,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #bdii  ,,in ,,the ,,house ,,of  
,,representatives  ,june #be1 #bjac ,mr4
 ,mc,dermott 7for himself1 ,ms4         
,ros-,lehtinen1 ,mr4 ,blumenauer1 and   
,mr4 ,hanna7 introduced the following   
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to extend the exclusion 
from gross income for employer-provided 
health coverage for employees' spouses  
and dependent children to coverage      
provided to other eligible designated   
beneficiaries of employees4  #a4 ,short 
title ,this ,act may be cited as the    
,tax ,parity for ,health ,plan          
,beneficiaries ,act of #bjac4  #b4      
,application of accident and health     
plans to eligible beneficiaries  7a7    
,exclusion of contributions ,section    
#ajf of the ,internal ,revenue ,code of 
#aihf is amended by adding at the end   
the following new subsection3  7g7      
,coverage provided for eligible         

beneficiaries of employees  7#a7 ,in    
general ,subsection 7a7 shall apply with
 respect to employer-provided coverage  
under an accident or health plan for any
 eligible beneficiary of the employee4  
7#b7 ,eligible beneficiary ,for purposes
 of this subsection1 the term eligible  
beneficiary means any individual who is 
eligible to receive benefits or coverage
 under an accident or health plan4  4   
7b7 ,exclusion of amounts expended for  
medical care ,the first sentence of     
section #aje7;b7 of the ,internal       
,revenue ,code of #aihf is amended--    
7#a7 by striking 8and any child0 and    
inserting 8any child01 and  7#b7 by     
inserting 1 and any eligible beneficiary
 7within the meaning of section         
#ajf7;g77 with respect to the taxpayer  
after age #bg4  7c7 ,payroll taxes  7#a7
 ,section #caba7;a77#b7 of the ,internal
 ,revenue ,code of #aihf is amended--   
7,a7 by striking or any of his          
dependents in the matter preceding      
subparagraph 7,a7 and inserting 1 any of

 his dependents1 or any eligible        
beneficiary 7within the meaning of      
section #ajf7;g77 with respect to the   
employee1  7,b7 by striking or any of   
his dependents1 in subparagraph 7,a7 and
 inserting 1 any of his dependents1 or  
any eligible beneficiary 7within the    
meaning of section #ajf7;g77 with       
respect to the employee11 and  7,c7 by  
striking and their dependents both      
places it appears and inserting and such
 employees' dependents and eligible     
beneficiaries 7within the meaning of    
section #ajf7;g774  7#b7 ,section       
#cbca7;e77#a7 of such ,code is amended--
  7,a7 by striking or any of his        
dependents and inserting 1 any of his   
dependents1 or any eligible beneficiary 
7within the meaning of section #ajf7;g77
 with respect to the employee11 and     
7,b7 by striking and their dependents   
both places it appears and inserting and
 such employees' dependents and eligible
 beneficiaries 7within the meaning of   
section #ajf7;g774  7#c7 ,section       

#ccjf7;b77#b7 of such ,code is amended--
  7,a7 by striking or any of his        
dependents in the matter preceding      
subparagraph 7,a7 and inserting 1 any of
 his dependents1 or any eligible        
beneficiary 7within the meaning of      
section #ajf7;g77 with respect to the   
employee11  7,b7 by striking or any of  
his dependents in subparagraph 7,a7 and 
inserting 1 any of his dependents1 or   
any eligible beneficiary 7within the    
meaning of section #ajf7;g77 with       
respect to the employee1 and  7,c7 by   
striking 8and their dependents0 both    
places it appears and inserting and such
 employees' dependents and eligible     
beneficiaries 7within the meaning of    
section #ajf7;g774  7#d7 ,section       
#cdja7;a7 of such ,code is amended by   
striking or at the end of paragraph     
7#bb71 by striking the period at the end
 of paragraph 7#bc7 and inserting 2 or1 
and by inserting after paragraph 7#bc7  
the following new paragraph3  7#bd7 for 
any payment made to or for the benefit  

of an employee or any eligible          
beneficiary 7within the meaning of      
section #ajf7;g77 if at the time of such
 payment it is reasonable to believe    
that the employee will be able to       
exclude such payment from income under  
section #ajf or under section #aje by   
reference in section #aje7;b7 to section
 #ajf7;g74  4  7d7 ,effective date ,the 
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjac4  #c4 ,expansion of
 dependency for purposes of deduction   
for health insurance costs of           
self-employed individuals  7a7 ,in      
general ,paragraph 7#a7 of section      
#afb7l7 of the ,internal ,revenue ,code 
of #aihf is amended by striking and at  
the end of subparagraph 7,c71 by        
striking the period at the end of       
subparagraph 7,d7 and inserting a comma 
and by adding at the end the following  
new subparagraphs3  7,e7 any individual 
who--  7i7 satisfies the age            
requirements of section                 

#aeb7;c77#c77;,a71  7ii7 bears a        
relationship to the taxpayer described  
in section #aeb7;d77#b77;,h71 and  7iii7
 meets the requirements of section      
#aeb7;d77#a77;,c71 and  7,f7 one        
individual who--  7i7 is at least age   
#ai1  7ii7 bears a relationship to the  
taxpayer described in section           
#aeb7;d77#b77;,h71 and  7iii7 is not the
 spouse of the taxpayer and does not    
bear any relationship to the taxpayer   
described in subparagraphs 7,a7 through 
7,g7 of section #aeb7;d77#b74  4  7b7   
,conforming amendment ,subparagraph 7,b7
 of section #afb7l77#b7 of such ,code is
 amended by inserting 1 7,e71 or 7,f7   
after subparagraph 7,d74  7c7 ,effective
 date ,the amendments made by this      
section shall apply to taxable years    
beginning after ,december #ca1 #bjac4   
#d4 ,extension to eligible beneficiaries
 of sick and accident benefits provided 
to members of a voluntary employees'    
beneficiary association and their       
dependents  7a7 ,in general ,section    

#eja7;c77#i7 of the ,internal ,revenue  
,code of #aihf is amended by inserting 3
 and any individual who is an eligible  
beneficiary 7within the meaning of      
section #ajf7;g771 as determined under  
the terms of a medical benefit1 health  
insurance1 or other program after age   
#bg4  7b7 ,effective date ,the amendment
 made by this section shall apply to    
taxable years beginning after ,december 
#ca1 #bjac4  #e4 ,flexible spending     
arrangements and health reimbursement   
arrangements ,the ,secretary of         
,treasury shall issue guidance of       
general applicability within #ahj days  
after the date of the enactment of this 
,act providing that medical expenses    
that otherwise qualify--  7#a7 for      
reimbursement from a flexible spending  
arrangement under regulations in effect 
on such date of enactment may be        
reimbursed from an employee's flexible  
spending arrangement1 notwithstanding   
the fact that such expenses are         
attributable to any individual who is   

not the employee's spouse or dependent  
7within the meaning of section #aje7;b7 
of the ,internal ,revenue ,code of      
#aihf7 but is an eligible beneficiary   
7within the meaning of section #ajf7;g7 
of such ,code7 under the flexible       
spending arrangement with respect to the
 employee1 and  7#b7 for reimbursement  
from a health reimbursement arrangement 
under regulations in effect on such date
 of enactment may be reimbursed from an 
employee's health reimbursement         
arrangement1 notwithstanding the fact   
that such expenses are attributable to  
an individual who is not a spouse or    
dependent 7within the meaning of section
 #aje7;b7 of such ,code7 but is an      
eligible beneficiary 7within the meaning
 of section #ajf7;g7 of such ,code7     
under the health reimbursement          
arrangement with respect to the         
employee4  #f4 ,extension of qualified  
medical expenses from health savings    
accounts  7a7 ,in general ,subparagraph 
7,a7 of section #bbc7;d77#b7 of the     

,internal ,revenue ,code of #aihf is    
amended--  7#a7 by striking and any     
dependent and inserting any dependent1  
and  7#b7 by inserting 1 and any        
qualified beneficiary after thereof74   
7b7 ,qualified beneficiary ,paragraph   
7#b7 of section #bbc7;d7 of the         
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new subparagraph3  7,d7       
,qualified beneficiary ,for purposes of 
subparagraph 7,a71 the term qualified   
beneficiary means any individual who is 
described in subparagraph 7,d7 or 7,e7  
of section #afb7l77#a74  4  7c7         
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjac4  #g4 ,extension of funding       
mechanism for medical benefits for      
retirees and their families  7a7 ,in    
general ,section #dja7;h7 of the        
,internal ,revenue ,code of #aihf is    
amended by inserting 1 and any eligible 
beneficiary 7within the meaning of      

section #ajf7;g77 of the retired        
employee after age #bg4  7b7 ,effective 
date ,the amendment made by this section
 shall apply to taxable years beginning 
after ,december #ca1 #bjac4