Protecting Life in Health Savings Accounts Act
Bill: S.125 | Sponsor: Sen. Lee, Mike (R-UT)
Policy area: Taxation

Summary:
Protecting Life in Health Savings Accounts Act
This bill prohibits payment of expenses from specified tax-exempt savings accounts, including health savings accounts and health flexible spending arrangements and reimbursement arrangements, for abortions, except for abortions to end a pregnancy due to rape or incest or to protect the life or health of the mother.

To amend the Internal Revenue Code of 1986 to prohibit treatment of 
   certain distributions and reimbursements for certain abortions as 
                      qualified medical expenses.

    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 ``Protecting Life in Health Savings 
Accounts Act''.

SEC. 2. DISTRIBUTIONS FOR CERTAIN ABORTIONS NOT QUALIFIED.

    (a) HSAs.--
            (1) In general.--Subparagraph (A) of section 223(d)(2) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following: ``Such term shall not include any amount 
        paid for an abortion (other than an excluded abortion).''.
            (2) Excluded abortion.--Section 223(d)(2) of such Code is 
        amended by adding at the end the following new subparagraph:
                    ``(E) Excluded abortion.--For purposes of this 
                paragraph, the term `excluded abortion' means any 
                abortion--
                            ``(i) with respect to a pregnancy that is 
                        the result of an act of rape or incest, or
                            ``(ii) with respect to which the woman 
                        suffers from a physical disorder, physical 
                        injury, or physical illness, including a life-
                        endangering physical condition caused by or 
                        arising from the pregnancy itself, that would, 
                        as certified by a physician, place the woman in 
                        danger of death unless the abortion is 
                        performed.''.
    (b) Archer MSAs.--Subparagraph (A) of section 220(d)(2) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following: ``Such term shall not include any amount paid for an 
abortion (other than an excluded abortion (as defined in section 
223(d)(2)(E)).''.
    (c) Health Flexible Spending Arrangements and Health Reimbursement 
Arrangements.--Section 106 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(h) Prohibition on Reimbursements for Abortions.--For purposes of 
this section and section 105, reimbursement for expenses incurred for 
an abortion (other than an excluded abortion (as defined in section 
223(d)(2)(E)) shall not be treated as a reimbursement for medical 
expenses.''.
    (d) Retiree Health Accounts.--Section 401(h) of the Internal 
Revenue Code of 1986 is amended by inserting ``(other than an expense 
for an abortion (other than an excluded abortion (as defined in section 
223(d)(2)(E)))'' after ``sickness, accident, hospitalization, and 
medical expenses'' in the matter preceding paragraph (1).
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to amounts paid 
        with respect to taxable years beginning after December 31, 
        2021.
            (2) Reimbursements.--The amendment made by subsection (c) 
        shall apply to expenses incurred with respect to taxable years 
        beginning after December 31, 2021.
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