I 

108TH CONGRESS 

2D SESSION H. R. 3901

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

premiums for high deductible health plans required with respect to health 

savings accounts. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 4, 2004

Mr. CRANE (for himself, Mr. SAM JOHNSON of Texas, Mr. CANTOR, Mr. 

RAMSTAD, Mr. HOSTETTLER, Mr. RYAN of Wisconsin, Mr. BRADY of 

Texas, Ms. DUNN, Mrs. JOHNSON of Connecticut, Mr. HAYWORTH, Mr. 

MCINNIS, Mr. HERGER, Mr. ENGLISH, Mr. GUTKNECHT, Mr. WILSON of 

South Carolina, Mr. BALLENGER, Mr. PAUL, Mr. RYUN of Kansas, Mr. 

GREEN of Wisconsin, Mr. BURGESS, Mr. PETERSON of Pennsylvania, 

Mrs. BLACKBURN, Mr. CANNON, Ms. HARRIS, Mrs. MUSGRAVE, Mr. 

BASS, Mr. HUNTER, Mr. KLINE, Mr. BEAUPREZ, Mr. HENSARLING, Mr. 

BARRETT of South Carolina, Mr. WELDON of Florida, Mrs. MYRICK, Mr. 

KING of Iowa, Mr. FRANKS of Arizona, Mr. BARTLETT of Maryland, Mr. 

GINGREY, Mr. ISTOOK, Mr. MILLER of Florida, Mr. PITTS, Mr. FLAKE, 

Mr. JONES of North Carolina, Mr. GOODE, and Mr. FEENEY) 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 a 

deduction for premiums for high deductible health plans 

required with respect 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,
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1 SECTION 1. DEDUCTION OF PREMIUMS FOR HIGH DEDUCT2 IBLE HEALTH PLANS. 

3 (a) IN GENERAL.—Part VII of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 (relating to 

5 additional itemized deductions for individuals) is amended 

6 by redesignating section 224 as section 225 and by insert7 ing after section 223 the following new section: 

8 ‘‘SEC. 224. PREMIUMS FOR HIGH DEDUCTIBLE HEALTH 

9 PLANS. 

10 ‘‘(a) DEDUCTION ALLOWED.—In the case of an indi11 vidual, there shall be allowed as a deduction for the tax12 able year the aggregate amount paid by such individual 

13 as premiums under a high deductible health plan with re14 spect to months during such year for which such indi15 vidual is an eligible individual with respect to such health 

16 plan. 

17 ‘‘(b) DEFINITIONS.—For purposes of this section—

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

19 individual’ has the meaning given such term by sec20 tion 223(c)(1). 

21 ‘‘(2) HIGH DEDUCTIBLE HEALTH PLAN.—The 

22 term ‘high deductible health plan’ has the meaning 

23 given such term by section 223(c)(2). 

24 ‘‘(c) SPECIAL RULES.—

25 ‘‘(1) DEDUCTION ALLOWABLE FOR ONLY 1

26 PLAN.—For purposes of this section, in the case of 
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1 an individual covered by more than 1 high deductible 

2 health plan for any month, the individual may only 

3 take into account amounts paid for 1 of such plans 

4 for such month. 

5 ‘‘(2) EMPLOYER PROVIDED COVERAGE.—

6 ‘‘(A) IN GENERAL.—No deduction shall be 

7 allowed to an individual under subsection (a) 

8 for any amount paid for coverage under a high 

9 deductible health plan for a month if that indi10 vidual participates in any coverage for such 

11 month that is excluded (in whole or in part) 

12 from the gross income of the individual or the 

13 individual’s spouse under section 106. 

14 ‘‘(B) CAFETERIA PLANS, ETC.—Employer 

15 contributions to a cafeteria plan or a flexible 

16 spending or similar arrangement which are ex17 cluded from gross income under section 106 

18 shall be treated for purposes of this section as 

19 paid by the employer. 

20 ‘‘(3) CONTRIBUTIONS TO HEALTH SAVINGS AC21 COUNT REQUIRED.—A deduction shall not be al22 lowed under subsection (a) for a taxable year with 

23 respect to such individual if such individual is not al24 lowed a deduction under section 223 for such tax25 able year. 
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1 ‘‘(4) MEDICAL AND HEALTH SAVINGS AC2 COUNTS.—Subsection (a) shall not apply with re3 spect to any amount which is paid or distributed out 

4 of an Archer MSA or a health savings account which 

5 is not included in gross income under section 220(f) 

6 or 223(f), as the case may be. 

7 ‘‘(5) COORDINATION WITH DEDUCTION FOR

8 HEALTH INSURANCE OF SELF-EMPLOYED INDIVID9 UALS.—The amount taken into account by the tax10 payer in computing the deduction under section 

11 162(l) shall not be taken into account under this 

12 section. 

13 ‘‘(6) COORDINATION WITH MEDICAL EXPENSE

14 DEDUCTION.—The amount taken into account by 

15 the taxpayer in computing the deduction under this 

16 section shall not be taken into account under section 

17 213.’’. 

18 (b) DEDUCTION ALLOWED WHETHER OR NOT INDI19 VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 

20 of section 62 of such Code is amended by inserting after 

21 paragraph (19) the following new paragraph: 

22 ‘‘(20) PREMIUMS FOR HIGH DEDUCTIBLE

23 HEALTH PLANS.—The deduction allowed by section 

24 224.’’. 
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1 (c) CLERICAL AMENDMENT.—The table of sections 

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

3 is amended by striking the last item and inserting the fol4 lowing new items:

‘‘Sec. 224. Premiums for high deductible health plans. 

‘‘Sec. 225. Cross reference.’’.

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2003.

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