Responsible Additions and Increases to Sustain Employee Health Benefits Act of 2019

II 116TH CONGRESS 1ST SESSION S. 503 To amend the Internal Revenue Code of 1986 to provide the opportunity for responsible health savings to all American families. IN THE SENATE OF THE UNITED STATES FEBRUARY 14, 2019 Mr. BLUNT (for himself and Ms. SINEMA) 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 provide the opportunity for responsible health savings to all American families. 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 ‘‘Responsible Additions 4 and Increases to Sustain Employee Health Benefits Act 5 of 2019’’. 6 SEC. 2. EXPANDABLE HEALTH FLEXIBLE SPENDING AR- 7 RANGEMENTS. 8 (a) EXPANSION OF ANNUAL MAXIMUM.— 9 VerDate Sep 11 2014 03:50 Feb 22, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S503.IS S503 kjohnson on DSK79L0C42 with BILLS 2 •S 503 IS (1) IN GENERAL.—Paragraph (1) of section 1 125(i) of the Internal Revenue Code of 1986 is 2 amended— 3 (A) by striking ‘‘$2,500’’ and inserting 4 ‘‘$5,000, with an additional $500 per each ad- 5 ditional employee dependent above two depend- 6 ents’’; and 7 (B) by inserting at the end the following: 8 ‘‘An additional employee dependent may not be 9 taken into account under the preceding sen- 10 tence for any taxable year if such additional 11 employee dependent has been taken into ac- 12 count by another person under such sentence 13 for such taxable year.’’. 14 (2) ADJUSTMENT FOR INFLATION.—Paragraph 15 (2) of section 125(i) of the Internal Revenue Code 16 of 1986 is amended— 17 (A) by striking ‘‘December 31, 2013’’ and 18 inserting ‘‘December 31, 2019’’; 19 (B) by striking ‘‘the dollar amount’’ and 20 inserting ‘‘each of the dollar amounts’’; and 21 (C) in subparagraph (B), by striking ‘‘cal- 22 endar year 2012’’ and inserting ‘‘calendar year 23 2018’’. 24 VerDate Sep 11 2014 03:50 Feb 22, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S503.IS S503 kjohnson on DSK79L0C42 with BILLS 3 •S 503 IS (b) CARRYFORWARD OF UNUSED BENEFITS.—Sec- 1 tion 125(i) of the Internal Revenue Code of 1986 is 2 amended by adding at the end the following new para- 3 graph: 4 ‘‘(3) CARRYFORWARD OF UNUSED BENEFITS.— 5 ‘‘(A) IN GENERAL.—A plan or arrange- 6 ment may permit a participant in a health flexi- 7 ble spending arrangement to elect to carry for- 8 ward any aggregate unused balances in the par- 9 ticipant’s accounts under such arrangement as 10 of the close of any year to the succeeding year. 11 Such carryforward shall be treated as having 12 occurred within 30 days of the close of the year. 13 ‘‘(B) LIMITATION.—The amount which a 14 participant may elect to carry forward under 15 subparagraph (A) from any year shall be any 16 aggregate unused balances in the participant’s 17 account at the close of any year. 18 ‘‘(C) EXCLUSION FROM GROSS INCOME.— 19 No amount shall be included in gross income 20 under this chapter by reason of any carry for- 21 ward under this paragraph. 22 ‘‘(D) COORDINATION LIMITS.—The max- 23 imum amount which may be contributed to a 24 health flexible spending arrangement for any 25 VerDate Sep 11 2014 03:50 Feb 22, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S503.IS S503 kjohnson on DSK79L0C42 with BILLS 4 •S 503 IS year to which an unused amount is carried 1 under this paragraph shall not be reduced by 2 such unused amount.’’. 3 (c) CONFORMING AMENDMENT.—Section 125(i) of 4 the Internal Revenue Code of 1986 is amended by striking 5 ‘‘LIMITATION ON FLEXIBLE SPENDING ARRANGEMENTS’’ 6 in the heading and inserting ‘‘SPECIAL RULES FOR 7 HEALTH FLEXIBLE SPENDING ARRANGEMENTS’’. 8 (d) EFFECTIVE DATE.—The amendments made by 9 this section shall take effect on the date of the enactment 10 of this Act. 11 Æ VerDate Sep 11 2014 03:50 Feb 22, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S503.IS S503 kjohnson on DSK79L0C42 with BILLS