Section 1 Short title
This Act may be cited as the “American Future Healthcare Act of 2017”.
American Future Healthcare Act of 2017
A BILL
To amend the Internal Revenue Code of 1986 to expand health savings accounts, and for other purposes.
Sec. 2 Reform of Health Savings Accounts
Repeal of high deductible health plan requirement— Section 223(a) of the Internal Revenue Code of 1986 is amended to read as follows:
“(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.”
Increase in deductible HSA contribution limitations— Section 223(b)(1) of such Code is amended by striking “the sum of the monthly” and all that follows through “eligible individual” and inserting “$10,000 ($20,000 in the case of a joint return)”.
Medicare eligible individuals eligible To contribute to HSA— Section 223(b) of such Code is amended by striking paragraph (7).
Purchase of health insurance— Section 223(d)(2) of such Code is amended—
by striking subparagraphs (B) and (C), and
by striking “Qualified medical expenses.—” and all that follows through “The term” and inserting “Qualified medical expenses.—The term”.
Cost-of-Living adjustment for catchup contributions— Section 223(f)(1) of such Code (as redesignated by subsection (g)(3)) is amended by striking “Each dollar amount in subsections (b)(2) and (c)(2)(A)” and inserting “In the case of a taxable year beginning after December 31, 2016, each dollar amount in paragraphs (1) and (2) of subsection (b)”.
Cost-of-Living adjustment indexed to CPI medical care component— Section 223(f) (as so redesignated) is amended by adding at the end the following new paragraph:
“(3) CPI medical care component
“(A) In general—For purposes of paragraph (1), the cost-of-living adjustment determined under section 1(f)(3) for the calendar year shall be determined by substituting “CPI medical care component” for “CPI”.
“(B) CPI medical care component—For purposes of subparagraph (A), the term “CPI medical care component” means the medical care component for the Consumer Price Index for All Urban Consumers published by the Department of Labor.”
Conforming amendments—
Section 223(b) of such Code is amended by striking paragraphs (2), (5), and (8) and by redesignating paragraphs (3), (4), and (6) as paragraphs (2), (3), and (4), respectively.
Section 223(b)(3) of such Code (as redesignated by paragraph (1)) is amended by striking the last sentence.
Section 223 of such Code is amended by striking subsection (c) and redesignating subsections (d) through (h) as subsections (c) through (g), respectively.
Section 223(c)(1)(A) of such Code (as redesignated by paragraph (3)) is amended—
by striking “subsection (f)(5)” and inserting “subsection (e)(5)”, and
in clause (ii) by striking “the sum of—” and all that follows and inserting “the dollar amount in effect under subsection (b)(1).”.
Section 223(f)(1) (as redesignated by paragraph (3)) is amended by striking “calendar year 2003” and inserting “calendar year 2014”.
Section 26(b)(2)(U) of such Code is amended by striking “section 223(f)(4)” and inserting “section 223(e)(4)”.
Sections 35(g)(3), 220(f)(5)(A), 848(e)(1)(v), 4973(a)(5), and 6051(a)(12) of such Code are each amended by striking “section 223(d)” each place it appears and inserting “section 223(c)”.
Section 106(d)(1) of such Code is amended—
by striking “who is an eligible individual (as defined in section 223(c)(1))”, and
by striking “section 223(d)” and inserting “section 223(c)”.
Section 408(d)(9) of such Code is amended—
in subparagraph (A) by striking “who is an eligible individual (as defined in section 223(c)) and”, and
in subparagraph (C) by striking “computed on the basis of the type of coverage under the high deductible health plan covering the individual at the time of the qualified HSA funding distribution”.
Section 877A(g)(6) of such Code is amended by striking “223(f)(4)” and inserting “223(e)(4)”.
Section 4973(g) of such Code is amended—
by striking “section 223(d)” and inserting “section 223(c)”,
in paragraph (2), by striking “section 223(f)(2)” and inserting “section 223(e)(2)”, and
by striking “section 223(f)(3)” and inserting “section 223(e)(3)”.
Section 4975 of such Code is amended—
in subsection (c)(6)—
by striking “section 223(d)” and inserting “section 223(c)”, and
by striking “section 223(e)(2)” and inserting “section 223(d)(2)”, and
in subsection (e)(1)(E), by striking “section 223(d)” and inserting “section 223(c)”.
Section 6693(a)(2)(C) of such Code is amended by striking “section 223(h)” and inserting “section 223(g)”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2016.
Sec. 3 HSA Rollover to Medicare Advantage MSA
In general— Section 138(b)(2) of the Internal Revenue Code of 1986 is amended by striking “or” at the end of subparagraph (A), by adding “or” at the end of subparagraph (C), and by adding at the end the following new subparagraph:
“(C) an HSA rollover contribution described in subsection (d)(5),”
HSA rollover contribution— Section 138(c) of such Code is amended by adding at the end the following new paragraph:
“(5) Rollover contribution—An amount is described in this paragraph as a rollover contribution if it meets the requirement of subparagraphs (A) and (B).
“(A) In general—The requirements of this subparagraph are met in the case of an amount paid or distributed from a health savings to the account beneficiary to the extent the amount is received is paid into a Medicare Advantage MSA of such beneficiary not later than the 60th day after the day on which the beneficiary receives the payment or distribution.
“(B) Limitation—This paragraph shall not apply to any amount described in subparagraph (A) received by an individual from a health savings account if, at any time during the 1-year period ending on the day of such receipt, such individual received any other amount described in subparagraph (A) from a health savings account which was not includible in the individual’s gross income because of the application of section 223(e)(5)(A).”
Conforming amendment— Section 223(e)(5)(A) of such Code, as amended by section 2, is amended by inserting “or Medicare Advantage MSA” after “into a health savings account”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2016.