HR 1270 PCS
SEC. 203. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES 
INCURRED 
BEFORE 
ESTABLISHMENT 
OF 
HEALTH SAVINGS ACCOUNT. 
(a) IN GENERAL.—Section 223(d)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(D) TREATMENT OF CERTAIN MEDICAL 
EXPENSES INCURRED BEFORE ESTABLISHMENT 
OF ACCOUNT.—If a health savings account is 
established during the 60-day period beginning 
on the date that coverage of the account bene-
ficiary under a high deductible health plan be-
gins, then, solely for purposes of determining 
whether an amount paid is used for a qualified 
medical expense, such account shall be treated 
as having been established on the date that 
such coverage begins.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to coverage beginning 
after December 31, 2016. 
SEC. 204. MAXIMUM CONTRIBUTION LIMIT TO HEALTH SAV-
INGS ACCOUNT INCREASED TO AMOUNT OF 
DEDUCTIBLE AND OUT-OF-POCKET LIMITA-
TION. 
(a) SELF-ONLY COVERAGE.—Section 223(b)(2)(A) 
of the Internal Revenue Code of 1986 is amended by strik-
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ing ‘‘$2,250’’ and inserting ‘‘the amount in effect under 
subsection (c)(2)(A)(ii)(I)’’. 
(b) FAMILY COVERAGE.—Section 223(b)(2)(B) of 
such Code is amended by striking ‘‘$4,500’’ and inserting 
‘‘the amount in effect under subsection (c)(2)(A)(ii)(II)’’. 
(c) CONFORMING AMENDMENTS.—Section 223(g)(1) 
of such Code is amended— 
(1) by striking ‘‘subsections (b)(2) and’’ both 
places it appears and inserting ‘‘subsection’’, and 
(2) by striking ‘‘determined by’’ in subpara-
graph (B) thereof and all that follows through ‘‘ ‘cal-
endar year 2003’.’’ and inserting ‘‘determined by 
substituting ‘calendar year 2003’ for ‘calendar year 
1992’ in subparagraph (B) thereof .’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
TITLE 
III—PROTECTING 
TAX-
PAYERS BY RECOVERING IM-
PROPER 
OBAMACARE 
SUB-
SIDY OVERPAYMENTS ACT 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘Protecting Taxpayers 
by Recovering Improper Obamacare Subsidy Overpay-
ments Act’’. 
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SEC. 302. RECOVERY OF IMPROPER OVERPAYMENTS RE-
SULTING FROM CERTAIN FEDERALLY SUB-
SIDIZED HEALTH INSURANCE. 
(a) IN GENERAL.—Section 36B(f)(2)(B)(i) of the In-
ternal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(i) IN GENERAL.—In the case of a 
taxpayer whose household income is less 
than 300 percent of the poverty line for 
the size of the family involved for the tax-
able year, the amount of the increase 
under subparagraph (A) shall in no event 
exceed the applicable dollar amount deter-
mined in accordance with the following 
table (one-half of such amount in the case 
of a taxpayer whose tax is determined 
under section 1(c) for the taxable year): 
‘‘If the household income (expressed as a percent 
of poverty line) is: 
The applicable dollar amount is: 
Less than 200% ....................................................
$600 
At least 200% but less than 250% .......................
$1,500 
At least 250% but less than 300% .......................
$3,000.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
Passed the House of Representatives July 6, 2016. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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Calendar No. 550 
114TH CONGRESS 
2D SESSION 
H. R. 1270 
AN ACT 
To amend the Internal Revenue Code of 1986 to 
repeal the amendments made by the Patient Pro-
tection and Affordable Care Act which disqualify 
expenses for over-the-counter drugs under health 
savings accounts and health flexible spending ar-
rangements. 
JULY 11, 2016 
Read the second time and placed on the calendar 
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