(d) BANKRUPTCY PROTECTIONS.—Section 522 of 
title 11, United States Code, is amended by adding at the 
end the following new subsection: 
‘‘(r) For purposes of this section, any health savings 
account (as described in section 223 of the Internal Rev-
enue Code of 1986) shall be treated in the same manner 
as an individual retirement account described in section 
408 of such Code.’’. 
(e) ROLLOVER OF FSA, ARCHER MSA, HRA TO 
HEALTH SAVINGS ACCOUNT.—Notwithstanding any other 
provision of law, if the remaining balance in a health flexi-
ble spending arrangement, Archer MSA, or health reim-
bursement arrangement is transferred to a health savings 
account before the end of any taxable year ending on or 
before one year after the date of the enactment of this 
Act, such transfer shall be treated as a rollover to the 
health savings account under section 223(f)(5) of the In-
ternal Revenue Code of 1986 and the distribution from 
the health flexible spending arrangement, Archer MSA, or 
health reimbursement arrangement shall not be includible 
in gross income. 
(f) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by 
subsections (a) and (b) shall apply to taxable years 
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beginning after the date of the enactment of this 
Act. 
(2) TERMINATION OF CERTAIN OTHER HEALTH 
CARE RELATED TAX BENEFITS.—The amendments 
made by subsection (c) shall apply to taxable years 
beginning after the date which is 1 year after the 
date of the enactment of this Act. 
(3) BANKRUPTCY PROTECTIONS.—The amend-
ment made by subsection (d) shall apply to cases 
commencing under title 11, United States Code, 
after the date of the enactment of this Act. 
SEC. 3. UNUSED PREMIUM TAX CREDITS MAY BE DEPOS-
ITED IN HEALTH SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Section 36B is amended by redes-
ignating subsection (h) as subsection (i) and by inserting 
after subsection (g) the following new subsection: 
‘‘(h) EXCESS CREDIT MAY BE DEPOSITED INTO A 
HEALTH SAVINGS ACCOUNT.— 
‘‘(1) IN GENERAL.—If the amount described in 
subparagraph (B) of subsection (b)(2) exceeds the 
amount described in subparagraph (A) of such sub-
section with respect to any coverage month and an 
election under paragraph (2) is in effect with respect 
to the applicable taxpayer, the Secretary shall de-
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posit such excess into a health savings account of 
such taxpayer. 
‘‘(2) ELECTION
TO
DEPOSIT
EXCESS
CREDIT 
INTO
A
HEALTH
SAVINGS
ACCOUNT.—A taxpayer 
may elect (at such time and in such manner as the 
Secretary may provide) to have the Secretary deposit 
the excess described in paragraph (1) into a health 
savings account of the taxpayer. Any such election 
shall only be treated as being in effect if the tax-
payer provides the Secretary with such information 
as the Secretary may require to allow the Secretary 
to make such deposit. 
‘‘(3) COORDINATION
WITH
HEALTH
SAVINGS 
ACCOUNT
RULES.—Any amount deposited in a 
health savings account by the Secretary under this 
subsection shall— 
‘‘(A) be includible in the gross income of 
the applicable taxpayer, and 
‘‘(B) be taken into account as an amount 
paid to such account for purposes of this sec-
tion. 
‘‘(4) TREATMENT OF DEPOSITS.—For purposes 
of section 1324 of title 31, United States Code, any 
deposit made under this subsection shall be treated 
as a credit allowed under this section.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 4. ONE-TIME APPLICATION OF SAVER’S CREDIT TO 
CONTRIBUTIONS TO HEALTH SAVINGS AC-
COUNTS. 
(a) IN GENERAL.—In the case of an applicable tax-
able year, contributions to any health savings account of 
the taxpayer during such taxable year shall be treated as 
a qualified retirement savings contribution for purposes 
of section 25B of the Internal Revenue Code of 1986. 
(b) APPLICABLE TAXABLE YEAR.—For purposes of 
this section, the term ‘‘applicable taxable year’’ means any 
taxable year elected by the taxpayer (at such time and 
in such manner as the Secretary of the Treasury may pro-
vide) which begins during the 3-year period beginning 1 
year after the date of the enactment of this Act. A tax-
payer may not elect not more than 1 applicable taxable 
year under this subsection. 
SEC. 5. GRANTS FOR HEALTH SAVINGS ACCOUNT ASSIST-
ANCE AND OUTREACH. 
(a) IN GENERAL.—The Administrator shall establish 
a grant program to provide assistance to eligible entities 
to carry out the activities described in subsection (c). 
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(b) APPLICATION.—An eligible entity shall submit an 
application to the Administrator in such time and in such 
manner as the Administrator may require, providing that 
such application requires a demonstration of the existence 
of a relationship with, or the ability to establish a relation-
ship with, an employer, employee, self-employed indi-
vidual, or consumer eligible to enroll in a health savings 
account. 
(c) USE OF FUNDS.—An eligible entity receiving a 
grant under this section shall use such funds to— 
(1) distribute fair and impartial information to 
consumers about health savings accounts, including 
the availability of such accounts and how such ac-
counts may be utilized; 
(2) conduct activities to raise public awareness 
of health savings accounts; 
(3) facilitate enrollment in health savings ac-
counts; and 
(4) refer individuals enrolled in a health savings 
account to the appropriate official, organization, or 
State agency for the purpose of addressing a com-
plaint, grievance, or other question with respect to 
such health savings account. 
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(d) AMOUNT.—The Administrator may distribute up 
to $5,000,000 annually to be divided among grant recipi-
ents under this section. 
(e) REPORT.—Not later than one year after the date 
on which the last of the grant periods awarded under this 
section ends, the Administrator shall submit a report to 
the Congress on the effectiveness of the grants provided 
under this section. 
(f) DEFINITIONS.—In this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Centers for 
Medicare & Medicaid Services. 
(2) CONSUMER.—The term ‘‘consumer’’ means 
an individual enrolled in, or seeking to enroll in, a 
health savings account. 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ includes the following: 
(A) A State. 
(B) Trade. 
(C) Industry. 
(D) Professional associations. 
(E) Commercial fishing industry organiza-
tions. 
(F) Ranching and farming organizations. 
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