Title: To amend the Internal Revenue Code of 1986 to provide for a temporary moratorium on certain taxes affecting purchases of prescription medication.
Policy area: Taxation

Summary:
This bill amends the Internal Revenue Code to temporarily permit tax-favored health savings accounts, Archer Medical Savings Accounts, health flexible spending arrangements, and health reimbursement arrangements to be used to purchase over-the-counter medicine that is not prescribed by a physician. The bill applies during the period beginning on January 1, 2018, and ending on December 31, 2019.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4618 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 4618

 To amend the Internal Revenue Code of 1986 to provide for a temporary 
    moratorium on certain taxes affecting purchases of prescription 
                              medication.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 12, 2017

Ms. Jenkins of Kansas introduced the following bill; which was referred 
                   to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide for a temporary 
    moratorium on certain taxes affecting purchases of prescription 
                              medication.

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

SECTION 1. TEMPORARY MORATORIUM ON TAX ON OVER-THE-COUNTER MEDICATIONS.

    (a) HSAs.--Subparagraph (A) of section 223(d)(2) of the Internal 
Revenue Code of 1986 is amended by striking ``only if such'' and all 
that follows and by inserting ``only if--
                            ``(i) such medicine or drug is a prescribed 
                        drug (determined without regard to whether such 
                        drug is available without a prescription) or is 
                        insulin, or
                            ``(ii) such amount is paid during the 
                        period beginning on January 1, 2018, and ending 
                        on December 31, 2019.''.
    (b) Archer MSAs.--Subparagraph (A) of section 220(d)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``only if such'' 
and all that follows and by and inserting ``only if--
                            ``(i) such medicine or drug is a prescribed 
                        drug (determined without regard to whether such 
                        drug is available without a prescription) or is 
                        insulin, or
                            ``(ii) such amount is paid during the 
                        period beginning on January 1, 2018, and ending 
                        on December 31, 2019.''.
    (c) Health Flexible Spending Arrangements and Health Reimbursement 
Arrangements.--Subsection (f) of section 106 of the Internal Revenue 
Code of 1986 is amended by striking ``only if such'' and all that 
follows and by and inserting ``only if--
            ``(1) such medicine or drug is a prescribed drug 
        (determined without regard to whether such drug is available 
        without a prescription) or is insulin, or
            ``(2) such expense is incurred during the period beginning 
        on January 1, 2018, and ending on December 31, 2019.''.
    (d) Effective Dates.--
            (1) Distributions from savings accounts.--The amendments 
        made by subsections (a) and (b) shall apply to amounts paid 
        after December 31, 2017.
            (2) Reimbursements.--The amendment made by subsection (c) 
        shall apply to expenses incurred after December 31, 2017.
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