[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7242 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 7242
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.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 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.
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