I
107TH CONGRESS
1ST SESSION
H. R. 2125
To amend the Internal Revenue Code of 1986 to allow Federal civilian
and military retirees to pay health insurance premiums on a pretax
basis and to allow a deduction for TRICARE supplemental premiums.
IN THE HOUSE OF REPRESENTATIVES
JUNE 12, 2001
Mr. TOM DAVIS of Virginia 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 Fed-
eral civilian and military retirees to pay health insurance
premiums on a pretax basis and to allow a deduction
for TRICARE supplemental premiums.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PRETAX PAYMENT OF HEALTH INSURANCE
PREMIUMS BY FEDERAL CIVILIAN AND MILI-
TARY RETIREES.
(a) IN GENERAL.—Subsection (g) of section 125 of
the Internal Revenue Code of 1986 (relating to cafeteria
plans) is amended by adding at the end the following new
paragraph:
‘‘(5) HEALTH INSURANCE PREMIUMS OF FED-
ERAL CIVILIAN AND MILITARY RETIREES.—
‘‘(A) FEHBP PREMIUMS.—Nothing in this
section shall prevent the benefits of this section
from being allowed to an annuitant, as defined
in paragraph (3) of section 8901, title 5,
United States Code, with respect to a choice be-
tween the annuity or compensation referred to
such paragraph and benefits under the health
benefits program established by chapter 89 of
such title 5.
‘‘(B) TRICARE PREMIUMS.—Nothing in
this section shall prevent the benefits of this
section from being allowed to an individual re-
ceiving retired or retainer pay by reason of
being a member or former member of the uni-
formed services of the United States with re-
spect to a choice between such pay and benefits
under the health benefits programs established
by chapter 55 of title 10, United States Code.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
SEC. 2. DEDUCTION FOR TRICARE SUPPLEMENTAL PRE-
MIUMS.
(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 223 as section 224 and by insert-
ing after section 222 the following new section:
‘‘SEC. 223. TRICARE SUPPLEMENTAL PREMIUMS OR EN-
ROLLMENT FEES.
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an
individual, there shall be allowed as a deduction the
amounts paid during the taxable year by the taxpayer for
insurance purchased as supplemental coverage to the
health benefits programs established by chapter 55 of title
10, United States Code, for the taxpayer and the tax-
payer’s spouse and dependents.
‘‘(b) COORDINATION WITH MEDICAL DEDUCTION.—
Any amount allowed as a deduction under subsection (a)
shall not be taken into account in computing the amount
allowable to the taxpayer as a deduction under section
213(a).’’
(b) DEDUCTION ALLOWED WHETHER OR NOT INDI-
VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a)
of section 62 of such Code is amended by inserting after
paragraph (18) the following new paragraph:
‘‘(19) TRICARE SUPPLEMENTAL PREMIUMS OR
ENROLLMENT FEES.—The deduction allowed by sec-
tion 223.’’
(c) CLERICAL AMENDMENT.—The table of sections
for part VII of subchapter B of chapter 1 of such Code
is amended by striking the last item and inserting the fol-
lowing new items:
‘‘Sec. 223. TRICARE supplemental premiums or enrollment fees.
‘‘Sec. 224. Cross reference.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
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