Health Savings for Seniors Act

To amend the Internal Revenue Code of 1986 to provide that coverage under Medicare is permissible for purposes of contributions to health savings accounts. 1. Short title This Act may be cited as the Health Savings for Seniors Act 2. Coverage under Medicare permissible for purposes of contributions to health savings accounts (a) Medicare made an HSA-Eligible plan (1) In general Subparagraph (A) of section 223(c)(2) (A) In general The term HSA-qualified health plan (i) a health plan— (I) which has an annual deductible which is not less than— (aa) $1,000 for self-only coverage, and (bb) twice the dollar amount in item (aa) for family coverage, and (II) the sum of the annual deductible and the other annual out-of-pocket expenses required to be paid under the plan (other than for premiums) for covered benefits does not exceed— (aa) $5,000 for self-only coverage, and (bb) twice the dollar amount in item (aa) for family coverage, and (ii) in the case of an individual enrolled under title XVIII of the Social Security Act, coverage under title XVIII of such Act. . (2) Eligible individual Paragraph (1) of section 223(c) of such Code is amended by adding at the end the following: (D) Special rule for individuals enrolled in Medicare An individual enrolled under title XVIII of the Social Security Act shall not fail to be treated as an eligible individual for any period merely because the individual during such period is covered under a health plan described in subclauses (I) and (II) of subparagraph (A)(ii). . (3) Exclusion of Medicare premiums as qualified medical expense Subparagraph (C) of section 223(d)(2) of such Code is amended by inserting or or (4) Repeal of exception to additional tax after Medicare eligibility Paragraph (4) of section 223(f) of such Code is amended by striking subparagraph (C). (5) Additional conforming amendments (A) In general Section 223 of such Code is amended by striking “high deductible health plan” each place it appears in the text and inserting “HSA-qualified health plan”. (B) Conforming amendments (i) The heading for paragraph (2) of section 223(c) of such Code is amended by striking “ High deductible health plan HSA-qualified health plan (ii) Section 408(d)(9) of such Code is amended— (I) by striking “high deductible health plan” each place it appears in the text in subparagraph (C) and inserting “HSA-qualified health plan”; and (II) by striking “ High deductible health plan HSA-qualified health plan (iii) Section 106(e) of such Code is amended— (I) by striking “ High deductible health plan HSA-qualified health plan (II) by striking “high deductible health plan” in paragraph (5)(B)(ii) and inserting “HSA-qualified health plan”. (b) Repeal of Medicare limitation on deduction for contributions (1) In general Subsection (b) of section 223 of such Code is amended by striking paragraph (7) and redesignating paragraph (8) as paragraph (7). (2) Conforming amendment Section 26(b)(2)(S) of such Code is amended by striking 223(b)(8)(B)(i)(II), 223(b)(7)(B)(i)(II), (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Health Savings for Seniors Act This bill permits a Medicare beneficiary to participate in and contribute to health savings accounts.