Health Care Security Act of 2016

Bill: 114-hr-5445
Sponsor: full_name: Rep. Paulsen, Erik [R-MN-3]
Introduced: 2016-06-10
Policy area: Taxation
Subjects: Health care costs and insurance

Health care coverage and access

Income tax deductions

Marriage and family status
Latest action: action_date: 2016-06-17
text: Placed on the Union Calendar, Calendar No. 486.

Summaries:
action_date: 2016-06-10
action_desc: Introduced in House
text: <p>This bill amends the Internal Revenue Code to modify the rules for health savings accounts (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>

action_date: 2016-06-17
action_desc: Reported to House with amendment(s)
text: <p><b>Health Care Security Act of 2016</b></p> <p> This bill amends the Internal Revenue Code to modify the rules for health savings accounts (HSAs) with respect to catch-up contributions for married couples, medical expenses incurred before an HSA is established, and contribution limits. </p> <p>(Sec. 2) 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>(Sec. 3) 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>(Sec. 4) 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>

tv_txt: I 114th CONGRESS 2d Session H. R. 5445 IN THE HOUSE OF REPRESENTATIVES June 10, 2016 Mr. Paulsen (for himself and Mr. Burgess ) 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 improve the rules with respect to health savings accounts.

1. 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. 2. 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. 3. 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 amendment Section 223(g)(1) of such Code is amended by striking subsections (b)(2) and and inserting subsection . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016.

tv_txt: IB Union Calendar No. 486 114th CONGRESS 2d Session H. R. 5445 [Report No. 114–627] IN THE HOUSE OF REPRESENTATIVES June 10, 2016 Mr. Paulsen (for himself and Mr. Burgess ) introduced the following bill; which was referred to the Committee on Ways and Means June 17, 2016 Additional sponsor: Mr. Stivers June 17, 2016 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 June 10, 2016 A BILL To amend the Internal Revenue Code of 1986 to improve the rules with respect to health savings accounts.

1. Short title This Act may be cited as the Health Care Security Act of 2016 . 2. 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. 3. 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. 4. 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.

June 17, 2016 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed