I 
108TH CONGRESS 
1ST SESSION H. R. 1466
To amend the Internal Revenue Code of 1986 to reduce the health insurance 
costs for family coverage of military reservists called to active duty. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 27, 2003
Mr. CAPUANO (for himself, Mr. JONES of North Carolina, Mr. EVANS, Ms. 
LEE, Mr. MEEHAN, Mr. FRANK of Massachusetts, Mrs. MCCARTHY of 
New York, Mr. RYAN of Ohio, Mrs. JONES of Ohio, Mr. OLVER, and Mr. 
MARKEY) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to reduce 
the health insurance costs for family coverage of military 
reservists called to active duty.
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 ‘‘Mobilized Reserve 
Family Health Care Act of 2003’’.
SEC. 2. REDUCED HEALTH INSURANCE COSTS FOR FAMILY 
COVERAGE 
OF 
MILITARY 
RESERVISTS 
CALLED TO ACTIVE DUTY. 
(a) REFUNDABLE
CREDIT
FOR
COSTS
UP
TO 
TRICARE COSTS.—
(1) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code 
of 1986 (relating to refundable credits) is amended 
by inserting after section 35 the following new sec-
tion: 
‘‘SEC. 35A. CERTAIN FAMILY COVERAGE HEALTH INSUR-
ANCE 
COSTS 
OF 
MILITARY 
RESERVISTS 
CALLED TO ACTIVE DUTY. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax 
imposed by this subtitle an amount equal to the amount 
paid during the taxable year by the taxpayer for insurance 
which constitutes medical care for the taxpayer and the 
taxpayer’s spouse and dependents. 
‘‘(b) LIMITATIONS.—
‘‘(1) CREDIT
LIMITED
TO
TRICARE
COSTS.—
The credit allowed by subsection (a) for any period 
shall not exceed an amount equal to the premium-
equivalent of the family coverage cost of coverage 
under TRICARE for such period.
‘‘(2) LIMITATION TO COVERAGE DURING ACTIVE 
DUTY PERIOD.—The credit allowed by subsection (a) 
shall apply only to amounts paid for coverage during 
the period referred to in subsection (c)(2). 
‘‘(3) SELF-ONLY
COVERAGE
FOR
RESERVIST 
NOT INCLUDED.—The credit allowed by subsection 
(a) shall not apply to self-only coverage for the eligi-
ble individual. 
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 
section, the term ‘eligible individual’ means any indi-
vidual—
‘‘(1) who, as a member of the National Guard 
or a reserve component of an Armed Force of the 
United States, has been called or ordered to active 
duty for a period in excess of 30 days or for an in-
definite period, and 
‘‘(2) who elects that such individual and all 
other individuals who would (but for the election) be 
covered by TRICARE will not be so covered during 
the period beginning on the date of such call or 
order and ending on the last day of such active duty. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—Amounts al-
lowed as a credit under this section shall not be taken 
into account in determining the amount of any deduction 
or other credit under this chapter.’’
(2) CONFORMING AMENDMENTS.—
(A) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting before the period ‘‘, or from section 35A 
of such Code’’. 
(B) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the In-
ternal Revenue Code of 1986 is amended by in-
serting after the item relating to section 35 the 
following new item:
‘‘Sec. 35A. Certain family coverage health insurance costs of mili-
tary reservists called to active duty.’’.
(b) DEDUCTION
FOR
COSTS
IN
EXCESS
OF 
TRICARE COSTS.—
(1) IN GENERAL.—Part VII of subchapter B of 
chapter 1 of such Code (relating to additional 
itemized deductions for individuals) is amended by 
redesignating section 223 as section 224 and by in-
serting after section 222 the following new section: 
‘‘SEC. 223. CERTAIN FAMILY COVERAGE HEALTH INSUR-
ANCE 
COSTS 
OF 
MILITARY 
RESERVISTS 
CALLED TO ACTIVE DUTY. 
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 
eligible individual (as defined in section 35A(c)), there 
shall be allowed as a deduction an amount equal to the 
amount paid during the taxable year by the taxpayer for
insurance which constitutes medical care for the taxpayer 
and the taxpayer’s spouse and dependents. 
‘‘(b) LIMITATION
TO COVERAGE DURING ACTIVE 
DUTY PERIOD.—The deduction under this section shall 
apply only to amounts paid for coverage during the period 
referred to in section 35A(c)(2). 
‘‘(c) SPECIAL RULES.—
‘‘(1) SELF-ONLY
COVERAGE
FOR
RESERVIST 
NOT INCLUDED.—The deduction under this section 
shall not apply to self-only coverage for the eligible 
individual. 
‘‘(2) OTHER RULES TO APPLY.—Rules similar 
to the rules of paragraphs (3), (4), and (5) of sec-
tion 162(l) shall apply for purposes of this section.’’
(2) DEDUCTION ALLOWED WHETHER OR NOT 
INDIVIDUAL
ITEMIZES
OTHER
DEDUCTIONS.—Sub-
section (a) of section 62 of such Code is amended 
by inserting after paragraph (18) the following new 
paragraph: 
‘‘(19) CERTAIN FAMILY COVERAGE HEALTH IN-
SURANCE COSTS OF MILITARY RESERVISTS CALLED 
TO ACTIVE DUTY.—The deduction allowed by section 
223.’’
(3) CLERICAL AMENDMENT.—The table of sec-
tions for part VII of subchapter B of chapter 1 of
such Code is amended by striking the last item and 
inserting the following new items:
‘‘Sec. 223. Certain family coverage health insurance costs of mili-
tary reservists called to active duty. 
‘‘Sec. 224. Cross reference.’’
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2002.
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