1. Short title
This Act may be cited as the “Health Savings Account Expansion Act of 2019”.
Health Savings Account Expansion Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to allow individuals who are not enrolled in a high deductible health plan to have access to health savings accounts, and for other purposes.
2. Expansion of health savings account eligibility
in subsection (b)—
in paragraph (2)—
in subparagraph (A), by striking “high deductible health plan as of the first day of such month, $2,250” and inserting “qualified health plan as of the first day of such month, $5,000”, and
in subparagraph (B), by striking “high deductible health plan as of the first day of such month, $4,500” and inserting “qualified health plan as of the first day of such month, twice the dollar amount under subparagraph (A)”, and
in paragraph (8)—
in subparagraph (A)(ii), by striking “high deductible health plan” and inserting “qualified health plan”, and
in the heading of subparagraph (B), by striking “high deductible health plan” and inserting “qualified health plan”,
in subsection (c)—
in paragraph (1)(A), by striking “high deductible health plan” each place is appears and inserting “qualified health plan”, and
in paragraph (2)—
in the heading, by striking “High deductible health plan” and inserting “Qualified health plan”,
by amending subparagraph (A) to read as follows:
“(A) In general—The term qualified health plan means a health plan that provides a level of coverage that is designed to provide benefits that are actuarially equivalent to not greater than 80 percent of the full actuarial value of the benefits provided under the plan.”
by amending subparagraph (C) to read as follows:
“(C) Absence of deductible—A health plan shall not fail to be treated as a qualified health plan by reason of failing to have a deductible for any care, services, or coverage, such as preventive care, primary care, or prescription drug coverage.”
by striking subparagraph (D),
in subsection (g)(1)—
by striking “Each dollar amount in subsections (b)(2) and (c)(2)(A)” and inserting “The dollar amount in subsection (b)(2)(A)”,
by amending subparagraph (B) to read as follows:
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting ‘2003’ for ‘2016’ in subparagraph (A)(ii) thereof.”
by striking “adjusted amounts under subsections (b)(2) and (c)(2)(A)” and inserting “adjusted amounts under subsection (b)(2)”, and
in subsection (h)(2), by striking “high deductible health plan” and inserting “qualified health plan”.
Conforming amendments—
Section 26(b)(2)(S) of the Internal Revenue Code of 1986 is amended by striking “high deductible health plan” and inserting “qualified health plan”.
Section 106(e) of such Code is amended—
in the heading of paragraph (3), by striking “high deductible health plan” and inserting “qualified health plan”, and
in paragraph (5)(B)(ii), by striking “high deductible health plan” and inserting “qualified health plan”.
Section 408(d)(9) of such Code is amended—
in subparagraph (C)—
in clause (i)(I), by striking “high deductible health plan” and inserting “qualified health plan”, and
in clause (ii)(II), by striking “high deductible health plan” each place it appears and inserting “qualified health plan”, and
in the heading of subparagraph (D), by striking “high deductible health plan” and inserting “qualified health plan”.
Section 1906A(b)(2)(B) of the Social Security Act (42 U.S.C. 1396e–1(b)(2)(B)) is amended by striking “high deductible health plan” and inserting “qualified health plan”.
Section 1938(a)(3) of the Social Security Act (42 U.S.C. 1396u–8(a)(3)) is amended by inserting “(as in effect on the day before the date of the enactment of the Health Savings Account Expansion Act of 2019)” after “section 223(c)(2)(C) of the Internal Revenue Code of 1986”.
Section 2105(c)(10)(B)(ii)(II) of the Social Security Act (42 U.S.C. 1397ee(c)(10)(B)(ii)(II)) is amended by striking “high deductible health plan” and inserting “qualified health plan”.
Section 1101(c)(2)(B)(ii) of the Patient Protection and Affordable Care Act (42 U.S.C. 18001(c)(2)(B)(ii)) is amended by striking “section 223(c)(2)” and inserting “section 223(b)(2)”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2019.