,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #fgg  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #ca1 #bjbc,mr4
 ,ros5dale introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,ways &     
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to make           
improvem5ts to ,heal? ,sav+s ,acc\nts4  
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,heal? ,fre$om & ,flexibility ,act4   
#b4 ,repeal ( requirem5t to be enroll$ 9
 heal? plan  7a7 ,9 g5]al ,subsection   
7a7 ( section #bbc ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ to read z foll[s3
  7a7 ,d$uction all[$ ,9 ! case ( an    
individual1 !re %all be all[$ z a       
d$uction = ! taxable ye> an am\nt equal 
to ! aggregate am\nt paid 9 ca% dur+ su*
 taxable ye> by or on behalf ( su*      
individual to a heal? sav+s acc\nt ( su*
 individual4  4  7b7 ,effective date ,! 
am5dm5t made by ?is section %all apply  
to taxable ye>s end+ aft] ! date ( !    
enactm5t ( ?is ,act4  #c4 ,repeal (     
limitations2 ret5tion ( d5ial ( d$uction

 to dep5d5ts  7a7 ,9 g5]al ,subsection  
7b7 ( section #bbc ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ to read z foll[s3
  7b7 ,d5ial ( d$uction to dep5d5ts ,no 
d$uction %all be all[$ "u ?is section to
 any individual ) respect to :om a      
d$uction "u section #aea is all[able to 
ano!r taxpay] = a taxable ye> beg9n+ 9 !
 cal5d> ye> 9 :i* su* individual's      
taxable ye> beg9s4  4  7b7 ,con=m+      
am5dm5t ,subsection 7f7 ( section #bbc (
 su* ,code is am5d$ by /rik+ p>agraph   
7#c7 & by r$esignat+ p>agraphs 7#d7     
?r\gh 7#h7 z p>agraphs 7#c7 ?r\gh 7#g71 
respectively4  7c7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to taxable ye>s end+ aft] ! date ( !    
enactm5t ( ?is ,act4  #d4 ,repeal (     
rules relat+ to eligible individual2    
high d$uctible heal? plan  7a7 ,9 g5]al 
,section #bbc ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by /rik+ subsections  
7c7 & 7g7 & by r$esignat+ subsections   
7d71 7e71 7f71 & 7h7 z subsections 7c71 
7d71 7e71 & 7f71 respectively4  7b7     

,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s end+ 
aft] ! date ( ! enactm5t ( ?is ,act4    
#e4 ,heal? ,sav+s ,acc\nt  7a7 ,9 g5]al 
,subp>agraph 7,a7 ( section #bbc7;c77#a7
 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z  
am5d$ by ! prec$+ sections ( ?is ,act1  
is am5d$ to read z foll[s3  7,a7 ,except
 9 ! case ( a rollov] contribution      
describ$ 9 subsection 7e77#e7 or section
 #bbj7;f77#e71 no contribution w be     
accept$ unless x is 9 ca%4  4  7b7      
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s end+ 
aft] ! date ( ! enactm5t ( ?is ,act4    
#f4 ,qualifi$ m$ical exp5ses  7a7       
,repeal ( pur*ase ( heal? insurance     
limitation ,p>agraph 7#b7 ( section     
#bbc7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf1 z r$esignat$ by ! prec$+         
provisions ( ?is ,act1 is am5d$ to read 
z foll[s3  7#b7 ,qualifi$ m$ical exp5ses
  7,a7 ,9 g5]al ,! t]m qualifi$ m$ical  
exp5ses means1 ) respect to an acc\nt   
b5efici>y1 am\nts paid by su* b5efici>y 

= m$ical c>e 7z def9$ 9 section         
#bac7;d77 = su* individual1 ! sp\se (   
su* individual1 any dep5d5t 7z def9$ 9  
section #aeb1 det]m9$ )\t reg>d to      
subsections 7b77#a71 7b77#b71 &         
7d77#a77;,b7 !re(7 ( su* individual1 b  
only to ! ext5t su* am\nts are n        
comp5sat$ = by insurance or o!rwise4    
7,b7 ,m5/rual c>e products ,= purposes (
 ?is p>agraph--  7i7 ,9 g5]al ,am\nts   
paid = m5/rual c>e products %all be     
treat$ z paid = m$ical c>e4  7ii7       
,def9ition ,! t]m m5/rual c>e product   
means a tampon1 pad1 l9]1 cup1 sponge1  
or simil> product us$ by individuals )  
respect to m5/ruation or o!r            
g5ital-tract secretions4  4  7b7        
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s end+ 
aft] ! date ( ! enactm5t ( ?is ,act4    
#g4 ,all[ance ( di/ributions =          
prescription & ov]-!-c\nt] m$ic9es &    
drugs & o!r m$ically necess>y items  7a7
 ,h,s,as ,p>agraph 7#b7 ( section       
#bbc7;c7 ( ! ,int]nal ,rev5ue ,code (   

#aihf1 z r$esignat$ by ! prec$+         
provisions ( ?is ,act1 is am5d$ by add+ 
at ! end ! foll[+3  7,c7 ,prescription &
 ov]-!-c\nt] m$ic9es & drugs & o!r      
m$ically necess>y items ,= purposes (   
?is p>agraph-- 7i7 ,9 g5]al ,! t]m      
qualifi$ m$ical exp5ses %all include an 
am\nt paid = any prescription or        
ov]-!-c\nt] m$ic9e or drug & m$ically   
necess>y items4  7ii7 ,m$ically necess>y
 items ,! t]m m$ically necess>y item    
means any item = :i* a doctor or nurse  
c]tifies by a lett] ( m$ical necessity t
 ! s]vice or m$ication or item is = a   
m$ical diagnosis1 treatm5t1 or prev5tion
 ( a m$ical diseases or condition4  4   
7b7 ,effective date ,! am5dm5t made by  
subsection 7a7 %all apply to am\nts paid
 9 taxable ye>s end+ aft] ! date ( !    
enactm5t ( ?is ,act4  #h4 ,special rule 
= c]ta9 m$ical exp5ses incurr$ be=e     
e/abli%m5t ( acc\nt  7a7 ,9 g5]al       
,p>agraph 7#b7 ( section #bbc7;c7 ( !   
,int]nal ,rev5ue ,code ( #aihf1 z       
r$esignat$ by ! prec$+ sections ( ?is   

,act1 is am5d$ by add+ at ! end ! foll[+
 new subp>agraph3  7,d7 ,c]ta9 m$ical   
exp5ses incurr$ be=e e/abli%m5t ( acc\nt
 treat$ z qualifi$ ,an exp5se %all n    
fail to be treat$ z a qualifi$ m$ical   
exp5se solely because su* exp5se 0      
incurr$ be=e ! e/abli%m5t ( ! heal?     
sav+s acc\nt if su* exp5se 0 incurr$--  
7i7 dur+ ei!r-- 7,i7 ! taxable ye> 9 :i*
 ! heal? sav+s acc\nt 0 e/abli%$1 or    
7,,ii7 ! prec$+ taxable ye>1 9 ! case ( 
a heal? sav+s acc\nt e/abli%$ aft] !    
taxable ye> 9 :i* su* exp5se 0 incurr$ b
 be=e ! "t prescrib$ by law = fil+ !    
return = su* taxable ye> 7n includ+     
ext5sions !re(71 &  7ii7 = m$ical c>e   
:i* 7b = ! fact t x 0 incurr$ be=e !    
e/abli%m5t ( ! acc\nt7 o!rwise meets !  
requirem5ts ( ! prec$+ subp>agraphs4  4 
7b7 ,effective date ,! am5dm5t made by  
?is subsection 7a7 %all apply to taxable
 ye>s end+ aft] ! date ( ! enactm5t (   
?is ,act4  #i4 ,direct prim>y c>e2      
ex]cise equipm5t2 d5tal c>e items  7a7  
,9 g5]al ,p>agraph 7#b7 ( section       

#bbc7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf1 z am5d$ by ! prec$+ sections (   
?is ,act1 is am5d$ by add+ at ! end !   
foll[+ new subp>agraph3  7,e7 ,direct   
prim>y c>e2 ex]cise equipm5t2 d5tal c>e 
items ,= purposes ( ?is p>agraph-- 7i7  
,9 g5]al ,! t]m qualifi$ m$ical exp5ses 
%all include am\nts paid--  7,i7 am\nts 
paid "u a direct prim>y c>e s]vice      
arrangem5t1  7,,ii7 am\nts paid =       
ex]cise equipm5t1 &  7,,iii7 am\nts paid
 = d5tal c>e items4  7ii7 ,direct prim>y
 c>e s]vice arrangem5t ,! t]m #8direct  
prim>y c>e s]vice arrangem5t' means1 )  
respect to any individual1 an arrangem5t
 "u :i* su* individual is provid$ m$ical
 c>e 7z def9$ 9 section #bac7;d77       
consi/+ solely ( prim>y c>e s]vices     
provid$ by prim>y c>e practition]s 7z   
def9$ 9 section #ahcc7x77#b77;,a7 ( !   
,social ,security ,act1 det]m9$ )\t     
reg>d to clause 7ii7 !re(71 if ! sole   
comp5sation = su* c>e is a fix$ p]iodic 
fee4  7iii7 ,ex]cise or fitness equipm5t
 ,! t]m ex]cise or fitness equipm5t     

means devices su* z motoriz$ treadmills1
 /air climb]s or /ep ma*9es1 /ation>y   
bicycles1 r[+ ma*9es1 weight ma*9es1    
circuit tra9+ equipm5t1 c>diovascul>    
equipm5t1 /r5g? equipm5t1 or o!r simil> 
equipm5t4  7iv7 ,d5tal c>e items ,! t]m 
d5tal c>e items includes manual or      
electric too?bru%1 d5tal floss1 & d5tal 
m\?wa%4  4  7b7 ,effective date ,!      
am5dm5t made by ?is section %all apply  
to plan ye>s end+ aft] ! date ( !       
enactm5t ( ?is ,act4  #aj4 ,prohibition 
on use ( funds = elective abortions  7a7
 ,9 g5]al ,p>agraph 7#b7 ( section      
#bbc7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf1 z am5d$ by ! prec$+ sections (   
?is ,act1 is am5d$ by add+ at ! end !   
foll[+ new subp>agraph3  7,f7           
,prohibition on use ( funds = elective  
abortions ,= purposes ( ?is p>agraph--  
7i7 ,paym5ts = heal? insurance )        
abortion cov]age ,! t]m qualifi$ m$ical 
exp5ses %all n include am\nts paid =    
insurance t includes cov]age =          
abortions4  7ii7 ,paym5ts ,= ,abortions 

,! t]m qualifi$ m$ical exp5se %all n    
include am\nts paid = an abortion4      
7iii7 ,abortion ,! t]m abortion means ! 
use or prescription ( any in/rum5t1     
m$ic9e1 drug1 or any o!r sub/ance or    
device--  7,i7 to int5tionally kill !   
unborn *ild ( a woman kn[n to be        
pregnant1 or  7,,ii7 to int5tionally    
t]m9ate ! pregnancy ( a woman kn[n to be
 pregnant1 ) an int5tion o!r ?an--  7aa7
 aft] viability1 to produce a live bir? 
& pres]ve ! life & heal? ( ! *ild born  
alive1 or  7bb7 to remove a dead unborn 
*ild4  4  7b7 ,effective date ,! am5dm5t
 made by ?is section %all apply to plan 
ye>s end+ aft] ! date ( ! enactm5t ( ?is
 ,act4  #aa4 ,treatm5t aft] dea? if     
designat$ b5efici>y is sp\se or *ild (  
acc\nt b5efici>y  7a7 ,9 g5]al          
,subp>agraph 7,a7 ( section #bbc7;e77#g7
 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z  
r$esignat$ by ! prec$+ sections ( ?is   
,act1 is am5d$ to read z foll[s3  7,a7  
,treatm5t aft] dea? if designat$        
b5efici>y is sp\se or *ild ( acc\nt     

b5efici>y ,if ! acc\nt b5efici>y's      
surviv+ sp\se or *ild acquires su*      
b5efici>y's int]e/ 9 a heal? sav+s      
acc\nt by reason ( be+ ! designat$      
b5efici>y ( su* acc\nt at ! dea? ( !    
acc\nt b5efici>y1 su* heal? sav+s acc\nt
 %all be treat$ z if ! sp\se or *ild 7z 
! case may be7 7 ! acc\nt b5efici>y4  4 
7b7 ,*ild def9$ ,p>agraph 7#g7 ( section
 #bbc7;e7 ( su* ,code1 z s r$esignat$1  
is am5d$ by add+ at ! end ! foll[+3     
7,c7 ,*ild ,= purposes ( ?is p>agraph1 !
 t]m *ild means1 ) respect to an acc\nt 
b5efici>y1 an individual :o be>s a      
relation%ip to ! acc\nt b5efici>y       
describ$ 9 section #aeb7;f77#a74  4  7c7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply ) respect to acc\nt 
b5efici>ies dy+ 9 taxable ye>s end+ aft]
 ! date ( ! enactm5t ( ?is ,act4  #ab4  
,adm9i/rative error correction be=e due 
date ( return  7a7 ,9 g5]al ,p>agraph   
7#c7 ( section #bbc7;d7 ( ! ,int]nal    
,rev5ue ,code ( #aihf1 z am5d$ &        
r$esignat$ by ! prec$+ sections ( ?is   

,act1 is am5d$ by add+ at ! end ! foll[+
 new subp>agraph3  7,c7 ,exception =    
adm9i/rative errors correct$ be=e due   
date ( return ,subp>agraph 7,a7 %all n  
apply if any paym5t or di/ribution is   
made to correct an adm9i/rative1        
cl]ical1 or payroll contribution error &
 if--  7i7 su* di/ribution is receiv$ by
 ! individual on or be=e ! la/ day      
prescrib$ by law 7includ+ ext5sions (   
"t7 = fil+ su* individual's return = su*
 taxable ye>1 &  7ii7 su* di/ribution is
 accompani$ by ! am\nt ( net income     
attributable to su* contribution4  ,any 
net income describ$ 9 clause 7ii7 %all  
be includ$ 9 ! gross income ( !         
individual = ! taxable ye> 9 :i* x is   
receiv$4  4  7b7 ,effective date ,!     
am5dm5t made by ?is section %all take   
effect on ! date ( ! enactm5t ( ?is     
,act4  #ac4 ,con=m+ am5dm5ts  7a7       
,section #bf7;b77#b7 ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$--  7#a7  
by /rik+ 1 #bbc7;b77#h77;,b77i77,,ii71 9
 subp>agraph 7,s71 &  7#b7 by /rik+     

#bbc7;f77#d7 9 subp>agraph 7,u7 & ins]t+
 #bbc7;e77#c74  7b7 ,section #ajf ( su* 
,code is am5d$-- 7#a7 by am5d+          
subsection 7d77#a7 to read z foll[s3    
7#a7 ,9 g5]al ,9 ! case ( an employee1  
am\nts contribut$ by su* employee's     
employ] to any heal? sav+s acc\nt 7z    
def9$ 9 section #bbc7;c77 ( su* employee
 %all be treat$ z employ]-provid$       
cov]age = m$ical exp5ses "u an accid5t  
or heal? plan4  1  7#b7 9 subsection    
7e7--  7,a7 by /rik+ p>agraphs 7#c7 &   
7#d7 & r$esignat+ p>agraph 7#e7 z       
p>agraph 7#d71  7,b7 by ins]t+ aft]     
p>agraph 7#b7 ! foll[+ new p>agraph3    
7#c7 ,treatm5t z rollov] contribution ,a
 qualifi$ ,,hsa di/ribution %all be     
treat$ z a rollov] contribution describ$
 9 section #bbc7;e77#d74  1 &  7,c7 by  
/rik+ to any eligible individual cov]$  
"u a high d$uctible heal? plan ( !      
employ] 9 p>agraph 7#d77;,b77ii7 7z s   
r$esignat$7 & ins]t+ to any employee )  
respect to :om a heal? sav+s acc\nt has 
be5 e/abli%$4  7c7 ,section #djh ( su*  

,code is am5d$-- 7#a7 9 subsection      
7d77#i77;,a7 by /rik+ :o is an eligible 
individual 7z def9$ 9 section #bbc7;c77 
&2 &  7#b7 9 subsection 7d77#i77;,c7--  
7,a7 by /rik+ ,limitations4-- 9 ! head+ 
& all t foll[s ?r\gh 7ii7 ,"o-"t        
transf]4-- 9 clause 7ii71 & ins]t+      
,"o-"t transf]4--1  7,b7 by r$esignat+  
subclauses 7,i7 & 7,,ii7 z clauses 7i7 &
 7ii7 & mov+ su* clauses #b ems to !    
left1 &  7,c7 by /rik+ subclause 7,,ii7 
9 clause 7i71 z s r$esignat$1 & ins]t+  
clause 7ii74  7d7 ,section              
#hgg;,a7g77#f7 ( su* ,code is am5d$ by  
/rik+ #bbc7;f77#d7 & ins]t+             
#bbc7;e77#c74  7e7 ,section #digc ( su* 
,code is am5d$ by /rik+ subsection 7g7 &
 by r$esignat+ subsection 7h7 z         
subsection 7g74  7f7 ,section #dige (   
su* ,code is am5d$-- 7#a7 9 subsection  
7c77#f7--  7,a7 by /rik+ section        
#bbc7;d7 & ins]t+ section #bbc7;c71 &   
7,b7 by /rik+ section #bbc7;e77#b7 &    
ins]t+ section #bbc7;d77#b71 &  7#b7 9  
subsection 7e77#a77;,e71 by /rik+       

section #bbc7;d7 & ins]t+ section       
#bbc7;c74  7g7 ,sections #ce7;g77#c71   
#bbj7;f77#e77;,a71 #hdh7;e77#a77;,b77v71
 #digc7;a77#e71 & #fjea7;a77#ab7 ( su*  
,code are ea* am5d$ by /rik+ section    
#bbc7;d7 ea* place x appe>s & ins]t+    
section #bbc7;c74  7h7 ,section #dihj;,g
 ( su* ,code is am5d$-- 7#a7 by am5d+   
subsection 7b7 to read z foll[s3  7b7   
,rules & requirem5ts  7#a7 ,9 g5]al ,an 
employ] meets ! requirem5ts ( ?is       
subsection = any cal5d> ye> if ! employ]
 makes available comp>able contributions
 to ! heal? sav+s acc\nts ( all         
comp>able p>ticipat+ employees = ea*    
cov]age p]iod dur+ su* cal5d> ye>4  7#b7
 ,comp>able contributions  7,a7 ,9 g5]al
 ,= purposes ( p>agraph 7#a71 ! t]m     
comp>able contributions means           
contributions--  7i7 :i* are ! same     
am\nt1 or  7ii7 if ! employees are cov]$
 by a heal? plan1 :i* are ! same        
p]c5tage ( ! annual d$uctible limit "u !
 plan cov]+ ! employees4  7,b7 ,"p-ye>  
employees ,9 ! case ( an employee :o is 

employ$ by ! employ] = only a portion ( 
! cal5d> ye>1 a contribution to ! heal? 
sav+s acc\nt ( su* employee %all be     
treat$ z comp>able if x is an am\nt :i* 
be>s ! same ratio to ! comp>able am\nt  
7det]m9$ )\t reg>d to ?is subp>agraph7 z
 su* portion be>s to ! entire cal5d>    
ye>4  7#c7 ,comp>able p>ticipat+        
employees ,= purposes ( p>agraph 7#a71 !
 t]m comp>able p>ticipat+ employees     
means all employees :o are cov]$ 7if at 
all7 "u ! same heal? plan ( ! employ] & 
h ! same category ( cov]age4 ,= purposes
 ( ! prec$+ s5t5ce1 ! categories (      
cov]age are self-only & family cov]age4 
7#d7 ,"p-"t employees  7,a7 ,9 g5]al    
,p>agraph 7#c7 %all be appli$ sep>ately 
) respect to "p-"t employees & o!r      
employees4  7,b7 ,"p-"t employee ,=     
purposes ( subp>agraph 7,a71 ! t]m "p-"t
 employee means any employee :o is      
cu/om>ily employ$ = few] ?an #cj h\rs p]
 week4  1 &  7#b7 9 subsection 7d7 by   
/rik+ section #dihj;,e & ins]t+ ?is     
section4  7i7 ,section                  

#ffic7;a77#b77;,c7 ( su* ,code is am5d$ 
by /rik+ section #bbc7;h7 & ins]t+      
section #bbc7;f74