Homecare for Seniors Act

Subjects: Taxation

Summary:  <p><b>Homecare for Seniors Act </b></p> <p>This bill allows tax-exempt distributions from health savings accounts (HSAs) to be used for qualified home care. </p> <p><i>Qualified home care</i> means a contract to provide three or more of the following services in the residence of the service recipient:</p> <ul> <li> assistance with eating, </li> <li> assistance with toileting,</li> <li> assistance with transferring,</li> <li> assistance with bathing, </li> <li>assistance with dressing, </li> <li> assistance with continence, and </li> <li> medication adherence. </li> </ul> <p>The Department of Health and Human Services must carry out a campaign to increase public awareness of the in-home service expenses that are eligible for tax-free distribution from HSAs.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1795 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 1795

     To amend the Internal Revenue Code of 1986 to allow qualified 
   distributions from health savings accounts for certain home care 
                               expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 24, 2023

 Mr. Smith of Nebraska (for himself, Ms. Porter, Mr. Bacon, Mr. Tonko, 
 Mr. Flood, Ms. Lois Frankel of Florida, Mr. Fitzpatrick, Mr. Neguse, 
Mr. Balderson, and Mr. Meuser) 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 qualified 
   distributions from health savings accounts for certain home care 
                               expenses.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homecare for Seniors Act''.

SEC. 2. CERTAIN HOME CARE EXPENSES TREATED AS QUALIFIED DISTRIBUTIONS 
              FROM HEALTH SAVINGS ACCOUNTS.

    (a) In General.--Section 223(d)(2) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``medical care (as defined in section 
        213(d))'' in subparagraph (A) and inserting ``specified medical 
        care'', and
            (2) by adding at the end the following new subparagraph:
                    ``(E) Specified medical care.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `specified 
                        medical care' means medical care (as defined in 
                        section 213(d)) and qualified home care.
                            ``(ii) Qualified home care.--The term 
                        `qualified home care' means a contract to 
                        provide 3 or more of the following services in 
                        the residence of the service recipient:
                                    ``(I) Assistance with eating.
                                    ``(II) Assistance with toileting.
                                    ``(III) Assistance with 
                                transferring.
                                    ``(IV) Assistance with bathing.
                                    ``(V) Assistance with dressing.
                                    ``(VI) Assistance with continence.
                                    ``(VII) Medication adherence.
                        Such term shall not include any contract unless 
                        the services provided pursuant to such contract 
                        are provided by a service provider which is 
                        licensed by the State to provide such services 
                        or such services are otherwise provided in a 
                        manner that is consistent with State 
                        requirements.
                            ``(iii) Related parties.--The term 
                        `qualified home care' shall not include any 
                        contract which is, directly or indirectly, 
                        between a service provider and a service 
                        recipient who are related within the meaning of 
                        section 267(b) or 707(b).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts paid with respect to taxable years beginning after the 
date of the enactment of this Act.
    (c) Promotion of Public Awareness of In-Home Service Expenses 
Eligible for Tax-Free Distribution From Health Savings Accounts.--The 
Secretary of Health and Human Services, in consultation with the 
Secretary of the Treasury, shall carry out a campaign to increase 
public awareness of the in-home service expenses that are eligible for 
tax-free distribution from health savings accounts.
                                 &lt;all&gt;
</pre></body></html>