170 
‘‘(i) IN GENERAL.—In the case of any 
taxable year beginning after 1997, each 
dollar amount in subparagraph (A) shall 
be increased by the medical care cost ad-
justment of such amount for such calendar 
year. Any increase determined under the 
preceding sentence shall be rounded to the 
nearest multiple of $10. 
‘‘(ii) MEDICAL
CARE
COST
ADJUST-
MENT.—For purposes of clause (i), the 
medical care cost adjustment for any cal-
endar year is the adjustment prescribed by 
the Secretary, in consultation with the Sec-
retary of Health and Human Services, for 
purposes of such clause. To the extent that 
CPI (as defined section 1(c)), or any com-
ponent thereof, is taken into account in de-
termining such adjustment, such adjust-
ment shall be determined by taking into 
account C-CPI-U (as so defined), or the 
corresponding component thereof, in lieu of 
such CPI (or component thereof), but only 
with respect to the portion of such adjust-
ment which relates to periods after Decem-
ber 31, 2014. 
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‘‘(8) 
CERTAIN
PAYMENTS
TO
RELATIVES 
TREATED AS NOT PAID FOR MEDICAL CARE.—An 
amount paid for a qualified long-term care service 
(as defined in section 7702B(c)) provided to an indi-
vidual shall be treated as not paid for medical care 
if such service is provided— 
‘‘(A) by the spouse of the individual or by 
a relative (directly or through a partnership, 
corporation, or other entity) unless the service 
is provided by a licensed professional with re-
spect to such service, or 
‘‘(B) by a corporation or partnership which 
is related (within the meaning of section 267(b) 
or 707(b)) to the individual. 
For purposes of this paragraph, the term ‘relative’ 
means an individual bearing a relationship to the in-
dividual which is described in any of subparagraphs 
(A) through (G) of section 7705(d)(2). This para-
graph shall not apply for purposes of section 105(b) 
with respect to reimbursements through insurance.’’. 
(B) Section 72(t)(2)(D)(i)(III) is amended by 
striking ‘‘section 213(d)(1)(D)’’ and inserting ‘‘sec-
tion 223(e)(1)(D)’’. 
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172 
(C) Section 104(a) is amended by striking ‘‘sec-
tion 213(d)(1)’’ in the last sentence and inserting 
‘‘section 223(e)(1)’’. 
(D) Section 105(b) is amended by striking 
‘‘section 213(d)’’ and inserting ‘‘section 223(e)’’. 
(E) Section 139D is amended by striking ‘‘sec-
tion 213’’ and inserting ‘‘section 223’’. 
(F) Section 162(l)(2) is amended by striking 
‘‘section 
213(d)(10)’’ 
and 
inserting 
‘‘section 
223(e)(7)’’. 
(G) Section 220(d)(2)(A) is amended by strik-
ing ‘‘section 213(d)’’ and inserting ‘‘section 223(e)’’. 
(H) Section 223(d)(2)(A) is amended by strik-
ing ‘‘section 213(d)’’ and inserting ‘‘subsection 
(e))’’. 
(I) Section 419A(f)(2) is amended by striking 
‘‘section 213(d)’’ and inserting ‘‘section 223(e)’’. 
(J) Section 501(c)(26)(A) is amended by strik-
ing ‘‘section 213(d)’’ and inserting ‘‘section 223(e)’’. 
(K) Section 2503(e) is amended by striking 
‘‘section 213(d)’’ and inserting ‘‘section 223(e)’’. 
(L) Section 4980B(c)(4)(B)(i)(I) is amended by 
striking ‘‘section 213(d)’’ and inserting ‘‘section 
223(e)’’. 
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173 
(M) Section 6041(f) is amended by striking 
‘‘section 213(d)’’ and inserting ‘‘section 223(e)’’. 
(N) Section 7702B(a)(2) is amended by strik-
ing ‘‘section 213(d)’’ and inserting ‘‘section 223(e)’’. 
(O) Section 7702B(a)(4) is amended by strik-
ing ‘‘section 213(d)(1)(D)’’ and inserting ‘‘section 
223(e)(1)(D)’’. 
(P) Section 7702B(d)(5) is amended by striking 
‘‘section 
213(d)(10)’’ 
and 
inserting 
‘‘section 
223(e)(7)’’. 
(Q) Section 9832(d)(3) is amended by striking 
‘‘section 213(d)’’ and inserting ‘‘section 223(e)’’. 
(2) Section 72(t)(2)(B) is amended to read as 
follows: 
‘‘(B) MEDICAL
EXPENSES.—Distributions 
made to an individual (other than distributions 
described in subparagraph (A), (C), or (D) to 
the extent such distributions do not exceed the 
excess of— 
‘‘(i) the expenses paid by the taxpayer 
during the taxable year, not compensated 
for by insurance or otherwise, for medical 
care (as defined in 223(e)) of the taxpayer, 
his spouse, or a dependent (as defined in 
section 7705, determined without regard to 
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subsections (b)(1), (b)(2), and (d)(1)(B) 
thereof), over 
‘‘(ii) 10 percent of the taxpayer’s ad-
justed gross income.’’. 
(3) Section 105 is amended by striking sub-
section (f). 
(4) Section 162(l) is amended by striking para-
graph (3). 
(5) Section 402(l) is amended by striking para-
graph (7) and redesignating paragraph (8) as para-
graph (7). 
(6) Section 220(f) is amended by striking para-
graph (6). 
(7) Section 223(f) is amended by striking para-
graph (6). 
(8) Section 7702B(e) is amended by striking 
paragraph (2). 
(9) Section 7705(f)(7), as redesignated by this 
Act, is amended by striking ‘‘sections 105(b), 
132(h)(2)(B), and 213(d)(5)’’ and inserting ‘‘sec-
tions 105(b) and 132(h)(2)(B)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
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SEC. 1410. REPEAL OF DISQUALIFICATION OF EXPENSES 
FOR 
OVER-THE-COUNTER 
DRUGS 
UNDER 
CERTAIN ACCOUNTS AND ARRANGEMENTS. 
(a) HSAS.—Subparagraph (A) of section 223(d)(2) 
is amended by striking the last sentence. 
(b) ARCHER MSAS.—Subparagraph (A) of section 
220(d)(2) is amended by striking the last sentence. 
(c) HEALTH FLEXIBLE SPENDING ARRANGEMENTS 
AND HEALTH REIMBURSEMENT ARRANGEMENTS.—Sec-
tion 106 is amended by striking subsection (f). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses incurred after Decem-
ber 31, 2014. 
SEC. 1411. REPEAL OF DEDUCTION FOR ALIMONY PAY-
MENTS AND CORRESPONDING INCLUSION IN 
GROSS INCOME. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 is amended by striking section 215 (and by striking 
the item relating to such section in the table of sections 
for such part). 
(b) CORRESPONDING REPEAL OF PROVISIONS PRO-
VIDING
FOR INCLUSION
OF ALIMONY
IN GROSS IN-
COME.— 
(1) Subsection (a) of section 61 is amended by 
striking paragraph (8) and by redesignating para-
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