,,ib ,union ,calendar ,no4 #fec #aaeth ,,congress #b;d ,session ,h4 ,r4 #fcje ,report ,no4 #aae-hdd ,,in ,,the ,,house ,,of ,,representatives ,july #c1 #bjah ,mr4 ,kelly of ,pennsylvania 7for himself and ,mr4 ,blumenauer7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,july #ai1 #bjah ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,july #c1 #bjah ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to improve access to health care through modernized health savings accounts4 #a4 ,short title ,this ,act may be cited as the ,bipartisan ,,hsa ,improvement ,act of #bjah4 #b4 ,certain employment related services not treated as disqualifying coverage for purposes of health savings accounts 7a7 ,in general ,section #bbc7;c77#a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,d7 ,special rule for qualified items and services 7i7 ,in general ,an individual shall not be treated as covered under a health plan for purposes of subparagraph 7,a77ii7 merely because the individual1 in connection with the employment of the individual or the individual's spouse1 receives 7or is eligible to receive7 qualified items and services at-- 7,i7 a healthcare facility located at a facility owned or leased by the employer of the individual 7or of the individual's spouse71 or operated primarily for the benefit of such employer's employees1 or 7,,ii7 a healthcare facility located within a supermarket1 pharmacy1 or similar retail establishment4 7ii7 ,qualified items and services defined ,for purposes of this subparagraph1 the term qualified items and services means the following3 7,i7 ,physical examinations4 7,,ii7 ,immunizations1 including injections of antigens provided by employees4 7,,iii7 ,drugs other than a prescribed drug 7as such term is defined in section #bac7;d77#c774 7,,iv7 ,treatment for injuries occurring in the course of employment4 7,v7 ,drug testing1 if required as a condition of employment4 7,,vi7 ,hearing or vision screenings4 7,,vii7 ,other similar items and services that do not provide significant benefits in the nature of medical care4 7iii7 ,aggregation ,for purposes of clause 7i77,i71 all persons treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad shall be treated as a single employer4 4 7b7 ,effective date ,the amendments made by this section shall apply to months beginning after ,december #ca1 #bjah1 in taxable years ending after such date4 #c4 ,contributions permitted if spouse has a health flexible spending account 7a7 ,contributions permitted if spouse has a health flexible spending account ,section #bbc7;c77#a77;,b7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7ii71 by striking the period at the end of clause 7iii7 and inserting 1 and1 and by inserting after clause 7iii7 the following new clause3 7iv7 coverage under a health flexible spending arrangement of the spouse of the individual for any plan year of such arrangement if the aggregate reimbursements under such arrangement for such year do not exceed the aggregate expenses which would be eligible for reimbursement under such arrangement if such expenses were determined without regard to any expenses paid or incurred with respect to such individual4 4 7b7 ,effective date ,the amendment made by this section shall apply to plan years beginning after ,december #ca1 #bjah4 #d4 ,,fsa and ,,hra terminations or conversions to fund ,h,s,as 7a7 ,in general ,section #ajf7;e77#b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#b7 ,qualified ,,hsa distribution ,for purposes of this subsection-- 7,a7 ,in general ,the term qualified ,,hsa distribution means1 with respect to any employee1 a distribution from a health flexible spending arrangement or health reimbursement arrangement of such employee directly to a health savings account of such employee if-- 7i7 such distribution is made in connection with such employee establishing coverage under a high deductible health plan 7as defined in section #bbc7;c77#b77 after a significant period of not having such coverage1 and 7ii7 such arrangement is described in section #bbc7;c77#a77;,b77iii7 with respect to the portion of the plan year after such distribution is made4 7,b7 ,dollar limitation ,the aggregate amount of distributions from health flexible spending arrangements and health reimbursement arrangements of any employee which may be treated as qualified ,,hsa distributions in connection with an establishment of coverage described in subparagraph 7,a77i7 shall not exceed the dollar amount in effect under section #abe7;i77#a7 7twice such amount in the case of coverage which is described in section #bbc7;b77#b77;,b774 4 7b7 ,partial reduction of limitation on deductible ,,hsa contributions ,section #bbc7;b77#d7 of such ,code is amended by striking and at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 and1 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 so much of any qualified ,,hsa distribution 7as defined in section #ajf7;e77#b77 made to a health savings account of such individual during the taxable year as does not exceed the aggregate increases in the balance of the arrangement from which such distribution is made which occur during the portion of the plan year which precedes such distribution 7other than any balance carried over to such plan year and determined without regard to any decrease in such balance during such portion of the plan year74 4 7c7 ,conversion to ,,hsa-compatible arrangement for remainder of plan year ,section #bbc7;c77#a77;,b77iii7 of such ,code1 as amended by the preceding provisions of this ,act1 is amended to read as follows3 7iii7 coverage under a health flexible spending arrangement or health reimbursement arrangement for the portion of the plan year after a qualified ,,hsa distribution 7as defined in section #ajf7;e77#b7 determined without regard to subparagraph 7,a77ii7 thereof7 is made1 if the terms of such arrangement which apply for such portion of the plan year are such that1 if such terms applied for the entire plan year1 then such arrangement would not be taken into account under subparagraph 7,a77ii7 of this paragraph for such plan year1 and 4 7d7 ,inclusion of qualified ,,hsa distributions on ,w-#b 7#a7 ,in general ,section #fjea7;a7 of such ,code is amended by striking and at the end of paragraph 7#af71 by striking the period at the end of paragraph 7#ag7 and inserting 1 and1 and by inserting after paragraph 7#ag7 the following new paragraph3 7#ah7 the amount of any qualified ,,hsa distribution 7as defined in section #ajf7;e77#b77 with respect to such employee4 4 7#b7 ,conforming amendment ,section #fjea7;a77#ab7 of such ,code is amended by inserting 7other than any qualified ,,hsa distribution1 as defined in section #ajf7;e77#b77 before the comma at the end4 7e7 ,effective date ,the amendments made by this section shall apply to distributions made after ,december #ca1 #bjah1 in taxable years ending after such date4 ,july #ai1 #bjah ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed