,,ii  #aafth ,,congress  #ast ,session  
,s4 #caab  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,december #ai1 
#bjai,mr4 ,cruz 7for himself and ,mr4   
,braun7 introduced the following bill2  
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend the ,internal ,revenue ,code of   
#aihf to expand and improve health      
savings accounts1 and for other         
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,personalized ,care 
,act of #bjai4  #b4 ,health savings     
account eligibility  7a7 ,in general    
,paragraph 7#a7 of section #bbc7;c7 of  
the ,internal ,revenue ,code of #aihf is
 amended to read as follows3  7#a7      
,eligible individual ,the term eligible 
individual means1 with respect to any   
month1 any individual if such individual
 is-- 7,a7 covered under--  7i7 a group 
or individual health plan1  7ii7 health 
insurance coverage1 including a short   
term limited duration plan or medical   
indemnity plan1 or  7iii7 a government  

plan1 including coverage under the      
,medicare program under part ,a or part 
,b of title ,,xviii of the ,social      
,security ,act1 the ,medicaid program   
under title ,,xix of such ,act1 the     
,,chip program under title ,,xxi of such
 ,act or a qualified ,,chip look-alike  
program 7as defined in section #bajg7;g7
 of such ,act71 medical coverage under  
chapter #ee of title #aj1 ,united       
,states ,code 7including coverage under 
the ,,tricare program71 a health care   
program under chapter #ag or #ah of     
title #ch1 ,united ,states ,code1 as    
determined by the ,secretary of         
,veterans ,affairs in coordination with 
the ,secretary of ,health and ,human    
,services and the ,secretary1 a medical 
care program of the ,indian ,health     
,service or a tribal organization1 or   
coverage under chapter #hi of title #e1 
,united ,states ,code1 or  7,b7 a       
participant in a health care sharing    
ministry 7as defined in section         
#ejjj;,a7d77#b77;,b77ii771  as of the   

#ast day of such month4  4  7b7         
,conforming amendments  7#a7 ,subsection
 7c7 of section #bbc of such ,code is   
amended by striking paragraphs 7#b7 and 
7#c7 and by redesignating paragraphs    
7#d7 and 7#e7 as paragraphs 7#b7 and    
7#c71 respectively4  7#b7 ,paragraphs   
7#b77;,a7 and 7#b77;,b7 of section      
#bbc7;b7 of such ,code are each amended 
by striking a high deductible health    
plan and inserting a health plan1       
insurance1 or ministry described in     
subsection 7c77#a74  7#c7 ,paragraph    
7#h77;,a77ii7 of section #bbc7;b7 of    
such ,code is amended by striking high  
deductible health plan and inserting    
health plan1 insurance1 or ministry     
described in subsection 7c77#a74  7#d7  
,section #bbc7;g77#a7 of such ,code is  
amended--  7,a7 by striking subsections 
7b77#b7 and 7c77#b77;,a7 both places it 
appears and inserting subsection        
7b77#b71 and  7,b7 by striking for      
calendar year #bjaf in subparagraph 7,b7
 and all that follows through calendar  

year #bjjc4 and inserting calendar year 
#aiig for calendar year #bjaf in        
subparagraph 7,a77ii7 thereof44  7#e7   
,the heading of subparagraph 7,b7 of    
section #bbc7;b77#h7 of such ,code is   
amended by striking high deductible     
health plan4  7#f7 ,section             
#bf7;b77#b77,s7 of such ,code is amended
 by striking high deductible health     
plan4  7#g7 ,the heading of paragraph   
7#c7 of section #ajf7;e7 of such ,code  
is amended by striking high deductible  
health plan4  7#h7 ,clause 7ii7 of      
section #ajf7;e77#e77;,b7 of such ,code 
is amended by striking a high deductible
 health plan and inserting a health     
plan4  7#i7 ,paragraph 7#i7 of section  
#djh7;d7 of such ,code is amended-- 7,a7
 by striking the high deductible health 
plan covering in subparagraph           
7,c77i77,i7 and inserting health plan1  
insurance1 or ministry of1  7,b7 by     
striking a high deductible health plan  
the first place it appears in           
subparagraph 7,c77ii77,,ii7 and         

inserting a health plan1 insurance1 or  
ministry described in section           
#bbc7;c77#a71  7,c7 by striking a high  
deductible health plan the second place 
it appears in subparagraph              
7,c77ii77,,ii7 and inserting any such   
plan1 insurance1 or ministry1 and  7,d7 
by striking high deductible health plan 
in the heading of subparagraph 7,d74    
7c7 ,effective date ,the amendments made
 by this section shall apply to taxable 
years beginning after ,december #ca1    
#bjai4  #c4 ,increase in ,,hsa          
contribution limits  7a7 ,in general    
,paragraph 7#b7 of section #bbc7;b7 of  
the ,internal ,revenue ,code of #aihf is
 amended-- 7#a7 by striking #b1bej in   
subparagraph 7,a7 and inserting #aj1hjj1
 and  7#b7 by striking #d1ejj in        
subparagraph 7,b7 and inserting #bi1ejj4
  7b7 ,cost-of-,living adjustment       
,paragraph 7#a7 of section #bbc7;g7 of  
the ,internal ,revenue ,code of #aihf1  
as amended by section #b1 is amended--  
7#a7 by striking ,each and inserting ,in

 the case of a taxable year beginning   
after #bjbj1 each1 and  7#b7 by striking
 calendar year #aiig and inserting      
calendar year #bjai4  7c7 ,effective    
date ,the amendments made by this       
section shall apply to taxable years    
beginning after ,december #ca1 #bjai4   
#d4 ,payment of health plan and health  
insurance premiums from ,,hsa  7a7 ,in  
general ,paragraph 7#b7 of section      
#bbc7;d7 of the ,internal ,revenue ,code
 of #aihf is amended--  7#a7 by striking
 subparagraph 7,b71  7#b7 by            
redesignating subparagraph 7,c7 as      
subparagraph 7,b71  7#c7 by striking    
,subparagraph 7,b7 shall not apply to   
any expense for coverage under in       
subparagraph 7,b71 as so redesignated1  
and inserting ,subparagraph 7,a7 shall  
not apply to any payment for insurance  
other than1 and  7#d7 in subparagraph   
7,b71 as so redesignated--  7,a7 by     
striking or at the end of clause 7iii71 
7,b7 by striking the period at the end  
of clause 7iv7 and inserting 1 or1 and  

7,c7 by adding at the end the following 
new clause3  7v7 a health plan or health
 insurance coverage described in        
subsection 7c77#a77;,a74  4  7b7        
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjai4  #e4 ,treatment of medical care  
service arrangements  7a7 ,inclusion as 
medical expenses ,paragraph 7#b7 of     
section #bbc7;d7 of the ,internal       
,revenue ,code of #aihf1 as amended by  
section #d1 is further amended by adding
 at the end the following new           
subparagraph3  7,c7 ,inclusion of       
medical care service arrangements ,the  
term qualified medical expenses shall   
include-- 7i7 periodic fees paid to a   
physician for a defined set of medical  
services or for the right to receive    
medical services on an as-needed basis1 
and  7ii7 amounts prepaid for medical   
services designed to screen for1        
diagnose1 cure1 mitigate1 treat1 or     
prevent disease and promote wellness4  4

  7b7 ,arrangement not ,to be treated as
 health insurance ,subsection 7c7 of    
section #bbc of the ,internal ,revenue  
,code of #aihf1 as amended by section   
#b7;b71 is further amended by adding at 
the end the following new paragraph3    
7#d7 ,treatment of medical care service 
arrangements ,an arrangement under which
 an individual is provided medical      
services in exchange for a fixed        
periodic fee or payment for such        
services shall not be treated as a      
health plan1 insurance1 or arrangement  
described in paragraph 7#a74  4  7c7    
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjai4  #f4 ,periodic provider fees     
treated as medical care  7a7 ,in general
 ,section #bac7;d7 of the ,internal     
,revenue ,code of #aihf is amended by   
adding at the end the following new     
paragraph3  7#ab7 ,periodic provider    
fees ,periodic fees paid for a defined  
set of medical services provided on an  

as-needed basis shall be treated as     
amounts paid for medical care4  4  7b7  
,effective date ,the amendment made by  
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjai4  #g4 ,expanding over-the-counter 
drug coverage and restoring lower       
penalty for nonqualified distributions  
7a7 ,over-the-,counter coverage ,section
 #bbc7;d77#b77;,a7 of the ,internal     
,revenue ,code of #aihf is amended by   
striking the last sentence and inserting
 the following3 ,such term shall include
 an amount paid for any prescription or 
over-the-counter medicine or drug44  7b7
 ,penalty ,section #bbc7;e77#d77;,a7 of 
the ,internal ,revenue ,code of #aihf is
 amended by striking #bj percent and    
inserting #aj percent4  7c7 ,effective  
date ,the amendments made by this       
section shall apply to distributions    
made in taxable years beginning after   
,december #ca1 #bjai4  #h4 ,treatment of
 health care sharing ministries  7a7    
,inclusion as medical expenses          

,paragraph 7#b7 of section #bbc7;d7 of  
the ,internal ,revenue ,code of #aihf1  
as amended by sections #d and #e1 is    
further amended by adding at the end the
 following new subparagraph3  7,d7      
,inclusion of health care sharing       
ministries ,the term qualified medical  
expenses shall include amounts paid by a
 member of a health care sharing        
ministry 7as defined in section         
#ejjj;,a7d77#b77;,b77ii77 for--  7i7 the
 sharing of medical expenses among      
members1 and  7ii7 administrative fees  
of the ministry4  4  7b7 ,health care   
sharing ministry not ,to be treated as  
health insurance ,subsection 7c7 of     
section #bbc of the ,internal ,revenue  
,code of #aihf1 as amended by sections  
#b and #e1 is further amended by adding 
at the end the following new paragraph3 
7#e7 ,treatment of health care sharing  
ministries ,a health care sharing       
ministry 7as defined in section         
#ejjj;,a7d77#b77;,b77ii77 shall not be  
treated as a health plan or insurance   

for purposes of this title4  4  7c7     
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjai4