Homecare for Seniors Act

I 116TH CONGRESS 1ST SESSION H. R. 2878 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 MAY 21, 2019 Ms. PORTER (for herself, Mr. SMITH of Nebraska, Mr. LARSON of Con- necticut, and Mrs. WALORSKI) 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 23:12 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2878.IH H2878 jspears on DSK30JT082PROD with BILLS 2 •HR 2878 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 (as defined in subparagraph 8 (D))’’; and 9 (2) by adding at the end the following new sub- 10 paragraph: 11 ‘‘(D) 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 a con- 20 tract to provide three or more of the fol- 21 lowing services in the residence of the serv- 22 ice recipient: 23 ‘‘(I) Assistance with eating. 24 ‘‘(II) Assistance with toileting. 25 VerDate Sep 11 2014 23:12 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2878.IH H2878 jspears on DSK30JT082PROD with BILLS 3 •HR 2878 IH ‘‘(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 contract 7 unless the services provided pursuant to 8 such contract are provided by a service 9 provider which is licensed by the State to 10 provide such services or such services are 11 otherwise provided in a manner that is 12 consistent with State requirements. 13 ‘‘(iii) RELATED PARTIES.—The term 14 ‘qualified home care’ shall not include any 15 contract which is, directly or indirectly, be- 16 tween 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) EFFECTIVE DATE.—The amendments made by 20 this section shall apply to amounts paid with respect to 21 taxable years beginning after the date of the enactment 22 of this Act. 23 (c) PROMOTION OF PUBLIC AWARENESS OF IN- 24 HOME SERVICE EXPENSES ELIGIBLE FOR TAX-FREE 25 VerDate Sep 11 2014 23:12 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2878.IH H2878 jspears on DSK30JT082PROD with BILLS 4 •HR 2878 IH DISTRIBUTION FROM HEALTH SAVINGS ACCOUNTS.—The 1 Secretary of Health and Human Services, in consultation 2 with the Secretary of the Treasury, shall carry out a cam- 3 paign to increase public awareness of the in-home service 4 expenses that are eligible for tax-free distribution from 5 health savings accounts. 6 Æ VerDate Sep 11 2014 23:12 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H2878.IH H2878 jspears on DSK30JT082PROD with BILLS