Healthcare Freedom Act of 2023

Subjects: Taxation

Summary:  <p><b>Healthcare Freedom Act of 2023</b></p> <p>This bill expands the availability of health savings accounts. It renames such accounts as <em>health freedom accounts</em> and allows all individuals to receive increased tax deductions for contributions to such accounts. The term <em>qualified medical expenses</em> is expanded to include costs associated with direct primary care, health care sharing ministries, and medical cost sharing organizations. </p> <p>The bill also excludes employer contributions to health freedom accounts from employee gross income for income tax purposes. This exclusion applies to employees hired on or after the fifth year after the enactment of this bill.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1769 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 1769

  To amend the Internal Revenue Code of 1986 to create health freedom 
                 accounts available to all individuals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 23, 2023

 Mr. Roy (for himself, Mr. Weber of Texas, Mr. Green of Tennessee, Mr. 
    Rosendale, Ms. Greene of Georgia, Mrs. Boebert, and Mr. Good of 
  Virginia) 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 create health freedom 
                 accounts available to all individuals.

    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 ``Healthcare Freedom Act of 2023''.

SEC. 2. HEALTH FREEDOM ACCOUNTS.

    (a) In General.--Section 223 of the Internal Revenue Code of 1986 
is amended by striking ``health savings account'' and ``health savings 
accounts'' each place such terms appear and inserting ``health freedom 
account'' and ``health freedom accounts'', respectively.
    (b) All Individuals Allowed Deductions for Contributions.--Section 
223(a) of the Internal Revenue Code of 1986 is amended by striking 
``who is an eligible individual for any month during the taxable 
year''.
    (c) No Limitation on Purchasing Health Coverage From Health Freedom 
Accounts.--Section 223(d)(2) of the Internal Revenue Code of 1986 is 
amended by striking subparagraphs (B) and (C) and the last sentence of 
subparagraph (A) and by adding at the end the following new subsection:
                    ``(B) Additional expenses.--The term `qualified 
                medical expenses' includes costs associated with direct 
                primary care, health care sharing ministries, and 
                medical cost sharing organizations.''.
    (d) Transfers Allowed to Other Health Freedom Accounts.--Section 
223(f)(5) of the Internal Revenue Code of 1986 is amended to read as 
follows:
            ``(5) Rollover contribution.--An amount paid or distributed 
        from a health freedom account is a rollover contribution to the 
        extent the amount received is paid into any other health 
        freedom account not later than the 60th day after the date of 
        such payment or distribution.''.
    (e) Increase in Contribution Limits.--Section 223(b)(1) of such 
Code is amended by striking ``the sum of the monthly'' and all that 
follows through ``eligible individual'' and inserting ``$12,000 (twice 
such amount in the case of a joint return)''.
    (f) Conforming Amendments.--
            (1) Section 223(b) of such Code is amended by striking 
        paragraphs (2), (5), (7), and (8) and by redesignating 
        paragraphs (3), (4), and (6) as paragraphs (2), (3), and (4), 
        respectively.
            (2) Section 223(b)(2) of such Code (as redesignated by 
        paragraph (2)) is amended to read as follows:
            ``(2) Additional contributions for individuals 55 or 
        older.--In the case of an individual who has attained age 55 
        before the close of the taxable year, the limitation under 
        paragraph (1) shall be increased by $5,000.''.
            (3) Section 223(b)(3) of such Code (as redesignated by 
        subparagraph (A)) is amended by striking the last sentence.
            (4) Section 223 of such Code is amended by striking 
        subsection (c).
            (5) Section 223(d)(1)(A) of such Code is amended by 
        striking ``will be accepted'' and all that follows through the 
        period at the end and inserting ``will be accepted unless it is 
        in cash.''.
            (6) Section 223(f) of such Code is amended by striking 
        paragraphs (7) and (8).
            (7) Section 223(g)(1) of such Code is amended--
                    (A) by striking ``Each dollar amount in subsections 
                (b)(2) and (c)(2)(A)'' and inserting ``The dollar 
                amount in subsection (b)(1)'';
                    (B) by striking ``thereof'' and all that follows in 
                subparagraph (B) through ```calendar year 2003'.'' and 
                inserting ```calendar year 1997'.''; and
                    (C) by striking ``under subsections (b)(2) and 
                (c)(2)(A)'' and inserting ``under subsection (b)(1)''.
            (8) The table of sections for part VII of subchapter B of 
        chapter 1 of the Internal Revenue Code of 1986 is amended in 
        the item relating to section 223 by striking ``savings'' and 
        inserting ``freedom''.
    (g) Effective Date.--The amendments made by this section shall 
apply with respect to months in taxable years beginning after the date 
of the enactment of this Act.

SEC. 3. EXCLUSION FOR EMPLOYER CONTRIBUTIONS TO HEALTH FREEDOM 
              ACCOUNTS.

    (a) Employer Exclusion.--
            (1) In general.--The Internal Revenue Code of 1986 is 
        amended by inserting after section 106 the following new 
        section:

``SEC. 106A. CONTRIBUTIONS BY EMPLOYERS TO HEALTH FREEDOM ACCOUNTS.

    ``In the case of any employee hired by an employer on or after the 
date that is 5 years after the date of the enactment of this section, 
gross income of such employee does not include amounts contributed by 
such employer to a health freedom account of such employee.''.
            (2) Exclusion for contributions by employer to accident and 
        health plans.--Section 106 of such Code is amended by adding at 
        the end the following new subsection:
    ``(h) Termination.--In the case of any employee hired by an 
employer on or after the date that is 5 years after the date of the 
enactment of this section, this section shall not apply to coverage 
provided by such employer with respect to such employee.''.
            (3) Conforming amendment.--The table of sections for part 
        III of subchapter B of chapter 1 of such Code is amended by 
        striking the item relating to section 106 and inserting the 
        following:

``Sec. 106A. Contributions by employers to health freedom accounts.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply with respect to employees hired on or after the 
        date that is 5 years after the date of the enactment of this 
        Act.
    (b) Transition Rule.--
            (1) In general.--Section 106(d)(1) of the Internal Revenue 
        Code of 1986 is amended to read as follows:
            ``(1) In general.--Amounts contributed by an employee's 
        employer to any health freedom account (as defined in section 
        223(d)) of such employee shall be treated as employer-provided 
        coverage for medical expenses under an accident or health 
        plan.''.
            (2) In general.--The amendment made by this subsection 
        shall apply with respect to taxable years beginning after the 
        date of the enactment of this Act.
                                 &lt;all&gt;
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