I 

114TH CONGRESS 

1ST SESSION H. R. 3006 

To amend the Internal Revenue Code of 1986 to improve health savings 

accounts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 9, 2015 

Mr. FLEMING 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 improve 

health savings accounts, and for other purposes. 

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, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Helping Save Americans’ Health Care Choices Act of 

6 2015’’. 

7 (b) TABLE OF SECTIONS.—The table of sections for 

8 this Act is as follows: 

Sec. 1. Short title, etc. 

Sec. 2. Elimination of requirement that coverage must be under a high deductible health plan. 

Sec. 3. Increase the maximum contribution limit to an HSA. 


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Sec. 4. Allow both spouses to make catch-up contributions to the same HSA 

account. 

Sec. 5. HSA funds may be used for health insurance premiums. 

Sec. 6. Increased portability of health savings accounts. 

Sec. 7. Certain physician fees to be treated as medical care. 

Sec. 8. Special rule for certain medical expenses incurred before establishment 

of account. 

Sec. 9. Medicare recipients made eligible for HSAs. 

Sec. 10. FSA funds may be used for long-term care insurance premiums. 

Sec. 11. Repeal of limitation on deductions making non-prescription drugs nonqualifying distributions from tax-preferred accounts. 

Sec. 12. Repeal of additional tax from distributions from HSAs and MSAs. 

Sec. 13. Repeal of limitation on health flexible spending arrangements under 

cafeteria plans. 

1 SEC. 2. ELIMINATION OF REQUIREMENT THAT COVERAGE 

2 MUST BE UNDER A HIGH DEDUCTIBLE 

3 HEALTH PLAN. 

4 (a) IN GENERAL.—Section 223(c) of the Internal 

5 Revenue Code of 1986 is amended by striking paragraphs 

6 (1) and (2) and inserting the following new paragraphs: 

7 ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

8 individual’ means, with respect to any month, any 

9 individual if such individual is covered under a eligi10 ble health plan as of the 1st day of such month. 

11 ‘‘(2) ELIGIBLE HEALTH PLAN.—The term ‘eli12 gible health plan’ means any health plan (including 

13 membership in a health care sharing ministry as de14 fined in section 5000A(d)(2)(B)) other than cov15 erage consisting solely of excepted benefits as de16 fined in section 9832(c).’’. 

17 (b) CONFORMING AMENDMENTS.— 

18 (1) IN GENERAL.—The following sections of the 

19 Internal Revenue Code of 1986 are each amended by 


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1 striking ‘‘high deductible health plan’’ each place it 

2 appears, as the case may be, and inserting ‘‘eligible 

3 health plan’’: 

4 (A) Section 26(b)(2)(S). 

5 (B) Paragraphs (3) and (5)(B)(ii) of sec6 tion 106(e). 

7 (C) Section 223. 

8 (D) Section 408(d)(9). 

9 (2) SPECIAL RULES.—With respect to the 

10 amendments made by this section, the matter being 

11 inserted shall bear the same case, number, font, and 

12 font size as the matter being replaced. 

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

14 this section shall apply to taxable years beginning after 

15 the date of the enactment of this Act. 

16 SEC. 3. INCREASE THE MAXIMUM CONTRIBUTION LIMIT TO 

17 AN HSA. 

18 (a) SELF-ONLY COVERAGE.—Section 223(b)(2)(A) 

19 of the Internal Revenue Code of 1986 is amended by strik20 ing ‘‘$2,250’’ and inserting ‘‘$6,450’’. 

21 (b) FAMILY COVERAGE.—Section 223(b)(2)(B) of 

22 such Code is amended by striking ‘‘$4,500’’ and inserting 

23 ‘‘$12,900’’. 

24 (c) INFLATION ADJUSTMENT.—Section 223(g)(1) of 

25 such Code is amended— 


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

2 (c)(2)(A)’’ and inserting ‘‘subsection (b)(2)’’, and 

3 (2) by amending subparagraph (B) thereof to 

4 read as follows: 

5 ‘‘(B) the cost-of-living adjustment deter6 mined under section 1(f)(3) for the calendar 

7 year in which the taxable year begins deter8 mined by substituting ‘calendar year 2014’ for 

9 ‘calendar year 1992’ in subparagraph (B) 

10 thereof.’’. 

11 (d) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 the date of the enactment of this Act. 

14 SEC. 4. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CON15 TRIBUTIONS TO THE SAME HSA ACCOUNT. 

16 (a) IN GENERAL.—Section 223(b)(3) of the Internal 

17 Revenue Code of 1986 is amended by adding at the end 

18 the following new subparagraph: 

19 ‘‘(C) SPECIAL RULE WHERE BOTH

20 SPOUSES ARE ELIGIBLE INDIVIDUALS WITH 1

21 ACCOUNT.—If— 

22 ‘‘(i) an individual and the individual’s 

23 spouse have both attained age 55 before 

24 the close of the taxable year, and 


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1 ‘‘(ii) the spouse is not an account ben2 eficiary of a health savings account as of 

3 the close of such year, 

4 the additional contribution amount shall be 200 

5 percent of the amount otherwise determined 

6 under subparagraph (B).’’. 

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

8 this section shall apply to taxable years beginning after 

9 the date of the enactment of this Act. 

10 SEC. 5. HSA FUNDS MAY BE USED FOR HEALTH INSURANCE 

11 PREMIUMS. 

12 (a) IN GENERAL.—Section 223(d)(2) of the Internal 

13 Revenue Code of 1986 is amended by striking subpara14 graphs (B) and (C). 

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

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this Act. 

18 SEC. 6. INCREASED PORTABILITY OF HEALTH SAVINGS AC19 COUNTS. 

20 (a) TREATMENT AFTER DEATH OF ACCOUNT BENE21 FICIARY.—Section 223(f)(8)(A) of the Internal Revenue 

22 Code of 1986 is amended to read as follows: 

23 ‘‘(A) TREATMENT IF DESIGNATED BENE24 FICIARY IS FAMILY MEMBER.—If a surviving 

25 spouse or lineal descendant of the spouse or the 


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1 account beneficiary acquires the account bene2 ficiary’s interest in a health savings account by 

3 reason of being the designated beneficiary of 

4 such account at the death of the account bene5 ficiary, such health savings account shall be 

6 treated as if the designated beneficiary were the 

7 account beneficiary.’’. 

8 (b) QUALIFIED MEDICAL EXPENSES.—So much of 

9 subparagraph (A) of section 223(d)(2) of the Internal 

10 Revenue Code of 1986 as precedes ‘‘Such term’’ is amend11 ed to read as follows: 

12 ‘‘(A) IN GENERAL.—The term ‘qualified 

13 medical expenses’ means amounts paid for med14 ical care (as defined in section 213(d)), but only 

15 to the extent such amounts are not com16 pensated for by insurance or otherwise.’’. 

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

18 this section shall apply to taxable years beginning after 

19 the date of the enactment of this Act. 

20 SEC. 7. CERTAIN PHYSICIAN FEES TO BE TREATED AS MED21 ICAL CARE. 

22 (a) IN GENERAL.—Section 213(d) of the Internal 

23 Revenue Code of 1986 is amended by redesignating para24 graph (4) as paragraph (5) and by inserting after para25 graph (3) the following new paragraph: 


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1 ‘‘(4) PRE-PAID PHYSICIAN FEES.—The term 

2 ‘medical care’ shall include amounts paid by patients 

3 to their primary physician in advance for the right 

4 to receive medical services on an as-needed basis.’’. 

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

6 this section shall apply to taxable years beginning after 

7 the date of the enactment of this Act. 

8 SEC. 8. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES 

9 INCURRED BEFORE ESTABLISHMENT OF AC10 COUNT. 

11 (a) IN GENERAL.—Section 223(d) of the Internal 

12 Revenue Code of 1986, as amended by the preceding pro13 visions of this Act, is amended by redesignating paragraph 

14 (5) as paragraph (6) and by inserting after paragraph (4) 

15 the following new paragraph: 

16 ‘‘(5) TREATMENT OF ACCOUNT ESTABLISHED

17 BEFORE TAX RETURN DUE FOR TAX YEAR.—For 

18 purposes of this section, if, before the time pre19 scribed by law for filing the return of tax for a tax20 able year (not including extensions thereof), a tax21 payer— 

22 ‘‘(A) establishes a health savings account, 

23 ‘‘(B) makes contributions to a health sav24 ings account on account of such taxable year, or 


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1 ‘‘(C) makes payments or distributions from 

2 a health savings account for such taxable year, 

3 the health savings account shall be deemed to be es4 tablished on the last day of such taxable year and 

5 such contributions and distributions shall be deemed 

6 to have been made on account of such taxable year 

7 if the taxpayer elects the application of this para8 graph for such taxable year.’’. 

9 (b) CONFORMING AMENDMENT.—Section 223(d)(6) 

10 of such Code, as redesignated by subsection (a), is amend11 ed by striking subparagraph (B) and redesignating sub12 paragraphs (C) through (E) as subparagraphs (B) 

13 through (D), respectively. 

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

15 this section shall apply with respect to health savings ac16 counts established, and contributions to and distributions 

17 from health savings accounts after, the date of the enact18 ment of this Act. 

19 SEC. 9. MEDICARE RECIPIENTS MADE ELIGIBLE FOR HSAS. 

20 (a) MEDICARE RECIPIENTS MAY CONTRIBUTE TO

21 HSAS.—Section 223(b) of the Internal Revenue Code of 

22 1986 is amended by striking paragraph (7). 

23 (b) MEDICARE BENEFICIARIES PARTICIPATING IN

24 MEDICARE ADVANTAGE MSA MAY CONTRIBUTE THEIR

25 OWN MONEY TO THEIR MSA.—Section 138(b) of such 


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1 Code is amended by striking paragraph (2) and by redes2 ignating paragraphs (3) and (4) as paragraphs (2) and 

3 (3), respectively. 

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

5 this section shall apply to taxable years beginning after 

6 the date of the enactment of this Act. 

7 SEC. 10. FSA FUNDS MAY BE USED FOR LONG-TERM CARE 

8 INSURANCE PREMIUMS. 

9 (a) IN GENERAL.—Subsection (c) of section 106 of 

10 the Internal Revenue Code of 1986 is amended by redesig11 nating paragraph (2) as paragraph (3) and by amending 

12 so much of such subsection as precedes such paragraph 

13 (3) to read as follows: 

14 ‘‘(c) LONG-TERM CARE BENEFITS PROVIDED

15 THROUGH FLEXIBLE SPENDING ARRANGEMENTS.— 

16 ‘‘(1) IN GENERAL.—Gross income of an em17 ployee shall not include employer-provided coverage 

18 for qualified long-term care services (as defined in 

19 section 7702B(c)) to the extent that such coverage 

20 is provided through a flexible spending or similar ar21 rangement. 

22 ‘‘(2) PREMIUMS FOR LONG-TERM CARE.—Quali23 fied medical expenses for which reimbursement may 

24 be made by distributions from a flexible spending arVerDate Sep 11 2014 01:23 Jul 15, 2015 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3006.IH H3006

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1 rangement shall include amounts paid for long-term 

2 care coverage.’’. 

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

6 SEC. 11. REPEAL OF LIMITATION ON DEDUCTIONS MAKING 

7 NON-PRESCRIPTION DRUGS NON-QUALI8 FYING DISTRIBUTIONS FROM TAX-PRE9 FERRED ACCOUNTS. 

10 (a) HSAS.—Section 223(d)(2)(A) of the Internal 

11 Revenue Code of 1986 is amended by striking the last sen12 tence. 

13 (b) ARCHER MSAS.—Section 220(d)(2)(A) of such 

14 Code is amended by striking the last sentence. 

15 (c) HEALTH FLEXIBLE SPENDING ARRANGEMENTS

16 AND HEALTH REIMBURSEMENT ARRANGEMENTS.—Sec17 tion 106 of such Code is amended by striking subsection 

18 (f). 

19 (d) EFFECTIVE DATES.— 

20 (1) DISTRIBUTIONS FROM SAVINGS AC21 COUNTS.—The amendments made by subsections (a) 

22 and (b) shall apply to amounts paid with respect to 

23 taxable years beginning after the date of the enact24 ment of this Act. 


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1 (2) REIMBURSEMENTS.—The amendment made 

2 by subsection (c) shall apply to expenses incurred 

3 with respect to taxable years beginning after the 

4 date of the enactment of this Act. 

5 SEC. 12. REPEAL OF ADDITIONAL TAX FROM DISTRIBU6 TIONS FROM HSAS AND MSAS. 

7 (a) HSAS.—Section 223(f)(4)(A) of the Internal 

8 Revenue Code of 1986 is amended by striking ‘‘20 per9 cent’’ and inserting ‘‘10 percent’’. 

10 (b) ARCHER MSAS.—Section 220(f)(4)(A) of such 

11 Code is amended by striking ‘‘20 percent’’ and inserting 

12 ‘‘15 percent’’. 

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

14 this section shall apply to distributions made after the 

15 date of the enactment of this Act. 

16 SEC. 13. REPEAL OF LIMITATION ON HEALTH FLEXIBLE 

17 SPENDING ARRANGEMENTS UNDER CAFE18 TERIA PLANS. 

19 (a) IN GENERAL.—Section 125 of the Internal Rev20 enue Code of 1986 is amended— 

21 (1) by striking subsection (i), and 

22 (2) by redesignating subsections (j), (k), and (l) 

23 as subsections (i), (j), and (k), respectively. 


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

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

Æ 


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