section 1302(e)(2)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2018.

SEC. 9. DELAY OF REIMPOSITION OF ANNUAL FEE ON HEALTH INSURANCE 
              PROVIDERS.

    (a) In General.--Section 9010(j)(3) of the Patient Protection and 
Affordable Care Act is amended by striking ``December 31, 2019'' and 
inserting ``December 31, 2021''.
    (b) Effective Date.--The amendment made by this section shall apply 
to calendar years beginning after December 31, 2019.

            Passed the House of Representatives July 25, 2018.

            Attest:

                                                                 Clerk.
115th CONGRESS

  2d Session

                               H. R. 6311

_______________________________________________________________________

                                 AN ACT

 To amend the Internal Revenue Code of 1986 and the Patient Protection 
 and Affordable Care Act to modify the definition of qualified health 
  plan for purposes of the health insurance premium tax credit and to 
allow individuals purchasing health insurance in the individual market 
                to purchase a lower premium copper plan.