,i #aafth ,,congress #ast ,session ,h4 ,r4 #fjc ,,in ,,the ,,house ,,of ,,representatives ,january #af1 #bjai,mr4 ,gallagher 7for himself1 ,mr4 ,meadows1 ,mr4 ,tipton1 and ,mr4 ,palmer7 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 expand the permissible use of health savings accounts to include health insurance payments and to increase the dollar limitation for contributions to health savings accounts1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,health ,savings ,account ,expansion ,act of #bjai4 #b4 ,adequate funds for health insurance plans 7a7 ,in general ,section #bbc7;b77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking the sum of the monthly and all that follows through eligible individual and inserting #i1jjj 7twice such amount in the case of a joint return74 7b7 ,conforming amendments 7#a7 ,subsection 7b7 of such ,code is amended by striking paragraphs 7#b71 7#c71 and 7#e7 and by redesignating paragraphs 7#d71 7#f71 7#g71 and 7#h7 as paragraphs 7#b71 7#c71 7#d71 and 7#e71 respectively4 7#b7 ,section #bbc7;b77#b7 of such ,code 7as redesignated by paragraph 7#a77 is amended by striking the last sentence4 7#c7 ,section #bbc7;b77#d7 of such ,code 7as redesignated by paragraph 7#a77 is amended to read as follows3 7#d7 ,medicare eligible individuals ,the limitation under this subsection for any taxable year with respect to an individual shall-- 7,a7 in the case of the first taxable year in which such individual is entitled to benefits under title ,,xviii of the ,social ,security ,act1 be the amount which bears the same proportion to the amount in effect under paragraph 7#a7 with respect to such individual as-- 7i7 the number of months in the taxable year during which such individual was not so entitled1 bears to 7ii7 #ab1 and 7,b7 be zero for any taxable year thereafter4 4 7#d7 ,section #bbc7;g77#a7 of such ,code is amended-- 7,a7 in the matter preceding subparagraph 7,a7 by striking ,each dollar amount in subsection 7b77#b7 and inserting ,in the case of taxable years beginning after ,december #ca1 #bjai1 the dollar amount in subsection 7b77#a72 and 7,b7 by amending subparagraph 7,b7 to read as follows3 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which such taxable year begins determined by substituting calendar year #bjah for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #c4 ,parity with employer-provided health insurance2 direct primary care 7a7 ,in general ,section #bbc7;d77#b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#b7 ,qualified medical expenses 7,a7 ,in general ,the term qualified medical expenses means1 with respect to an account beneficiary1 amounts paid by such beneficiary for medical care 7as defined in section #bac7;d77 for such individual1 the spouse of such individual1 and any dependent 7as defined in section #aeb1 determined without regard to subsections 7b77#a71 7b77#b71 and 7d77#a77;,b7 thereof7 of such individual1 but only to the extent such amounts are not compensated for by insurance or otherwise4 7,b7 ,direct primary care 7i7 ,in general ,such term includes expenses for direct primary care service arrangements4 7ii7 ,direct primary care service arrangements ,for purposes of clause 7i71 the term direct primary care service arrangements means an arrangement under which an individual is provided coverage restricted to primary care services in exchange for a fixed periodic fee or payment for primary care services4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #d4 ,freedom from mandate 7a7 ,in general ,section #bbc of the ,internal ,revenue ,code of #aihf1 as amended by sections #b and #c1 is amended by striking subsection 7c7 and redesignating subsections 7d7 through 7h7 as subsections 7c7 through 7g71 respectively4 7b7 ,conforming amendments 7#a7 ,subsection 7a7 of section #bbc of such ,code is amended to read as follows3 7a7 ,deduction allowed ,in the case of an individual1 there shall be allowed as a deduction for a taxable year an amount equal to the aggregate amount paid in cash during such taxable year by or on behalf of such individual to a health savings account of such individual4 4 7#b7 ,subsection 7b7 of section #bbc of such ,code 7as amended by section #b7 is amended by striking paragraph 7#e74 7#c7 ,section #bbc7;c77#a77;,a7 of such ,code 7as redesignated by subsection 7a77 is amended-- 7,a7 by striking subsection 7f77#e7 and inserting subsection 7e77#e72 and 7,b7 in clause 7ii7 by striking the sum of-- and all that follows and inserting the dollar amount in effect under subsection 7b77#a744 7#d7 ,section #bbc7;f77#a7 of such ,code 7as redesignated by subsection 7a77 is amended by striking subsections 7b77#a7 and 7c77#b77;,a7 and inserting subsection 7b77#a74 7#e7 ,section #bf7;b77#b77,u7 of such ,code is amended by striking section #bbc7;f77#d7 and inserting section #bbc7;e77#d74 7#f7 ,sections #ce7;g77#c71 #bbj7;f77#e77;,a71 #hdh7;e77#a77v71 #digc7;a77#e71 and #fjea7;a77#ab7 of such ,code are each amended by striking section #bbc7;d7 each place it appears and inserting section #bbc7;c74 7#g7 ,section #ajf7;d77#a7 of such ,code is amended-- 7,a7 by striking who is an eligible individual 7as defined in section #bbc7;c77#a772 and 7,b7 by striking section #bbc7;d7 and inserting section #bbc7;c74 7#h7 ,section #djh7;d77#i7 of such ,code is amended-- 7,a7 in subparagraph 7,a7 by striking who is an eligible individual 7as defined in section #bbc7;c77 and2 and 7,b7 in subparagraph 7,c7 by striking computed on the basis of the type of coverage under the high deductible health plan covering the individual at the time of the qualified ,,hsa funding distribution4 7#i7 ,section #hgg;,a7g77#f7 of such ,code is amended by striking #bbc7;f77#d7 and inserting #bbc7;e77#d74 7#aj7 ,section #digc7;g7 of such ,code is amended-- 7,a7 by striking section #bbc7;d7 and inserting section #bbc7;c72 7,b7 in paragraph 7#b71 by striking section #bbc7;f77#b7 and inserting section #bbc7;e77#b72 and 7,c7 by striking section #bbc7;f77#c7 and inserting section #bbc7;e77#c74 7#aa7 ,section #dige of such ,code is amended-- 7,a7 in subsection 7c77#f7-- 7i7 by striking section #bbc7;d7 and inserting section #bbc7;c72 and 7ii7 by striking section #bbc7;e77#b7 and inserting section #bbc7;d77#b72 and 7,b7 in subsection 7e77#a77;,e71 by striking section #bbc7;d7 and inserting section #bbc7;c74 7#ab7 ,section #ffic7;a77#b77;,c7 of such ,code is amended by striking section #bbc7;h7 and inserting section #bbc7;g74 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #e4 ,restoring lower penalty for nonqualified distributions 7a7 ,h,s,as ,section #bbc7;e77#d77;,a7 of the ,internal ,revenue ,code of #aihf1 as amended by section #d1 is amended by striking #bj percent and inserting #aj percent4 7b7 ,effective date ,the amendment made by this section shall apply to distributions made in taxable years beginning after ,december #ca1 #bjai4