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.

Bill: 116-hr-7242
Sponsor: full_name: Rep. Curtis, John R. [R-UT-3]
Introduced: 2020-06-18
Policy area: Taxation
Subjects: Health care costs and insurance

Income tax exclusion

Medicare

Nutrition and diet

Physical fitness and lifestyle

Sports and recreation facilities
Latest action: action_date: 2020-06-18
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2020-06-18
action_desc: Introduced in House
text: <p>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. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 7242 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.

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.