Health Savings for Seniors Act

I 116TH CONGRESS 1ST SESSION H. R. 3796 To amend the Internal Revenue Code of 1986 to provide that coverage under Medicare is permissible for purposes of contributions to health savings accounts. IN THE HOUSE OF REPRESENTATIVES JULY 17, 2019 Mr. BERA (for himself and Mr. SMITH of Missouri) 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 provide that coverage under Medicare is permissible for purposes of contributions to health savings accounts. 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 for 4 Seniors Act’’. 5 SEC. 2. COVERAGE UNDER MEDICARE PERMISSIBLE FOR 6 PURPOSES OF CONTRIBUTIONS TO HEALTH 7 SAVINGS ACCOUNTS. 8 (a) MEDICARE MADE AN HSA-ELIGIBLE PLAN.— 9 VerDate Sep 11 2014 02:46 Jul 30, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3796.IH H3796 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 3796 IH (1) IN GENERAL.—Subparagraph (A) of section 1 223(c)(2) of the Internal Revenue Code of 1986 is 2 amended to read as follows: 3 ‘‘(A) IN GENERAL.—The term ‘HSA-quali- 4 fied health plan’ means— 5 ‘‘(i) a health plan— 6 ‘‘(I) which has an annual deduct- 7 ible which is not less than— 8 ‘‘(aa) $1,000 for self-only 9 coverage, and 10 ‘‘(bb) twice the dollar 11 amount in item (aa) for family 12 coverage, and 13 ‘‘(II) the sum of the annual de- 14 ductible and the other annual out-of- 15 pocket expenses required to be paid 16 under the plan (other than for pre- 17 miums) for covered benefits does not 18 exceed— 19 ‘‘(aa) $5,000 for self-only 20 coverage, and 21 ‘‘(bb) twice the dollar 22 amount in item (aa) for family 23 coverage, and 24 VerDate Sep 11 2014 02:46 Jul 30, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3796.IH H3796 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 3796 IH ‘‘(ii) in the case of an individual en- 1 rolled under title XVIII of the Social Secu- 2 rity Act, coverage under title XVIII of 3 such Act.’’. 4 (2) ELIGIBLE INDIVIDUAL.—Paragraph (1) of 5 section 223(c) of such Code is amended by adding 6 at the end the following: 7 ‘‘(D) SPECIAL RULE FOR INDIVIDUALS EN- 8 ROLLED IN MEDICARE.—An individual enrolled 9 under title XVIII of the Social Security Act 10 shall not fail to be treated as an eligible indi- 11 vidual for any period merely because the indi- 12 vidual during such period is covered under a 13 health plan described in subclauses (I) and (II) 14 of subparagraph (A)(ii).’’. 15 (3) EXCLUSION OF MEDICARE PREMIUMS AS 16 QUALIFIED MEDICAL EXPENSE.—Subparagraph (C) 17 of section 223(d)(2) of such Code is amended by in- 18 serting ‘‘or’’ at the end of clause (ii), by striking 19 ‘‘or’’ at the end of clause (iii) and inserting a period, 20 and by striking clause (iv). 21 (4) REPEAL OF EXCEPTION TO ADDITIONAL 22 TAX AFTER MEDICARE ELIGIBILITY.—Paragraph (4) 23 of section 223(f) of such Code is amended by strik- 24 ing subparagraph (C). 25 VerDate Sep 11 2014 02:46 Jul 30, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3796.IH H3796 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 3796 IH (5) ADDITIONAL CONFORMING AMENDMENTS.— 1 (A) IN GENERAL.—Section 223 of such 2 Code is amended by striking ‘‘high deductible 3 health plan’’ each place it appears in the text 4 and inserting ‘‘HSA-qualified health plan’’. 5 (B) CONFORMING AMENDMENTS.— 6 (i) The heading for paragraph (2) of 7 section 223(c) of such Code is amended by 8 striking ‘‘HIGH DEDUCTIBLE HEALTH 9 PLAN’’ and inserting ‘‘HSA-QUALIFIED 10 HEALTH PLAN’’. 11 (ii) Section 408(d)(9) of such Code is 12 amended— 13 (I) by striking ‘‘high deductible 14 health plan’’ each place it appears in 15 the text in subparagraph (C) and in- 16 serting ‘‘HSA-qualified health plan’’; 17 and 18 (II) by striking ‘‘HIGH DEDUCT- 19 IBLE HEALTH PLAN’’ in the heading 20 of subparagraph (D) and inserting 21 ‘‘HSA-QUALIFIED HEALTH PLAN’’. 22 (iii) Section 106(e) of such Code is 23 amended— 24 VerDate Sep 11 2014 02:46 Jul 30, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3796.IH H3796 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 3796 IH (I) by striking ‘‘HIGH DEDUCT- 1 IBLE HEALTH PLAN’’ in the heading 2 of paragraph (3) and inserting ‘‘HSA- 3 QUALIFIED HEALTH PLAN’’; and 4 (II) by striking ‘‘high deductible 5 health plan’’ in paragraph (5)(B)(ii) 6 and inserting ‘‘HSA-qualified health 7 plan’’. 8 (b) REPEAL OF MEDICARE LIMITATION ON DEDUC- 9 TION FOR CONTRIBUTIONS.— 10 (1) IN GENERAL.—Subsection (b) of section 11 223 of such Code is amended by striking paragraph 12 (7) and redesignating paragraph (8) as paragraph 13 (7). 14 (2) CONFORMING AMENDMENT.—Section 15 26(b)(2)(S) of such Code is amended by striking 16 ‘‘223(b)(8)(B)(i)(II),’’ and inserting 17 ‘‘223(b)(7)(B)(i)(II),’’. 18 (c) EFFECTIVE DATE.—The amendments made by 19 this section shall apply to taxable years beginning after 20 the date of the enactment of this Act. 21 Æ VerDate Sep 11 2014 02:46 Jul 30, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H3796.IH H3796 pamtmann on DSKBFK8HB2PROD with BILLS