I 

109TH CONGRESS 

1ST SESSION H. R. 2176 

To amend the Internal Revenue Code of 1986 to provide a 100 percent 

deduction for the health insurance costs of individuals. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 5, 2005 

Mr. CHABOT (for himself, Mr. GOODE, Mr. COX, Mr. PRICE of Georgia, and 

Mr. PAUL) 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 provide 

a 100 percent deduction for the health insurance costs 

of individuals. 

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 Insurance Af5 fordability Act of 2005’’. 

6 SEC. 2. DEDUCTION FOR QUALIFIED HEALTH INSURANCE 

7 COSTS OF INDIVIDUALS. 

8 (a) IN GENERAL.—Part VII of subchapter B of chap9 ter 1 of the Internal Revenue Code of 1986 (relating to 
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1 additional itemized deductions) is amended by redesig2 nating section 224 as section 225 and by inserting after 

3 section 223 the following new section: 

4 ‘‘SEC. 224. COSTS OF QUALIFIED HEALTH INSURANCE. 

5 ‘‘(a) IN GENERAL.—In the case of an individual, 

6 there shall be allowed as a deduction an amount equal to 

7 the amount paid during the taxable year for coverage for 

8 the taxpayer, his spouse, and dependents under qualified 

9 health insurance. 

10 ‘‘(b) QUALIFIED HEALTH INSURANCE.—For pur11 poses of this section, the term ‘qualified health insurance’ 

12 means insurance which constitutes medical care; except 

13 that such term shall not include any insurance if substan14 tially all of its coverage is of excepted benefits described 

15 in section 9832(c). 

16 ‘‘(c) SPECIAL RULES.— 

17 ‘‘(1) COORDINATION WITH MEDICAL DEDUC18 TION, ETC.—Any amount paid by a taxpayer for in19 surance to which subsection (a) applies shall not be 

20 taken into account in computing the amount allow21 able to the taxpayer as a deduction under section 

22 162(l) or 213(a). Any amount taken into account in 

23 determining the credit allowed under section 35 shall 

24 not be taken into account for purposes of this sec25 tion. 
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1 ‘‘(2) DEDUCTION NOT ALLOWED FOR SELF-EM2 PLOYMENT TAX PURPOSES.—The deduction allow3 able by reason of this section shall not be taken into 

4 account in determining an individual’s net earnings 

5 from self-employment (within the meaning of section 

6 1402(a)) for purposes of chapter 2.’’. 

7 (b) DEDUCTION ALLOWED IN COMPUTING AD8 JUSTED GROSS INCOME.—Subsection (a) of section 62 of 

9 such Code is amended by inserting before the last sentence 

10 the following new paragraph: 

11 ‘‘(21) COSTS OF QUALIFIED HEALTH INSUR12 ANCE.—The deduction allowed by section 224.’’. 

13 (c) CLERICAL AMENDMENT.—The table of sections 

14 for part VII of subchapter B of chapter 1 of such Code 

15 is amended by redesignating the item relating to section 

16 224 as an item relating to section 225 and inserting before 

17 such item the following new item: 

‘‘Sec. 224. Costs of qualified health insurance.’’. 

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

19 this section shall apply to taxable years beginning after 

20 December 31, 2005. 

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