Homecare for Seniors Act

II 116TH CONGRESS 2D SESSION S. 3261 To amend the Internal Revenue Code of 1986 to allow qualified distributions from health savings accounts for certain home care expenses. IN THE SENATE OF THE UNITED STATES FEBRUARY 10, 2020 Mr. GARDNER (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 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 SEC. 2. CERTAIN HOME CARE EXPENSES TREATED AS 6 QUALIFIED DISTRIBUTIONS FROM HEALTH 7 SAVINGS ACCOUNTS. 8 (a) IN GENERAL.—Section 223(d)(2) of the Internal 9 Revenue Code of 1986 is amended— 10 VerDate Sep 11 2014 22:04 Feb 11, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3261.IS S3261 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3261 IS (1) by striking ‘‘medical care (as defined in sec- 1 tion 213(d)’’ in subparagraph (A) and inserting 2 ‘‘specified medical care (as defined in subparagraph 3 (D))’’; and 4 (2) by adding at the end the following new sub- 5 paragraph: 6 ‘‘(D) SPECIFIED MEDICAL CARE.—For 7 purposes of this paragraph— 8 ‘‘(i) IN GENERAL.—The term ‘speci- 9 fied medical care’ means— 10 ‘‘(I) medical care (as defined in 11 section 213(d)), and 12 ‘‘(II) qualified home care. 13 ‘‘(ii) QUALIFIED HOME CARE.—The 14 term ‘qualified home care’ means services 15 provided pursuant to a contract to provide 16 3 or more of the following in the residence 17 of the service recipient: 18 ‘‘(I) Assistance with eating. 19 ‘‘(II) Assistance with toileting. 20 ‘‘(III) Assistance with transfer- 21 ring. 22 ‘‘(IV) Assistance with bathing. 23 ‘‘(V) Assistance with dressing. 24 ‘‘(VI) Assistance with continence. 25 VerDate Sep 11 2014 22:04 Feb 11, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3261.IS S3261 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3261 IS ‘‘(VII) Medication adherence. 1 Such term shall not include any services 2 unless such services are provided by a serv- 3 ice provider which is licensed by the State 4 to provide such services, or such services 5 are otherwise provided in a manner that is 6 consistent with State requirements. 7 ‘‘(iii) RELATED PARTIES.—The term 8 ‘qualified home care’ shall not include serv- 9 ices provided pursuant to any contract 10 which is entered into, directly or indirectly, 11 between a service provider and a service re- 12 cipient who are related within the meaning 13 of section 267(b) or 707(b).’’. 14 (b) EFFECTIVE DATE.—The amendments made by 15 this section shall apply to amounts paid with respect to 16 taxable years beginning after the date of the enactment 17 of this Act. 18 (c) PROMOTION OF PUBLIC AWARENESS OF IN- 19 HOME SERVICE EXPENSES ELIGIBLE FOR TAX-FREE 20 DISTRIBUTION FROM HEALTH SAVINGS ACCOUNTS.—The 21 Secretary of Health and Human Services, in consultation 22 with the Secretary of the Treasury, shall carry out a cam- 23 paign to increase public awareness of the in-home service 24 VerDate Sep 11 2014 22:04 Feb 11, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3261.IS S3261 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3261 IS expenses that are eligible for tax-free distribution from 1 health savings accounts. 2 Æ VerDate Sep 11 2014 22:04 Feb 11, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S3261.IS S3261 kjohnson on DSK79L0C42PROD with BILLS