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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. DEDUCTION OF PREMIUMS FOR HIGH DEDUCT-
IBLE HEALTH PLANS. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
additional itemized deductions for individuals) is amended 
by redesignating section 224 as section 225 and by insert-
ing after section 223 the following new section: 
‘‘SEC. 224. PREMIUMS FOR HIGH DEDUCTIBLE HEALTH 
PLANS. 
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual, there shall be allowed as a deduction for the tax-
able year the aggregate amount paid by such individual 
as premiums under a high deductible health plan with re-
spect to months during such year for which such indi-
vidual is an eligible individual with respect to such health 
plan. 
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ has the meaning given such term by sec-
tion 223(c)(1). 
‘‘(2) HIGH DEDUCTIBLE HEALTH PLAN.—The 
term ‘high deductible health plan’ has the meaning 
given such term by section 223(c)(2). 
‘‘(c) SPECIAL RULES.—
‘‘(1) DEDUCTION
ALLOWABLE
FOR
ONLY
PLAN.—For purposes of this section, in the case of
‘‘(4) MEDICAL
AND
HEALTH
SAVINGS
AC-
COUNTS.—Subsection (a) shall not apply with re-
spect to any amount which is paid or distributed out 
of an Archer MSA or a health savings account which 
is not included in gross income under section 220(f) 
or 223(f), as the case may be. 
‘‘(5) COORDINATION
WITH
DEDUCTION
FOR 
HEALTH INSURANCE OF SELF-EMPLOYED INDIVID-
UALS.—The amount taken into account by the tax-
payer in computing the deduction under section 
162(l) shall not be taken into account under this 
section. 
‘‘(6) COORDINATION WITH MEDICAL EXPENSE 
DEDUCTION.—The amount taken into account by 
the taxpayer in computing the deduction under this 
section shall not be taken into account under section 
213.’’. 
(b) DEDUCTION ALLOWED WHETHER OR NOT INDI-
VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 
of section 62 of such Code is amended by inserting after 
paragraph (19) the following new paragraph: 
‘‘(20) PREMIUMS
FOR
HIGH
DEDUCTIBLE 
HEALTH PLANS.—The deduction allowed by section 
224.’’.
(c) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 of such Code 
is amended by striking the last item and inserting the fol-
lowing new items:
‘‘Sec. 224. Premiums for high deductible health plans. 
‘‘Sec. 225. Cross reference.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2003.
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