Title: Police and Fire Health Care Protection Act of 2022
Policy area: Taxation

Summary:
Police and Fire Health Care Protection Act of 2022
This bill eliminates the requirement that payments be made directly to providers of accident or health plans or qualified long-term care insurance contracts as a condition of eligibility for the tax exclusion of distributions from tax-exempt retirement plans for such health and long-term care insurance.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4312 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 4312

To amend the Internal Revenue Code of 1986 to repeal the direct payment 
 requirement on the exclusion from gross income of distributions from 
      governmental plans for health and long-term care insurance.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 25, 2022

   Mr. Brown (for himself, Mr. Thune, Mr. Warner, and Mr. Grassley) 
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 repeal the direct payment 
 requirement on the exclusion from gross income of distributions from 
      governmental plans for health and long-term care insurance.

    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 ``Police and Fire Health Care 
Protection Act of 2022''.

SEC. 2. REPEAL OF DIRECT PAYMENT REQUIREMENT ON EXCLUSION FROM GROSS 
              INCOME OF DISTRIBUTIONS FROM GOVERNMENTAL PLANS FOR 
              HEALTH AND LONG-TERM CARE INSURANCE.

    (a) In General.--Section 402(l)(5)(A) of the Internal Revenue Code 
of 1986 is amended to read as follows:
                    ``(A) Direct payment to insurer permitted.--
                            ``(i) In general.--Paragraph (1) shall 
                        apply to a distribution without regard to 
                        whether payment of the premiums is made 
                        directly to the provider of the accident or 
                        health plan or qualified long-term care 
                        insurance contract by deduction from a 
                        distribution from the eligible retirement plan, 
                        or is made to the employee.
                            ``(ii) Reporting.--In the case of a payment 
                        made to the employee as described in clause 
                        (i), the employee shall include with the return 
                        of tax for the taxable year in which the 
                        distribution is made an attestation that the 
                        distribution does not exceed the amount paid by 
                        the employee for qualified health insurance 
                        premiums for such taxable year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the date of the enactment of this Act.
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