I 
109TH CONGRESS 
1ST SESSION H. R. 4511 
To amend the Internal Revenue Code of 1986 to allow the use of flexible 
spending and health reimbursement arrangements in combination with 
health savings accounts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 13, 2005 
Mr. CANTOR (for himself and Mr. BURGESS) 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 the 
use of flexible spending and health reimbursement ar-
rangements in combination with health savings accounts, 
and for other purposes. 
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 ‘‘Flex Health Savings 
Accounts Act of 2005’’.
SEC. 2. HEALTH REIMBURSEMENT ARRANGEMENTS AND 
SPENDING ARRANGEMENTS IN COMBINATION 
WITH HEALTH SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Subparagraph (B) of section 
223(c)(1) of the Internal Revenue Code of 1986 (relating 
to certain coverage disregarded) is amended by striking 
‘‘and’’ at the end of clause (i), by striking the period at 
the end of clause (ii) and inserting ‘‘, and’’, and by insert-
ing after clause (ii) the following new clause: 
‘‘(iii) coverage under a flexible spend-
ing arrangement or a health reimburse-
ment arrangement, or both, which meets 
the requirements of paragraph (6).’’. 
(b) COMBINATION HEALTH REIMBURSEMENT, SAV-
INGS, AND SPENDING ARRANGEMENTS.—Subsection (c) of 
section 223 of such Code (relating to definitions and spe-
cial rules) is amended by adding at the end the following 
new paragraph: 
‘‘(6) COMBINED LIMIT FOR CONTRIBUTIONS OR 
CREDITS TO HEALTH REIMBURSEMENT, ARRANGE-
MENTS AND SPENDING ARRANGEMENTS.— 
‘‘(A) IN GENERAL.—In the case of cov-
erage under a flexible spending arrangement or 
a health reimbursement arrangement, or both, 
such coverage meets the requirements of this 
paragraph if the amount determined under sub-
paragraph (B) for a taxable year does not ex-
ceed the amounts specified under paragraph 
(2)(A)(ii), reduced by the maximum amount 
available under subsection (b)(2)(A) or (B), 
whichever are applicable. 
‘‘(B) AMOUNT.—For purposes of subpara-
graph (A), the amount determined under this 
subparagraph for a taxable year is the sum 
of— 
‘‘(i) the salary reduction amount elect-
ed by the individual and, if applicable, the 
employer contribution or credit allocated to 
the individual for the taxable year under 
the flexible spending arrangement (as de-
fined in section 106(c)(2)), plus 
‘‘(ii) the amounts that the individual 
is permitted, under the terms of the plan, 
to receive in reimbursements for the tax-
able year under the health reimbursement 
arrangement. 
‘‘(C) EXCEPTIONS FOR DISREGARDED COV-
ERAGE.—For purposes of subparagraph (A)— 
‘‘(i) CERTAIN
FLEXIBLE
SPENDING 
ARRANGEMENTS.—Any flexible spending 
arrangement salary reduction amounts or
employer contributions or credits that are 
restricted by the employer to use for cov-
erage described in paragraph (1)(B) shall 
not be taken into account under subpara-
graph (B). 
‘‘(ii) CERTAIN
HEALTH
REIMBURSE-
MENT
ARRANGEMENTS.—Any reimburse-
ments from a health reimbursement ar-
rangement for coverage described in para-
graph (1)(B) shall not be taken into ac-
count under subparagraph (B).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 3. INCREASE IN MONTHLY LIMITATIONS FOR CON-
TRIBUTIONS 
TO 
HEALTH 
SAVINGS 
AC-
COUNTS. 
(a) IN GENERAL.—Paragraph (2) of section 223(b) 
of the Internal Revenue Code of 1986 (relating to monthly 
limitation) is amended to read as follows: 
‘‘(2) MONTHLY LIMITATION.—The monthly lim-
itation for any month is 1⁄12 of— 
‘‘(A) in the case of an eligible individual 
who has self-only coverage under a high deduct-
ible health plan as of the first day of such 
month, $2,250, and 
‘‘(B) in the case of an eligible individual 
who has family coverage under a high deduct-
ible health plan as of the first day of such 
month, $4,500.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2005. 
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