HR 3 PCS 
‘‘(ii) OPTION TO OFFER COVERAGE OR 
PLAN.—Nothing in subparagraph (A) shall 
restrict any non-Federal health insurance 
issuer offering a health plan from offering 
separate coverage for abortions described 
in such subparagraph, or a plan that in-
cludes such abortions, so long as premiums 
for such separate coverage or plan are not 
paid for with any amount attributable to 
the credit allowed under this section (or 
the amount of any advance payment of the 
credit under section 1412 of the Patient 
Protection and Affordable Care Act).’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after De-
cember 31, 2013. 
SEC. 203. DISALLOWANCE OF SMALL EMPLOYER HEALTH 
INSURANCE EXPENSE CREDIT FOR PLAN 
WHICH INCLUDES COVERAGE FOR ABOR-
TION. 
(a) IN GENERAL.—Subsection (h) of section 45R of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘Any term’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—Any term’’, and 
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(2) by adding at the end the following new 
paragraph: 
‘‘(2) EXCLUSION OF HEALTH PLANS INCLUDING 
COVERAGE
FOR
ABORTION.—The terms ‘qualified 
health plan’ and ‘health insurance coverage’ shall 
not include any health plan or benefit that includes 
coverage for abortions (other than any abortion or 
treatment described in section 213(g)(2)).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 204. DISTRIBUTIONS FOR ABORTION EXPENSES FROM 
CERTAIN ACCOUNTS AND ARRANGEMENTS 
INCLUDED IN GROSS INCOME. 
(a) FLEXIBLE SPENDING ARRANGEMENTS UNDER 
CAFETERIA PLANS.—Section 125 of the Internal Revenue 
Code of 1986 is amended by redesignating subsections (k) 
and (l) as subsections (l) and (m), respectively, and by 
inserting after subsection (j) the following new subsection: 
‘‘(k) ABORTION REIMBURSEMENT FROM FLEXIBLE 
SPENDING
ARRANGEMENT
INCLUDED
IN
GROSS
IN-
COME.—Notwithstanding section 105(b), gross income 
shall include any reimbursement for expenses incurred for 
an abortion (other than any abortion or treatment de-
scribed in section 213(g)(2)) from a health flexible spend-
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ing arrangement provided under a cafeteria plan. Such re-
imbursement shall not fail to be a qualified benefit for 
purposes of this section merely as a result of such inclu-
sion in gross income.’’. 
(b) ARCHER MSAS.—Paragraph (1) of section 220(f) 
of such Code is amended by inserting before the period 
at the end the following: ‘‘, except that any such amount 
used to pay for an abortion (other than any abortion or 
treatment described in section 213(g)(2)) shall be included 
in the gross income of such holder’’. 
(c) HSAS.—Paragraph (1) of section 223(f) of such 
Code is amended by inserting before the period at the end 
the following: ‘‘, except that any such amount used to pay 
for an abortion (other than any abortion or treatment de-
scribed in section 213(g)(2)) shall be included in the gross 
income of such beneficiary’’. 
(d) EFFECTIVE DATES.— 
(1) FSA REIMBURSEMENTS.—The amendment 
made by subsection (a) shall apply to expenses in-
curred with respect to taxable years beginning after 
the date of the enactment of this Act. 
(2) 
DISTRIBUTIONS
FROM
SAVINGS
AC-
COUNTS.—The amendments made by subsection (b) 
and (c) shall apply to amounts paid with respect to 
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taxable years beginning after the date of the enact-
ment of this Act. 
Passed the House of Representatives May 4, 2011. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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Calendar No. 40 
112TH CONGRESS 
1ST SESSION 
H. R. 3 
AN ACT 
To prohibit taxpayer funded abortions and to pro-
vide for conscience protections, and for other 
purposes. 
MAY 9, 2011 
Read the second time and placed on the calendar 
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