[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1399 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 1399

     To amend the Internal Revenue Code of 1986 to allow qualified 
   distributions from health savings accounts for certain home care 
                               expenses.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2021

   Ms. Sinema (for herself, Mr. Portman, Mr. Rubio, and Mr. Carper) 
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 qualified 
   distributions from health savings accounts for certain home care 
                               expenses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homecare for Seniors Act''.

SEC. 2. CERTAIN HOME CARE EXPENSES TREATED AS QUALIFIED DISTRIBUTIONS 
              FROM HEALTH SAVINGS ACCOUNTS.

    (a) In General.--Section 223(d)(2) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``medical care (as defined in section 
        213(d)'' in subparagraph (A) and inserting ``specified medical 
        care (as defined in subparagraph (E))''; and
            (2) by adding at the end the following new subparagraph:
                    ``(E) Specified medical care.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `specified 
                        medical care' means--
                                    ``(I) medical care (as defined in 
                                section 213(d)), and
                                    ``(II) qualified home care.
                            ``(ii) Qualified home care.--The term 
                        `qualified home care' means services provided 
                        pursuant to a contract to provide 3 or more of 
                        the following in the residence of the service 
                        recipient:
                                    ``(I) Assistance with eating.
                                    ``(II) Assistance with toileting.
                                    ``(III) Assistance with 
                                transferring.
                                    ``(IV) Assistance with bathing.
                                    ``(V) Assistance with dressing.
                                    ``(VI) Assistance with continence.
                                    ``(VII) Medication adherence.
                        Such term shall not include any services unless 
                        such services are provided by a service 
                        provider which is licensed by the State to 
                        provide such services, or such services are 
                        otherwise provided in a manner that is 
                        consistent with State requirements.
                            ``(iii) Related parties.--The term 
                        `qualified home care' shall not include 
                        services provided pursuant to any contract 
                        which is entered into, directly or indirectly, 
                        between a service provider and a service 
                        recipient who are related within the meaning of 
                        section 267(b) or 707(b).''.
    (b) Conforming Amendments.--Section 223(d)(2) of the Internal 
Revenue Code of 1986, as amended by subsection (a), is further 
amended--
            (1) by striking the second sentence of subparagraph (A), 
        and
            (2) by striking ``this paragraph, the term'' in 
        subparagraph (D) and inserting ``this paragraph--
                            ``(i) In general.--Amounts paid for 
                        menstrual care products shall be treated as 
                        paid for specified medical care.
                            ``(ii) Definition.--The term''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid with respect to taxable years beginning after the 
date of the enactment of this Act.
    (d) Promotion of Public Awareness of In-Home Service Expenses 
Eligible for Tax-Free Distribution From Health Savings Accounts.--The 
Secretary of Health and Human Services, in consultation with the 
Secretary of the Treasury, shall carry out a campaign to increase 
public awareness of the in-home service expenses that are eligible for 
tax-free distribution from health savings accounts.
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