HR 4651 — American Future Healthcare Act of 2019

Summary

American Future Healthcare Act of 2019 This bill amends the Internal Revenue Code, with respect to health savings accounts (HSAs), to repeal the requirement that an individual making a tax deductible contribution to an HSA be covered by a high deductible health care plan; increase the maximum HSA contribution level; allow Medicare eligible individuals to contribute to an HSA; allow HSAs to be used to purchase health insurance; provide a cost-of-living adjustment for the limits on additional contributions for individuals 55 or older (catch-up contributions); require the cost-of-living adjustments to be indexed to the CPI medical care component (the medical care component for the Consumer Price Index for All Urban Consumers published by the Department of Labor); allow a rollover of HSA amounts to a Medicare Advantage Medical Savings Account (MSA); and treat direct primary care service arrangement fees as deductible medical expenses. This bill also allows an individual with alternative health coverage to opt out of Medicare hospital services benefits without also having to opt out of Old Age, Survivors, and Disability Insurance benefits and without having to repay Medicare hospital services benefits already received.

Bill Text

• Introduced Introduced in House Current html October 11, 2019

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill modifies various provisions related to health savings accounts (HSAs) in the Internal Revenue Code, removing certain eligibility requirements and expanding contribution limits.

• Section 223(a)

  "(a) Deduction Allowed.--In the case of an individual, there shall be allowed as a deduction for a taxable year the sum of the monthly amounts paid..." → "(a) Deduction Allowed.--In the case of an individual, there shall be allowed as a deduction for a taxable year an amount equal to the aggregate amount paid in cash during such taxable year by or on behalf of such individual to a health savings account of such individual."

  The requirement to have a high deductible health plan to qualify for HSA deductions is eliminated.

• Section 223(b)(1)

  "the sum of the monthly" and all that follows through "eligible individual" → "$10,000 ($20,000 in the case of a joint return)"

  The contribution limits for HSAs are increased.

• Section 223(b)

  paragraph (7)

  Medicare-eligible individuals are allowed to contribute to HSAs by removing the restriction.

• Section 223(d)(2)

  subparagraphs (B) and (C)

  Some existing rules regarding health insurance purchases with HSAs are removed.

• Section 223(f)(1)

  "Each dollar amount in subsections (b)(2) and (c)(2)(A)" → "In the case of a taxable year beginning after December 31, 2019, each dollar amount in paragraphs (1) and (2) of subsection (b)"

  Cost-of-living adjustments for HSA contributions are redefined to be indexed to inflation.

• Section 223(f)

  "(3) CPI medical care component.--"For purposes of paragraph (1), the cost-of-living adjustment..."

  Introduces an inflation adjustment for catch-up contributions based on the CPI medical care component.

• Section 138(b)(2)

  or → "or" at the end of subparagraph (C), adding subparagraph (C)" an HSA rollover contribution described in subsection (d)(5),"

  Allows HSA funds to be rolled over into a Medicare Advantage MSA.

• Section 223(c)(2)(C)

  "(v) any direct primary care service arrangement."

  Direct primary care arrangement fees are allowed as qualified medical expenses.

• Section 6051(a)

  and → "and" at the end of paragraph (17) and inserting after paragraph (17) the following new paragraph: "(18) in the case of a direct primary care service arrangement ..."

  Employers must report direct primary care service fees on W-2 forms.

Action History

1. October 11, 2019

   Introduced in House

2. October 11, 2019

   Introduced in House

3. October 11, 2019

   Referred to the Subcommittee on Health.

4. October 11, 2019

   Referred to the House Committee on Ways and Means.

Sponsors

• Steve King · Primary

Subjects