Title: Primary Care Enhancement Act of 2017
Policy area: Taxation

Summary:
Primary Care Enhancement Act of 2017
This bill amends the Internal Revenue Code to: (1) permit an individual to pay primary care service arrangement costs from a health savings account; and (2) allow an eligible taxpayer enrolled in a high-deductible health plan to take a tax deduction for cash paid into a health savings account, even if the taxpayer is simultaneously enrolled in a primary care service arrangement.
Under a "primary care service arrangement," an individual is provided coverage restricted to primary care services in exchange for a fixed periodic fee or payment for such services.
For the purposes of certain tax-deductible expenses for medical care, the bill expands the definition of "medical care" to include periodic provider fees paid for a defined set of medical services provided on an as-needed basis.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1358 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1358

To amend the Internal Revenue Code of 1986 to provide for the treatment 
   of certain direct primary care service arrangements and periodic 
                             provider fees.


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                   IN THE SENATE OF THE UNITED STATES

                             June 14, 2017

  Mr. Cassidy (for himself and Ms. Cantwell) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide for the treatment 
   of certain direct primary care service arrangements and periodic 
                             provider fees.

    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 ``Primary Care Enhancement Act of 
2017''.

SEC. 2. TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS.

    (a) In General.--Section 223(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(6) Treatment of direct primary care service 
        arrangements.--An arrangement under which an individual is 
        provided coverage restricted to primary care services in 
        exchange for a fixed periodic fee or payment for such 
        services--
                    ``(A) shall not be treated as a health plan for 
                purposes of paragraph (1)(A)(ii), and
                    ``(B) shall not be treated as insurance for 
                purposes of subsection (d)(2)(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.

SEC. 3. CERTAIN PROVIDER FEES TO BE TREATED AS MEDICAL CARE.

    (a) In General.--Section 213(d) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(12) Periodic provider fees.--The term `medical care' 
        shall include periodic fees paid for a defined set of primary 
        care medical services provided 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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