I
105TH CONGRESS
2D SESSION
H. R. 3475
To amend the Internal Revenue Code of 1986 to allow a deduction for
the health insurance costs of all individuals who are not eligible to
participate in employer-subsidized health plans.
IN THE HOUSE OF REPRESENTATIVES
MARCH 17, 1998
Mrs. JOHNSON of Connecticut 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 the health insurance costs of all individuals
who are not eligible to participate in employer-subsidized
health plans.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Tax Fairness for
Health Consumers Act of 1998’’.
SEC. 2. DEDUCTION FOR HEALTH INSURANCE COSTS FOR
INDIVIDUALS NOT ELIGIBLE TO PARTICI-
PATE 
IN 
EMPLOYER-SUBSIDIZED 
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) is amended by redesignat-
ing section 222 as section 223 and by inserting after sec-
tion 221 the following new section:
‘‘SEC. 222. HEALTH INSURANCE COSTS.
‘‘(a) IN GENERAL.—In the case of an individual,
there shall be allowed as a deduction an amount equal to
the applicable percentage of the amount paid during the
taxable year for insurance which constitutes medical care
for the taxpayer, his spouse, and dependents.
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of
subsection (a), the applicable percentage shall be deter-
mined in accordance with the following table:
‘‘For taxable years beginning
in calendar year—
The applicable percentage is—
1998 and 1999 .........................................................................
2000 and 2001 .........................................................................
2002 .........................................................................................
2003 through 2005 ..................................................................
2006 .........................................................................................
2007 and thereafter .................................................................
100.
‘‘(c) LIMITATIONS.—
‘‘(1) OTHER COVERAGE.—Subsection (a) shall
not apply to any taxpayer for any calendar month
for which the taxpayer is eligible to participate in
any subsidized health plan maintained by any em-
ployer of the taxpayer or of the spouse of the tax-
payer. The preceding sentence shall be applied sepa-
rately with respect to—
‘‘(A) plans which include coverage for
qualified long-term care services (as defined in
section 7702B(c)) or are qualified long-term
care insurance contracts (as defined in section
7702B(b)), and
‘‘(B) plans which do not include such cov-
erage and are not such contracts.
‘‘(2) LONG-TERM
CARE
PREMIUMS.—In the
case of a qualified long-term care insurance contract
(as defined in section 7702B(b)), only eligible long-
term 
care 
premiums 
(as 
defined 
in 
section
213(d)(10)) shall be taken into account under sub-
section (a).
‘‘(3) MEDICARE
PREMIUMS.—Subsection (a)
shall not apply to amounts paid as premiums under
part B of title XVIII of the Social Security Act.
‘‘(d) SPECIAL RULES.—
‘‘(1) COORDINATION
WITH
MEDICAL
DEDUC-
TION, ETC.—Any amount paid by a taxpayer for in-
surance to which subsection (a) applies shall not be
taken into account in computing the amount allow-
able to the taxpayer as a deduction under section
213(a).
‘‘(2) DEDUCTION NOT ALLOWED FOR SELF-EM-
PLOYMENT
TAX
PURPOSES.—The deduction allow-
able by reason of this section shall not be taken into
account in determining an individual’s net earnings
from self-employment (within the meaning of section
1402(a)) for purposes of chapter 2.’’
(b) CONFORMING AMENDMENTS.—
(1) Subsection (l) of section 162 of such Code
is hereby repealed.
(2) Subsection (a) of section 62 of such Code
is amended by inserting after paragraph (17) the
following new paragraph:
‘‘(18) HEALTH INSURANCE COSTS OF CERTAIN
INDIVIDUALS.—The deduction allowed by section
222.’’
(3) The table of sections for part VII of sub-
chapter B of chapter 1 of such Code is amended by
striking the last item and inserting the following
new items:
‘‘Sec. 222. Health insurance costs.
‘‘Sec. 223. Cross reference.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1997.
Æ