Section 1 Short title
This Act may be cited as the “Health Savings Freedom Act of 2022”.
Health Savings Freedom Act of 2022
A BILL
To amend the Internal Revenue Code of 1986 to raise the limit on contributions to health savings accounts, to remove the requirement to maintain high deductible coverage with respect to such accounts, to include drugs and medicine as qualified medical expenses for the purposes of such accounts, and for other purposes.
Sec. 2 Health savings accounts
Contribution limit increase—
Individual coverage— Section 223(b)(2)(A) of the Internal Revenue Code of 1986 is amended by striking “$2,250” and inserting “$6,000”.
Family coverage— Section 223(b)(2)(B) of such Code is amended by striking “$4,500” and inserting “$16,000”.
Requirement To maintain coverage under a high deductible plan removed—
Section 223(c)(1) of the Internal Revenue Code of 1986 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 any health plan as of the 1st day of such month.
“(B) 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).
“(C) Special rule for individuals receiving benefits subject to surprise billing statutes—An individual shall not fail to be treated as an eligible individual for any period merely because the individual receives benefits for medical care subject to and in accordance with section 9816 or 9817, section 2799A–1 or 2799A–2 of the Public Health Service Act, or section 716 or 717 of the Employee Retirement Income Security Act of 1974, or any State law providing similar protections to such individual.”
Conforming amendments—
Section 223 of such Code is amended—
in subsection (c), by striking paragraph (2),
by striking “high deductible” each place such term appears, and
in subsection (b)(8)(B), in the heading by striking “high deductible”.
Section 106(e) of such Code is amended—
in paragraph (3), in the heading by striking “high deductible”, and
in paragraph (5)(B)(ii), by striking “high deductible”.
Section 408(d)(9) of such Code is amended—
by striking “high deductible” each place such term appears, and
in subparagraph (D), in the heading by striking “high deductible”.
Sections 1396e–1(b)(2)(B) and 1397ee(c)(10)(B)(ii)(II) are amended by striking “section 223(c)(2)” and inserting “section 220(c)(2)”.
Including medicine and drugs as qualified medical expenses—
Section 223(d)(2) of such Code is amended to read as follows:
“(2) Qualified medical expenses—The term “qualified medical expenses” means the following:
“(A) With respect to an account beneficiary, amounts paid by such beneficiary for any of the following for such individual, the spouse of such individual, any dependent (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof), or of such individual, but only to the extent such amounts are not compensated for by insurance or otherwise:
“(i) Medical care (as defined in section 213(d)).
“(ii) Medicine and drugs.
“(iii) A tampon, pad, liner, cup, sponge, or similar product used by individuals with respect to menstruation or other genital-tract secretions.
“(B) With respect to an account beneficiary, amounts paid by such beneficiary for long-term care expenses for a parent of such individual, but only to the extent such amounts are not compensated for by insurance or otherwise.”
Conforming amendment— Section 223(c) of such Code is amended by striking paragraph (3).
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.