I 
110TH CONGRESS 
1ST SESSION H. R. 1110 
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 
FEBRUARY 16, 2007 
Mr. TOM DAVIS of Virginia (for himself, Mr. HOYER, Mr. PORTER, Mr. WAX-
MAN, Mr. WOLF, Mr. DAVIS of Illinois, Mr. VAN HOLLEN, Mrs. JO ANN 
DAVIS of Virginia, Mr. MORAN of Virginia, Mr. COBLE, Ms. NORTON, 
Mr. WYNN, Mr. CANTOR, Mr. CAMP of Michigan, Mr. STARK, Mr. 
RAMSTAD, Mr. LEWIS of Georgia, Mr. SAM JOHNSON of Texas, Mr. 
BECERRA, Mr. ENGLISH of Pennsylvania, Mrs. JONES of Ohio, Mr. 
WELLER of Illinois, Mr. THOMPSON of California, Mr. LEWIS of Ken-
tucky, Mr. EMANUEL, Mr. RYAN of Wisconsin, Ms. BERKLEY, Mr. MEEK 
of Florida, and Ms. SCHWARTZ) introduced the following bill; which was 
referred to the Committee on Ways and Means, and in addition to the 
Committees on Oversight and Government Reform and Armed Services, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
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, 
VerDate Aug 31 2005 
21:32 Feb 22, 2007
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1110.IH
H1110
hsrobinson on PROD1PC76 with BILLS
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 of title 5, 
United States Code, with respect to a choice be-
tween the annuity or compensation referred to 
in 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 
VerDate Aug 31 2005 
21:32 Feb 22, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1110.IH
H1110
hsrobinson on PROD1PC76 with BILLS
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 224 as section 225 and by insert-
ing after section 223 the following new section: 
‘‘SEC. 224. 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 
VerDate Aug 31 2005 
21:32 Feb 22, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1110.IH
H1110
hsrobinson on PROD1PC76 with BILLS