Title: To amend the Internal Revenue Code of 1986 to permit expenditures from health savings accounts for gym memberships and costs of home gym equipment, to repeal the requirement that health plan be high deductible, and for other purposes.
Policy area: Taxation

Summary:
This bill modifies requirements for health savings accounts (HSAs) to allow payments from such accounts for gym memberships, home gym equipment, and dietary nutritional supplements. It also eliminates the prohibition against Medicare recipients participating in an HSA and the requirement that HSA participants be covered under a high deductible health plan.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7242 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7242

To amend the Internal Revenue Code of 1986 to permit expenditures from 
   health savings accounts for gym memberships and costs of home gym 
     equipment, to repeal the requirement that health plan be high 
                  deductible, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 18, 2020

Mr. Curtis (for himself and Ms. Kendra S. Horn of Oklahoma) 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 permit expenditures from 
   health savings accounts for gym memberships and costs of home gym 
     equipment, to repeal the requirement that health plan be high 
                  deductible, 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. HEALTH SAVINGS ACCOUNTS.

    (a) Repeal of Limitation on Medicare-Eligible Individuals.--Section 
223(b) of the Internal Revenue Code of 1986 is amended by striking 
paragraph (7).
    (b) Qualified Medical Expenses.--
            (1) Gym memberships and home gym equipment.--Section 
        223(d)(2) of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new subparagraph:
                    ``(E) Fitness facility memberships and home gym 
                equipment.--
                            ``(i) In general.--Amounts paid for medical 
                        care include--
                                    ``(I) amounts paid for membership 
                                at a fitness facility, and
                                    ``(II) amounts paid for home gym 
                                equipment.
                            ``(ii) Limitation.--The amount taken into 
                        account under clause (i) for any taxable year 
                        shall not exceed--
                                    ``(I) $100 for membership at a 
                                fitness facility, and
                                    ``(II) $500 for home gym equipment.
                            ``(iii) Fitness facility defined.--The term 
                        `fitness facility' means a facility--
                                    ``(I) providing instruction in a 
                                program of physical exercise, offering 
                                facilities for the preservation, 
                                maintenance, encouragement, or 
                                development of physical fitness, or 
                                serving as the site of such a program 
                                of a State or local government,
                                    ``(II) which is not a private club 
                                owned and operated by its members,
                                    ``(III) which does not offer golf, 
                                hunting, sailing, or riding facilities,
                                    ``(IV) whose health or fitness 
                                facility is not incidental to its 
                                overall function and purpose, and
                                    ``(V) which is fully compliant with 
                                the State of jurisdiction and Federal 
                                anti-discrimination laws.
                            ``(iv) Home gym equipment.--The term `home 
                        gym equipment' means equipment that--
                                    ``(I) can be purchased for the 
                                preservation, maintenance, 
                                encouragement, or development of 
                                physical fitness in an individual's 
                                home residence, and
                                    ``(II) is used exclusively at a 
                                residence of the individual for the 
                                purposes of promoting physical 
                                exercise.''.
            (2) Dietary nutritional supplements.--Section 223(d)(2) of 
        such Code, as amended by paragraph (1), is amended by adding at 
        the end the following:
                    ``(F) Dietary nutritional supplement.--Amounts paid 
                for a dietary supplement (as defined in section 201(ff) 
                of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
                321(ff)) shall be treated as amounts paid for medical 
                care.''.
    (c) Premiums for Certain Exchange Health Plans.--Subparagraph (B) 
of section 223(d)(2) of such Code is amended to read as follows:
                    ``(B) Health insurance may not be purchased from 
                account.--
                            ``(i) In general.--Subparagraph (A) shall 
                        not apply to any payment for insurance.
                            ``(ii) Exception relating to premiums for 
                        certain exchange health plans.--
                                    ``(I) In general.--Clause (i) shall 
                                not apply in the case of a taxpayer 
                                who, but for the limitation relating to 
                                household income, would be an 
                                applicable taxpayer for purposes of the 
                                premium assistance credit under section 
                                36B.
                                    ``(II) Limitation.--The amount 
                                taken into account under this clause 
                                for any coverage month (as defined in 
                                section 36B(c)(2)) may not exceed the 
                                amount specified in section 
                                36B(b)(2)(A).''.
    (d) Repeal of Requirement That Health Plan Be High Deductible.--
            (1) Eligible individual.--Paragraph (1) of section 223(c) 
        of such Code is amended to read as follows:
            ``(1) Eligible individual.--
                    ``(A) In general.--The term `eligible individual' 
                means, with respect to any month, any individual if 
                such individual is covered under a health plan as of 
                the first day of such month.
                    ``(B) Exclusion of certain plans.--Such term does 
                not include a health plan if substantially all of its 
                coverage is--
                            ``(i) coverage for any benefit provided by 
                        permitted insurance,
                            ``(ii) coverage (whether through insurance 
                        or otherwise) for accidents, disability, dental 
                        care, vision care, long-term care, or (in the 
                        case of plan years beginning on or before 
                        December 31, 2021) telehealth and other remote 
                        care, and
                            ``(iii) for taxable years beginning after 
                        December 31, 2006, coverage under a health 
                        flexible spending arrangement during any period 
                        immediately following the end of a plan year of 
                        such arrangement during which unused benefits 
                        or contributions remaining at the end of such 
                        plan year may be paid or reimbursed to plan 
                        participants for qualified benefit expenses 
                        incurred during such period if--
                                    ``(I) the balance in such 
                                arrangement at the end of such plan 
                                year is zero, or
                                    ``(II) the individual is making a 
                                qualified HSA distribution (as defined 
                                in section 106(e)) in an amount equal 
                                to the remaining balance in such 
                                arrangement as of the end of such plan 
                                year, in accordance with rules 
                                prescribed by the Secretary.
                    ``(C) Special rule for individuals eligible for 
                certain veterans benefits.--An individual shall not 
                fail to be treated as an eligible individual for any 
                period merely because the individual receives hospital 
                care or medical services under any law administered by 
                the Secretary of Veterans Affairs for a service-
                connected disability (within the meaning of section 
                101(16) of title 38, United States Code).''.
            (2) Definition.--Section 223(c) of such Code is amended by 
        striking paragraph (2) and redesignating paragraphs (3), (4), 
        and (5) as paragraphs (2), (3), and (4), respectively.
    (e) Deductible Amount; Monthly Limitation.--Section 223(b)(2) of 
such Code is amended to read as follows:
            ``(2) Monthly limitation.--The monthly limitation for any 
        month is \1/12\ of the deductible amount in effect under 
        section 219(b) for the taxable year in which the month 
        occurs.''.
    (f) Special Rule Relating to Dependents.--Paragraph (6) of section 
223(b) of such Code is amended to read as follows:
            ``(6) Special rule relating to dependents.--A contribution 
        to a health savings account of a dependent of the individual to 
        whom a deduction under section 151(c) is allowable for the 
        taxable year shall be treated as an amount paid to the health 
        savings account of the individual to whom a deduction is 
        allowable under this section.''.
    (g) Conforming Amendments.--
            (1) Section 223(b) of such Code is amended--
                    (A) by striking paragraph (3) (relating to 
                additional contributions for individuals 55 or older);
                    (B) by striking paragraph (5) (relating to special 
                rule for married individuals);
                    (C) in paragraph (8)(A)(ii) by striking ``high 
                deductible''; and
                    (D) in the heading for paragraph (8)(B) by striking 
                ``high deductible''.
            (2) Section 223(b) of such Code, as amended by paragraph 
        (1) and the preceding subsections of this section, is further 
        amended by redesignating paragraphs (4), (6), and (8), as 
        paragraphs (3), (4), and (5), respectively.
            (3) Section 224(d)(1)(A)(ii) of such Code is amended by 
        striking ``exceeds the sum of--'' and all that follows and 
        inserting ``exceeds the dollar amount in effect under 
        subsection (b)(2).''.
            (4) Section 223 of such Code is amended by striking 
        subsection (g) and redesignating subsection (h) as subsection 
        (g).
            (5) Section 223(g)(2) of such Code, as redesignated by 
        paragraph (4), is amended by striking ``high deductible''.
    (h) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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