Restoring Access to Medication and Improving Health Savings Act of 2016

Bill: 114-hr-1270
Sponsor: full_name: Rep. Jenkins, Lynn [R-KS-2]
Introduced: 2015-03-04
Policy area: Taxation
Subjects: Health care costs and insurance

Income tax deductions

Prescription drugs
Latest action: action_date: 2016-07-11
text: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 550.

Summaries:
action_date: 2015-03-04
action_desc: Introduced in House
text: <p><strong>Restoring Access to Medication Act of 2015</strong></p> Repeals provisions of the Internal Revenue Code, as added by the Patient Protection and Affordable Care Act, that limit payments for medications from health savings accounts, medical savings accounts, and health flexible spending arrangements to only prescription drugs or insulin (thus allowing distributions from such accounts for over-the-counter drugs).</p>

action_date: 2015-10-23
action_desc: Reported to House with amendment(s)
text: <p><strong>Restoring Access to Medication Act of 2015</strong></p> (Sec. 2) This bill repeals provisions of the Internal Revenue Code, added by the Patient Protection and Affordable Care Act, that limit payments for medications from health savings accounts, medical savings accounts, and health flexible spending arrangements to only prescription drugs or insulin (thus allowing distributions from such accounts for over-the-counter drugs). </p> This repeal applies to drug expenses incurred after December 31, 2015.

action_date: 2016-07-06
action_desc: Passed House amended
text: <p><b>Restoring Access to Medication and Improving Health Savings Act of 2016 </b></p> <p>This bill amends the Internal Revenue Code to modify the rules that apply to health savings accounts (HSAs) and overpayments of subsidies under the Patient Protection and Affordable Care Act. </p> <p><i>Restoring Access to Medication Act of 2016 </i></p> <p>The bill repeals provisions of the Internal Revenue Code, as added by the Patient Protection and Affordable Care Act, that limit payments for medications from HSAs, medical savings accounts, and health flexible spending arrangements to only prescription drugs or insulin (thus allowing distributions from such accounts for over-the-counter drugs). </p> <p><i>Health Care Security Act of 2016 </i></p> <p>The bill modifies the rules for HSAs with respect to catch-up contributions for married couples, medical expenses incurred before an HSA is established, and contribution limits. </p> <p>If both spouses of a married couple have family coverage under a high deductible health plan, each spouse may make catch-up contributions to the same HSA. (Catch-up contributions are additional contributions which individuals who are at least 55 years of age may make to an HSA.) </p> <p>If an HSA is established within 60 days of the beginning of coverage under a high deductible health plan, any distribution from the HSA used to pay a qualified medical expense incurred during that 60-day period after the health coverage began is excludible from gross income. (Under current law, the medical expense must be incurred on or after the date that the HSA is established.) </p> <p>The bill increases the maximum contribution limits for HSAs to equal the maximum for the sum of the annual deductible and out-of-pocket expenses that may be required to be paid for covered benefits under a high deductible health plan. </p> <p><i>Protecting Taxpayers by Recovering Improper Obamacare Subsidy Overpayments Act </i></p> <p>The bill eliminates the limitation on the increase in tax imposed upon certain low-income families for advance payments of the tax credit for health insurance premium assistance that exceed the allowable amount of such credit. </p>

tv_txt: I 114th CONGRESS 1st Session H. R. 1270 IN THE HOUSE OF REPRESENTATIVES March 4, 2015 Ms. Jenkins of Kansas (for herself and Mr. Kind ) 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 repeal the amendments made by the Patient Protection and Affordable Care Act which disqualify expenses for over-the-counter drugs under health savings accounts and health flexible spending arrangements.

1. Short title This Act may be cited as the Restoring Access to Medication Act of 2015 . 2. Repeal of disqualification of expenses for over-the-counter drugs under certain accounts and arrangements (a) HSAs Section 223(d)(2)(A) of the Internal Revenue Code of 1986 is amended by striking the last sentence. (b) Archer MSAs Section 220(d)(2)(A) of such Code is amended by striking the last sentence. (c) Health flexible spending arrangements and health reimbursement arrangements Section 106 of such Code is amended by striking subsection (f). (d) Effective date The amendments made by this section shall apply to expenses incurred after December 31, 2014.

tv_txt: IB Union Calendar No. 234 114th CONGRESS 1st Session H. R. 1270 [Report No. 114–308] IN THE HOUSE OF REPRESENTATIVES March 4, 2015 Ms. Jenkins of Kansas (for herself and Mr. Kind ) introduced the following bill; which was referred to the Committee on Ways and Means October 23, 2015 Additional sponsors: Mr. Murphy of Florida , Mr. DeFazio , Mr. Miller of Florida , Mr. Pompeo , Mr. Long , Mr. Salmon , Mr. Huizenga of Michigan , Mr. Royce , Mr. DesJarlais , Mr. Jolly , Mr. Roe of Tennessee , Mr. Graves of Missouri , Mr. Jones , Mr. Rothfus , Mr. Flores , Mr. Kelly of Pennsylvania , Mr. Renacci , Mr. Heck of Nevada , Mr. Burgess , Mrs. Black , Mr. Brady of Texas , Mr. Posey , Mr. McKinley , Mr. Boustany , Mr. Latta , Mr. Roskam , Mr. Johnson of Ohio , Mr. Brat , Mr. Turner , Mr. Bishop of Michigan , Mrs. Mimi Walters of California , Ms. Sinema , Mr. Costello of Pennsylvania , Mr. Hill , Mr. Sessions , Ms. McSally , Mr. Guthrie , and Mr. Babin October 23, 2015 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on March 4, 2015 A BILL To amend the Internal Revenue Code of 1986 to repeal the amendments made by the Patient Protection and Affordable Care Act which disqualify expenses for over-the-counter drugs under health savings accounts and health flexible spending arrangements.

1. Short title This Act may be cited as the Restoring Access to Medication Act of 2015 . 2. Repeal of disqualification of expenses for over-the-counter drugs under certain accounts and arrangements (a) HSAs Section 223(d)(2)(A) of the Internal Revenue Code of 1986 is amended by striking the last sentence. (b) Archer MSAs Section 220(d)(2)(A) of such Code is amended by striking the last sentence. (c) Health flexible spending arrangements and health reimbursement arrangements Section 106 of such Code is amended by striking subsection (f). (d) Effective date The amendments made by this section shall apply to expenses incurred after December 31, 2015.

October 23, 2015 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: IB 114th CONGRESS 2d Session H. R. 1270 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Internal Revenue Code of 1986 to repeal the amendments made by the Patient Protection and Affordable Care Act which disqualify expenses for over-the-counter drugs under health savings accounts and health flexible spending arrangements.

1. Short title This Act may be cited as the Restoring Access to Medication and Improving Health Savings Act of 2016 . I Restoring Access to Medication Act of 2016 101. Short title This title may be cited as the Restoring Access to Medication Act of 2016 . 102. Repeal of disqualification of expenses for over-the-counter drugs under certain accounts and arrangements (a) HSAs Section 223(d)(2)(A) of the Internal Revenue Code of 1986 is amended by striking the last sentence. (b) Archer MSAs Section 220(d)(2)(A) of such Code is amended by striking the last sentence. (c) Health flexible spending arrangements and health reimbursement arrangements Section 106 of such Code is amended by striking subsection (f). (d) Effective date The amendments made by this section shall apply to expenses incurred after December 31, 2016. II Health Care Security Act of 2016 201. Short title This title may be cited as the Health Care Security Act of 2016 . 202. Allow both spouses to make catch-up contributions to the same health savings account (a) In general Section 223(b)(5) of the Internal Revenue Code of 1986 is amended to read as follows: (5) Special rule for married individuals with family coverage (A) In general In the case of individuals who are married to each other, if both spouses are eligible individuals and either spouse has family coverage under a high deductible health plan as of the first day of any month— (i) the limitation under paragraph (1) shall be applied by not taking into account any other high deductible health plan coverage of either spouse (and if such spouses both have family coverage under separate high deductible health plans, only one such coverage shall be taken into account), (ii) such limitation (after application of clause (i)) shall be reduced by the aggregate amount paid to Archer MSAs of such spouses for the taxable year, and (iii) such limitation (after application of clauses (i) and (ii)) shall be divided equally between such spouses unless they agree on a different division. (B) Treatment of additional contribution amounts If both spouses referred to in subparagraph (A) have attained age 55 before the close of the taxable year, the limitation referred to in subparagraph (A)(iii) which is subject to division between the spouses shall include the additional contribution amounts determined under paragraph (3) for both spouses. In any other case, any additional contribution amount determined under paragraph (3) shall not be taken into account under subparagraph (A)(iii) and shall not be subject to division between the spouses. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2016. 203. Special rule for certain medical expenses incurred before establishment of health savings account (a) In general Section 223(d)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (D) Treatment of certain medical expenses incurred before establishment of account If a health savings account is established during the 60-day period beginning on the date that coverage of the account beneficiary under a high deductible health plan begins, then, solely for purposes of determining whether an amount paid is used for a qualified medical expense, such account shall be treated as having been established on the date that such coverage begins. . (b) Effective date The amendment made by this section shall apply with respect to coverage beginning after December 31, 2016. 204. Maximum contribution limit to health savings account increased to amount of deductible and out-of-pocket limitation (a) Self-Only coverage Section 223(b)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $2,250 and inserting the amount in effect under subsection (c)(2)(A)(ii)(I) . (b) Family coverage Section 223(b)(2)(B) of such Code is amended by striking $4,500 and inserting the amount in effect under subsection (c)(2)(A)(ii)(II) . (c) Conforming amendments Section 223(g)(1) of such Code is amended— (1) by striking subsections (b)(2) and both places it appears and inserting subsection , and (2) by striking determined by in subparagraph (B) thereof and all that follows through calendar year 2003 . and inserting determined by substituting calendar year 2003 for calendar year 1992 in subparagraph (B) thereof . . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016. III Protecting Taxpayers by Recovering Improper Obamacare Subsidy Overpayments Act 301. Short title This title may be cited as the Protecting Taxpayers by Recovering Improper Obamacare Subsidy Overpayments Act . 302. Recovery of improper overpayments resulting from certain Federally subsidized health insurance (a) In general Section 36B(f)(2)(B)(i) of the Internal Revenue Code of 1986 is amended to read as follows: (i) In general In the case of a taxpayer whose household income is less than 300 percent of the poverty line for the size of the family involved for the taxable year, the amount of the increase under subparagraph (A) shall in no event exceed the applicable dollar amount determined in accordance with the following table (one-half of such amount in the case of a taxpayer whose tax is determined under section 1(c) for the taxable year): If the household income (expressed as a percent of poverty line) is: The applicable dollar amount is: Less than 200% $600 At least 200% but less than 250% $1,500 At least 250% but less than 300% $3,000. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2016.

Passed the House of Representatives July 6, 2016. Karen L. Haas, Clerk.

tv_txt: II Calendar No. 550 114th CONGRESS 2d Session H. R. 1270 IN THE SENATE OF THE UNITED STATES July 7, 2016 Received; read the first time July 11, 2016 Read the second time and placed on the calendar AN ACT To amend the Internal Revenue Code of 1986 to repeal the amendments made by the Patient Protection and Affordable Care Act which disqualify expenses for over-the-counter drugs under health savings accounts and health flexible spending arrangements.

1. Short title This Act may be cited as the Restoring Access to Medication and Improving Health Savings Act of 2016 . I Restoring Access to Medication Act of 2016 101. Short title This title may be cited as the Restoring Access to Medication Act of 2016 . 102. Repeal of disqualification of expenses for over-the-counter drugs under certain accounts and arrangements (a) HSAs Section 223(d)(2)(A) of the Internal Revenue Code of 1986 is amended by striking the last sentence. (b) Archer MSAs Section 220(d)(2)(A) of such Code is amended by striking the last sentence. (c) Health flexible spending arrangements and health reimbursement arrangements Section 106 of such Code is amended by striking subsection (f). (d) Effective date The amendments made by this section shall apply to expenses incurred after December 31, 2016. II Health Care Security Act of 2016 201. Short title This title may be cited as the Health Care Security Act of 2016 . 202. Allow both spouses to make catch-up contributions to the same health savings account (a) In general Section 223(b)(5) of the Internal Revenue Code of 1986 is amended to read as follows: (5) Special rule for married individuals with family coverage (A) In general In the case of individuals who are married to each other, if both spouses are eligible individuals and either spouse has family coverage under a high deductible health plan as of the first day of any month— (i) the limitation under paragraph (1) shall be applied by not taking into account any other high deductible health plan coverage of either spouse (and if such spouses both have family coverage under separate high deductible health plans, only one such coverage shall be taken into account), (ii) such limitation (after application of clause (i)) shall be reduced by the aggregate amount paid to Archer MSAs of such spouses for the taxable year, and (iii) such limitation (after application of clauses (i) and (ii)) shall be divided equally between such spouses unless they agree on a different division. (B) Treatment of additional contribution amounts If both spouses referred to in subparagraph (A) have attained age 55 before the close of the taxable year, the limitation referred to in subparagraph (A)(iii) which is subject to division between the spouses shall include the additional contribution amounts determined under paragraph (3) for both spouses. In any other case, any additional contribution amount determined under paragraph (3) shall not be taken into account under subparagraph (A)(iii) and shall not be subject to division between the spouses. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2016. 203. Special rule for certain medical expenses incurred before establishment of health savings account (a) In general Section 223(d)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (D) Treatment of certain medical expenses incurred before establishment of account If a health savings account is established during the 60-day period beginning on the date that coverage of the account beneficiary under a high deductible health plan begins, then, solely for purposes of determining whether an amount paid is used for a qualified medical expense, such account shall be treated as having been established on the date that such coverage begins. . (b) Effective date The amendment made by this section shall apply with respect to coverage beginning after December 31, 2016. 204. Maximum contribution limit to health savings account increased to amount of deductible and out-of-pocket limitation (a) Self-Only coverage Section 223(b)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $2,250 and inserting the amount in effect under subsection (c)(2)(A)(ii)(I) . (b) Family coverage Section 223(b)(2)(B) of such Code is amended by striking $4,500 and inserting the amount in effect under subsection (c)(2)(A)(ii)(II) . (c) Conforming amendments Section 223(g)(1) of such Code is amended— (1) by striking subsections (b)(2) and both places it appears and inserting subsection , and (2) by striking determined by in subparagraph (B) thereof and all that follows through calendar year 2003 . and inserting determined by substituting calendar year 2003 for calendar year 1992 in subparagraph (B) thereof . . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016. III Protecting Taxpayers by Recovering Improper Obamacare Subsidy Overpayments Act 301. Short title This title may be cited as the Protecting Taxpayers by Recovering Improper Obamacare Subsidy Overpayments Act . 302. Recovery of improper overpayments resulting from certain Federally subsidized health insurance (a) In general Section 36B(f)(2)(B)(i) of the Internal Revenue Code of 1986 is amended to read as follows: (i) In general In the case of a taxpayer whose household income is less than 300 percent of the poverty line for the size of the family involved for the taxable year, the amount of the increase under subparagraph (A) shall in no event exceed the applicable dollar amount determined in accordance with the following table (one-half of such amount in the case of a taxpayer whose tax is determined under section 1(c) for the taxable year): If the household income (expressed as a percent of poverty line) is: The applicable dollar amount is: Less than 200% $600 At least 200% but less than 250% $1,500 At least 250% but less than 300% $3,000. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2016.

Passed the House of Representatives July 6, 2016. Karen L. Haas, Clerk

July 11, 2016 Read the second time and placed on the calendar