,i #aaith ,,congress #ast ,session ,h4 ,r4 #edh ,,in ,,the ,,house ,,of ,,representatives ,january #af1 #bjbe,ms4 ,van ,duyne 7for herself1 ,mr4 ,crenshaw1 and ,mr4 ,meuser7 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 modernize health savings accounts4 #a4 ,short title ,this ,act may be cited as the ,,hsa ,modernization ,act4 #b4 ,individuals without service-connected disability and eligible for certain veterans benefits permitted to contribute to health savings accounts 7a7 ,in general ,section #bbc7;c77#a77;,c7 of the ,internal ,revenue ,code of #aihf is amended by striking for a service-connected disability 7within the meaning of section #aja7af7 of title #ch1 ,united ,states ,code74 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4 #c4 ,individuals entitled to part ,a of ,medicare by reason of age allowed to contribute to health savings accounts 7a7 ,in general ,section #bbc7;c77#a77;,b7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7ii71 by striking the period at the end of clause 7iii7 and inserting 1 and1 and by adding at the end the following new clause3 7iv7 entitlement to hospital insurance benefits under part ,a of title ,,xviii of the ,social ,security ,act by reason of section #bbf7;a7 of such ,act4 4 7b7 ,treatment of health insurance purchased from account ,section #bbc7;d77#b77;,c77iv7 of such ,code is amended by inserting and who is not an eligible individual after who has attained the age specified in section #ahaa of the ,social ,security ,act4 7c7 ,coordination with penalty on distributions not used for qualified medical expenses ,section #bbc7;f77#d77;,c7 of such ,code is amended by striking ,subparagraph 7,a7 and inserting ,except in the case of an eligible individual1 subparagraph 7,a7 7d7 ,conforming amendment ,section #bbc7;b77#g7 of such ,code is amended by inserting 7other than an entitlement to benefits described in subsection 7c77#a77;,b77iv77 after ,social ,security ,act4 7e7 ,effective date ,the amendments made by this section shall apply to months beginning after ,december #ca1 #bjbe1 in taxable years ending after such date4 #d4 ,individuals eligible for ,indian ,health ,service assistance not disqualified from health savings accounts 7a7 ,in general ,section #bbc7;c77#a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,e7 ,special rule for individuals eligible for assistance under ,indian ,health ,service programs ,for purposes of subparagraph 7,a77ii71 an individual shall not be treated as covered under a health plan described in such subparagraph merely because the individual receives hospital care or medical services under a medical care program of the ,indian ,health ,service or of a tribal organization4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4 #e4 ,allowance of bronze and catastrophic plans in connection with health savings accounts 7a7 ,in general ,section #bbc7;c77#b7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,h7 ,bronze and catastrophic plans treated as high deductible health plans ,the term high deductible health plan shall include any plan described in subsection 7d77#a77;,a7 or 7e7 of section #acjb of the ,patient ,protection and ,affordable ,care ,act4 4 7b7 ,effective date ,the amendment made by this section shall apply to months beginning after ,december #ca1 #bjbe1 in taxable years ending after such date4 #f4 ,safe harbor for absence of deductible for mental health services 7a7 ,in general ,section #bbc7;c77#b7 of the ,internal ,revenue ,code of #aihf1 as amended by this ,act1 is amended by adding at the end the following new subparagraph3 7,i7 ,safe harbor for absence of deductible for mental health services ,a plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for not more than the first #ejj of any mental health benefits 7as defined in section #ihab7;e77#d77 specified by the plan for purposes of this subparagraph4 4 7b7 ,effective date ,the amendments made by this section shall apply to plan years beginning after ,december #ca1 #bjbe4 #g4 ,special rule for certain medical expenses incurred before establishment of health savings account 7a7 ,in general ,section #bbc7;d77#b7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,e7 ,treatment of certain medical expenses incurred before establishment of account ,if a health savings account is established during the #fj-;day period beginning on the date that coverage of the account beneficiary under a high deductible health plan begins1 then1 solely for purposes of determining whether an amount paid is used for a qualified medical expense1 such account shall be treated as having been established on the date that such coverage begins4 4 7b7 ,effective date ,the amendment made by this section shall apply with respect to coverage beginning after ,december #ca1 #bjbe4 #h4 ,allow both spouses to make catch-up contributions to the same health savings account 7a7 ,in general ,section #bbc7;b77#e7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#e7 ,special rule for married individuals with family coverage 7,a7 ,in general ,in the case of individuals who are married to each other1 if both spouses are eligible individuals and either spouse has family coverage under a high deductible health plan as of the first day of any month-- 7i7 the limitation under paragraph 7#a7 shall be applied by not taking into account any other high deductible health plan coverage of either spouse 7and if such spouses both have family coverage under separate high deductible health plans1 only one such coverage shall be taken into account71 7ii7 such limitation 7after application of clause 7i77 shall be reduced by the aggregate amount paid to ,archer ,m,s,as of such spouses for the taxable year1 and 7iii7 such limitation 7after application of clauses 7i7 and 7ii77 shall be divided equally between such spouses unless they agree on a different division4 7,b7 ,treatment of additional contribution amounts ,if both spouses referred to in subparagraph 7,a7 have attained age #ee before the close of the taxable year1 the limitation referred to in subparagraph 7,a77iii7 which is subject to division between the spouses shall include the additional contribution amounts determined under paragraph 7#c7 for both spouses4 ,in any other case1 any additional contribution amount determined under paragraph 7#c7 shall not be taken into account under subparagraph 7,a77iii7 and shall not be subject to division between the spouses4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4 #i4 ,maximum contribution limit to health savings account increased to amount of deductible and out-of-pocket limitation 7a7 ,self-,only coverage ,section #bbc7;b77#b77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking #b1bej and inserting the amount in effect under subsection 7c77#b77;,a77ii77,i74 7b7 ,family coverage ,section #bbc7;b77#b77;,b7 of such ,code is amended by striking #d1ejj and inserting the amount in effect under subsection 7c77#b77;,a77ii77,,ii74 7c7 ,conforming amendments ,section #bbc7;g77#a7 of such ,code is amended-- 7#a7 by striking subsections 7b77#b7 and both places it appears and inserting subsection1 and 7#b7 in subparagraph 7,b71 by striking determined by and all that follows through calendar year #bjjc4 and inserting determined by substituting calendar year #bjjc for calendar year #bjaf in subparagraph 7,a77ii7 thereof44 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4 #aj4 ,clarification of treatment of distributions from health savings account for long-term care services 7a7 ,in general ,section #bbc7;d77#b77;,a7 of the ,internal ,revenue ,code of #aihf is amended by inserting before the last sentence the following3 ,such term includes amounts paid for qualified long-term care services 7as defined in section #ggjb;,b7c7744 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid after the date of the enactment of this ,act4 7c7 ,no inference ,nothing contained in this section or the amendment made thereby shall be construed to create any inference with respect to any amounts paid on or before such date4