I 
109TH CONGRESS 
2D SESSION 
H. R. 6065 
To amend the Internal Revenue Code of 1986 to provide tax incentives 
for the payment of premiums for high deductible health plans, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 13, 2006 
Mr. CANTOR 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 provide 
tax incentives for the payment of premiums for high 
deductible health plans, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Tax Free Health Savings Act of 2006’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title, etc. 
Sec. 2. Deduction of premiums for high deductible health plans. 
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Sec. 3. Credit for certain employment taxes paid with respect to premiums for 
high deductible health plans and contributions to health sav-
ings accounts. 
Sec. 4. Refundable credit for health insurance coverage under high deductible 
health plan. 
Sec. 5. Advance payment of credit as premium payment for high deductible 
health insurance. 
Sec. 6. Increase in contribution limits for health savings accounts. 
Sec. 7. Health reimbursement arrangements and spending arrangements in 
combination with health savings accounts. 
Sec. 8. Certain expenses treated as qualified medical expenses. 
Sec. 9. Exception to requirement for employers to make comparable health sav-
ings account contributions. 
SEC. 2. DEDUCTION OF PREMIUMS FOR HIGH DEDUCTIBLE 
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 the taxpayer as 
premiums under a high deductible health plan with respect 
to months during such year for which such individual is 
an eligible individual with respect to such health plan. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ means an individual who— 
‘‘(A) is described in section 223(c)(1), and 
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‘‘(B) is the taxpayer or the taxpayer’s 
spouse and dependents. 
‘‘(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 LIMITS.— 
‘‘(A) DEDUCTION ALLOWABLE FOR ONLY 1 
PLAN.—For purposes of this section, in the 
case of an individual covered by more than 1 
high deductible health plan for any month, the 
individual may only take into account amounts 
paid for such month for the plan with the low-
est premium. 
‘‘(B) PLANS COVERING INELIGIBLE INDI-
VIDUALS.—If 2 or more individuals are covered 
by a high deductible health plan for any month 
but only 1 of such individuals is an eligible indi-
vidual for such month, only 50 percent of the 
aggregate amount paid by such eligible indi-
vidual as premiums under the plan with respect 
to such month shall be taken into account for 
purposes of this section. 
‘‘(2) GROUP HEALTH PLAN COVERAGE.— 
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