H. R. 6474

To amend the Internal Revenue Code of 1986 to raise the limit on contributions to health savings accounts, to remove the requirement to maintain high deductible coverage with respect to such accounts, to include drugs and medicine as qualified medical expenses for the purposes of such accounts, and for other purposes.

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117 HR 6474 IH: Health Savings Freedom Act of 2022

U.S. House of Representatives

2022-01-21

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EN

Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I

117th CONGRESS

2d Session

H. R. 6474

IN THE HOUSE OF REPRESENTATIVES

January 21, 2022

Ms. Van Duyne

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 raise the limit on contributions to health savings accounts, to remove the requirement to maintain high deductible coverage with respect to such accounts, to include drugs and medicine as qualified medical expenses for the purposes of such accounts, and for other purposes.

1.

Short title

This Act may be cited as the

Health Savings Freedom Act of 2022

.

2.

Health savings accounts

(a)

Contribution limit increase

(1)

Individual coverage

Section 223(b)(2)(A)

of the Internal Revenue Code of 1986 is amended by striking

$2,250

and inserting

$6,000

.

(2)

Family coverage

Section 223(b)(2)(B) of such Code is amended by striking

$4,500

and inserting

$16,000

.

(b)

Requirement To maintain coverage under a high deductible plan removed

(1)

Section 223(c)(1)

of the Internal Revenue Code of 1986 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 any health plan as of the 1st day of such month.

(B)

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).

(C)

Special rule for individuals receiving benefits subject to surprise billing statutes

An individual shall not fail to be treated as an eligible individual for any period merely because the individual receives benefits for medical care subject to and in accordance with section 9816 or 9817, section 2799A–1 or 2799A–2 of the Public Health Service Act, or section 716 or 717 of the Employee Retirement Income Security Act of 1974, or any State law providing similar protections to such individual.

.

(2)

Conforming amendments

(A)

Section 223 of such Code is amended—

(i)

in subsection (c), by striking paragraph (2),

(ii)

by striking

high deductible

each place such term appears, and

(iii)

in subsection (b)(8)(B), in the heading by striking

high deductible

.

(B)

Section 106(e) of such Code is amended—

(i)

in paragraph (3), in the heading by striking

high deductible

, and

(ii)

in paragraph (5)(B)(ii), by striking

high deductible

.

(C)

Section 408(d)(9) of such Code is amended—

(i)

by striking

high deductible

each place such term appears, and

(ii)

in subparagraph (D), in the heading by striking

high deductible

.

(D)

Sections 1396e–1(b)(2)(B) and 1397ee(c)(10)(B)(ii)(II) are amended by striking

section 223(c)(2)

and inserting

section 220(c)(2)

.

(c)

Including medicine and drugs as qualified medical expenses

(1)

Section 223(d)(2) of such Code is amended to read as follows:

(2)

Qualified medical expenses

The term

qualified medical expenses

means the following:

(A)

With respect to an account beneficiary, amounts paid by such beneficiary for any of the following for such individual, the spouse of such individual, any dependent (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof), or of such individual, but only to the extent such amounts are not compensated for by insurance or otherwise:

(i)

Medical care (as defined in section 213(d)).

(ii)

Medicine and drugs.

(iii)

A tampon, pad, liner, cup, sponge, or similar product used by individuals with respect to menstruation or other genital-tract secretions.

(B)

With respect to an account beneficiary, amounts paid by such beneficiary for long-term care expenses for a parent of such individual, but only to the extent such amounts are not compensated for by insurance or otherwise.

.

(2)

Conforming amendment

Section 223(c) of such Code is amended by striking paragraph (3).

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.