Homecare for Seniors Act

I 117TH CONGRESS 1ST SESSION H. R. 2898 To amend the Internal Revenue Code of 1986 to allow qualified distributions from health savings accounts for certain home care expenses. IN THE HOUSE OF REPRESENTATIVES APRIL 28, 2021 Ms. PORTER (for herself, Mr. BACON, Mr. SMITH of Nebraska, Ms. JACKSON LEE, Mr. MALINOWSKI, Mr. RASKIN, Mr. FORTENBERRY, Mr. VAN DREW, Mr. GRIJALVA, Mr. COOPER, Ms. WILSON of Florida, Mrs. WALORSKI, Ms. WILLIAMS of Georgia, Mrs. AXNE, Mr. FITZPATRICK, Mr. GRIFFITH, Mr. SAN NICOLAS, Mr. GROTHMAN, Mr. CLINE, Ms. HERRERA BEUTLER, and Mr. SOTO) introduced the following bill; which was referred to the Committee on Ways and Means 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 01:18 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2898.IH H2898 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2898 IH 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’’, and 8 (2) by adding at the end the following new sub- 9 paragraph: 10 ‘‘(E) SPECIFIED MEDICAL CARE.—For 11 purposes of this paragraph— 12 ‘‘(i) IN GENERAL.—The term ‘speci- 13 fied medical care’ means medical care (as 14 defined in section 213(d)) and qualified 15 home care. 16 ‘‘(ii) QUALIFIED HOME CARE.—The 17 term ‘qualified home care’ means a con- 18 tract to provide 3 or more of the following 19 services in the residence of the service re- 20 cipient: 21 ‘‘(I) Assistance with eating. 22 ‘‘(II) Assistance with toileting. 23 ‘‘(III) Assistance with transfer- 24 ring. 25 ‘‘(IV) Assistance with bathing. 26 VerDate Sep 11 2014 01:18 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2898.IH H2898 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2898 IH ‘‘(V) Assistance with dressing. 1 ‘‘(VI) Assistance with continence. 2 ‘‘(VII) Medication adherence. 3 Such term shall not include any contract 4 unless the services provided pursuant to 5 such contract are provided by a service 6 provider which is licensed by the State to 7 provide such services or such services are 8 otherwise provided in a manner that is 9 consistent with State requirements. 10 ‘‘(iii) RELATED PARTIES.—The term 11 ‘qualified home care’ shall not include any 12 contract which is, directly or indirectly, be- 13 tween a service provider and a service re- 14 cipient who are related within the meaning 15 of section 267(b) or 707(b).’’. 16 (b) EFFECTIVE DATE.—The amendments made by 17 this section shall apply to amounts paid with respect to 18 taxable years beginning after the date of the enactment 19 of this Act. 20 (c) PROMOTION OF PUBLIC AWARENESS OF IN- 21 HOME SERVICE EXPENSES ELIGIBLE FOR TAX-FREE 22 DISTRIBUTION FROM HEALTH SAVINGS ACCOUNTS.—The 23 Secretary of Health and Human Services, in consultation 24 with the Secretary of the Treasury, shall carry out a cam- 25 VerDate Sep 11 2014 01:18 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2898.IH H2898 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2898 IH paign to increase public awareness of the in-home service 1 expenses that are eligible for tax-free distribution from 2 health savings accounts. 3 Æ VerDate Sep 11 2014 01:18 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H2898.IH H2898 kjohnson on DSK79L0C42PROD with BILLS