I 

116TH CONGRESS 

1ST SESSION H. R. 3796 

To amend the Internal Revenue Code of 1986 to provide that coverage 

under Medicare is permissible for purposes of contributions to health 

savings accounts. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 17, 2019 

Mr. BERA (for himself and Mr. SMITH of Missouri) 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 

that coverage under Medicare is permissible for purposes 

of 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 for 

5 Seniors Act’’. 

6 SEC. 2. COVERAGE UNDER MEDICARE PERMISSIBLE FOR 

7 PURPOSES OF CONTRIBUTIONS TO HEALTH 

8 SAVINGS ACCOUNTS. 

9 (a) MEDICARE MADE AN HSA-ELIGIBLE PLAN.— 


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1 (1) IN GENERAL.—Subparagraph (A) of section 

2 223(c)(2) of the Internal Revenue Code of 1986 is 

3 amended to read as follows: 

4 ‘‘(A) IN GENERAL.—The term ‘HSA-quali5 fied health plan’ means— 

6 ‘‘(i) a health plan— 

7 ‘‘(I) which has an annual deduct8 ible which is not less than— 

9 ‘‘(aa) $1,000 for self-only 

10 coverage, and 

11 ‘‘(bb) twice the dollar 

12 amount in item (aa) for family 

13 coverage, and 

14 ‘‘(II) the sum of the annual de15 ductible and the other annual out-of16 pocket expenses required to be paid 

17 under the plan (other than for pre18 miums) for covered benefits does not 

19 exceed— 

20 ‘‘(aa) $5,000 for self-only 

21 coverage, and 

22 ‘‘(bb) twice the dollar 

23 amount in item (aa) for family 

24 coverage, and 


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1 ‘‘(ii) in the case of an individual en2 rolled under title XVIII of the Social Secu3 rity Act, coverage under title XVIII of 

4 such Act.’’. 

5 (2) ELIGIBLE INDIVIDUAL.—Paragraph (1) of 

6 section 223(c) of such Code is amended by adding 

7 at the end the following: 

8 ‘‘(D) SPECIAL RULE FOR INDIVIDUALS EN9 ROLLED IN MEDICARE.—An individual enrolled 

10 under title XVIII of the Social Security Act 

11 shall not fail to be treated as an eligible indi12 vidual for any period merely because the indi13 vidual during such period is covered under a 

14 health plan described in subclauses (I) and (II) 

15 of subparagraph (A)(ii).’’. 

16 (3) EXCLUSION OF MEDICARE PREMIUMS AS

17 QUALIFIED MEDICAL EXPENSE.—Subparagraph (C) 

18 of section 223(d)(2) of such Code is amended by in19 serting ‘‘or’’ at the end of clause (ii), by striking 

20 ‘‘or’’ at the end of clause (iii) and inserting a period, 

21 and by striking clause (iv). 

22 (4) REPEAL OF EXCEPTION TO ADDITIONAL

23 TAX AFTER MEDICARE ELIGIBILITY.—Paragraph (4) 

24 of section 223(f) of such Code is amended by strik25 ing subparagraph (C). 


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1 (5) ADDITIONAL CONFORMING AMENDMENTS.— 

2 (A) IN GENERAL.—Section 223 of such 

3 Code is amended by striking ‘‘high deductible 

4 health plan’’ each place it appears in the text 

5 and inserting ‘‘HSA-qualified health plan’’. 

6 (B) CONFORMING AMENDMENTS.— 

7 (i) The heading for paragraph (2) of 

8 section 223(c) of such Code is amended by 

9 striking ‘‘HIGH DEDUCTIBLE HEALTH

10 PLAN’’ and inserting ‘‘HSA-QUALIFIED

11 HEALTH PLAN’’. 

12 (ii) Section 408(d)(9) of such Code is 

13 amended— 

14 (I) by striking ‘‘high deductible 

15 health plan’’ each place it appears in 

16 the text in subparagraph (C) and in17 serting ‘‘HSA-qualified health plan’’; 

18 and 

19 (II) by striking ‘‘HIGH DEDUCT20 IBLE HEALTH PLAN’’ in the heading 

21 of subparagraph (D) and inserting 

22 ‘‘HSA-QUALIFIED HEALTH PLAN’’. 

23 (iii) Section 106(e) of such Code is 

24 amended— 


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1 (I) by striking ‘‘HIGH DEDUCT2 IBLE HEALTH PLAN’’ in the heading 

3 of paragraph (3) and inserting ‘‘HSA4 QUALIFIED HEALTH PLAN’’; and 

5 (II) by striking ‘‘high deductible 

6 health plan’’ in paragraph (5)(B)(ii) 

7 and inserting ‘‘HSA-qualified health 

8 plan’’. 

9 (b) REPEAL OF MEDICARE LIMITATION ON DEDUC10 TION FOR CONTRIBUTIONS.— 

11 (1) IN GENERAL.—Subsection (b) of section 

12 223 of such Code is amended by striking paragraph 

13 (7) and redesignating paragraph (8) as paragraph 

14 (7). 

15 (2) CONFORMING AMENDMENT.—Section 

16 26(b)(2)(S) of such Code is amended by striking 

17 ‘‘223(b)(8)(B)(i)(II),’’ and inserting 

18 ‘‘223(b)(7)(B)(i)(II),’’. 

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

20 this section shall apply to taxable years beginning after 

21 the date of the enactment of this Act. 

Æ 


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