I 
115TH CONGRESS 
1ST SESSION 
H. R. 408 
To amend the Internal Revenue Code of 1986 to expand health savings 
accounts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 10, 2017 
Mr. KING of Iowa (for himself, Mr. CARTER of Georgia, Mr. GOHMERT, Mr. 
LAMBORN, Mr. WESTERMAN, Mr. WEBSTER of Florida, Mr. MCCLIN-
TOCK, and Mr. STEWART) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to expand 
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 ‘‘American Future 
Healthcare Act of 2017’’. 
SEC. 2. REFORM OF HEALTH SAVINGS ACCOUNTS. 
(a) REPEAL OF HIGH DEDUCTIBLE HEALTH PLAN 
REQUIREMENT.—Section 223(a) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
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‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual, there shall be allowed as a deduction for a taxable 
year an amount equal to the aggregate amount paid in 
cash during such taxable year by or on behalf of such indi-
vidual to a health savings account of such individual.’’. 
(b) INCREASE IN DEDUCTIBLE HSA CONTRIBUTION 
LIMITATIONS.—Section 223(b)(1) of such Code is amend-
ed by striking ‘‘the sum of the monthly’’ and all that fol-
lows through ‘‘eligible individual’’ and inserting ‘‘$10,000 
($20,000 in the case of a joint return)’’. 
(c) MEDICARE ELIGIBLE INDIVIDUALS ELIGIBLE TO 
CONTRIBUTE TO HSA.—Section 223(b) of such Code is 
amended by striking paragraph (7). 
(d) PURCHASE
OF HEALTH INSURANCE.—Section 
223(d)(2) of such Code is amended— 
(1) by striking subparagraphs (B) and (C), and 
(2) by striking ‘‘QUALIFIED
MEDICAL
EX-
PENSES.—’’ and all that follows through ‘‘The term’’ 
and inserting ‘‘QUALIFIED MEDICAL EXPENSES.— 
The term’’. 
(e) COST-OF-LIVING ADJUSTMENT
FOR CATCHUP 
CONTRIBUTIONS.—Section 223(f)(1) of such Code (as re-
designated by subsection (g)(3)) is amended by striking 
‘‘Each dollar amount in subsections (b)(2) and (c)(2)(A)’’ 
and inserting ‘‘In the case of a taxable year beginning 
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after December 31, 2016, each dollar amount in para-
graphs (1) and (2) of subsection (b)’’. 
(f) COST-OF-LIVING ADJUSTMENT INDEXED TO CPI 
MEDICAL CARE COMPONENT.—Section 223(f) (as so re-
designated) is amended by adding at the end the following 
new paragraph: 
‘‘(3) CPI MEDICAL CARE COMPONENT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year shall be determined by substituting ‘CPI 
medical care component’ for ‘CPI’. 
‘‘(B) CPI MEDICAL CARE COMPONENT.— 
For purposes of subparagraph (A), the term 
‘CPI medical care component’ means the med-
ical care component for the Consumer Price 
Index for All Urban Consumers published by 
the Department of Labor.’’. 
(g) CONFORMING AMENDMENTS.— 
(1) Section 223(b) of such Code is amended by 
striking paragraphs (2), (5), and (8) and by redesig-
nating paragraphs (3), (4), and (6) as paragraphs 
(2), (3), and (4), respectively. 
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(8) Section 106(d)(1) of such Code is amend-
ed— 
(A) by striking ‘‘who is an eligible indi-
vidual (as defined in section 223(c)(1))’’, and 
(B) by striking ‘‘section 223(d)’’ and in-
serting ‘‘section 223(c)’’. 
(9) Section 408(d)(9) of such Code is amend-
ed— 
(A) in subparagraph (A) by striking ‘‘who 
is an eligible individual (as defined in section 
223(c)) and’’, and 
(B) in subparagraph (C) by striking ‘‘com-
puted on the basis of the type of coverage under 
the high deductible health plan covering the in-
dividual at the time of the qualified HSA fund-
ing distribution’’. 
(10) Section 877A(g)(6) of such Code is 
amended by striking ‘‘223(f)(4)’’ and inserting 
‘‘223(e)(4)’’. 
(11) Section 4973(g) of such Code is amend-
ed— 
(A) by striking ‘‘section 223(d)’’ and in-
serting ‘‘section 223(c)’’, 
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(B) in paragraph (2), by striking ‘‘section 
223(f)(2)’’ and inserting ‘‘section 223(e)(2)’’, 
and 
(C) by striking ‘‘section 223(f)(3)’’ and in-
serting ‘‘section 223(e)(3)’’. 
(12) Section 4975 of such Code is amended— 
(A) in subsection (c)(6)— 
(i) by striking ‘‘section 223(d)’’ and 
inserting ‘‘section 223(c)’’, and 
(ii) by striking ‘‘section 223(e)(2)’’ 
and inserting ‘‘section 223(d)(2)’’, and 
(B) in subsection (e)(1)(E), by striking 
‘‘section 
223(d)’’ 
and 
inserting 
‘‘section 
223(c)’’. 
(13) Section 6693(a)(2)(C) of such Code is 
amended by striking ‘‘section 223(h)’’ and inserting 
‘‘section 223(g)’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
SEC. 3. HSA ROLLOVER TO MEDICARE ADVANTAGE MSA. 
(a) IN GENERAL.—Section 138(b)(2) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘or’’ at the 
end of subparagraph (A), by adding ‘‘or’’ at the end of 
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subparagraph (C), and by adding at the end the following 
new subparagraph: 
‘‘(C) an HSA rollover contribution de-
scribed in subsection (d)(5),’’. 
(b) 
HSA 
ROLLOVER
CONTRIBUTION.—Section 
138(c) of such Code is amended by adding at the end the 
following new paragraph: 
‘‘(5) ROLLOVER CONTRIBUTION.—An amount is 
described in this paragraph as a rollover contribu-
tion if it meets the requirement of subparagraphs 
(A) and (B). 
‘‘(A) IN GENERAL.—The requirements of 
this subparagraph are met in the case of an 
amount paid or distributed from a health sav-
ings to the account beneficiary to the extent the 
amount is received is paid into a Medicare Ad-
vantage MSA of such beneficiary not later than 
the 60th day after the day on which the bene-
ficiary receives the payment or distribution. 
‘‘(B) LIMITATION.—This paragraph shall 
not apply to any amount described in subpara-
graph (A) received by an individual from a 
health savings account if, at any time during 
the 1-year period ending on the day of such re-
ceipt, such individual received any other amount 
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described in subparagraph (A) from a health 
savings account which was not includible in the 
individual’s gross income because of the appli-
cation of section 223(e)(5)(A).’’. 
(c) 
CONFORMING
AMENDMENT.—Section 
223(e)(5)(A) of such Code, as amended by section 2, is 
amended by inserting ‘‘or Medicare Advantage MSA’’ 
after ‘‘into a health savings account’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
Æ 
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