‘‘(C) makes payments or distributions from 
a health savings account for such taxable year, 
the health savings account shall be deemed to be es-
tablished on the last day of such taxable year and 
such contributions and distributions shall be deemed 
to have been made on account of such taxable 
year.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (5) of 
section 223(d) of such Code, as redesignated by subsection 
(a), is amended by striking subparagraph (B) and redesig-
nating subparagraphs (C) through (E) as subparagraphs 
(B) through (D), respectively. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to health savings ac-
counts established, and contributions to and distributions 
from health savings accounts after, the date of the enact-
ment of this Act. 
SEC. 10. PROVISIONS RELATING TO MEDICARE. 
(a) INDIVIDUALS OVER AGE 65 ONLY ENROLLED IN 
MEDICARE PART A.—Section 223(b)(7) of the Internal 
Revenue Code of 1986 (relating to contribution limitation 
on Medicare eligible individuals) is amended by adding at 
the end the following new sentence: ‘‘This paragraph shall 
not apply to any individual during any period the individ-
ual’s only entitlement to such benefits is an entitlement 
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to hospital insurance benefits under part A of title XVIII 
of such Act pursuant to an enrollment for such hospital 
insurance benefits under section 226(a)(1) of such Act.’’. 
(b) MEDICARE BENEFICIARIES PARTICIPATING
IN 
MEDICARE ADVANTAGE MSA MAY CONTRIBUTE THEIR 
OWN MONEY TO THEIR MSA.—Subsection (b) of section 
138 of such Code is amended by striking paragraph (2) 
and by redesignating paragraphs (3) and (4) as para-
graphs (2) and (3), respectively. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 11. INDIVIDUALS ELIGIBLE FOR VETERANS BENEFITS 
FOR A SERVICE-CONNECTED DISABILITY. 
(a) IN GENERAL.—Section 223(c)(1) of the Internal 
Revenue Code of 1986 (defining eligible individual) is 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) SPECIAL RULE FOR INDIVIDUALS ELI-
GIBLE
FOR
CERTAIN
VETERANS
BENEFITS.— 
For purposes of subparagraph (A)(ii), an indi-
vidual shall not be treated as covered under a 
health plan described in such subparagraph 
merely because the individual receives periodic 
hospital care or medical services for a service- 
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connected disability under any law administered 
by the Secretary of Veterans Affairs but only if 
the individual is not eligible to receive such care 
or services for any condition other than a serv-
ice-connected disability.’’. 
(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. 12. INCREASE THE MAXIMUM CONTRIBUTION LIMIT 
TO AN HSA TO MATCH DEDUCTIBLE AND 
OUT-OF-POCKET EXPENSE LIMITATION. 
(a) SELF-ONLY COVERAGE.—Subparagraph (A) of 
section 223(b)(2) of the Internal Revenue Code of 1986 
is amended by striking ‘‘$2,250’’ and inserting ‘‘the 
amount in effect under subsection (c)(2)(A)(ii)(I)’’. 
(b) FAMILY COVERAGE.—Subparagraph (B) of sec-
tion 223(b)(2) of such Code is amended by striking 
‘‘$4,500’’ and inserting ‘‘the amount in effect under sub-
section (c)(2)(A)(ii)(II)’’. 
(c) 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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SEC. 13. FSA FUNDS MAY BE USED FOR LONG-TERM CARE 
INSURANCE PREMIUMS. 
(a) IN GENERAL.—Subsection (c) of section 106 of 
the Internal Revenue Code of 1986 is amended by redesig-
nating paragraph (2) as paragraph (3) and by amending 
so much of such subsection as precedes such paragraph 
(3) to read as follows: 
‘‘(c) 
LONG-TERM
CARE
BENEFITS
PROVIDED 
THROUGH FLEXIBLE SPENDING ARRANGEMENTS.— 
‘‘(1) IN GENERAL.—Effective on and after Jan-
uary 1, 2013, gross income of an employee shall not 
include employer-provided coverage for qualified 
long-term care services (as defined in section 
7702B(c)) to the extent that such coverage is pro-
vided through a flexible spending or similar arrange-
ment. 
‘‘(2) PREMIUMS FOR LONG-TERM CARE.—Quali-
fied medical expenses for which reimbursement may 
be made by distributions from a flexible spending ar-
rangement shall include amounts paid for long-term 
care coverage.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 14. INDIVIDUALS ELIGIBLE FOR TRICARE. 
(a) IN GENERAL.—Section 223(c)(1) of the Internal 
Revenue Code of 1986 (defining eligible individual), as 
amended by section 4, is amended by adding at the end 
the following new subparagraph: 
‘‘(D) SPECIAL RULE FOR INDIVIDUALS EL-
IGIBLE
FOR
TRICARE.—Subparagraph (A)(ii) 
shall be applied without regard to coverage 
under the TRICARE program under 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. 15. CERTAIN PHYSICIAN FEES TO BE TREATED AS 
MEDICAL CARE. 
(a) IN GENERAL.—Subsection (d) of section 213 of 
the Internal Revenue Code of 1986, as amended by sec-
tions 15 and 16, is amended by adding at the end the 
following new paragraph: 
‘‘(12) PRE-PAID PHYSICIAN FEES.—The term 
‘medical care’ shall include amounts paid by patients 
to their primary physician in advance for the right 
to receive medical services on an as-needed basis.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 16. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CON-
TRIBUTIONS TO THE SAME HSA ACCOUNT. 
(a) IN GENERAL.—Paragraph (3) of section 223(b) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new subparagraph: 
‘‘(C) 
SPECIAL
RULE
WHERE
BOTH 
SPOUSES ARE ELIGIBLE INDIVIDUALS WITH 1 
ACCOUNT.—If— 
‘‘(i) an individual and the individual’s 
spouse have both attained age 55 before 
the close of the taxable year, and 
‘‘(ii) the spouse is not an account ben-
eficiary of a health savings account as of 
the close of such year, 
the additional contribution amount shall be 200 
percent of the amount otherwise determined 
under subparagraph (B).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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