Health Savings Account Expansion Act of 2021

II 117TH CONGRESS 1ST SESSION S. 2099 To amend the Internal Revenue Code of 1986 to allow individuals who are not enrolled in a high deductible health plan to have access to health savings accounts, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 17, 2021 Mr. SASSE 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 indi- viduals who are not enrolled in a high deductible health plan to have access to health savings accounts, and for other purposes. 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 ‘‘Health Savings Ac- 4 count Expansion Act of 2021’’. 5 VerDate Sep 11 2014 05:20 Jun 24, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2099.IS S2099 kjohnson on DSK79L0C42PROD with BILLS 2 •S 2099 IS SEC. 2. EXPANSION OF HEALTH SAVINGS ACCOUNT ELIGI- 1 BILITY. 2 (a) IN GENERAL.—Section 223 of the Internal Rev- 3 enue Code of 1986 is amended— 4 (1) in subsection (b)— 5 (A) in paragraph (2)— 6 (i) in subparagraph (A), by striking 7 ‘‘high deductible health plan as of the first 8 day of such month, $2,250’’ and inserting 9 ‘‘qualified health plan as of the first day of 10 such month, $5,000’’, and 11 (ii) in subparagraph (B), by striking 12 ‘‘high deductible health plan as of the first 13 day of such month, $4,500’’ and inserting 14 ‘‘qualified health plan as of the first day of 15 such month, twice the dollar amount under 16 subparagraph (A)’’, and 17 (B) in paragraph (8)— 18 (i) in subparagraph (A)(ii), by strik- 19 ing ‘‘high deductible health plan’’ and in- 20 serting ‘‘qualified health plan’’, and 21 (ii) in the heading of subparagraph 22 (B), by striking ‘‘HIGH DEDUCTIBLE 23 HEALTH PLAN’’ and inserting ‘‘QUALIFIED 24 HEALTH PLAN’’, 25 (2) in subsection (c)— 26 VerDate Sep 11 2014 05:20 Jun 24, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2099.IS S2099 kjohnson on DSK79L0C42PROD with BILLS 3 •S 2099 IS (A) in paragraph (1)(A), by striking ‘‘high 1 deductible health plan’’ each place it appears 2 and inserting ‘‘qualified health plan’’, and 3 (B) in paragraph (2)— 4 (i) in the heading, by striking ‘‘HIGH 5 DEDUCTIBLE HEALTH PLAN’’ and inserting 6 ‘‘QUALIFIED HEALTH PLAN’’, 7 (ii) by amending subparagraph (A) to 8 read as follows: 9 ‘‘(A) IN GENERAL.—The term ‘qualified 10 health plan’ means a health plan that provides 11 a level of coverage that is designed to provide 12 benefits that are actuarially equivalent to not 13 greater than 80 percent of the full actuarial 14 value of the benefits provided under the plan.’’, 15 (iii) by amending subparagraph (C) to 16 read as follows: 17 ‘‘(C) ABSENCE OF DEDUCTIBLE.—A health 18 plan shall not fail to be treated as a qualified 19 health plan by reason of failing to have a de- 20 ductible for any care, services, or coverage, such 21 as preventive care, primary care, or prescription 22 drug coverage.’’, 23 (iv) by striking subparagraph (D), 24 VerDate Sep 11 2014 05:20 Jun 24, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2099.IS S2099 kjohnson on DSK79L0C42PROD with BILLS 4 •S 2099 IS (v) by striking ‘‘high deductible health 1 plan’’ each place it appears in subpara- 2 graphs (E) and (F) and inserting ‘‘quali- 3 fied health plan’’, and 4 (vi) by redesignating subparagraphs 5 (E) and (F), as amended by clause (v), as 6 subparagraphs (D) and (E), respectively, 7 (3) in subsection (g)(1)— 8 (A) by striking ‘‘Each dollar amount in 9 subsections (b)(2) and (c)(2)(A)’’ and inserting 10 ‘‘The dollar amount in subsection (b)(2)(A)’’, 11 (B) by amending subparagraph (B) to read 12 as follows: 13 ‘‘(B) the cost-of-living adjustment deter- 14 mined under section 1(f)(3) for the calendar 15 year in which such taxable year begins, deter- 16 mined by substituting ‘2003’ for ‘2016’ in sub- 17 paragraph (A)(ii) thereof.’’, and 18 (C) by striking ‘‘adjusted amounts under 19 subsections (b)(2) and (c)(2)(A)’’ and inserting 20 ‘‘adjusted amounts under subsection (b)(2)’’, 21 and 22 (4) in subsection (h)(2), by striking ‘‘high de- 23 ductible health plan’’ and inserting ‘‘qualified health 24 plan’’. 25 VerDate Sep 11 2014 05:20 Jun 24, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2099.IS S2099 kjohnson on DSK79L0C42PROD with BILLS 5 •S 2099 IS (b) CONFORMING AMENDMENTS.— 1 (1) Section 26(b)(2)(S) of the Internal Revenue 2 Code of 1986 is amended by striking ‘‘high deduct- 3 ible health plan’’ and inserting ‘‘qualified health 4 plan’’. 5 (2) Section 106(e) of such Code is amended— 6 (A) in the heading of paragraph (3), by 7 striking ‘‘HIGH DEDUCTIBLE HEALTH PLAN’’ 8 and inserting ‘‘QUALIFIED HEALTH PLAN’’, and 9 (B) in paragraph (5)(B)(ii), by striking 10 ‘‘high deductible health plan’’ and inserting 11 ‘‘qualified health plan’’. 12 (3) Section 408(d)(9) of such Code is amend- 13 ed— 14 (A) in subparagraph (C)— 15 (i) in clause (i)(I), by striking ‘‘high 16 deductible health plan’’ and inserting 17 ‘‘qualified health plan’’, and 18 (ii) in clause (ii)(II), by striking ‘‘high 19 deductible health plan’’ each place it ap- 20 pears and inserting ‘‘qualified health 21 plan’’, and 22 (B) in the heading of subparagraph (D), 23 by striking ‘‘HIGH DEDUCTIBLE HEALTH PLAN’’ 24 and inserting ‘‘QUALIFIED HEALTH PLAN’’. 25 VerDate Sep 11 2014 05:20 Jun 24, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2099.IS S2099 kjohnson on DSK79L0C42PROD with BILLS 6 •S 2099 IS (4) Section 1906A(b)(2)(B) of the Social Secu- 1 rity Act (42 U.S.C. 1396e–1(b)(2)(B)) is amended 2 by striking ‘‘high deductible health plan’’ and insert- 3 ing ‘‘qualified health plan’’. 4 (5) Section 1938(a)(3) of the Social Security 5 Act (42 U.S.C. 1396u–8(a)(3)) is amended by in- 6 serting ‘‘(as in effect on the day before the date of 7 the enactment of the Health Savings Account Ex- 8 pansion Act of 2021)’’ after ‘‘section 223(c)(2)(C) of 9 the Internal Revenue Code of 1986’’. 10 (6) Section 2105(c)(10)(B)(ii)(II) of the Social 11 Security Act (42 U.S.C. 1397ee(c)(10)(B)(ii)(II)) is 12 amended by striking ‘‘high deductible health plan’’ 13 and inserting ‘‘qualified health plan’’. 14 (7) Section 1101(c)(2)(B)(ii) of the Patient 15 Protection and Affordable Care Act (42 U.S.C. 16 18001(c)(2)(B)(ii)) is amended by striking ‘‘section 17 223(c)(2)’’ and inserting ‘‘section 223(b)(2)’’. 18 (c) EFFECTIVE DATE.—The amendments made by 19 this section shall apply to taxable years beginning after 20 December 31, 2021. 21 Æ VerDate Sep 11 2014 05:20 Jun 24, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S2099.IS S2099 kjohnson on DSK79L0C42PROD with BILLS