Health Savings Account Expansion Act of 2019

II 116TH CONGRESS 1ST SESSION S. 2441 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 AUGUST 1, 2019 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 2019’’. 5 VerDate Sep 11 2014 04:39 Aug 15, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2441.IS S2441 kjohnson on DSK79L0C42 with BILLS 2 •S 2441 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 04:39 Aug 15, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2441.IS S2441 kjohnson on DSK79L0C42 with BILLS 3 •S 2441 IS (A) in paragraph (1)(A), by striking ‘‘high 1 deductible health plan’’ each place is 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.’’, and 23 (iv) by striking subparagraph (D), 24 (3) in subsection (g)(1)— 25 VerDate Sep 11 2014 04:39 Aug 15, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2441.IS S2441 kjohnson on DSK79L0C42 with BILLS 4 •S 2441 IS (A) by striking ‘‘Each dollar amount in 1 subsections (b)(2) and (c)(2)(A)’’ and inserting 2 ‘‘The dollar amount in subsection (b)(2)(A)’’, 3 (B) by amending subparagraph (B) to read 4 as follows: 5 ‘‘(B) the cost-of-living adjustment deter- 6 mined under section 1(f)(3) for the calendar 7 year in which such taxable year begins, deter- 8 mined by substituting ‘2003’ for ‘2016’ in sub- 9 paragraph (A)(ii) thereof.’’, and 10 (C) by striking ‘‘adjusted amounts under 11 subsections (b)(2) and (c)(2)(A)’’ and inserting 12 ‘‘adjusted amounts under subsection (b)(2)’’, 13 and 14 (4) in subsection (h)(2), by striking ‘‘high de- 15 ductible health plan’’ and inserting ‘‘qualified health 16 plan’’. 17 (b) CONFORMING AMENDMENTS.— 18 (1) Section 26(b)(2)(S) of the Internal Revenue 19 Code of 1986 is amended by striking ‘‘high deduct- 20 ible health plan’’ and inserting ‘‘qualified health 21 plan’’. 22 (2) Section 106(e) of such Code is amended— 23 VerDate Sep 11 2014 04:39 Aug 15, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2441.IS S2441 kjohnson on DSK79L0C42 with BILLS 5 •S 2441 IS (A) in the heading of paragraph (3), by 1 striking ‘‘HIGH DEDUCTIBLE HEALTH PLAN’’ 2 and inserting ‘‘QUALIFIED HEALTH PLAN’’, and 3 (B) in paragraph (5)(B)(ii), by striking 4 ‘‘high deductible health plan’’ and inserting 5 ‘‘qualified health plan’’. 6 (3) Section 408(d)(9) of such Code is amend- 7 ed— 8 (A) in subparagraph (C)— 9 (i) in clause (i)(I), by striking ‘‘high 10 deductible health plan’’ and inserting 11 ‘‘qualified health plan’’, and 12 (ii) in clause (ii)(II), by striking ‘‘high 13 deductible health plan’’ each place it ap- 14 pears and inserting ‘‘qualified health 15 plan’’, and 16 (B) in the heading of subparagraph (D), 17 by striking ‘‘HIGH DEDUCTIBLE HEALTH PLAN’’ 18 and inserting ‘‘QUALIFIED HEALTH PLAN’’. 19 (4) Section 1906A(b)(2)(B) of the Social Secu- 20 rity Act (42 U.S.C. 1396e–1(b)(2)(B)) is amended 21 by striking ‘‘high deductible health plan’’ and insert- 22 ing ‘‘qualified health plan’’. 23 (5) Section 1938(a)(3) of the Social Security 24 Act (42 U.S.C. 1396u–8(a)(3)) is amended by in- 25 VerDate Sep 11 2014 04:39 Aug 15, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2441.IS S2441 kjohnson on DSK79L0C42 with BILLS 6 •S 2441 IS serting ‘‘(as in effect on the day before the date of 1 the enactment of the Health Savings Account Ex- 2 pansion Act of 2019)’’ after ‘‘section 223(c)(2)(C) of 3 the Internal Revenue Code of 1986’’. 4 (6) Section 2105(c)(10)(B)(ii)(II) of the Social 5 Security Act (42 U.S.C. 1397ee(c)(10)(B)(ii)(II)) is 6 amended by striking ‘‘high deductible health plan’’ 7 and inserting ‘‘qualified health plan’’. 8 (7) Section 1101(c)(2)(B)(ii) of the Patient 9 Protection and Affordable Care Act (42 U.S.C. 10 18001(c)(2)(B)(ii)) is amended by striking ‘‘section 11 223(c)(2)’’ and inserting ‘‘section 223(b)(2)’’. 12 (c) EFFECTIVE DATE.—The amendments made by 13 this section shall apply to taxable years beginning after 14 December 31, 2019. 15 Æ VerDate Sep 11 2014 04:39 Aug 15, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S2441.IS S2441 kjohnson on DSK79L0C42 with BILLS