Health Savings Account Expansion Act of 2021

Bill: 117-s-2099
Sponsor: full_name: Sen. Sasse, Ben [R-NE]
Introduced: 2021-06-17
Policy area: Taxation
Subjects: Bank accounts, deposits, capital

Health care costs and insurance

Income tax deductions
Latest action: action_date: 2021-06-17
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2021-06-17
action_desc: Introduced in Senate
text: <p><b>Health Savings Account Expansion Act of 2021</b></p> <p>This bill permits individuals who are not enrolled in a high deductible health plan to participate in health savings accounts (HSAs). It also increases the allowable amount of the deduction for contributions to HSAs.</p>

tv_txt: II 117th CONGRESS 1st Session S. 2099 IN THE SENATE OF THE UNITED STATES June 17, 2021 Mr. Sasse 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 allow individuals who are not enrolled in a high deductible health plan to have access to health savings accounts, and for other purposes.

1. Short title This Act may be cited as the Health Savings Account Expansion Act of 2021 . 2. Expansion of health savings account eligibility (a) In general Section 223 of the Internal Revenue Code of 1986 is amended— (1) in subsection (b)— (A) in paragraph (2)— (i) in subparagraph (A), by striking high deductible health plan as of the first day of such month, $2,250 and inserting qualified health plan as of the first day of such month, $5,000 , and (ii) in subparagraph (B), by striking high deductible health plan as of the first day of such month, $4,500 and inserting qualified health plan as of the first day of such month, twice the dollar amount under subparagraph (A) , and (B) in paragraph (8)— (i) in subparagraph (A)(ii), by striking high deductible health plan and inserting qualified health plan , and (ii) in the heading of subparagraph (B), by striking high deductible health plan and inserting qualified health plan , (2) in subsection (c)— (A) in paragraph (1)(A), by striking high deductible health plan each place it appears and inserting qualified health plan , and (B) in paragraph (2)— (i) in the heading, by striking High deductible health plan and inserting Qualified health plan , (ii) by amending subparagraph (A) to read as follows: (A) In general The term qualified health plan means a health plan that provides a level of coverage that is designed to provide benefits that are actuarially equivalent to not greater than 80 percent of the full actuarial value of the benefits provided under the plan. , (iii) by amending subparagraph (C) to read as follows: (C) Absence of deductible A health plan shall not fail to be treated as a qualified health plan by reason of failing to have a deductible for any care, services, or coverage, such as preventive care, primary care, or prescription drug coverage. , (iv) by striking subparagraph (D), (v) by striking high deductible health plan each place it appears in subparagraphs (E) and (F) and inserting qualified health plan , and (vi) by redesignating subparagraphs (E) and (F), as amended by clause (v), as subparagraphs (D) and (E), respectively, (3) in subsection (g)(1)— (A) by striking Each dollar amount in subsections (b)(2) and (c)(2)(A) and inserting The dollar amount in subsection (b)(2)(A) , (B) by amending subparagraph (B) to read as follows: (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting ‘2003’ for ‘2016’ in subparagraph (A)(ii) thereof. , and (C) by striking adjusted amounts under subsections (b)(2) and (c)(2)(A) and inserting adjusted amounts under subsection (b)(2) , and (4) in subsection (h)(2), by striking high deductible health plan and inserting qualified health plan . (b) Conforming amendments (1) Section 26(b)(2)(S) of the Internal Revenue Code of 1986 is amended by striking high deductible health plan and inserting qualified health plan . (2) Section 106(e) of such Code is amended— (A) in the heading of paragraph (3), by striking high deductible health plan and inserting qualified health plan , and (B) in paragraph (5)(B)(ii), by striking high deductible health plan and inserting qualified health plan . (3) Section 408(d)(9) of such Code is amended— (A) in subparagraph (C)— (i) in clause (i)(I), by striking high deductible health plan and inserting qualified health plan , and (ii) in clause (ii)(II), by striking high deductible health plan each place it appears and inserting qualified health plan , and (B) in the heading of subparagraph (D), by striking high deductible health plan and inserting qualified health plan . (4) Section 1906A(b)(2)(B) of the Social Security Act ( 42 U.S.C. 1396e–1(b)(2)(B) ) is amended by striking high deductible health plan and inserting qualified health plan . (5) Section 1938(a)(3) of the Social Security Act ( 42 U.S.C. 1396u–8(a)(3) ) is amended by inserting (as in effect on the day before the date of the enactment of the Health Savings Account Expansion Act of 2021 ) after section 223(c)(2)(C) of the Internal Revenue Code of 1986 . (6) Section 2105(c)(10)(B)(ii)(II) of the Social Security Act ( 42 U.S.C. 1397ee(c)(10)(B)(ii)(II) ) is amended by striking high deductible health plan and inserting qualified health plan . (7) Section 1101(c)(2)(B)(ii) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18001(c)(2)(B)(ii) ) is amended by striking section 223(c)(2) and inserting section 223(b)(2) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021.