I 

116TH CONGRESS 

2D SESSION H. R. 8032 

To amend the Internal Revenue Code of 1986 to eliminate limitations on 

contributions to health savings accounts. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 14, 2020 

Mr. BIGGS (for himself, Mr. FULCHER, Mr. PERRY, Mr. BALDERSON, Mrs. 

LESKO, Mr. GOSAR, Mr. HICE of Georgia, Mr. STEWART, Mr. HARRIS, 

Mr. YOHO, and Mr. ROY) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the 

Committee on the Judiciary, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to eliminate 

limitations on contributions to health savings accounts. 

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 ‘‘Health Savings Ac5 counts For All Act of 2020’’. 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•HR 8032 IH

1 SEC. 2. REPEAL OF CONTRIBUTION LIMITATIONS. 

2 (a) IN GENERAL.—Subsection (b) of section 223 of 

3 the Internal Revenue Code of 1986 is amended to read 

4 as follows: 

5 ‘‘(b) DENIAL OF DEDUCTION TO DEPENDENTS.—No 

6 deduction shall be allowed under this section to any indi7 vidual with respect to whom a deduction under section 151 

8 is allowable to another taxpayer for a taxable year begin9 ning in the calendar year in which such individual’s tax10 able year begins.’’. 

11 (b) CONFORMING AMENDMENTS.— 

12 (1) Subparagraph (A) of section 223(d)(1) of 

13 the Internal Revenue Code of 1986 is amended— 

14 (A) by striking ‘‘subsection (f)(5)’’ and in15 serting ‘‘subsection (f)(4)’’, and 

16 (B) by striking ‘‘accepted—’’ and all that 

17 follows and inserting ‘‘accepted unless it is in 

18 cash.’’. 

19 (2) Subsection (f) of section 223 of such Code 

20 is amended by striking paragraph (3) and by redes21 ignating paragraphs (4) through (8) as paragraphs 

22 (3) through (7), respectively. 

23 (3) Subsection (g) of section 223 of such Code 

24 is amended— 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•HR 8032 IH

1 (A) by striking ‘‘subsections (b)(2) and 

2 (c)(2)(A)’’ both places it appears and inserting 

3 ‘‘subsection (c)(2)(A)’’, and 

4 (B) by amending subparagraph (B) to read 

5 as follows: 

6 ‘‘(B) the cost-of-living adjustment deter7 mined under section 1(f)(3) for the calendar 

8 year in which such taxable year begins deter9 mined by substituting ‘calendar year 2003’ for 

10 ‘calendar year 2016’ in subparagraph (A)(ii) 

11 thereof.’’. 

12 (4) Section 26(b)(2) of such Code is amended— 

13 (A) by striking ‘‘, 223(b)(8)(B)(i)(II),’’ in 

14 subparagraph (S), and 

15 (B) by striking ‘‘223(f)(4)’’ in subpara16 graph (U) and inserting ‘‘223(f)(3)’’. 

17 (5) Paragraph (1) of section 106(d) of such 

18 Code is amended by striking ‘‘under an accident or 

19 health plan’’ and all that follows and inserting 

20 ‘‘under an accident or health plan.’’. 

21 (6) Subparagraph (C) of section 106(e)(4) of 

22 such Code is amended by striking ‘‘223(f)(5)’’ and 

23 inserting ‘‘223(f)(4)’’. 

24 (7) Subparagraph (C) of section 408(d)(9) of 

25 such Code is amended— 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•HR 8032 IH

1 (A) by striking ‘‘LIMITATIONS.—’’ in the 

2 heading and all that follows through ‘‘(ii) ONE3 TIME TRANSFER.—’’ in clause (ii), and insert4 ing ‘‘ONE-TIME TRANSFER.—’’, 

5 (B) by redesignating subclauses (I) and 

6 (II) as clauses (i) and (ii) and moving such 

7 clauses 2 ems to the left, and 

8 (C) by striking ‘‘subclause (II)’’ in clause 

9 (i), as so redesignated, and inserting ‘‘clause 

10 (ii)’’. 

11 (8) Section 4973 of such Code is amended by 

12 striking subsection (g) and by redesignating sub13 section (h) as subsection (g). 

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

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

17 SEC. 3. FREEDOM FROM MANDATE. 

18 (a) IN GENERAL.—Section 223 of the Internal Rev19 enue Code of 1986, as amended by section 2, is further 

20 amended by striking subsections (c) and (g) and by redes21 ignating subsections (d), (e), (f), and (h) as subsections 

22 (c), (d), (e), and (f), respectively. 

23 (b) CONFORMING AMENDMENTS.— 


pamtmann on DSKBC07HB2PROD with BILLS
5 

•HR 8032 IH

1 (1) Subsection (a) of section 223 of the Inter2 nal Revenue Code of 1986 is amended to read as fol3 lows: 

4 ‘‘(a) DEDUCTION ALLOWED.—In the case of an indi5 vidual, there shall be allowed as a deduction for the tax6 able year an amount equal to the aggregate amount paid 

7 in cash during such taxable year by or on behalf of such 

8 individual to a health savings account of such individual.’’. 

9 (2) Subsection (c)(1)(A) of section 223 of such 

10 Code, as amended by section 2 and redesignated by 

11 subsection (a), is further amended by striking ‘‘sub12 section (f)(4)’’ and inserting ‘‘subsection (e)(4)’’. 

13 (3) Subparagraph (U) of section 26(b)(2) of 

14 such Code, as amended by section 2, is further 

15 amended by striking ‘‘section 223(f)(3)’’ and insert16 ing ‘‘section 223(e)(3)’’. 

17 (4) Sections 35(g)(3), 220(f)(5)(A), 

18 848(e)(1)(B)(v), 4973(a)(5), and 6051(a)(12) of 

19 such Code are each amended by striking ‘‘section 

20 223(d)’’ each place it appears and inserting ‘‘section 

21 223(c)’’. 

22 (5) Section 106(d)(1) of such Code is amend23 ed— 

24 (A) by striking ‘‘who is an eligible indi25 vidual (as defined in section 223(c)(1))’’, and 


pamtmann on DSKBC07HB2PROD with BILLS
6 

•HR 8032 IH

1 (B) by striking ‘‘section 223(d)’’ and in2 serting ‘‘section 223(c)’’. 

3 (6) Section 106(e) of such Code is amended— 

4 (A) by striking paragraphs (3) and (4) and 

5 by redesignating paragraph (5) as paragraph 

6 (4), 

7 (B) by inserting after paragraph (2) the 

8 following new paragraph: 

9 ‘‘(3) TREATMENT AS ROLLOVER CONTRIBU10 TION.—A qualified HSA distribution shall be treated 

11 as a rollover contribution described in section 

12 223(e)(4).’’, and 

13 (C) by striking ‘‘to any eligible individual 

14 covered under a high deductible health plan of 

15 the employer’’ in paragraph (4)(B)(ii) (as so re16 designated) and inserting ‘‘to any employee 

17 with respect to whom a health savings account 

18 has been established’’. 

19 (7) Section 408(d)(9)(A) of such Code is 

20 amended by striking ‘‘who is an eligible individual 

21 (as defined in section 223(c)) and’’. 

22 (8) Section 877A(g)(6) of such Code is amend23 ed by striking ‘‘223(f)(4)’’ and inserting 

24 ‘‘223(e)(4)’’. 

25 (9) Section 4975 of such Code is amended— 


pamtmann on DSKBC07HB2PROD with BILLS
7 

•HR 8032 IH

1 (A) in subsection (c)(6)— 

2 (i) by striking ‘‘section 223(d)’’ and 

3 inserting ‘‘section 223(c)’’, and 

4 (ii) by striking ‘‘section 223(e)(2)’’ 

5 and inserting ‘‘section 223(d)(2)’’, and 

6 (B) in subsection (e)(1)(E), by striking 

7 ‘‘section 223(d)’’ and inserting ‘‘section 

8 223(c)’’. 

9 (10) Subsection (b) of section 4980G of such 

10 Code is amended to read as follows: 

11 ‘‘(b) RULES AND REQUIREMENTS.— 

12 ‘‘(1) IN GENERAL.—An employer meets the re13 quirements of this subsection for any calendar year 

14 if the employer makes available comparable con15 tributions to the health savings accounts of all com16 parable participating employees for each coverage 

17 period during such calendar year. 

18 ‘‘(2) COMPARABLE CONTRIBUTIONS.— 

19 ‘‘(A) IN GENERAL.—For purposes of para20 graph (1), the term ‘comparable contributions’ 

21 means contributions— 

22 ‘‘(i) which are the same amount, or 

23 ‘‘(ii) if the employees are covered by a 

24 health plan, which are the same percentage 


pamtmann on DSKBC07HB2PROD with BILLS
8 

•HR 8032 IH

1 of the annual deductible limit under the 

2 plan covering the employees. 

3 ‘‘(B) PART-YEAR EMPLOYEES.—In the 

4 case of an employee who is employed by the em5 ployer for only a portion of the calendar year, 

6 a contribution to the health savings account of 

7 such employee shall be treated as comparable if 

8 it is an amount which bears the same ratio to 

9 the comparable amount (determined without re10 gard to this subparagraph) as such portion 

11 bears to the entire calendar year. 

12 ‘‘(3) COMPARABLE PARTICIPATING EMPLOY13 EES.—For purposes of paragraph (1), the term 

14 ‘comparable participating employees’ means all em15 ployees who are covered (if at all) under the same 

16 health plan of the employer and have the same cat17 egory of coverage. For purposes of the preceding 

18 sentence, the categories of coverage are self-only and 

19 family coverage. 

20 ‘‘(4) PART-TIME EMPLOYEES.— 

21 ‘‘(A) IN GENERAL.—Paragraph (3) shall 

22 be applied separately with respect to part-time 

23 employees and other employees. 

24 ‘‘(B) PART-TIME EMPLOYEE.—For pur25 poses of subparagraph (A), the term ‘part-time 


pamtmann on DSKBC07HB2PROD with BILLS
9 

•HR 8032 IH

1 employee’ means any employee who is custom2 arily employed for fewer than 30 hours per 

3 week.’’. 

4 (11) Section 4980G(d) of such Code is amended 

5 by striking ‘‘section 4980E’’ and inserting ‘‘this sec6 tion’’. 

7 (12) Section 6693(a)(2)(C) of such Code is 

8 amended by striking ‘‘section 223(h)’’ and inserting 

9 ‘‘section 223(f)’’. 

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

11 this section shall apply to taxable years beginning after 

12 the date of the enactment of this Act. 

13 SEC. 4. ALLOWANCE OF DISTRIBUTIONS FOR PRESCRIP14 TION AND OVER-THE-COUNTER MEDICINES 

15 AND DRUGS. 

16 (a) HSAS.—Paragraph (2)(A) of section 223(c) of 

17 the Internal Revenue Code of 1986, as redesignated by 

18 section 3, is amended by adding at the end the following: 

19 ‘‘The term ‘qualified medical expenses’ shall include an 

20 amount paid for any prescription or over-the-counter med21 icine or drug.’’. 

22 (b) ARCHER MSAS.—Section 220(d)(2)(A) of the In23 ternal Revenue Code of 1986 is amended— 

24 (1) by striking ‘‘section 223(d)(2)(D)’’ and in25 serting ‘‘section 223(c)(2)(B)’’, and 


pamtmann on DSKBC07HB2PROD with BILLS
10 

•HR 8032 IH

1 (2) by adding at the end the following: ‘‘The 

2 term ‘qualified medical expenses’ shall include an 

3 amount paid for any prescription or over-the-counter 

4 medicine or drug.’’. 

5 (c) HEALTH FLEXIBLE SPENDING ARRANGEMENTS

6 AND HEALTH REIMBURSEMENT ARRANGEMENTS.—Sub7 section (f) of section 106 of the Internal Revenue Code 

8 of 1986 is amended to read as follows: 

9 ‘‘(f) REIMBURSEMENTS FOR PRESCRIPTION AND

10 OVER-THE-COUNTER MEDICINES AND DRUGS.—For pur11 poses of this section and section 105, reimbursement for 

12 expenses incurred for any prescription or over-the-counter 

13 medicine or drug shall be treated as a reimbursement for 

14 medical expenses.’’. 

15 (d) EFFECTIVE DATES.— 

16 (1) DISTRIBUTIONS FROM SAVINGS AC17 COUNTS.—The amendments made by subsections (a) 

18 and (b) shall apply to amounts paid in taxable years 

19 beginning after the date of the enactment of this 

20 Act. 

21 (2) REIMBURSEMENTS.—The amendment made 

22 by subsection (c) shall apply to expenses incurred in 

23 plan years beginning after the date of the enactment 

24 of this Act. 


pamtmann on DSKBC07HB2PROD with BILLS
11 

•HR 8032 IH

1 SEC. 5. PURCHASE OF HEALTH INSURANCE FROM HSA. 

2 (a) IN GENERAL.—Paragraph (2) of section 223(c) 

3 of the Internal Revenue Code of 1986, as redesignated by 

4 section 3, is amended— 

5 (1) by striking subparagraphs (B) and (C), and 

6 (2) by redesignating subparagraph (D) as sub7 paragraph (B). 

8 (b) CONFORMING AMENDMENT.—Paragraph (2) of 

9 section 223(c) of the Internal Revenue Code of 1986, as 

10 amended by the preceding sections of this Act, is further 

11 amended by striking ‘‘and any dependent (as defined in 

12 section 152, determined without regard to subsections 

13 (b)(1), (b)(2), and (d)(1)(B) thereof) of such individual’’ 

14 and inserting ‘‘any dependent (as defined in section 152, 

15 determined without regard to subsections (b)(1), (b)(2), 

16 and (d)(1)(B) thereof) of such individual, and any child 

17 (as defined in section 152(f)(1)) of such individual who 

18 has not attained the age of 27 before the end of such indi19 vidual’s taxable year’’. 

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

21 this section shall apply with respect to insurance pur22 chased after the date of the enactment of this Act in tax23 able years beginning after such date. 


pamtmann on DSKBC07HB2PROD with BILLS
12 

•HR 8032 IH

1 SEC. 6. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES 

2 INCURRED BEFORE ESTABLISHMENT OF AC3 COUNT. 

4 (a) IN GENERAL.—Paragraph (2) of section 223(c) 

5 of the Internal Revenue Code of 1986, as amended and 

6 redesignated by the preceding sections of this Act, is fur7 ther amended by adding at the end the following new sub8 paragraph: 

9 ‘‘(C) CERTAIN MEDICAL EXPENSES IN10 CURRED BEFORE ESTABLISHMENT OF ACCOUNT

11 TREATED AS QUALIFIED.—An expense shall not 

12 fail to be treated as a qualified medical expense 

13 solely because such expense was incurred before 

14 the establishment of the health savings account 

15 if such expense was incurred— 

16 ‘‘(i) during either— 

17 ‘‘(I) the taxable year in which the 

18 health savings account was estab19 lished, or 

20 ‘‘(II) the preceding taxable year, 

21 in the case of a health savings ac22 count established after the taxable 

23 year in which such expense was in24 curred but before the time prescribed 

25 by law for filing the return for such 


pamtmann on DSKBC07HB2PROD with BILLS
13 

•HR 8032 IH

1 taxable year (not including extensions 

2 thereof), and 

3 ‘‘(ii) for medical care which (but for 

4 the fact that it was incurred before the es5 tablishment of the account) otherwise 

6 meets the requirements of the preceding 

7 subparagraphs.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall apply to taxable years beginning after 

10 the date of the enactment of this Act. 

11 SEC. 7. ADMINISTRATIVE ERROR CORRECTION BEFORE 

12 DUE DATE OF RETURN. 

13 (a) IN GENERAL.—Paragraph (3) of section 223(e) 

14 of the Internal Revenue Code of 1986, as amended and 

15 redesignated by the preceding sections of this Act, is 

16 amended by adding at the end the following new subpara17 graph: 

18 ‘‘(D) EXCEPTION FOR ADMINISTRATIVE

19 ERRORS CORRECTED BEFORE DUE DATE OF RE20 TURN.—Subparagraph (A) shall not apply if 

21 any payment or distribution is made to correct 

22 an administrative, clerical, or payroll contribu23 tion error and if— 

24 ‘‘(i) such distribution is received by 

25 the individual on or before the last day 


pamtmann on DSKBC07HB2PROD with BILLS
14 

•HR 8032 IH

1 prescribed by law (including extensions of 

2 time) for filing such individual’s return for 

3 such taxable year, and 

4 ‘‘(ii) such distribution is accompanied 

5 by the amount of net income attributable 

6 to such contribution. 

7 Any net income described in clause (ii) shall be 

8 included in the gross income of the individual 

9 for the taxable year in which it is received.’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall take effect on the date of the enactment 

12 of this Act. 

13 SEC. 8. ALLOWING HSA ROLLOVER TO CHILD OR PARENT 

14 OF ACCOUNT HOLDER. 

15 (a) IN GENERAL.—Paragraph (7)(A) of section 

16 223(e) of the Internal Revenue Code of 1986, as redesig17 nated by the preceding sections of this Act, is amended— 

18 (1) by inserting ‘‘, child, parent, or grand19 parent’’ after ‘‘surviving spouse’’, 

20 (2) by inserting ‘‘, child, parent, or grand21 parent, as the case may be,’’ after ‘‘the spouse’’, 

22 (3) by inserting ‘‘, CHILD, PARENT, OR GRAND23 PARENT’’ after ‘‘SPOUSE’’ in the heading thereof, 

24 and 


pamtmann on DSKBC07HB2PROD with BILLS
15 

•HR 8032 IH

1 (4) by adding at the end the following: ‘‘In the 

2 case of a child who acquires such beneficiary’s inter3 est and with respect to whom a deduction under sec4 tion 151 is allowable to another taxpayer for a tax5 able year beginning in the calendar year in which 

6 such individual’s taxable year begins, such health 

7 savings account shall be treated as a health savings 

8 account of such child.’’. 

9 (b) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 the date of the enactment of this Act. 

12 SEC. 9. EQUIVALENT BANKRUPTCY PROTECTIONS FOR 

13 HEALTH SAVINGS ACCOUNTS AS RETIRE14 MENT FUNDS. 

15 (a) IN GENERAL.—Section 522 of title 11, United 

16 States Code, is amended by adding at the end the fol17 lowing new subsection: 

18 ‘‘(r) TREATMENT OF HEALTH SAVINGS AC19 COUNTS.—For purposes of this section, any health savings 

20 account (as described in section 223 of the Internal Rev21 enue Code of 1986) shall be treated in the same manner 

22 as an individual retirement account described in section 

23 408 of such Code.’’. 

24 (b) EFFECTIVE DATE.—The amendment made by 

25 this section shall apply to cases commencing under title 


pamtmann on DSKBC07HB2PROD with BILLS
16 

•HR 8032 IH

1 11, United States Code, after the date of the enactment 

2 of this Act. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS