I 

110TH CONGRESS 

1ST SESSION H. R. 1110 

To amend the Internal Revenue Code of 1986 to allow Federal civilian 

and military retirees to pay health insurance premiums on a pretax 

basis and to allow a deduction for TRICARE supplemental premiums. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 16, 2007 

Mr. TOM DAVIS of Virginia (for himself, Mr. HOYER, Mr. PORTER, Mr. WAXMAN, Mr. WOLF, Mr. DAVIS of Illinois, Mr. VAN HOLLEN, Mrs. JO ANN

DAVIS of Virginia, Mr. MORAN of Virginia, Mr. COBLE, Ms. NORTON, 

Mr. WYNN, Mr. CANTOR, Mr. CAMP of Michigan, Mr. STARK, Mr. 

RAMSTAD, Mr. LEWIS of Georgia, Mr. SAM JOHNSON of Texas, Mr. 

BECERRA, Mr. ENGLISH of Pennsylvania, Mrs. JONES of Ohio, Mr. 

WELLER of Illinois, Mr. THOMPSON of California, Mr. LEWIS of Kentucky, Mr. EMANUEL, Mr. RYAN of Wisconsin, Ms. BERKLEY, Mr. MEEK

of Florida, and Ms. SCHWARTZ) introduced the following bill; which was 

referred to the Committee on Ways and Means, and in addition to the 

Committees on Oversight and Government Reform and Armed Services, 

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 allow Federal civilian and military retirees to pay health insurance 

premiums on a pretax basis and to allow a deduction 

for TRICARE supplemental premiums. 

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


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1 SECTION 1. PRETAX PAYMENT OF HEALTH INSURANCE 

2 PREMIUMS BY FEDERAL CIVILIAN AND MILI3 TARY RETIREES. 

4 (a) IN GENERAL.—Subsection (g) of section 125 of 

5 the Internal Revenue Code of 1986 (relating to cafeteria 

6 plans) is amended by adding at the end the following new 

7 paragraph: 

8 ‘‘(5) HEALTH INSURANCE PREMIUMS OF FED9 ERAL CIVILIAN AND MILITARY RETIREES.— 

10 ‘‘(A) FEHBP PREMIUMS.—Nothing in this 

11 section shall prevent the benefits of this section 

12 from being allowed to an annuitant, as defined 

13 in paragraph (3) of section 8901 of title 5, 

14 United States Code, with respect to a choice be15 tween the annuity or compensation referred to 

16 in such paragraph and benefits under the 

17 health benefits program established by chapter 

18 89 of such title 5. 

19 ‘‘(B) TRICARE PREMIUMS.—Nothing in 

20 this section shall prevent the benefits of this 

21 section from being allowed to an individual re22 ceiving retired or retainer pay by reason of 

23 being a member or former member of the uni24 formed services of the United States with re25 spect to a choice between such pay and benefits 


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1 under the health benefits programs established 

2 by chapter 55 of title 10, United States Code.’’. 

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. 2. DEDUCTION FOR TRICARE SUPPLEMENTAL PRE7 MIUMS. 

8 (a) IN GENERAL.—Part VII of subchapter B of chap9 ter 1 of the Internal Revenue Code of 1986 (relating to 

10 additional itemized deductions for individuals) is amended 

11 by redesignating section 224 as section 225 and by insert12 ing after section 223 the following new section: 

13 ‘‘SEC. 224. TRICARE SUPPLEMENTAL PREMIUMS OR EN14 ROLLMENT FEES. 

15 ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 

16 individual, there shall be allowed as a deduction the 

17 amounts paid during the taxable year by the taxpayer for 

18 insurance purchased as supplemental coverage to the 

19 health benefits programs established by chapter 55 of title 

20 10, United States Code, for the taxpayer and the tax21 payer’s spouse and dependents. 

22 ‘‘(b) COORDINATION WITH MEDICAL DEDUCTION.— 

23 Any amount allowed as a deduction under subsection (a) 

24 shall not be taken into account in computing the amount 


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1 allowable to the taxpayer as a deduction under section 

2 213(a).’’. 

3 (b) DEDUCTION ALLOWED WHETHER OR NOT INDI4 VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 

5 of section 62 of such Code is amended by inserting before 

6 the last sentence the following new paragraph: 

7 ‘‘(22) TRICARE SUPPLEMENTAL PREMIUMS

8 OR ENROLLMENT FEES.—The deduction allowed by 

9 section 224.’’. 

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

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

12 is amended by striking the last item and inserting the fol13 lowing new items: 

‘‘Sec. 224. TRICARE supplemental premiums or enrollment fees. 

‘‘Sec. 225. Cross reference.’’. 

14 (d) 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. IMPLEMENTATION. 

18 (a) FEHBP PREMIUM CONVERSION OPTION FOR

19 FEDERAL CIVILIAN RETIREES.—The Director of the Of20 fice of Personnel Management shall take such actions as 

21 the Director considers necessary so that the option made 

22 possible by section 125(g)(5)(A) of the Internal Revenue 

23 Code of 1986 shall be offered beginning with the first open 

24 enrollment period afforded under chapter 89 of title 5, 


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1 United States Code, which begins not less than 90 days 

2 after the date of the enactment of this Act. 

3 (b) TRICARE PREMIUM CONVERSION OPTION FOR

4 MILITARY RETIREES.—The Secretary of Defense, after 

5 consulting with the other administering Secretaries (as 

6 specified in section 1073 of title 10, United States Code), 

7 shall take such actions as the Secretary considers nec8 essary so that the option made possible by section 

9 125(g)(5)(B) of the Internal Revenue Code of 1986 shall 

10 be offered beginning with the first open enrollment period 

11 afforded under health benefits programs established under 

12 chapter 55 of such title which begins not less than 90 days 

13 after the date of the enactment of this Act. 

Æ 


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