Protecting Life in Health Savings Accounts Act

II 117TH CONGRESS 1ST SESSION S. 125 To amend the Internal Revenue Code of 1986 to prohibit treatment of certain distributions and reimbursements for certain abortions as quali- fied medical expenses. IN THE SENATE OF THE UNITED STATES JANUARY 28, 2021 Mr. LEE (for himself, Mr. INHOFE, Mrs. BLACKBURN, Mr. BRAUN, Mr. PAUL, Mr. RUBIO, Mr. HAGERTY, Mr. ROUNDS, and Mr. SASSE) introduced the following bill; which was read twice and referred to the Committee on Fi- nance A BILL To amend the Internal Revenue Code of 1986 to prohibit treatment of certain distributions and reimbursements for certain abortions as qualified medical expenses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Protecting Life in 4 Health Savings Accounts Act’’. 5 SEC. 2. DISTRIBUTIONS FOR CERTAIN ABORTIONS NOT 6 QUALIFIED. 7 (a) HSAS.— 8 VerDate Sep 11 2014 22:43 Feb 10, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S125.IS S125 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 125 IS (1) IN GENERAL.—Subparagraph (A) of section 1 223(d)(2) of the Internal Revenue Code of 1986 is 2 amended by adding at the end the following: ‘‘Such 3 term shall not include any amount paid for an abor- 4 tion (other than an excluded abortion).’’. 5 (2) EXCLUDED ABORTION.—Section 223(d)(2) 6 of such Code is amended by adding at the end the 7 following new subparagraph: 8 ‘‘(E) EXCLUDED ABORTION.—For pur- 9 poses of this paragraph, the term ‘excluded 10 abortion’ means any abortion— 11 ‘‘(i) with respect to a pregnancy that 12 is the result of an act of rape or incest, or 13 ‘‘(ii) with respect to which the woman 14 suffers from a physical disorder, physical 15 injury, or physical illness, including a life- 16 endangering physical condition caused by 17 or arising from the pregnancy itself, that 18 would, as certified by a physician, place 19 the woman in danger of death unless the 20 abortion is performed.’’. 21 (b) ARCHER MSAS.—Subparagraph (A) of section 22 220(d)(2) of the Internal Revenue Code of 1986 is amend- 23 ed by adding at the end the following: ‘‘Such term shall 24 not include any amount paid for an abortion (other than 25 VerDate Sep 11 2014 22:43 Feb 10, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S125.IS S125 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 125 IS an excluded abortion (as defined in section 1 223(d)(2)(E)).’’. 2 (c) HEALTH FLEXIBLE SPENDING ARRANGEMENTS 3 AND HEALTH REIMBURSEMENT ARRANGEMENTS.—Sec- 4 tion 106 of the Internal Revenue Code of 1986 is amended 5 by adding at the end the following new subsection: 6 ‘‘(h) PROHIBITION ON REIMBURSEMENTS FOR ABOR- 7 TIONS.—For purposes of this section and section 105, re- 8 imbursement for expenses incurred for an abortion (other 9 than an excluded abortion (as defined in section 10 223(d)(2)(E)) shall not be treated as a reimbursement for 11 medical expenses.’’. 12 (d) RETIREE HEALTH ACCOUNTS.—Section 401(h) 13 of the Internal Revenue Code of 1986 is amended by in- 14 serting ‘‘(other than an expense for an abortion (other 15 than an excluded abortion (as defined in section 16 223(d)(2)(E)))’’ after ‘‘sickness, accident, hospitalization, 17 and medical expenses’’ in the matter preceding paragraph 18 (1). 19 (e) EFFECTIVE DATES.— 20 (1) IN GENERAL.—Except as provided in para- 21 graph (2), the amendments made by this section 22 shall apply to amounts paid with respect to taxable 23 years beginning after December 31, 2021. 24 VerDate Sep 11 2014 22:43 Feb 10, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S125.IS S125 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 125 IS (2) REIMBURSEMENTS.—The amendment made 1 by subsection (c) shall apply to expenses incurred 2 with respect to taxable years beginning after Decem- 3 ber 31, 2021. 4 Æ VerDate Sep 11 2014 22:43 Feb 10, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S125.IS S125 pamtmann on DSKBC07HB2PROD with BILLS