To repeal provisions of the Patient Protection and Affordable Care Act relating to health savings accounts, and for other purposes.

Summary: Helping Save Americans' Health Care Choices Act of 2012 - Amends the Patient Protection and Affordable Care Act (PPACA) to repeal: (1) the 20% penalty for distributions from a health savings account (HSA) or an Archer medical savings account (Archer MSA) not used for qualified medical expenses, (2) the prohibition on distributions from an HSA for over-the-counter drugs, and (3) the limitation on health flexible spending arrangements under cafeteria plans. Allows the treatment of a high deductible health plan as a qualified health plan under PPACA.

Amends the Internal Revenue Code to allow: (1) a retirement savings tax credit for contributions to an HSA, (2) payment of premiums for high deductible health plans from an HSA, (3) a tax deduction for medical expenses incurred prior to the establishment of an HSA, (4) an increase of the HSA maximum allowable contribution amount to match the limit on deductible and out-of-pocket expenses under an HSA, (5) an exclusion from gross income of employer-provided coverage for qualified long-term care services that is provided through a flexible spending or similar arrangement, (6) eligibility for veterans with a service-connected disability, participants in Tricare, and certain Medicare beneficiaries for participation in an HSA, (7) both spouses to make catch-up contributions to the same HSA account, and (8) a tax deduction for amounts paid by patients to their primary physician in advance for the right to receive medical services on an as-needed basis.

Directs the Secretary of the Treasury, through regulations or other guidance, to encourage administrators of health plans and trustees of HSAs to provide for simultaneous enrollment in high deductible health plans and setup of HSAs.

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Helping Save 
Americans' Health Care Choices Act of 2012''.
    (b) Table of Sections.--The table of sections for this Act is as 
follows:

Sec. 1. Short title, etc.
Sec. 2. Repeal of additional tax from distributions from HSAs and MSAs.
Sec. 3. Repeal of limitation on deductions making non-prescription 
                            drugs non-qualifying distributions from 
                            tax-preferred accounts.
Sec. 4. Treatment of high deductible health plans as qualified health 
                            plan under the Patient Protection and 
                            Affordable Care Act.
Sec. 5. Repeal of limitation on health flexible spending arrangements 
                            under cafeteria plans.
Sec. 6. Saver's credit for contributions to health savings accounts.
Sec. 7. HSA funds for premiums for high deductible health plans.
Sec. 8. Requiring greater coordination between high deductible health 
                            plan administrators and HSA account 
                            administrators so that enrollees can enroll 
                            in both at the same time.
Sec. 9. Special rule for certain medical expenses incurred before 
                            establishment of account.
Sec. 10. Provisions relating to medicare.
Sec. 11. Individuals eligible for veterans benefits for a service-
                            connected disability.
Sec. 12. Increase the maximum contribution limit to an HSA to match 
                            deductible and out-of-pocket expense 
                            limitation.
Sec. 13. FSA funds may be used for long-term care insurance premiums.
Sec. 14. Individuals eligible for TRICARE.
Sec. 15. Certain physician fees to be treated as medical care.
Sec. 16. Allow both spouses to make catch-up contributions to the same 
                            hsa account.

SEC. 2. REPEAL OF ADDITIONAL TAX FROM DISTRIBUTIONS FROM HSAS AND MSAS.

    Section 9004 of the Patient Protection and Affordable Care Act is 
hereby repealed, and effective as of the date of the enactment of such 
Act the provisions of the Internal Revenue Code of 1986 amended by such 
section are amended to read as such provisions would read if such 
section had never been enacted.

SEC. 3. REPEAL OF LIMITATION ON DEDUCTIONS MAKING NON-PRESCRIPTION 
              DRUGS NON-QUALIFYING DISTRIBUTIONS FROM TAX-PREFERRED 
              ACCOUNTS.

    Section 9003 of the Patient Protection and Affordable Care Act is 
hereby repealed, and effective as of the date of the enactment of such 
Act the provisions of the Internal Revenue Code of 1986 amended by such 
section are amended to read as such provisions would read if such 
section had never been enacted.

SEC. 4. TREATMENT OF HIGH DEDUCTIBLE HEALTH PLANS AS QUALIFIED HEALTH 
              PLAN UNDER THE PATIENT PROTECTION AND AFFORDABLE CARE 
              ACT.

    Subparagraph (B) of section 1301(a)(1) of the Patient Protection 
and Affordable Care Act is amended by inserting ``or meets the 
requirements for a high deductible health plan under section 223(c)(2) 
of the Internal Revenue Code of 1986'' after ``section 1302(a)''.

SEC. 5. REPEAL OF LIMITATION ON HEALTH FLEXIBLE SPENDING ARRANGEMENTS 
              UNDER CAFETERIA PLANS.

    Sections 9005 and 10902 of the Patient Protection and Affordable 
Care Act are hereby repealed, and effective as of the date of the 
enactment of such Act the provisions of the Internal Revenue Code of 
1986 amended by such sections are amended to read as such provisions 
would read if such sections had never been enacted.

SEC. 6. SAVER'S CREDIT FOR CONTRIBUTIONS TO HEALTH SAVINGS ACCOUNTS.

    (a) Allowance of Credit.--Subsection (a) of section 25B of the 
Internal Revenue Code of 1986 is amended by inserting ``aggregate 
qualified HSA contributions and'' after ``so much of the''.
    (b) Qualified HSA Contributions.--Subsection (d) of section 25B of 
such Code is amended by redesignating paragraph (2) as paragraph (3) 
and by inserting after paragraph (1) the following new paragraph:
            ``(2) Qualified hsa contributions.--The term `qualified HSA 
        contribution' means, with respect to any taxable year, a 
        contribution of the eligible individual to a health savings 
        account (as defined in section 223(d)(1)) for which a deduction 
        is allowable under section 223(a) for such taxable year.''.
    (c) Conforming Amendment.--The first sentence of section 
25B(d)(3)(A) of such Code (as redesignated by subsection (b)) is 
amended to read as follows: ``The aggregate qualified retirement 
savings contributions determined under paragraph (1) and qualified HSA 
contributions determined under paragraph (2) shall be reduced (but not 
below zero) by the aggregate distributions received by the individual 
during the testing period from any entity of a type to which 
contributions under paragraph (1) or paragraph (2) (as the case may be) 
may be made.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to contributions made after December 31, 2012.

SEC. 7. HSA FUNDS FOR PREMIUMS FOR HIGH DEDUCTIBLE HEALTH PLANS.

    (a) In General.--Subparagraph (C) of section 223(d)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``or'' at the end 
of clause (iii), by striking the period at the end of clause (iv) and 
inserting ``, or'', and by adding at the end the following:
                            ``(v) a high deductible health plan if--
                                    ``(I) such plan is not offered in 
                                connection with a group health plan, 
                                and
                                    ``(II) no portion of any premium 
                                (within the meaning of applicable 
                                premium under section 4980B(f)(4)) for 
                                such plan is excludable from gross 
                                income under section 106.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to premiums for a high deductible health plan for periods 
beginning after December 31, 2012.

SEC. 8. REQUIRING GREATER COORDINATION BETWEEN HIGH DEDUCTIBLE HEALTH 
              PLAN ADMINISTRATORS AND HSA ACCOUNT ADMINISTRATORS SO 
              THAT ENROLLEES CAN ENROLL IN BOTH AT THE SAME TIME.

    The Secretary of the Treasury, through the issuance of regulations 
or other guidance, shall encourage administrators of health plans and 
trustees of health savings accounts to provide for simultaneous 
enrollment in high deductible health plans and setup of health savings 
accounts.

SEC. 9. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE 
              ESTABLISHMENT OF ACCOUNT.

    (a) In General.--Subsection (d) of section 223 of the Internal 
Revenue Code of 1986 is amended by redesignating paragraph (4) as 
paragraph (5) and by inserting after paragraph (3) the following new 
paragraph:
            ``(4) Treatment of account established before tax return 
        due for tax year.--For purposes of this section, if, before the 
        time prescribed by law for filing the return of tax for a 
        taxable year (not including extensions thereof), a taxpayer--
                    ``(A) establishes a health savings account,
                    ``(B) makes contributions to a health savings 
                account on account of such taxable year, or
                    ``(C) makes payments or distributions from a health 
                savings account for such taxable year,
        the health savings account shall be deemed to be established on 
        the last day of such taxable year and such contributions and 
        distributions shall be deemed to have been made on account of 
        such taxable year.''.
    (b) Conforming Amendment.--Paragraph (5) of section 223(d) of such 
Code, as redesignated by subsection (a), is amended by striking 
subparagraph (B) and redesignating subparagraphs (C) through (E) as 
subparagraphs (B) through (D), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to health savings accounts established, and 
contributions to and distributions from health savings accounts after, 
the date of the enactment of this Act.

SEC. 10. PROVISIONS RELATING TO MEDICARE.

    (a) Individuals Over Age 65 Only Enrolled in Medicare Part A.--
Section 223(b)(7) of the Internal Revenue Code of 1986 (relating to 
contribution limitation on Medicare eligible individuals) is amended by 
adding at the end the following new sentence: ``This paragraph shall 
not apply to any individual during any period the individual's only 
entitlement to such benefits is an entitlement to hospital insurance 
benefits under part A of title XVIII of such Act pursuant to an 
enrollment for such hospital insurance benefits under section 226(a)(1) 
of such Act.''.
    (b) Medicare Beneficiaries Participating in Medicare Advantage MSA 
May Contribute Their Own Money to Their MSA.--Subsection (b) of section 
138 of such Code is amended by striking paragraph (2) and by 
redesignating paragraphs (3) and (4) as paragraphs (2) and (3), 
respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 11. INDIVIDUALS ELIGIBLE FOR VETERANS BENEFITS FOR A SERVICE-
              CONNECTED DISABILITY.

    (a) In General.--Section 223(c)(1) of the Internal Revenue Code of 
1986 (defining eligible individual) is amended by adding at the end the 
following new subparagraph:
                    ``(C) Special rule for individuals eligible for 
                certain veterans benefits.--For purposes of 
                subparagraph (A)(ii), an individual shall not be 
                treated as covered under a health plan described in 
                such subparagraph merely because the individual 
                receives periodic hospital care or medical services for 
                a service-connected disability under any law 
                administered by the Secretary of Veterans Affairs but 
                only if the individual is not eligible to receive such 
                care or services for any condition other than a 
                service-connected disability.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 12. INCREASE THE MAXIMUM CONTRIBUTION LIMIT TO AN HSA TO MATCH 
              DEDUCTIBLE AND OUT-OF-POCKET EXPENSE LIMITATION.

    (a) Self-Only Coverage.--Subparagraph (A) of section 223(b)(2) of 
the Internal Revenue Code of 1986 is amended by striking ``$2,250'' and 
inserting ``the amount in effect under subsection (c)(2)(A)(ii)(I)''.
    (b) Family Coverage.--Subparagraph (B) of section 223(b)(2) of such 
Code is amended by striking ``$4,500'' and inserting ``the amount in 
effect under subsection (c)(2)(A)(ii)(II)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 13. FSA FUNDS MAY BE USED FOR LONG-TERM CARE INSURANCE PREMIUMS.

    (a) In General.--Subsection (c) of section 106 of the Internal 
Revenue Code of 1986 is amended by redesignating paragraph (2) as 
paragraph (3) and by amending so much of such subsection as precedes 
such paragraph (3) to read as follows:
    ``(c) Long-Term Care Benefits Provided Through Flexible Spending 
Arrangements.--
            ``(1) In general.--Effective on and after January 1, 2013, 
        gross income of an employee shall not include employer-provided 
        coverage for qualified long-term care services (as defined in 
        section 7702B(c)) to the extent that such coverage is provided 
        through a flexible spending or similar arrangement.
            ``(2) Premiums for long-term care.--Qualified medical 
        expenses for which reimbursement may be made by distributions 
        from a flexible spending arrangement shall include amounts paid 
        for long-term care coverage.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 14. INDIVIDUALS ELIGIBLE FOR TRICARE.

    (a) In General.--Section 223(c)(1) of the Internal Revenue Code of 
1986 (defining eligible individual), as amended by section 4, is 
amended by adding at the end the following new subparagraph:
                    ``(D) Special rule for individuals eligible for 
                tricare.--Subparagraph (A)(ii) shall be applied without 
                regard to coverage under the TRICARE program under 
                chapter 55 of title 10, United States Code.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 15. CERTAIN PHYSICIAN FEES TO BE TREATED AS MEDICAL CARE.

    (a) In General.--Subsection (d) of section 213 of the Internal 
Revenue Code of 1986, as amended by sections 15 and 16, is amended by 
adding at the end the following new paragraph:
            ``(12) Pre-paid physician fees.--The term `medical care' 
        shall include amounts paid by patients to their primary 
        physician in advance for the right to receive medical services 
        on an as-needed basis.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 16. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CONTRIBUTIONS TO THE SAME 
              HSA ACCOUNT.

    (a) In General.--Paragraph (3) of section 223(b) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(C) Special rule where both spouses are eligible 
                individuals with 1 account.--If--
                            ``(i) an individual and the individual's 
                        spouse have both attained age 55 before the 
                        close of the taxable year, and
                            ``(ii) the spouse is not an account 
                        beneficiary of a health savings account as of 
                        the close of such year,
                the additional contribution amount shall be 200 percent 
                of the amount otherwise determined under subparagraph 
                (B).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.