Homecare for Seniors Act

II 117TH CONGRESS 1ST SESSION S. 1399 To amend the Internal Revenue Code of 1986 to allow qualified distributions from health savings accounts for certain home care expenses. IN THE SENATE OF THE UNITED STATES APRIL 27, 2021 Ms. SINEMA (for herself, Mr. PORTMAN, Mr. RUBIO, and Mr. CARPER) intro- duced the following bill; which was read twice and referred to the Com- mittee on Finance A BILL To amend the Internal Revenue Code of 1986 to allow quali- fied distributions from health savings accounts for cer- tain home care 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 ‘‘Homecare for Seniors 4 Act’’. 5 VerDate Sep 11 2014 03:32 May 28, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1399.IS S1399 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 1399 IS SEC. 2. CERTAIN HOME CARE EXPENSES TREATED AS 1 QUALIFIED DISTRIBUTIONS FROM HEALTH 2 SAVINGS ACCOUNTS. 3 (a) IN GENERAL.—Section 223(d)(2) of the Internal 4 Revenue Code of 1986 is amended— 5 (1) by striking ‘‘medical care (as defined in sec- 6 tion 213(d)’’ in subparagraph (A) and inserting 7 ‘‘specified medical care (as defined in subparagraph 8 (E))’’; and 9 (2) by adding at the end the following new sub- 10 paragraph: 11 ‘‘(E) SPECIFIED MEDICAL CARE.—For 12 purposes of this paragraph— 13 ‘‘(i) IN GENERAL.—The term ‘speci- 14 fied medical care’ means— 15 ‘‘(I) medical care (as defined in 16 section 213(d)), and 17 ‘‘(II) qualified home care. 18 ‘‘(ii) QUALIFIED HOME CARE.—The 19 term ‘qualified home care’ means services 20 provided pursuant to a contract to provide 21 3 or more of the following in the residence 22 of the service recipient: 23 ‘‘(I) Assistance with eating. 24 ‘‘(II) Assistance with toileting. 25 VerDate Sep 11 2014 03:32 May 28, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1399.IS S1399 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 1399 IS ‘‘(III) Assistance with transfer- 1 ring. 2 ‘‘(IV) Assistance with bathing. 3 ‘‘(V) Assistance with dressing. 4 ‘‘(VI) Assistance with continence. 5 ‘‘(VII) Medication adherence. 6 Such term shall not include any services 7 unless such services are provided by a serv- 8 ice provider which is licensed by the State 9 to provide such services, or such services 10 are otherwise provided in a manner that is 11 consistent with State requirements. 12 ‘‘(iii) RELATED PARTIES.—The term 13 ‘qualified home care’ shall not include serv- 14 ices provided pursuant to any contract 15 which is entered into, directly or indirectly, 16 between a service provider and a service re- 17 cipient who are related within the meaning 18 of section 267(b) or 707(b).’’. 19 (b) CONFORMING AMENDMENTS.—Section 223(d)(2) 20 of the Internal Revenue Code of 1986, as amended by sub- 21 section (a), is further amended— 22 (1) by striking the second sentence of subpara- 23 graph (A), and 24 VerDate Sep 11 2014 03:32 May 28, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1399.IS S1399 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 1399 IS (2) by striking ‘‘this paragraph, the term’’ in 1 subparagraph (D) and inserting ‘‘this paragraph— 2 ‘‘(i) IN GENERAL.—Amounts paid for 3 menstrual care products shall be treated as 4 paid for specified medical care. 5 ‘‘(ii) DEFINITION.—The term’’. 6 (c) EFFECTIVE DATE.—The amendments made by 7 this section shall apply to amounts paid with respect to 8 taxable years beginning after the date of the enactment 9 of this Act. 10 (d) PROMOTION OF PUBLIC AWARENESS OF IN- 11 HOME SERVICE EXPENSES ELIGIBLE FOR TAX-FREE 12 DISTRIBUTION FROM HEALTH SAVINGS ACCOUNTS.—The 13 Secretary of Health and Human Services, in consultation 14 with the Secretary of the Treasury, shall carry out a cam- 15 paign to increase public awareness of the in-home service 16 expenses that are eligible for tax-free distribution from 17 health savings accounts. 18 Æ VerDate Sep 11 2014 03:32 May 28, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1399.IS S1399 pbinns on DSKJLVW7X2PROD with BILLS