I 116TH CONGRESS 1ST SESSION H. R. 3594 To amend the Internal Revenue Code of 1986 to create health freedom accounts available to all individuals. IN THE HOUSE OF REPRESENTATIVES JUNE 28, 2019 Mr. ROY (for himself and Mr. BIGGS) 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 create health freedom accounts available to all individuals. 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 ‘‘Healthcare Freedom 4 Act of 2019’’. 5 SEC. 2. HEALTH FREEDOM ACCOUNTS. 6 (a) IN GENERAL.—Section 223 of the Internal Rev- 7 enue Code of 1986 is amended by striking ‘‘health savings 8 account’’ and ‘‘health savings accounts’’ each place such 9 VerDate Sep 11 2014 18:48 Jul 01, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3594.IH H3594 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 3594 IH terms appear and inserting ‘‘health freedom account’’ and 1 ‘‘health freedom accounts’’, respectively. 2 (b) ALL INDIVIDUALS ALLOWED DEDUCTIONS FOR 3 CONTRIBUTIONS.—Section 223(a) of the Internal Revenue 4 Code of 1986 is amended by striking ‘‘who is an eligible 5 individual for any month during the taxable year’’. 6 (c) NO LIMITATION ON PURCHASING HEALTH COV- 7 ERAGE FROM HEALTH FREEDOM ACCOUNTS.—Section 8 223(d)(2) of the Internal Revenue Code of 1986 is amend- 9 ed by striking subparagraphs (B) and (C) and the last 10 sentence of subparagraph (A) and by adding at the end 11 the following new subsection: 12 ‘‘(B) ADDITIONAL EXPENSES.—The term 13 ‘qualified medical expenses’ includes costs asso- 14 ciated with direct primary care, health care 15 sharing ministries, and medical cost sharing or- 16 ganizations.’’. 17 (d) TRANSFERS ALLOWED TO OTHER HEALTH 18 FREEDOM ACCOUNTS.—Section 223(f)(5) of the Internal 19 Revenue Code of 1986 is amended to read as follows: 20 ‘‘(5) ROLLOVER CONTRIBUTION.—An amount 21 paid or distributed from a health freedom account is 22 a rollover contribution to the extent the amount re- 23 ceived is paid into any other health freedom account 24 VerDate Sep 11 2014 18:48 Jul 01, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3594.IH H3594 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 3594 IH not later than the 60th day after the date of such 1 payment or distribution.’’. 2 (e) INCREASE IN CONTRIBUTION LIMITS.—Section 3 223(b)(1) of such Code is amended by striking ‘‘the sum 4 of the monthly’’ and all that follows through ‘‘eligible indi- 5 vidual’’ and inserting ‘‘$12,000 (twice such amount in the 6 case of a joint return)’’. 7 (f) CONFORMING AMENDMENTS.— 8 (1) Section 223(b) of such Code is amended by 9 striking paragraphs (2), (5), (7), and (8) and by re- 10 designating paragraphs (3), (4), and (6) as para- 11 graphs (2), (3), and (4), respectively. 12 (2) Section 223(b)(2) of such Code (as redesig- 13 nated by paragraph (2)) is amended to read as fol- 14 lows: 15 ‘‘(2) ADDITIONAL CONTRIBUTIONS FOR INDI- 16 VIDUALS 55 OR OLDER.—In the case of an individual 17 who has attained age 55 before the close of the tax- 18 able year, the limitation under paragraph (1) shall 19 be increased by $5,000.’’. 20 (3) Section 223(b)(3) of such Code (as redesig- 21 nated by subparagraph (A)) is amended by striking 22 the last sentence. 23 (4) Section 223 of such Code is amended by 24 striking subsection (c). 25 VerDate Sep 11 2014 18:48 Jul 01, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3594.IH H3594 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 3594 IH (5) Section 223(d)(1)(A) of such Code is 1 amended by striking ‘‘will be accepted’’ and all that 2 follows through the period at the end and inserting 3 ‘‘will be accepted unless it is in cash.’’. 4 (6) Section 223(f) of such Code is amended by 5 striking paragraphs (7) and (8). 6 (7) Section 223(g)(1) of such Code is amend- 7 ed— 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)(1)’’; 11 (B) by striking ‘‘thereof’’ and all that fol- 12 lows in subparagraph (B) through ‘‘ ‘calendar 13 year 2003’.’’ and inserting ‘‘ ‘calendar year 14 1997’.’’; and 15 (C) by striking ‘‘under subsections (b)(2) 16 and (c)(2)(A)’’ and inserting ‘‘under subsection 17 (b)(1)’’. 18 (8) The table of sections for part VII of sub- 19 chapter B of chapter 1 of the Internal Revenue Code 20 of 1986 is amended in the item relating to section 21 223 by striking ‘‘savings’’ and inserting ‘‘freedom’’. 22 (g) EFFECTIVE DATE.—The amendments made by 23 this section shall apply with respect to months in taxable 24 VerDate Sep 11 2014 18:48 Jul 01, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3594.IH H3594 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 3594 IH years beginning after the date of the enactment of this 1 Act. 2 SEC. 3. EXCLUSION FOR EMPLOYER CONTRIBUTIONS TO 3 HEALTH FREEDOM ACCOUNTS. 4 (a) EMPLOYER EXCLUSION.— 5 (1) IN GENERAL.—The Internal Revenue Code 6 of 1986 is amended by inserting after section 106 7 the following new section: 8 ‘‘SEC. 106A. CONTRIBUTIONS BY EMPLOYERS TO HEALTH 9 FREEDOM ACCOUNTS. 10 ‘‘Gross income of an employee does not include 11 amounts contributed by such employee’s employer to a 12 health freedom account of such employee.’’. 13 (2) EXCLUSION FOR CONTRIBUTIONS BY EM- 14 PLOYER TO ACCIDENT AND HEALTH PLANS.—The 15 Internal Revenue Code of 1986 is amended by strik- 16 ing section 106. 17 (3) CONFORMING AMENDMENT.—The table of 18 sections for part III of subchapter B of chapter 1 19 is amended by striking the item relating to section 20 106 and inserting the following: 21 ‘‘Sec. 106A. Contributions by employers to health freedom accounts.’’. (4) EFFECTIVE DATE.—The amendments made 22 by this subsection shall apply with respect to em- 23 ployees hired on or after the date that is 5 years 24 after the date of the enactment of this Act. 25 VerDate Sep 11 2014 18:48 Jul 01, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3594.IH H3594 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 3594 IH (b) TRANSITION RULE.— 1 (1) IN GENERAL.—Section 106(d)(1) of the In- 2 ternal Revenue Code of 1986 is amended to read as 3 follows: 4 ‘‘(1) IN GENERAL.—Amounts contributed by an 5 employee’s employer to any health freedom account 6 (as defined in section 223(d)) of such employee shall 7 be treated as employer-provided coverage for medical 8 expenses under an accident or health plan.’’. 9 (2) IN GENERAL.—The amendment made by 10 this subsection shall apply with respect to taxable 11 years beginning after the date of the enactment of 12 this Act. 13 Æ VerDate Sep 11 2014 18:48 Jul 01, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H3594.IH H3594 pamtmann on DSKBFK8HB2PROD with BILLS