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