I

106TH CONGRESS

1ST SESSION H. R. 145

To amend the Internal Revenue Code of 1986 to allow individuals a deduction

for amounts paid for insurance for medical care.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1999

Mr. GREEN of Texas 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 allow individuals a deduction for amounts paid for insurance for

medical care.

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

3 SECTION 1. DEDUCTION FOR AMOUNTS PAID FOR INSUR4 ANCE FOR MEDICAL CARE.

5 (a) IN GENERAL.—Part VII of subchapter B of chap6 ter 1 of the Internal Revenue Code of 1986 (relating to

7 additional itemized deductions for individuals) is amended

8 by redesignating section 222 as section 223 and by insert9 ing after section 221 the following new section:
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1 ‘‘SEC. 222. INSURANCE FOR MEDICAL CARE.

2 ‘‘(a) DEDUCTION ALLOWED.—

3 ‘‘(1) IN GENERAL.—In the case of an individ4 ual, there shall be allowed as a deduction for any

5 taxable year an amount equal to the applicable per6 centage of the amount paid during the taxable year

7 for insurance covering medical care or for any quali8 fied long-term care insurance contract for the tax9 payer, and his spouse and dependents.

10 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes

11 of paragraph (1), the applicable percentage shall be

12 determined under the following table:

‘‘For taxable years beginning The applicable

in calendar year— percentage is—

1999 ........................................................................................... 45

2000 and 2001 ........................................................................... 50

2002 ........................................................................................... 60

2003 through 2005 .................................................................... 80

2006 ........................................................................................... 90

2007 and thereafter ................................................................... 100.

13 ‘‘(3) DEFINITIONS.—For purposes of paragraph

14 (1)—

15 ‘‘(A) INSURANCE.—The term ‘insurance’

16 includes amounts paid as premiums under part

17 B of title XVIII of the Social Security Act (re18 lating to supplementary medical insurance for

19 the aged).

20 ‘‘(B) MEDICAL CARE.—The term ‘medical

21 care’ has the meaning given to such term by

22 section 213(d)(1).
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1 ‘‘(C) QUALIFIED LONG-TERM CARE INSUR2 ANCE CONTRACT.—The term ‘qualified long3 term care insurance contract’ has the meaning

4 given to such term by section 7702B(b).

5 ‘‘(b) COORDINATION OF DEDUCTION.—No amount

6 taken into account under subsection (a) shall be taken into

7 account in computing the amount allowable to the tax8 payer as a deduction under section 162(l) or 213(a).

9 ‘‘(c) COORDINATION WITH EXCLUSION.—No amount

10 excluded from income under section 125 shall be taken

11 into account under subsection (a).’’.

12 (b) DEDUCTION ALLOWED IF INDIVIDUAL DOES NOT

13 ITEMIZE.—Subsection (a) of section 62 of such Code (re14 lating to general rule for adjusted gross income defined)

15 is amended by inserting after paragraph (17) the following

16 new paragraph:

17 ‘‘(18) INSURANCE FOR MEDICAL CARE.—The

18 deduction allowed by section 222.’’.

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

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

21 is amended by striking the item relating to section 222

22 and inserting the following new items:

‘‘Sec. 222. Insurance for medical care.

‘‘Sec. 223. Cross reference.’’.
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1 (d) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall apply to taxable years beginning after

3 December 31, 1998.

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