Healthcare Freedom Act of 2023

To amend the Internal Revenue Code of 1986 to create health freedom accounts available to all individuals. 1. Short title This Act may be cited as the Healthcare Freedom Act of 2023 2. Health freedom accounts (a) In general Section 223 health savings account health savings accounts health freedom account health freedom accounts (b) All individuals allowed deductions for contributions Section 223(a) 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) (B) Additional expenses The term qualified medical expenses . (d) Transfers allowed to other health freedom accounts Section 223(f)(5) (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 eligible individual $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 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) The dollar amount in subsection (b)(1) (B) by striking thereof calendar year 2003 calendar year 1997 (C) by striking under subsections (b)(2) and (c)(2)(A) under subsection (b)(1) (8) The table of sections for part VII of subchapter B of chapter 1 savings 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. 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: 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) (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.

Summary: Healthcare Freedom Act of 2023 This bill expands the availability of health savings accounts. It renames such accounts as health freedom accounts and allows all individuals to receive increased tax deductions for contributions to such accounts. The term qualified medical expenses is expanded to include costs associated with direct primary care, health care sharing ministries, and medical cost sharing organizations. 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.