,,ib  ,union ,cal5d> ,no4 #fec  #aae?   
,,congress  #b;d ,session  ,h4 ,r4 #fcje
  ,report ,no4 #aae-hdd  ,,9 ,,! ,,h\se 
,,( ,,repres5tatives  ,july #c1 #bjah   
,mr4 ,kelly ( ,p5nsylvania 7= himself & 
,mr4 ,blum5au]7 introduc$ ! foll[+ bill2
 :i* 0 ref]r$ to ! ,committee on ,ways &
 ,means  ,july #ai1 #bjah ,report$ ) an 
am5dm5t1 committ$ to ! ,committee ( !   
,:ole ,h\se on ! ,/ate ( ! ,union1 &    
ord]$ to be pr9t$ ,/rike out all aft] ! 
enact+ clause & ins]t ! "p pr9t$ 9      
italic ,= text ( introduc$ bill1 see    
copy ( bill z introduc$ on ,july #c1    
#bjah  ,a ,,bill  ,to am5d ! ,int]nal   
,rev5ue ,code ( #aihf to improve access 
to heal? c>e ?r\gh mod]niz$ heal? sav+s 
acc\nts4  #a4 ,%ort title ,?is ,act may 
be cit$ z ! ,bip>tisan ,,hsa ,improvem5t
 ,act ( #bjah4  #b4 ,c]ta9 employm5t    
relat$ s]vices n treat$ z disqualify+   
cov]age = purposes ( heal? sav+s acc\nts
  7a7 ,9 g5]al ,section #bbc7;c77#a7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by add+ at ! end ! foll[+ new          

subp>agraph3  7,d7 ,special rule =      
qualifi$ items & s]vices  7i7 ,9 g5]al  
,an individual %all n be treat$ z cov]$ 
"u a heal? plan = purposes ( subp>agraph
 7,a77ii7 m]ely because ! individual1 9 
connection ) ! employm5t ( ! individual 
or ! individual's sp\se1 receives 7or is
 eligible to receive7 qualifi$ items &  
s]vices at--  7,i7 a heal?c>e facility  
locat$ at a facility own$ or leas$ by ! 
employ] ( ! individual 7or ( !          
individual's sp\se71 or op]at$ prim>ily 
= ! b5efit ( su* employ]'s employees1 or
  7,,ii7 a heal?c>e facility locat$ )9 a
 sup]m>ket1 ph>macy1 or simil> retail   
e/abli%m5t4  7ii7 ,qualifi$ items &     
s]vices def9$ ,= purposes ( ?is         
subp>agraph1 ! t]m qualifi$ items &     
s]vices means ! foll[+3  7,i7 ,physical 
exam9ations4  7,,ii7 ,immunizations1    
includ+ injections ( antig5s provid$ by 
employees4  7,,iii7 ,drugs o!r ?an a    
prescrib$ drug 7z su* t]m is def9$ 9    
section #bac7;d77#c774  7,,iv7 ,treatm5t
 = injuries occurr+ 9 ! c\rse (         

employm5t4  7,v7 ,drug te/+1 if requir$ 
z a condition ( employm5t4  7,,vi7 ,he>+
 or vision scre5+s4  7,,vii7 ,o!r simil>
 items & s]vices t d n provide          
significant b5efits 9 ! nature ( m$ical 
c>e4  7iii7 ,aggregation ,= purposes (  
clause 7i77,i71 all p]sons treat$ z a   
s+le employ] "u subsection 7b71 7c71    
7m71 or 7o7 ( section #dad %all be      
treat$ z a s+le employ]4  4  7b7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to mon?s beg9n+ aft] 
,decemb] #ca1 #bjah1 9 taxable ye>s end+
 aft] su* date4  #c4 ,contributions     
p]mitt$ if sp\se has a heal? flexible   
sp5d+ acc\nt  7a7 ,contributions p]mitt$
 if sp\se has a heal? flexible sp5d+    
acc\nt ,section #bbc7;c77#a77;,b7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ & at ! end ( clause 7ii71 by   
/rik+ ! p]iod at ! end ( clause 7iii7 & 
ins]t+ 1 &1 & by ins]t+ aft] clause     
7iii7 ! foll[+ new clause3  7iv7 cov]age
 "u a heal? flexible sp5d+ arrangem5t ( 
! sp\se ( ! individual = any plan ye> ( 

su* arrangem5t if ! aggregate           
reimbursem5ts "u su* arrangem5t = su*   
ye> d n exce$ ! aggregate exp5ses :i*   
w\ld be eligible = reimbursem5t "u su*  
arrangem5t if su* exp5ses 7 det]m9$ )\t 
reg>d to any exp5ses paid or incurr$ )  
respect to su* individual4  4  7b7      
,effective date ,! am5dm5t made by ?is  
section %all apply to plan ye>s beg9n+  
aft] ,decemb] #ca1 #bjah4  #d4 ,,fsa &  
,,hra t]m9ations or conv]sions to fund  
,h,s,as  7a7 ,9 g5]al ,section          
#ajf7;e77#b7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ to read z foll[s3  7#b7
 ,qualifi$ ,,hsa di/ribution ,= purposes
 ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m
 qualifi$ ,,hsa di/ribution means1 )    
respect to any employee1 a di/ribution f
 a heal? flexible sp5d+ arrangem5t or   
heal? reimbursem5t arrangem5t ( su*     
employee directly to a heal? sav+s      
acc\nt ( su* employee if--  7i7 su*     
di/ribution is made 9 connection ) su*  
employee e/abli%+ cov]age "u a high     
d$uctible heal? plan 7z def9$ 9 section 

#bbc7;c77#b77 aft] a significant p]iod (
 n hav+ su* cov]age1 &  7ii7 su*        
arrangem5t is describ$ 9 section        
#bbc7;c77#a77;,b77iii7 ) respect to !   
portion ( ! plan ye> aft] su*           
di/ribution is made4  7,b7 ,doll>       
limitation ,! aggregate am\nt (         
di/ributions f heal? flexible sp5d+     
arrangem5ts & heal? reimbursem5t        
arrangem5ts ( any employee :i* may be   
treat$ z qualifi$ ,,hsa di/ributions 9  
connection ) an e/abli%m5t ( cov]age    
describ$ 9 subp>agraph 7,a77i7 %all n   
exce$ ! doll> am\nt 9 effect "u section 
#abe7;i77#a7 7twice su* am\nt 9 ! case (
 cov]age :i* is describ$ 9 section      
#bbc7;b77#b77;,b774  4  7b7 ,p>tial     
r$uction ( limitation on d$uctible ,,hsa
 contributions ,section #bbc7;b77#d7 (  
su* ,code is am5d$ by /rik+ & at ! end (
 subp>agraph 7,b71 by /rik+ ! p]iod at !
 end ( subp>agraph 7,c7 & ins]t+ 1 &1 & 
by ins]t+ aft] subp>agraph 7,c7 ! foll[+
 new subp>agraph3  7,d7 s mu* ( any     
qualifi$ ,,hsa di/ribution 7z def9$ 9   

section #ajf7;e77#b77 made to a heal?   
sav+s acc\nt ( su* individual dur+ !    
taxable ye> z does n exce$ ! aggregate  
increases 9 ! balance ( ! arrangem5t f  
:i* su* di/ribution is made :i* occur   
dur+ ! portion ( ! plan ye> :i* prec$es 
su* di/ribution 7o!r ?an any balance    
c>ri$ ov] to su* plan ye> & det]m9$ )\t 
reg>d to any decrease 9 su* balance dur+
 su* portion ( ! plan ye>74  4  7c7     
,conv]sion to ,,hsa-compatible          
arrangem5t = rema9d] ( plan ye> ,section
 #bbc7;c77#a77;,b77iii7 ( su* ,code1 z  
am5d$ by ! prec$+ provisions ( ?is ,act1
 is am5d$ to read z foll[s3  7iii7      
cov]age "u a heal? flexible sp5d+       
arrangem5t or heal? reimbursem5t        
arrangem5t = ! portion ( ! plan ye> aft]
 a qualifi$ ,,hsa di/ribution 7z def9$ 9
 section #ajf7;e77#b7 det]m9$ )\t reg>d 
to subp>agraph 7,a77ii7 !re(7 is made1  
if ! t]ms ( su* arrangem5t :i* apply =  
su* portion ( ! plan ye> are su* t1 if  
su* t]ms appli$ = ! entire plan ye>1 !n 
su* arrangem5t w\ld n be tak5 into      

acc\nt "u subp>agraph 7,a77ii7 ( ?is    
p>agraph = su* plan ye>1 &  4  7d7      
,inclusion ( qualifi$ ,,hsa di/ributions
 on ,w-#b  7#a7 ,9 g5]al ,section       
#fjea7;a7 ( su* ,code is am5d$ by /rik+ 
& at ! end ( p>agraph 7#af71 by /rik+ ! 
p]iod at ! end ( p>agraph 7#ag7 & ins]t+
 1 &1 & by ins]t+ aft] p>agraph 7#ag7 ! 
foll[+ new p>agraph3  7#ah7 ! am\nt (   
any qualifi$ ,,hsa di/ribution 7z def9$ 
9 section #ajf7;e77#b77 ) respect to su*
 employee4  4  7#b7 ,con=m+ am5dm5t     
,section #fjea7;a77#ab7 ( su* ,code is  
am5d$ by ins]t+ 7o!r ?an any qualifi$   
,,hsa di/ribution1 z def9$ 9 section    
#ajf7;e77#b77 be=e ! comma at ! end4    
7e7 ,effective date ,! am5dm5ts made by 
?is section %all apply to di/ributions  
made aft] ,decemb] #ca1 #bjah1 9 taxable
 ye>s end+ aft] su* date4  ,july #ai1   
#bjah ,report$ ) an am5dm5t1 committ$ to
 ! ,committee ( ! ,:ole ,h\se on ! ,/ate
 ( ! ,union1 & ord]$ to be pr9t$