Health Savings Account Expansion Act of 2021
Bill: S.2099 | Sponsor: Sen. Sasse, Ben (R-NE)
Policy area: Taxation

Summary:
Health Savings Account Expansion Act of 2021
This bill permits individuals who are not enrolled in a high deductible health plan to participate in health savings accounts (HSAs). It also increases the allowable amount of the deduction for contributions to HSAs.

To amend the Internal Revenue Code of 1986 to allow individuals who are 
not enrolled in a high deductible health plan to have access to health 
               savings accounts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Health Savings Account Expansion Act 
of 2021''.

SEC. 2. EXPANSION OF HEALTH SAVINGS ACCOUNT ELIGIBILITY.

    (a) In General.--Section 223 of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A), by striking ``high 
                        deductible health plan as of the first day of 
                        such month, $2,250'' and inserting ``qualified 
                        health plan as of the first day of such month, 
                        $5,000'', and
                            (ii) in subparagraph (B), by striking 
                        ``high deductible health plan as of the first 
                        day of such month, $4,500'' and inserting 
                        ``qualified health plan as of the first day of 
                        such month, twice the dollar amount under 
                        subparagraph (A)'', and
                    (B) in paragraph (8)--
                            (i) in subparagraph (A)(ii), by striking 
                        ``high deductible health plan'' and inserting 
                        ``qualified health plan'', and
                            (ii) in the heading of subparagraph (B), by 
                        striking ``high deductible health plan'' and 
                        inserting ``qualified health plan'',
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by striking ``high 
                deductible health plan'' each place it appears and 
                inserting ``qualified health plan'', and
                    (B) in paragraph (2)--
                            (i) in the heading, by striking ``High 
                        deductible health plan'' and inserting 
                        ``Qualified health plan'',
                            (ii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) In general.--The term `qualified health plan' 
                means a health plan that provides a level of coverage 
                that is designed to provide benefits that are 
                actuarially equivalent to not greater than 80 percent 
                of the full actuarial value of the benefits provided 
                under the plan.'',
                            (iii) by amending subparagraph (C) to read 
                        as follows:
                    ``(C) Absence of deductible.--A health plan shall 
                not fail to be treated as a qualified health plan by 
                reason of failing to have a deductible for any care, 
                services, or coverage, such as preventive care, primary 
                care, or prescription drug coverage.'',
                            (iv) by striking subparagraph (D),
                            (v) by striking ``high deductible health 
                        plan'' each place it appears in subparagraphs 
                        (E) and (F) and inserting ``qualified health 
                        plan'', and
                            (vi) by redesignating subparagraphs (E) and 
                        (F), as amended by clause (v), as subparagraphs 
                        (D) and (E), respectively,
            (3) in subsection (g)(1)--
                    (A) by striking ``Each dollar amount in subsections 
                (b)(2) and (c)(2)(A)'' and inserting ``The dollar 
                amount in subsection (b)(2)(A)'',
                    (B) by amending subparagraph (B) to read as 
                follows:
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                such taxable year begins, determined by substituting 
                `2003' for `2016' in subparagraph (A)(ii) thereof.'', 
                and
                    (C) by striking ``adjusted amounts under 
                subsections (b)(2) and (c)(2)(A)'' and inserting 
                ``adjusted amounts under subsection (b)(2)'', and
            (4) in subsection (h)(2), by striking ``high deductible 
        health plan'' and inserting ``qualified health plan''.
    (b) Conforming Amendments.--
            (1) Section 26(b)(2)(S) of the Internal Revenue Code of 
        1986 is amended by striking ``high deductible health plan'' and 
        inserting ``qualified health plan''.
            (2) Section 106(e) of such Code is amended--
                    (A) in the heading of paragraph (3), by striking 
                ``high deductible health plan'' and inserting 
                ``qualified health plan'', and
                    (B) in paragraph (5)(B)(ii), by striking ``high 
                deductible health plan'' and inserting ``qualified 
                health plan''.
            (3) Section 408(d)(9) of such Code is amended--
                    (A) in subparagraph (C)--
                            (i) in clause (i)(I), by striking ``high 
                        deductible health plan'' and inserting 
                        ``qualified health plan'', and
                            (ii) in clause (ii)(II), by striking ``high 
                        deductible health plan'' each place it appears 
                        and inserting ``qualified health plan'', and
                    (B) in the heading of subparagraph (D), by striking 
                ``high deductible health plan'' and inserting 
                ``qualified health plan''.
            (4) Section 1906A(b)(2)(B) of the Social Security Act (42 
        U.S.C. 1396e-1(b)(2)(B)) is amended by striking ``high 
        deductible health plan'' and inserting ``qualified health 
        plan''.
            (5) Section 1938(a)(3) of the Social Security Act (42 
        U.S.C. 1396u-8(a)(3)) is amended by inserting ``(as in effect 
        on the day before the date of the enactment of the Health 
        Savings Account Expansion Act of 2021)'' after ``section 
        223(c)(2)(C) of the Internal Revenue Code of 1986''.
            (6) Section 2105(c)(10)(B)(ii)(II) of the Social Security 
        Act (42 U.S.C. 1397ee(c)(10)(B)(ii)(II)) is amended by striking 
        ``high deductible health plan'' and inserting ``qualified 
        health plan''.
            (7) Section 1101(c)(2)(B)(ii) of the Patient Protection and 
        Affordable Care Act (42 U.S.C. 18001(c)(2)(B)(ii)) is amended 
        by striking ``section 223(c)(2)'' and inserting ``section 
        223(b)(2)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.
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