[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6286 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 6286
To amend the Internal Revenue Code of 1986 to modify rules relating to
health savings accounts.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 13, 2020
Mr. Burgess introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on the
Judiciary, and Energy and Commerce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify rules relating to
health savings accounts.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Health Savings Act
of 2020''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Health savings accounts for children.
Sec. 3. Allowing HSA rollover to child or parent of account holder.
Sec. 4. Maximum contribution limit to HSA increased to amount of
deductible and out-of-pocket limitation.
Sec. 5. Equivalent bankruptcy protections for health savings accounts
as retirement funds.
Sec. 6. Allowance of silver and bronze plans in connection with health
savings accounts.
Sec. 7. Identification of HSA compatible plans.
SEC. 2. HEALTH SAVINGS ACCOUNTS FOR CHILDREN.
(a) In General.--Section 223 of the Internal Revenue Code of 1986
is amended by redesignating subsection (h) as subsection (i) and by
inserting after subsection (g) the following new subsection:
``(h) Child Health Savings Accounts.--
``(1) In general.--In the case of an individual, in
addition to any deduction allowed under subsection (a) for any
taxable year, there shall be allowed as a deduction under this
section an amount equal to the aggregate amount paid in cash by
the taxpayer during the taxable year to a child health savings
account of a child or grandchild of the taxpayer.
``(2) Limitations.--
``(A) Deduction limitation.--The amount taken into
account under paragraph (1) with respect to each child
or grandchild of the taxpayer, as the case may be, for
the taxable year shall not exceed the sum of the
monthly limitations with respect to such child for
months during the taxable year that the child is an
eligible individual.
``(B) Limit on accounts with respect to
individual.--The aggregate amount of contributions
which may be made for any taxable year to all child
health savings accounts established and maintained on
behalf of a child shall not exceed the sum of the
monthly limitations for months during the taxable year
that the child is an eligible individual.
``(C) Monthly limitation.--The monthly limitation
for any month with respect to a child is \1/12\ of the
amount in effect for the taxable year under subsection
(c)(2)(A)(ii)(I).
``(3) Treatment of account while a dependent.--For purposes
of this section, except as otherwise provided in this
subsection, a child health savings account established for the
benefit of the child of a taxpayer shall be treated as a health
savings account of the taxpayer until the first taxable year
(and each taxable year thereafter) for which no deduction under
section 151 is allowable to any taxpayer with respect to such
child, after which such account shall be treated as a health
savings account of the child. The preceding sentence shall not
apply for purposes of applying the limitations in subsection
(b) to a health savings account of the taxpayer.
``(4) Child health savings account.--For purposes of this
subsection, the term `child health savings account' means a
health savings account designated as a child health savings
account and established for the benefit of a child of a
taxpayer.
``(5) Qualified medical expenses.--For purposes of this
section, the term `qualified medical expenses' shall, with
respect to any child health savings account, not include any
amounts paid for medical care (as defined in section 213(d))
for any individual other than the child for whose benefit the
account is maintained.
``(6) Exceptions for disability or death of child.--If the
child becomes disabled within the meaning of section 72(m)(7)
or dies--
``(A) subsection (f)(4)(A) shall not apply to any
subsequent payment or distribution, and
``(B) the taxpayer may rollover the amount in such
account to any health savings account of the taxpayer
or grandparent of the child or to any child health
savings account of any other child of the taxpayer.
``(7) Guardians.--Any legal guardian of a child shall be
treated as the parent of such child for purposes of this
section.
``(8) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of
this subsection, including rules for determining application of
this subsection in the case of legal guardians and in the case
of parents of a child who file separately, are separated, or
are not married.''.
(b) Coordination With Means-Tested Programs.--Amounts in a child
health savings account shall not be taken into account in determining
resources for purposes of title XIX of the Social Security Act.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 3. ALLOWING HSA ROLLOVER TO CHILD OR PARENT OF ACCOUNT HOLDER.
(a) In General.--Subparagraph (A) of section 223(f)(8) of the
Internal Revenue Code of 1986 is amended--
(1) by inserting ``child, parent, or grandparent'' after
``surviving spouse'',
(2) by inserting ``child, parent, or grandparent, as the
case may be,'' after ``the spouse'',
(3) by inserting ``, child, parent, or grandparent'' after
``spouse'' in the heading thereof, and
(4) by adding at the end the following: ``In the case of a
child who acquires such beneficiary's interest and with respect
to whom a deduction under section 151 is allowable to another
taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins, such health
savings account shall be treated as a child health savings
account of the child.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 4. MAXIMUM CONTRIBUTION LIMIT TO HSA INCREASED TO AMOUNT OF
DEDUCTIBLE AND OUT-OF-POCKET LIMITATION.
(a) Self-Only Coverage.--Subparagraph (A) of section 223(b)(2) 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.--Subparagraph (B) of section 223(b)(2) 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 the date of the enactment of
this Act.
SEC. 5. EQUIVALENT BANKRUPTCY PROTECTIONS FOR HEALTH SAVINGS ACCOUNTS
AS RETIREMENT FUNDS.
(a) In General.--Section 522 of title 11, United States Code, is
amended by adding at the end the following new subsection:
``(r) For purposes of this section, any health savings account (as
described in section 223 of the Internal Revenue Code of 1986) shall be
treated in the same manner as an individual retirement account
described in section 408 of such Code.''.
(b) Effective Date.--The amendment made by this section shall apply
to cases commencing under title 11, United States Code, after the date
of the enactment of this Act.
SEC. 6. ALLOWANCE OF SILVER AND BRONZE PLANS IN CONNECTION WITH HEALTH
SAVINGS ACCOUNTS.
(a) In General.--Section 223 of the Internal Revenue Code of 1986
is amended--
(1) by striking ``a high deductible health plan'' each
place it appears and inserting ``an HSA compatible health
plan'',
(2) by striking ``high deductible health plan'' in
subsection (b)(8)(A)(ii) and inserting ``HSA compatible health
plan'', and
(3) by striking ``the high deductible health plan'' in
subsection (c)(1)(A)(ii)(II) and inserting ``the HSA compatible
health plan''.
(b) HSA Compatible Health Plan Defined.--Paragraph (2) of section
223(c) of such Code is amended by redesignating subparagraphs (A), (B),
(C), and (D) as subparagraphs (B), (C), (D), and (E) and by inserting
before subparagraph (B), as so redesignated, the following new
subparagraph:
``(A) In general.--The term `HSA compatible health
plan' means--
``(i) any high deductible health plan,
``(ii) any plan described in section
1302(e) of the Patient Protection and
Affordable Care Act (42 U.S.C. 18022(e))
(relating to catastrophic plan), or
``(iii) any silver or bronze plan which was
enrolled in through an Exchange established
under section 1311 or section 1321 of the
Patient Protection and Affordable Care Act (42
U.S.C. 1311, 18041).''.
(c) Clerical Amendments.--Section 223 of such Code is amended--
(1) by striking ``In general'' in the heading for
subsection (c)(2)(B), as redesignated by subsection (b) of this
Act, and inserting ``High deductible health plan'',
(2) by striking ``high deductible health plan'' in the
heading for subsection (b)(8)(B) and inserting ``hsa compatible
health plan'', and
(3) by striking ``High deductible health plan'' in the
heading for subsection (c)(2) and inserting ``HSA compatible
health plan''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2020.
SEC. 7. IDENTIFICATION OF HSA COMPATIBLE PLANS.
Section 1103(b) of the Patient Protection and Affordable Care Act
(42 U.S.C. 18003(b)) is amended by adding at the end the following new
paragraph:
``(3) Identification of hsa compatible plans.--Beginning
for plan year 2018, the format described in paragraph (1) shall
require that information on a coverage option described in
subsection (a)(2) that is an HSA compatible health plan (as
defined in section 223(c)(2) of the Internal Revenue Code of
1986) identifies such plan as a plan that satisfies the
requirement of section 223(c)(1)(A)(i) of such Code.''.
<all>