I 

108TH CONGRESS 

1ST SESSION H. R. 1466

To amend the Internal Revenue Code of 1986 to reduce the health insurance 

costs for family coverage of military reservists called to active duty. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 27, 2003

Mr. CAPUANO (for himself, Mr. JONES of North Carolina, Mr. EVANS, Ms. 

LEE, Mr. MEEHAN, Mr. FRANK of Massachusetts, Mrs. MCCARTHY of 

New York, Mr. RYAN of Ohio, Mrs. JONES of Ohio, Mr. OLVER, and Mr. 

MARKEY) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to reduce 

the health insurance costs for family coverage of military 

reservists called to active duty.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Mobilized Reserve 

5 Family Health Care Act of 2003’’. 
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1 SEC. 2. REDUCED HEALTH INSURANCE COSTS FOR FAMILY 

2 COVERAGE OF MILITARY RESERVISTS 

3 CALLED TO ACTIVE DUTY. 

4 (a) REFUNDABLE CREDIT FOR COSTS UP TO

5 TRICARE COSTS.—

6 (1) IN GENERAL.—Subpart C of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code 

8 of 1986 (relating to refundable credits) is amended 

9 by inserting after section 35 the following new sec10 tion: 

11 ‘‘SEC. 35A. CERTAIN FAMILY COVERAGE HEALTH INSUR12 ANCE COSTS OF MILITARY RESERVISTS 

13 CALLED TO ACTIVE DUTY. 

14 ‘‘(a) IN GENERAL.—In the case of an eligible indi15 vidual, there shall be allowed as a credit against the tax 

16 imposed by this subtitle an amount equal to the amount 

17 paid during the taxable year by the taxpayer for insurance 

18 which constitutes medical care for the taxpayer and the 

19 taxpayer’s spouse and dependents. 

20 ‘‘(b) LIMITATIONS.—

21 ‘‘(1) CREDIT LIMITED TO TRICARE COSTS.—

22 The credit allowed by subsection (a) for any period 

23 shall not exceed an amount equal to the premium24 equivalent of the family coverage cost of coverage 

25 under TRICARE for such period. 
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1 ‘‘(2) LIMITATION TO COVERAGE DURING ACTIVE

2 DUTY PERIOD.—The credit allowed by subsection (a) 

3 shall apply only to amounts paid for coverage during 

4 the period referred to in subsection (c)(2). 

5 ‘‘(3) SELF-ONLY COVERAGE FOR RESERVIST

6 NOT INCLUDED.—The credit allowed by subsection 

7 (a) shall not apply to self-only coverage for the eligi8 ble individual. 

9 ‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 

10 section, the term ‘eligible individual’ means any indi11 vidual—

12 ‘‘(1) who, as a member of the National Guard 

13 or a reserve component of an Armed Force of the 

14 United States, has been called or ordered to active 

15 duty for a period in excess of 30 days or for an in16 definite period, and 

17 ‘‘(2) who elects that such individual and all 

18 other individuals who would (but for the election) be 

19 covered by TRICARE will not be so covered during 

20 the period beginning on the date of such call or 

21 order and ending on the last day of such active duty. 

22 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—Amounts al23 lowed as a credit under this section shall not be taken 

24 into account in determining the amount of any deduction 

25 or other credit under this chapter.’’
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1 (2) CONFORMING AMENDMENTS.—

2 (A) Paragraph (2) of section 1324(b) of 

3 title 31, United States Code, is amended by in4 serting before the period ‘‘, or from section 35A 

5 of such Code’’. 

6 (B) The table of sections for subpart C of 

7 part IV of subchapter A of chapter 1 of the In8 ternal Revenue Code of 1986 is amended by in9 serting after the item relating to section 35 the 

10 following new item:

‘‘Sec. 35A. Certain family coverage health insurance costs of military reservists called to active duty.’’.

11 (b) DEDUCTION FOR COSTS IN EXCESS OF

12 TRICARE COSTS.—

13 (1) IN GENERAL.—Part VII of subchapter B of 

14 chapter 1 of such Code (relating to additional 

15 itemized deductions for individuals) is amended by 

16 redesignating section 223 as section 224 and by in17 serting after section 222 the following new section: 

18 ‘‘SEC. 223. CERTAIN FAMILY COVERAGE HEALTH INSUR19 ANCE COSTS OF MILITARY RESERVISTS 

20 CALLED TO ACTIVE DUTY. 

21 ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 

22 eligible individual (as defined in section 35A(c)), there 

23 shall be allowed as a deduction an amount equal to the 

24 amount paid during the taxable year by the taxpayer for 
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1 insurance which constitutes medical care for the taxpayer 

2 and the taxpayer’s spouse and dependents. 

3 ‘‘(b) LIMITATION TO COVERAGE DURING ACTIVE

4 DUTY PERIOD.—The deduction under this section shall 

5 apply only to amounts paid for coverage during the period 

6 referred to in section 35A(c)(2). 

7 ‘‘(c) SPECIAL RULES.—

8 ‘‘(1) SELF-ONLY COVERAGE FOR RESERVIST

9 NOT INCLUDED.—The deduction under this section 

10 shall not apply to self-only coverage for the eligible 

11 individual. 

12 ‘‘(2) OTHER RULES TO APPLY.—Rules similar 

13 to the rules of paragraphs (3), (4), and (5) of sec14 tion 162(l) shall apply for purposes of this section.’’

15 (2) DEDUCTION ALLOWED WHETHER OR NOT

16 INDIVIDUAL ITEMIZES OTHER DEDUCTIONS.—Sub17 section (a) of section 62 of such Code is amended 

18 by inserting after paragraph (18) the following new 

19 paragraph: 

20 ‘‘(19) CERTAIN FAMILY COVERAGE HEALTH IN21 SURANCE COSTS OF MILITARY RESERVISTS CALLED

22 TO ACTIVE DUTY.—The deduction allowed by section 

23 223.’’

24 (3) CLERICAL AMENDMENT.—The table of sec25 tions for part VII of subchapter B of chapter 1 of 
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1 such Code is amended by striking the last item and 

2 inserting the following new items:

‘‘Sec. 223. Certain family coverage health insurance costs of military reservists called to active duty. 

‘‘Sec. 224. Cross reference.’’

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2002.

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