Bill Summary
The Health Savings for Seniors Act is a bill that aims to amend the Internal Revenue Code of 1986 to allow Medicare coverage to be considered for contributions to health savings accounts. This means that individuals enrolled in Medicare can contribute to their health savings accounts, which are tax-advantaged savings accounts for medical expenses. The bill also makes other changes such as removing the limitation on deductions for Medicare contributions and making Medicare premiums not qualified medical expenses. The bill will go into effect for taxable years after it is enacted.
Possible Impacts
1. The "Health Savings for Seniors Act" would allow Medicare coverage to be considered as a qualified health plan under the Internal Revenue Code, making it eligible for contributions to health savings accounts. This could greatly benefit seniors who rely on Medicare for their healthcare needs, as it would give them the opportunity to save money for future medical expenses.
2. The amendment would also repeal the current limitation on tax deductions for contributions to health savings accounts for individuals enrolled in Medicare. This could save individuals a significant amount of money on their taxes and provide them with more financial flexibility.
3. The changes to the Internal Revenue Code could also affect healthcare providers, as more seniors would have access to health savings accounts and may be able to pay for medical services out of their accounts. This could potentially lead to more healthcare providers accepting Medicare patients, as they would have a way to receive payment for their services.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3796 Introduced in House (IH)]
<DOC>
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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Health Savings for Seniors Act''.
SEC. 2. COVERAGE UNDER MEDICARE PERMISSIBLE FOR PURPOSES OF
CONTRIBUTIONS TO HEALTH SAVINGS ACCOUNTS.
(a) Medicare Made an HSA-Eligible Plan.--
(1) In general.--Subparagraph (A) of section 223(c)(2) of
the Internal Revenue Code of 1986 is amended to read as
follows:
``(A) In general.--The term `HSA-qualified health
plan' means--
``(i) a health plan--
``(I) which has an annual
deductible which is not less than--
``(aa) $1,000 for self-only
coverage, and
``(bb) twice the dollar
amount in item (aa) for family
coverage, and
``(II) the sum of the annual
deductible and the other annual out-of-
pocket expenses required to be paid
under the plan (other than for
premiums) for covered benefits does not
exceed--
``(aa) $5,000 for self-only
coverage, and
``(bb) twice the dollar
amount in item (aa) for family
coverage, and
``(ii) in the case of an individual
enrolled under title XVIII of the Social
Security Act, coverage under title XVIII of
such Act.''.
(2) Eligible individual.--Paragraph (1) of section 223(c)
of such Code is amended by adding at the end the following:
``(D) Special rule for individuals enrolled in
medicare.--An individual enrolled under title XVIII of
the Social Security Act shall not fail to be treated as
an eligible individual for any period merely because
the individual during such period is covered under a
health plan described in subclauses (I) and (II) of
subparagraph (A)(ii).''.
(3) Exclusion of medicare premiums as qualified medical
expense.--Subparagraph (C) of section 223(d)(2) of such Code is
amended by inserting ``or'' at the end of clause (ii), by
striking ``or'' at the end of clause (iii) and inserting a
period, and by striking clause (iv).
(4) Repeal of exception to additional tax after medicare
eligibility.--Paragraph (4) of section 223(f) of such Code is
amended by striking subparagraph (C).
(5) Additional conforming amendments.--
(A) In general.--Section 223 of such Code is
amended by striking ``high deductible health plan''
each place it appears in the text and inserting ``HSA-
qualified health plan''.
(B) Conforming amendments.--
(i) The heading for paragraph (2) of
section 223(c) of such Code is amended by
striking ``High deductible health plan'' and
inserting ``HSA-qualified health plan''.
(ii) Section 408(d)(9) of such Code is
amended--
(I) by striking ``high deductible
health plan'' each place it appears in
the text in subparagraph (C) and
inserting ``HSA-qualified health
plan''; and
(II) by striking ``High deductible
health plan'' in the heading of
subparagraph (D) and inserting ``HSA-
qualified health plan''.
(iii) Section 106(e) of such Code is
amended--
(I) by striking ``High deductible
health plan'' in the heading of
paragraph (3) and inserting ``HSA-
qualified health plan''; and
(II) by striking ``high deductible
health plan'' in paragraph (5)(B)(ii)
and inserting ``HSA-qualified health
plan''.
(b) Repeal of Medicare Limitation on Deduction for Contributions.--
(1) In general.--Subsection (b) of section 223 of such Code
is amended by striking paragraph (7) and redesignating
paragraph (8) as paragraph (7).
(2) Conforming amendment.--Section 26(b)(2)(S) of such Code
is amended by striking ``223(b)(8)(B)(i)(II),'' and inserting
``223(b)(7)(B)(i)(II),''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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