117 S1399 IS: Homecare for Seniors Act U.S. Senate 2021-04-27 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II 117th CONGRESS1st Session S. 1399 IN THE SENATE OF THE UNITED STATES April 27, 2021 Ms. Sinema (for herself, Mr. Portman, Mr. Rubio, and Mr. Carper) 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 qualified distributions from health savings accounts for certain home care expenses.

1.

Short title

This Act may be cited as the Homecare for Seniors Act.

2.

Certain home care expenses treated as qualified distributions from health savings accounts

(a)

In general

Section 223(d)(2) of the Internal Revenue Code of 1986 is amended— (1)by striking medical care (as defined in section 213(d) in subparagraph (A) and inserting specified medical care (as defined in subparagraph (E)); and (2)by adding at the end the following new subparagraph: (E)

Specified medical care

For purposes of this paragraph— (i)

In general

The term specified medical care means— (I)medical care (as defined in section 213(d)), and (II)qualified home care. (ii)

Qualified home care

The term qualified home care means services provided pursuant to a contract to provide 3 or more of the following in the residence of the service recipient: (I)Assistance with eating. (II)Assistance with toileting. (III)Assistance with transferring. (IV)Assistance with bathing. (V)Assistance with dressing. (VI)Assistance with continence. (VII)Medication adherence.Such term shall not include any services unless such services are provided by a service provider which is licensed by the State to provide such services, or such services are otherwise provided in a manner that is consistent with State requirements. (iii)

Related parties

The term qualified home care shall not include services provided pursuant to any contract which is entered into, directly or indirectly, between a service provider and a service recipient who are related within the meaning of section 267(b) or 707(b).. (b)

Conforming amendments

Section 223(d)(2) of the Internal Revenue Code of 1986, as amended by subsection (a), is further amended— (1)by striking the second sentence of subparagraph (A), and (2)by striking this paragraph, the term in subparagraph (D) and inserting “this paragraph— (i)

In general

Amounts paid for menstrual care products shall be treated as paid for specified medical care. (ii)

Definition

The term. (c)

Effective date

The amendments made by this section shall apply to amounts paid with respect to taxable years beginning after the date of the enactment of this Act. (d)

Promotion of public awareness of in-Home service expenses eligible for tax-Free distribution from health savings accounts

The Secretary of Health and Human Services, in consultation with the Secretary of the Treasury, shall carry out a campaign to increase public awareness of the in-home service expenses that are eligible for tax-free distribution from health savings accounts.