,i #aafth ,,congress #b;d ,session ,h4 ,r4 #ghbe ,,in ,,the ,,house ,,of ,,representatives ,july #bi1 #bjbj,mr4 ,buck 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 create increased opportunities for savings to ,,hsa1 ,,msa1 and ,,fsa plans1 to mitigate the financial strain on families caused by ,,covid-#ai1 to provide for child nutrition1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,pandemic ,eradication and ,enhanced ,prevention through ,savings ,act or the ,,peeps ,act4 #b4 ,modifications of ,h,s,as1 ,archer ,m,s,as1 and ,f,s,as 7a7 ,,cobra coverage 7#a7 ,,hsa ,section #bbc7;d77#b7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7,e7 ,,cobra coverage ,subparagraph 7,b7 shall not apply to amounts paid during calendar year #bjbj for premiums for coverage under a group health plan pursuant to section #dihj;,b7f74 4 7#b7 ,,fsa ,section #ajf of such ,code is amended by adding at the end the following3 7h7 ,,fsa payments for cobra coverage ,a plan shall not fail to be treated as a health flexible spending arrangement under this section merely because such plan provides for a distribution during calendar year #bjbj to make payments for premiums for coverage under a group health plan pursuant to section #dihj;,b7f74 4 7b7 ,health insurance premiums for those not covered by employer-,sponsored health plan during #bjbj 7#a7 ,,hsa ,section #bbc7;d77#b7 of such ,code1 as amended by subsection 7a71 is amended by adding at the end the following3 7,f7 ,health insurance premiums for those not covered by employer-sponsored coverage in #bjbj ,subparagraph 7,b7 shall not apply to amounts paid during calendar year #bjbj for premiums for coverage under a health plan for any month for which the health plan of the individual-- 7i7 is not an employer-sponsored health plan1 and 7ii7 does not include coverage for abortions 7other than any abortion necessary to save the life of the mother or any abortion with respect to a pregnancy that is the result of an act of rape or incest74 4 7#b7 ,archer ,,msa ,section #bbj7;d77#b7 of such ,code is amended by adding at the end the following3 7,d7 ,health insurance premiums for those not covered by employer-sponsored coverage in #bjbj ,subparagraph 7,b7 shall not apply to amounts paid during calendar year #bjbj for premiums for coverage under a high deductible health plan for any month for which the health plan of the individual-- 7i7 is not an employer-sponsored health plan1 and 7ii7 does not include coverage for abortions 7other than any abortion necessary to save the life of the mother or any abortion with respect to a pregnancy that is the result of an act of rape or incest74 4 7#c7 ,,fsa ,section #ajf of such ,code1 as amended by subsection 7a71 is amended by adding at the end the following3 7i7 ,health insurance premiums for those not eligible for employer-,sponsored coverage in #bjbj and #bjba ,a plan shall not fail to be treated as a health flexible spending arrangement under this section merely because such plan provides for a distribution during calendar year #bjbj or #bjba for premiums for coverage for medical expenses under an accident or health plan of a plan beneficiary if the beneficiary is not eligible for coverage by an employer-sponsored health plan4 ,the preceding sentence shall only apply if the coverage does not include coverage for abortions 7other than any abortion necessary to save the life of the mother or any abortion with respect to a pregnancy that is the result of an act of rape or incest74 4 7c7 ,h,s,as without high deductible health plans for #bjbj and #bjba ,section #bbc of such ,code is amended by adding at the end the following3 7i7 ,special rule for calendar years #bjbj and #bjba 7#a7 ,in general ,notwithstanding subsection 7c77#a77;,a7 and subject to paragraph 7#b71 for calendar years #bjbj and #bjba1 the term eligible individual means1 with respect to any month1 any individual if the individual is covered under any health plan1 including any the following3 7,a7 ,government sponsored programs ,coverage under-- 7i7 ,the ,medicare program under part ,a of title ,,xviii of the ,social ,security ,act4 7ii7 ,the ,medicaid program under title ,,xix of the ,social ,security ,act4 7iii7 ,the ,,chip program under title ,,xxi of the ,social ,security ,act or under a qualified ,,chip look-alike program 7as defined in section #bajg7;g7 of the ,social ,security ,act74 7iv7 ,medical coverage under chapter #ee of title #aj1 ,united ,states ,code1 including coverage under the ,,tricare program4 7v7 ,a health care program under chapter #ag or #ah of title #ch1 ,united ,states ,code1 as determined by the ,secretary of ,veterans ,affairs1 in coordination with the ,secretary of ,health and ,human ,services and the ,secretary4 7vi7 ,a health plan under section #bejd7;e7 of title #bb1 ,united ,states ,code 7relating to ,peace ,corps volunteers74 7vii7 ,the ,non-appropriated ,fund ,health ,benefits ,program of the ,department of ,defense1 established under section #cdi of the ,national ,defense ,authorization ,act for ,fiscal ,year #aiie 7,public ,law #ajc-ccg2 #aj ,u4,s4,c4 #aehg note74 7,b7 ,employer-sponsored plan ,coverage under an eligible employer-sponsored plan4 7,c7 ,plans in the ,individual ,market ,coverage under a health plan offered in the individual market within a ,state4 7,d7 ,grandfathered health plan ,coverage under a grandfathered health plan4 7,e7 ,coverage ,such other health benefits coverage1 such as a ,state health benefits risk pool1 as the ,secretary of ,health and ,human ,services1 in coordination with the ,secretary1 recognizes for purposes of this subsection4 7#b7 ,modifications ,for purposes of paragraph 7#a71 subsection 7b77#h7 shall be applied by substituting health plan for high deductible health plan each place it appears and subsection 7c77#a77;,b7 shall not apply4 4 7d7 ,waiver of carryover limitation on ,,fsa #bjbj funds ,section #ajf of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7j7 ,,fsa carryover without limitation on #bjbj contributions ,there shall be no limitation on the amount of funds contributed during #bjbj to a health flexible spending arrangement under this section that may be carried over to the succeeding plan year4 4 7e7 ,premium for benefits under ,medicare for #bjbj 7#a7 ,,hsa ,section #bbc7;d77#b7 of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7,g7 ,premiums for benefits under ,medicare for #bjbj ,subparagraph 7,b7 shall not apply to amounts paid during calendar year #bjbj for any monthly premium for benefits under part ,a of title ,,xviii of the ,social ,security ,act1 any monthly premium for benefits under part ,b of such title1 any monthly premium under a ,medicare ,advantage plan under part ,c of such title1 or any monthly premium under a prescription drug plan under part ,d of such title4 4 7#b7 ,archer ,,msa ,section #bbj7;d77#b7 of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7,f7 ,premiums for benefits under ,medicare for #bjbj ,subparagraph 7,b7 shall not apply to amounts paid during calendar year #bjbj for any monthly premium for benefits under part ,a of title ,,xviii of the ,social ,security ,act1 any monthly premium for benefits under part ,b of such title1 any monthly premium under a ,medicare ,advantage plan under part ,c of such title1 or any monthly premium under a prescription drug plan under part ,d of such title4 4 7#c7 ,,fsa ,section #ajf of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7k7 ,,fsa payments for benefits under ,medicare for #bjbj ,a plan shall not fail to be treated as a health flexible spending arrangement under this section merely because such plan provides for a distribution during calendar year #bjbj for any monthly premium for benefits under part ,a of title ,,xviii of the ,social ,security ,act1 any monthly premium for benefits under part ,b of such title1 any monthly premium under a ,medicare ,advantage plan under part ,c of such title1 or any monthly premium under a prescription drug plan under part ,d of such title4 4 7f7 ,payment of non-,dependent medical expenses in #bjbj 7#a7 ,,hsa 7,a7 ,medical expenses ,section #bbc7;d77#b7 of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7,f7 ,non-dependent medical expenses in #bjbj ,during calendar year #bjbj1 subparagraph 7,a7 shall be applied without regard to the requirement that medical care be for the 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 individual4 4 7,b7 ,rollover ,section #bbc7;f77#e7 of such ,code is amended by adding at the end the following3 7,c7 ,rollover gifts ,notwithstanding the preceding provisions of this paragraph1 an amount is described in this paragraph as a rollover contribution in the case of a taxable year beginning in #bjbj and paragraph 7#b7 shall not apply to any amount paid or distributed from a health savings account of a beneficiary to a health savings account of an individual who is not such beneficiary1 the spouse of such beneficiary1 or any dependent 7as defined in section #aeb1 determined without regard to subsections 7b77#a71 7b77#b71 and 7d77#a77;,b7 thereof7 of such beneficiary1 to the extent-- 7i7 the amount received is paid into the health savings account for the benefit of such individual not later than the #fjth day after the day on which the account beneficiary receives the payment or distribution1 and 7ii7 the aggregate amount of such transfers to all other individuals does not exceed #b1jbj in #bjbj4 4 7,c7 ,donations to qualified charity ,section #bbc7;f7 of such ,code is amended by adding at the end the following3 7#i7 ,donations to qualified charity 7,a7 ,donations allowable ,paragraph 7#b7 shall not apply to any amount paid or distributed from a health savings account to the extent the amount 7not to exceed #aj1jjj7 is a qualified charitable contribution made by the account beneficiary during the taxable year4 7,b7 ,qualified charitable contribution ,for purposes of subparagraph 7,a71 the term qualified charitable contribution means a charitable contribution 7as defined in section #agj7;c77-- 7i7 which is made in cash1 7ii7 for which a deduction is allowable under section #agj 7determined without regard to subsection 7b7 thereof and to subparagraph 7,c7 of this paragraph71 and 7iii7 which is-- 7,i7 made to an organization described in section #agj7;b77#a77;,a71 and 7,,ii7 not-- 7aa7 to an organization described in section #eji7;a77#c71 or 7bb7 for the establishment of a new1 or maintenance of an existing1 donor advised fund 7as defined in section #diff7;d77#b774 7,c7 ,denial of deduction ,no deduction shall be allowed for a distribution which is a contribution made pursuant to this paragraph4 4 7#b7 ,archer ,,msa 7,a7 ,non-dependent medical expenses in #bjbj ,section #bbj7;d77#b7 of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7,e7 ,non-dependent medical expenses in #bjbj ,during calendar year #bjbj1 subparagraph 7,a7 shall be applied without regard to the requirement that medical care be for the 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 individual4 4 7,b7 ,rollover ,section #bbj7;f77#e7 of such ,code is amended by adding at the end the following3 7,c7 ,rollover gifts ,notwithstanding the preceding provisions of this paragraph1 an amount is described in this paragraph as a rollover contribution in the case of a taxable year beginning in #bjbj and paragraph 7#b7 shall not apply to any amount paid or distributed from a health savings account of a beneficiary to a health savings account of an individual who is not such beneficiary1 the spouse of such beneficiary1 or any dependent 7as defined in section #aeb1 determined without regard to subsections 7b77#a71 7b77#b71 and 7d77#a77;,b7 thereof7 of such beneficiary1 to the extent-- 7i7 the amount received is paid into the health savings account for the benefit of such individual not later than the #fjth day after the day on which the account beneficiary receives the payment or distribution1 and 7ii7 the aggregate amount of such transfers to all other individuals does not exceed #b1jbj in #bjbj4 4 7,c7 ,donations to qualified charity ,section #bbj7;f7 of such ,code is amended by adding at the end the following3 7#i7 ,donations to qualified charity 7,a7 ,donations allowable ,paragraph 7#b7 shall not apply to any amount paid or distributed from a health savings account to the extent the amount 7not to exceed #aj1jjj7 is a qualified charitable contribution made by the account beneficiary during the taxable year4 7,b7 ,qualified charitable contribution ,for purposes of subparagraph 7,a71 the term qualified charitable contribution means a charitable contribution 7as defined in section #agj7;c77-- 7i7 which is made in cash1 7ii7 for which a deduction is allowable under section #agj 7determined without regard to subsection 7b7 thereof and to subparagraph 7,c7 of this paragraph71 and 7iii7 which is-- 7,i7 made to an organization described in section #agj7;b77#a77;,a71 and 7,,ii7 not-- 7aa7 to an organization described in section #eji7;a77#c71 or 7bb7 for the establishment of a new1 or maintenance of an existing1 donor advised fund 7as defined in section #diff7;d77#b774 7,c7 ,denial of deduction ,no deduction shall be allowed for a distribution which is a contribution made pursuant to this paragraph4 4 7g7 ,cafeteria plans ,section #abe of such ,code is amended by redesignating subsections 7k7 and 7l7 as subsections 7l7 and 7m71 respectively1 and by inserting after subsection 7j7 the following new subsection3 7k7 ,additional employer contributions 7#a7 ,in general ,a plan shall not fail to be treated as a cafeteria plan under this section merely because the employer makes contributions to employee health savings accounts during plan years beginning in #bjbj or #bjba without regard to choices made by participants4 7#b7 ,applicable rules ,for purposes of paragraph 7#a7-- 7,a7 subsections 7b7 and 7c7 shall apply with respect to such contributions1 7,b7 the dollar limitation in subsection 7i77#a7 shall not apply with respect to such contributions1 and 7,c7 in the case of an eligible employer 7as defined in subsection 7j77#e771 the requirements of subsection 7j7 shall apply1 except that such contributions shall be treated as in addition to contributions required under subsection 7j77#c77;,a74 4 7h7 ,expansion of allowable medical expenses for #bjbj 7#a7 ,,hsa ,section #bbc7;d77#b7 of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7,h7 ,additional allowable medical expenses for #bjbj ,for calendar year #bjbj1 amounts paid for masks1 testing supplies1 pain relievers and fever reducing ,,otc products1 and for child nutrition shall be treated as paid for medical care4 4 7#b7 ,archer ,,msa ,section #bbj7;d77#b7 of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7,g7 ,additional allowable medical expenses for #bjbj ,for calendar year #bjbj1 amounts paid for masks1 testing supplies1 pain relievers and fever reducing ,,otc products1 and for child nutrition shall be treated as paid for medical care4 4 7#c7 ,,fsa ,section #ajf of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7k7 ,additional allowable medical expenses for #bjbj ,for calendar year #bjbj1 amounts paid for masks1 testing supplies1 pain relievers and fever reducing ,,otc products1 and for child nutrition shall be treated as paid for medical care4 4 7i7 ,increase ,,hsa and ,,msa contribution limits for #bjbj 7#a7 ,,hsa ,section #bbc7;b7 of such ,code is amended by adding at the end the following3 7#i7 ,increase in contribution limits for #bjbj ,in the case of any taxable year beginning in calendar year #bjbj1 the amount allowed as a deduction under subsection 7a7 shall be #abj percent of the amount allowed as a deduction under subsection 7a7 without regard to this paragraph4 4 7#b7 ,archer ,,msa ,section #bbj7;b7 of such ,code is amended by adding at the end the following3 7#h7 ,increase in contribution limits for #bjbj ,in the case of any taxable year beginning in calendar year #bjbj1 the amount allowed as a deduction under subsection 7a7 shall be #abj percent of the amount allowed as a deduction under subsection 7a7 without regard to this paragraph4 4 7j7 ,increase ,,hsa and ,,msa contribution limits for beneficiaries hospitalized or testing positive for ,,covid-#ai 7#a7 ,,hsa ,section #bbc7;b7 of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7#aj7 ,increase in contribution limits hospitalized or testing positive for ,,covid-#ai ,in the case of any taxable year beginning in calendar year #bjbj or #bjba in which the account beneficiary or any individual described in paragraph 7#b77;,a7 is hospitalized or tests positive for ,,covid-#ai1 the amount allowed as a deduction under subsection 7a7 shall1 be #cjj percent of the amount allowed as a deduction under subsection 7a7 without regard to this paragraph and paragraph 7#i74 4 7#b7 ,archer ,,msa ,section #bbj7;b7 of such ,code is amended by adding at the end the following3 7#i7 ,increase in contribution limits for beneficiaries hospitalized or testing positive for ,,covid-#ai ,in the case of any taxable year beginning in calendar year #bjbj or #bjba in which the account beneficiary or any individual described in paragraph 7#b77;,a7 is hospitalized or tests positive for ,,covid-#ai1 the amount allowed as a deduction under subsection 7a7 shall1 be #cjj percent of the amount allowed as a deduction under subsection 7a7 without regard to this paragraph and paragraph 7#h74 4 7k7 ,effective date ,the amendments made by this ,act shall apply to years ending after the date of the enactment of this ,act4 #c4 ,disallowance of costs for abortion 7a7 ,,hsa ,paragraph 7#b7 of section #bbc7;d7 of the ,internal ,revenue ,code of #aihf1 as amended by the preceding provisions of this ,act1 is amended by adding at the end the following new subparagraph3 7,i7 ,disallowance of costs for abortion ,such term shall not include any amounts paid for any abortion or premiums of any health insurance that includes coverage of abortion1 other than-- 7i7 in the case of a physical disorder1 physical injury1 or physical illness which would1 as certified by a physician1 place the pregnant individual in danger of death unless an abortion is performed1 including a life-endangering physical condition caused by or arising from the pregnancy itself1 and 7ii7 in the case of a pregnancy resulting from an act of rape or incest4 4 7b7 ,archer ,,msa ,paragraph 7#b7 of section #bbj7;d7 of such1 as amended by the preceding provisions of this ,act1 is amended by adding at the end the following new subparagraph3 7,h7 ,disallowance of costs for abortion ,such term shall not include any amounts paid for any abortion or premiums of any health insurance that includes coverage of abortion1 other than-- 7i7 in the case of a physical disorder1 physical injury1 or physical illness which would1 as certified by a physician1 place the pregnant individual in danger of death unless an abortion is performed1 including a life-endangering physical condition caused by or arising from the pregnancy itself1 and 7ii7 in the case of a pregnancy resulting from an act of rape or incest4 4 7c7 ,,fsa ,section #ajf of such ,code1 as amended by the preceding provisions of this section1 is amended by adding at the end the following3 7l7 ,disallowance of costs for abortion ,a plan shall not be treated as a health flexible spending arrangement under this section if such plan provides for any reimbursement of amounts paid for any abortion or premiums of any health insurance that includes coverage of abortion1 other than-- 7#a7 in the case of a physical disorder1 physical injury1 or physical illness which would1 as certified by a physician1 place the pregnant individual in danger of death unless an abortion is performed1 including a life-endangering physical condition caused by or arising from the pregnancy itself1 and 7#b7 in the case of a pregnancy resulting from an act of rape or incest4 4 7d7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjbj4