Health Savings Account Act

Bill: 116-hr-457
Sponsor: full_name: Rep. Fortenberry, Jeff [R-NE-1]
Introduced: 2019-01-10
Policy area: Taxation
Subjects: Health care costs and insurance

Health promotion and preventive care

Income tax deductions

Income tax exclusion

Medical tests and diagnostic methods
Latest action: action_date: 2019-01-10
text: Referred to the Subcommittee on Health.

Summaries:
action_date: 2019-01-10
action_desc: Introduced in House
text: <p><b>Health Savings Account Act </b></p> <p>This bill modifies the requirements for health savings accounts (HSAs) to (1) increase the maximum contribution limits for HSAs to match the sum of the annual deductible and out-of-pocket expenses permitted under a high deductible health plan, (2) allow individuals who receive primary care services in exchange for a fixed periodic fee or payment to participate in an HSA, and (3) permit HSAs to be used for fitness center memberships. </p> <p>The bill also allows a medical care tax deduction for periodic provider fees, including (1) periodic fees paid to a primary care physician for a defined set of medical services or the right to receive medical services on an as-needed basis; and (2) pre-paid primary care services designed to screen for, diagnose, cure, mitigate, treat, or prevent disease and promote wellness. </p>

tv_txt: I 116th CONGRESS 1st Session H. R. 457 IN THE HOUSE OF REPRESENTATIVES January 10, 2019 Mr. Fortenberry 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 increase the maximum contribution limit for health savings accounts, and for other purposes.

1. Short title This Act may be cited as the Health Savings Account Act . 2. Maximum contribution limit to HSA 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) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 3. Treatment of direct primary care service arrangements (a) In general Section 223(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (6) Treatment of direct primary care service arrangements An arrangement under which an individual is provided coverage restricted to primary care services in exchange for a fixed periodic fee or payment for such services— (A) shall not be treated as a health plan described in subclause (I) or (II) of paragraph (1)(A)(ii) for purposes of such paragraph, and (B) shall not be treated as insurance for purposes of subsection (d)(2)(B). . (b) Certain provider fees To be treated as medical care Section 213(d) of such Code is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: (4) Periodic provider fees The term medical care shall include— (A) periodic fees paid to a primary care physician for a defined set of medical services or the right to receive medical services on an as-needed basis, and (B) pre-paid primary care services designed to screen for, diagnose, cure, mitigate, treat, or prevent disease and promote wellness. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 4. Fitness center membership as an allowable HSA expense (a) In general Subparagraph (A) of section 223(d)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following: Such term shall include amounts paid for membership in a fitness center. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.