American Health Care Access Improvement, Portability, and Cost Reduction Act of 2008 - Amends the Internal Revenue Code (IRC) to allow qualified primary care physicians or qualified nurse practitioners a tax credit of $1,000 for each month such providers provide services in a health professional shortage area.
Amends title XVIII (Medicare) of the Social Security Act to make changes to the conversion factor for FY2010 for physicians Medicare payments.
Allows a refundable tax credit for qualified health insurance coverage. Provides for advance payment of such credit.
Revises IRC provisions relating to health savings accounts (HSAs) to: (1) allow HSAs to incorporate flexible spending and health reimbursement arrangements; (2) increase the annual HSA contribution limitation; (3) permit the use of HSAs to purchase health insurance; (4) allow the payment of certain medical expenses incurred before the establishment of an HSA; (5) allow veterans eligible for service-connected disability benefits to establish an HSA; and (6) allow spouses to make increased catch-up contributions to a single HSA.
Requires the inclusion of education information about advance directives in the annual notice of Medicare benefits sent to eligible individuals.
Revises provisions concerning Medicare+Choice private fee-for-service plans related to access standards under the plans and utilization.
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 7166 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 7166
To improve access to health care and health insurance.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 26, 2008
Mr. Sali introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on Energy
and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To improve access to health care and health insurance.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Health
Care Access Improvement, Portability, and Cost Reduction Act of 2008''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Nonrefundable credit for certain primary health services
providers serving health professional
shortage areas.
Sec. 3. Increase in Medicare physician payments through 2010.
Sec. 4. Refundable credit for health insurance coverage.
Sec. 5. Health reimbursement arrangements and spending arrangements in
combination with health savings accounts.
Sec. 6. Increase in annual HSA contribution limitation.
Sec. 7. Purchase of health insurance from HSA account.
Sec. 8. Special rule for certain medical expenses incurred before
establishment of account.
Sec. 9. Provisions relating to Medicare.
Sec. 10. Individuals eligible for veterans benefits for a service-
connected disability.
Sec. 11. Allow both spouses to make catch-up contributions to the same
HSA account.
Sec. 12. FSA and HRA Termination to fund HSAs.
Sec. 13. Including information on advance directives in Medicare & You
Handbook.
Sec. 14. Restoring access requirements for certain MA private fee-for-
service plan provisions as in existence
before Public Law 110-275.
SEC. 2. NONREFUNDABLE CREDIT FOR CERTAIN PRIMARY HEALTH SERVICES
PROVIDERS SERVING HEALTH PROFESSIONAL SHORTAGE AREAS.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to nonrefundable
personal credits) is amended by inserting after section 25D the
following new section:
``SEC. 25E. PRIMARY CARE PHYSICIANS PROVIDERS SERVING HEALTH
PROFESSIONAL SHORTAGE AREAS.
``(a) Allowance of Credit.--In the case of an individual who is a
qualified primary care physician or qualified nurse practitioner for
any month during the taxable year, there shall be allowed as a credit
against the tax imposed by this chapter for such taxable year an amount
equal to $1,000 for each month during such taxable year--
``(1) which is part of the eligible service period of such
individual, and
``(2) for which such individual is a qualified primary care
physician or qualified nurse practitioner, respectively.
``(b) Qualified Primary Care Physician.--For purposes of this
section, the term `qualified primary care physician' means, with
respect to any month, any physician who is certified for such month by
the Bureau to be a primary health services provider or a licensed
mental health provider who--
``(1) is providing primary health services full time and
substantially all of whose primary health services are provided
in a health professional shortage area,
``(2) is not receiving during the calendar year which
includes such month a scholarship under the National Health
Service Corps Scholarship Program or the Indian health
professions scholarship program or a loan repayment under the
National Health Service Corps Loan Repayment Program or the
Indian Health Service Loan Repayment Program,
``(3) is not fulfilling service obligations under such
Programs, and
``(4) has not defaulted on such obligations.
``(c) Eligible Service Period.--For purposes of this section, the
term `eligible service period' means the period of 60 consecutive
calendar months beginning with the first month the taxpayer is a
qualified primary care physician or qualified nurse practitioner.
``(d) Other Definitions and Special Rule.--For purposes of this
section--
``(1) Bureau.--The term `Bureau' means the Bureau of
Primary Health Care, Health Resources and Services
Administration of the United States Department of Health and
Human Services.
``(2) Physician.--The term `physician' has the meaning
given to such term by section 1861(r) of the Social Security
Act.
``(3) Primary health services provider.--The term `primary
health services provider' means a provider of basic health
services (as described in section 330(b)(1)(A)(i) of the Public
Health Service Act).
``(4) Qualified nurse practitioner.--The term `qualified
nurse practitioner' means a nurse practitioner (as defined in
section 1861(aa)(5) of the Social Security Act) who is
providing primary health services full time and substantially
all of whose primary health services are provided in a health
professional shortage area.
``(5) Health professional shortage area.--The term `health
professional shortage area' means any area which, as of the
beginning of the eligible service period, is a health
professional shortage area (as defined in section 332(a)(1) of
the Public Health Service Act) taking into account only the
category of health services provided by the qualified primary
care physician or qualified nurse practitioner, as applicable.
``(6) Only 60 months taken into account.--In no event shall
more than 60 months be taken into account under subsection (a)
by any individual for all taxable years.''
(b) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25D the
following new item:
``25E. Primary care physicians serving health professional shortage
areas.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 3. INCREASE IN MEDICARE PHYSICIAN PAYMENTS THROUGH 2010.
Section 1848(d)(9) of the Social Security Act (42 U.S.C. 1395w-
4(d)(9)), as added by section 131(a)(1)(B) of the Medicare Improvements
for Patients and Providers Act of 2008 (Public Law 110-275), is
amended--
(1) in subparagraph (A), by striking ``for 2009'' and
inserting ``for each of 2009 and 2010''; and
(2) in subparagraph (B), by striking ``2010'' and inserting
``2011''.
SEC. 4. REFUNDABLE CREDIT FOR HEALTH INSURANCE COVERAGE.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 37 as section 38 and by inserting
after section 36 the following new section:
``SEC. 37. QUALIFIED HEALTH INSURANCE CREDIT.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year the sum of the monthly limitations determined
under subsection (b) for the taxpayer and the taxpayers spouse and
dependents.
``(b) Monthly Limitation.--
``(1) In general.--The monthly limitation for each month
during the taxable year for an eligible individual is \1/12\th
of--
``(A) the applicable adult amount, in the case that
the eligible individual is the taxpayer or the
taxpayer's spouse,
``(B) the applicable adult amount, in the case that
the eligible individual is an adult dependent, and
``(C) the applicable child amount, in the case that
the eligible individual is a child dependent.
``(2) Limitation on aggregate amount.--Notwithstanding
paragraph (1), the aggregate monthly limitations for the
taxpayer and the taxpayer's spouse and dependents for any month
shall not exceed \1/12\th of the applicable aggregate amount.
``(3) No credit for ineligible months.--With respect to any
individual, the monthly limitation shall be zero for any month
for which such individual is not an eligible individual.
``(c) Applicable Amounts.--For purposes of this section--
``(1) Applicable adult amount.--The term `applicable adult
amount' means $2,500.
``(2) Applicable child amount.--The term `applicable child
amount' means $1,000.
``(3) Applicable aggregate amount.--The term `applicable
aggregate amount' means $5,000.
``(d) Eligible Individual.--For purposes of this section--
``(1) In general.--The term `eligible individual' means,
with respect to any month, an individual who--
``(A) is the taxpayer, the taxpayer's spouse, or
the taxpayer's dependent, and
``(B) is covered under qualified health insurance
as of the 1st day of such month.
``(2) Coverage under medicare, medicaid, schip, military
coverage.--The term `eligible individual' shall not include any
individual for a month if, as of the first day of such month,
such individual is--
``(A) entitled to benefits under part A of title
XVIII of the Social Security Act or enrolled under part
B of such title, and the individual is not a
participant or beneficiary in a group health plan or
large group health plan that is a primary plan (as
defined in section 1862(b)(2)(A) of such Act),
``(B) in the case of a State that has not made the
election described in section 1939(a)(1)(B) of the
Social Security Act, enrolled in the program under
title XIX of such Act (other than under section 1928 of
such Act), or
``(C) entitled to benefits under chapter 55 of
title 10, United States Code.
``(3) Identification requirements.--The term `eligible
individual' shall not include any individual for any month
unless the policy number associated with the qualified refund
eligible health insurance and the TIN of each eligible
individual covered under such health insurance for such month
are included on the return of tax for the taxable year in which
such month occurs.
``(4) Prisoners.--The term `eligible individual' shall not
include any individual for a month if, as of the first day of
such month, such individual is imprisoned under Federal, State,
or local authority.
``(5) Aliens.--The term `eligible individual' shall not
include any alien individual for a month if, as of the first
day of such month, such individual is not a lawful permanent
resident of the United States.
``(e) Qualified Health Insurance.--For purposes of this section--
``(1) In general.--The term `qualified health insurance'
means any insurance constituting medical care which (as
determined under regulations prescribed by the Secretary)
provides coverage for inpatient and outpatient care, emergency
benefits, and physician care.
``(2) Certain coverage disregarded.--Such term does not
include any insurance--
``(A) substantially all of the coverage of which is
coverage described in section 223(c)(1)(B), or
``(B) which constitutes medical care under any
health plan maintained by any employer (or former
employer) of the taxpayer or the taxpayer's spouse.
``(f) Other Definitions.--For purposes of this section--
``(1) Dependent.--The term `dependent' has the meaning
given such term by section 152 (determined without regard to
subsections (b)(1), (b)(2), and (d)(1)(B) thereof). An
individual who is a child to whom section 152(e) applies shall
be treated as a dependent of the custodial parent for a
coverage month unless the custodial and noncustodial parent
agree otherwise.
``(2) Adult.--The term `adult' means an individual who is
not a child.
``(3) Child.--The term `child' means a qualifying child (as
defined in section 152(c)).
``(g) Special Rules.--
``(1) Coordination with medical deduction, etc.--Any amount
paid by a taxpayer for insurance to which subsection (a)
applies shall not be taken into account in computing the amount
allowable to the taxpayer as a credit under section 35 or as a
deduction under section 213(a).
``(2) Medical and health savings accounts.--The credit
allowed under subsection (a) for any taxable year shall be
reduced by the aggregate amount distributed from Archer MSAs
(as defined in section 220(d)) and health savings accounts (as
defined in section 223(d)) which are excludable from gross
income for such taxable years by reason of being used to pay
premiums for coverage of an eligible individual (as defined in
subsection (e)) under qualified health insurance (as defined in
subsection (f)) for any month.
``(3) Denial of credit to dependents.--No credit shall be
allowed under this section to any individual with respect to
whom a deduction under section 151 is allowable to another
taxpayer for a taxable year beginning in the calendar year in
which such individuals taxable year begins.
``(4) Married couples must file joint return.--
``(A) In general.--If the taxpayer is married at
the close of the taxable year, the credit shall be
allowed under subsection (a) only if the taxpayer and
his spouse file a joint return for the taxable year.
``(B) Marital status; certain married individuals
living apart.--Rules similar to the rules of paragraphs
(3) and (4) of section 21(e) shall apply for purposes
of this paragraph.
``(5) Verification of coverage, etc.--No credit shall be
allowed under this section with respect to any individual
unless such individual's coverage (and such related information
as the Secretary may require) is verified in such manner as the
Secretary may prescribe.
``(6) Insurance which covers other individuals; treatment
of payments.--Rules similar to the rules of paragraphs (7) and
(8) of section 35(g) shall apply for purposes of this section.
``(h) Coordination With Advance Payments.--
``(1) Reduction in credit for advance payments.--With
respect to any taxable year, the amount which would (but for
this subsection) be allowed as a credit to the taxpayer under
subsection (a) shall be reduced (but not below zero) by the
aggregate amount paid on behalf of such taxpayer under section
7527A for months beginning in such taxable year.
``(2) Recapture of excess advance payments.--If the
aggregate amount paid on behalf of the taxpayer under section
7527A for months beginning in the taxable year exceeds the sum
of the monthly limitations determined under subsection (b) for
the taxpayer and the taxpayer's spouse and dependents for such
months, then the tax imposed by this chapter for such taxable
year shall be increased by the sum of--
``(A) such excess, plus
``(B) interest on such excess determined at the
underpayment rate established under section 6621 for
the period from the date of the payment under section
7527A to the date such excess is paid.
For purposes of subparagraph (B), an equal part of the
aggregate amount of the excess shall be deemed to be
attributable to payments made under section 7527A on the first
day of each month beginning in such taxable year, unless the
taxpayer establishes the date on which each such payment giving
rise to such excess occurred, in which case subparagraph (B)
shall be applied with respect to each date so established.
``(i) Annual Inflation Adjustment.--In the case of any taxable year
beginning in a calendar year after 2009, each of the dollar amounts
contained in subsection (c) shall be annually increased by the annual
inflation adjustment determined under subparagraph (B) section
1809(c)(2) of the Social Security Act for such calendar year. Any
adjustment under the preceding sentence shall be rounded in the manner
described in subparagraph (A) of such section.''.
(b) Advance Payment of Credit.--Chapter 77 (relating to
miscellaneous provisions) of such Code is amended by inserting after
section 7527 the following new section:
``SEC. 7527A. ADVANCE PAYMENT OF QUALIFIED HEALTH INSURANCE CREDIT.
``(a) In General.--The Secretary shall establish a program for
making payments on behalf of individuals to providers of qualified
health insurance (as defined in section 37(e)) for such individuals.
``(b) Limitation.--The Secretary may make payments under subsection
(a) only to the extent that the Secretary determines that the amount of
such payments made on behalf of any taxpayer for any month does not
exceed the sum of the monthly limitations determined under section 37
for the taxpayer and taxpayer's spouse and dependents for such
month.''.
(c) Information Reporting.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 of such Code (relating to information concerning
transactions with other persons) is amended by inserting after
section 6050V the following new section:
``SEC. 6050W. RETURNS RELATING TO QUALIFIED HEALTH INSURANCE CREDIT.
``(a) Requirement of Reporting.--Every person who is entitled to
receive payments for any month of any calendar year under section 7527A
(relating to advance payment of qualified health insurance credit) with
respect to any individual shall, at such time as the Secretary may
prescribe, make the return described in subsection (b) with respect to
each such individual.
``(b) Form and Manner of Returns.--A return is described in this
subsection if such return--
``(1) is in such form as the Secretary may prescribe, and
``(2) contains, with respect to each individual referred to
in subsection (a)--
``(A) the name, address, and TIN of each such
individual,
``(B) the months for which amounts payments under
section 7527A were received,
``(C) the amount of each such payment,
``(D) the type of insurance coverage provide by
such person with respect to such individual and the
policy number associated with such coverage,
``(E) the name, address, and TIN of the spouse and
each dependent covered under such coverage, and
``(F) such other information as the Secretary may
prescribe.
``(c) Statements To Be Furnished to Individuals With Respect to
Whom Information Is Required.--Every person required to make a return
under subsection (a) shall furnish to each individual whose name is
required to be set forth in such return a written statement showing--
``(1) the name and address of the person required to make
such return and the phone number of the information contact for
such person, and
``(2) the information required to be shown on the return
with respect to such individual.
The written statement required under the preceding sentence shall be
furnished on or before January 31 of the year following the calendar
year for which the return under subsection (a) is required to be made.
``(d) Returns Which Would Be Required To Be Made by 2 or More
Persons.--Except to the extent provided in regulations prescribed by
the Secretary, in the case of any amount received by any person on
behalf of another person, only the person first receiving such amount
shall be required to make the return under subsection (a).''.
(2) Assessable penalties.--
(A) Subparagraph (B) of section 6724(d)(1)
(relating to definitions) of such Code is amended by
redesignating clauses (xv) through (xxi) as clauses
(xvi) through (xxii), respectively, and by inserting
after clause (xiv) the following new clause:
``(xv) section 6050W (relating to returns
relating to qualified health insurance
credit),''.
(B) Paragraph (2) of section 6724(d) of such Code
is amended by striking the period at the end of
subparagraph (CC) and inserting ``, or'' and by
inserting after subparagraph (CC) the following new
subparagraph:
``(DD) section 6050W (relating to returns relating to
qualified health insurance credit).''.
(d) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``37,'' after ``36,''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by redesignating the item relating to section 37 as
an item relating to section 38 and by inserting after the item
relating to section 36 the following new item:
``Sec. 37. Qualified health insurance credit.''.
(3) The table of sections for chapter 77 of such Code is
amended by inserting after the item relating to section 7527
the following new item:
``Sec. 7527A. Advance payment of qualified health insurance credit.''.
(4) The table of sections for subpart B of part III of
subchapter A of chapter 61 of such Code is amended by adding at
the end the following new item:
``Sec. 6050W. Returns relating to qualified health insurance credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 5. HEALTH REIMBURSEMENT ARRANGEMENTS AND SPENDING ARRANGEMENTS IN
COMBINATION WITH HEALTH SAVINGS ACCOUNTS.
(a) In General.--Subparagraph (B) of section 223(c)(1) of the
Internal Revenue Code of 1986 (relating to certain coverage
disregarded) is amended by striking ``and'' at the end of clause (ii),
by striking the period at the end of clause (iii) and inserting ``,
and'', and by inserting after clause (iii) the following new clause:
``(iv) coverage under a flexible spending
arrangement or a health reimbursement
arrangement, or both, which meets the
requirements of paragraph (6).''.
(b) Combination Health Reimbursement, Savings, and Spending
Arrangements.--Subsection (c) of section 223 of such Code (relating to
definitions and special rules) is amended by adding at the end the
following new paragraph:
``(6) Combined limit for contributions or credits to health
reimbursement, arrangements and spending arrangements.--
``(A) In general.--In the case of coverage under a
flexible spending arrangement or a health reimbursement
arrangement, or both, such coverage meets the
requirements of this paragraph if, with respect to an
individual--
``(i) the sum of--
``(I) the amount allowable as a
deduction under subsection (a),
``(II) the salary reduction amount
elected by the individual and, if
applicable, the employer contribution
or credit allocated to the individual
for the taxable year under the flexible
spending arrangement (as defined in
section 106(c)(2)), plus
``(III) the amounts that the
individual is permitted, under the
terms of the plan, to receive in
reimbursements for the taxable year
under the health reimbursement
arrangement, does not exceed
``(ii) the sum of the annual deductible and
the other annual out-of-pocket expenses (other
than for premiums) required to be paid under
the plan by the eligible individual for covered
benefits.
``(B) Exceptions for disregarded coverage.--For
purposes of subparagraph (A)--
``(i) Certain flexible spending
arrangements.--Any flexible spending
arrangement salary reduction amounts or
employer contributions or credits that are
restricted by the employer to use for coverage
described in paragraph (1)(B) shall not be
taken into account under subparagraph
(A)(i)(II).
``(ii) Certain health reimbursement
arrangements.--Any reimbursements from a health
reimbursement arrangement for coverage
described in paragraph (1)(B) shall not be
taken into account under subparagraph
(A)(i)(III).
``(iii) Qualified hsa distributions from
fsa and hra terminations.--Any qualified HSA
distribution (as defined in section 106(e))
shall not be taken into account under
subparagraph (A)(i).
``(C) Termination.--Coverage shall not be treated
as meeting the requirements of this paragraph for any
taxable year beginning after December 31, 2012.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 6. INCREASE IN ANNUAL HSA CONTRIBUTION LIMITATION.
(a) In General.--Paragraph (2) of section 223(b) of the Internal
Revenue Code of 1986 (relating to monthly limitation) is amended--
(1) in subparagraph (A) by striking ``$2,250'' and
inserting ``$4,500'', and
(2) in subparagraph (B) by striking ``$4,500'' and
inserting ``$9,000''.
(b) Cost-of-Living Adjustment.--Section 223(g)(1)(B)(i) of such
Code is amended by striking ``calendar year 1997'' and inserting
``calendar year 2008''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 7. PURCHASE OF HEALTH INSURANCE FROM HSA ACCOUNT.
(a) In General.--Paragraph (2) of section 223(d) of the Internal
Revenue Code of 1986 (defining qualified medical expenses) is amended--
(1) by striking subparagraphs (B) and (C),
(2) in subparagraph (A) by striking ``(a) in general.--''
and moving the text 2 ems to the left, and
(3) by inserting `` and including payment for insurance)''
after ``section 213(d)''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to insurance purchased after the date of the
enactment of this Act in taxable years beginning after such date.
SEC. 8. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE
ESTABLISHMENT OF ACCOUNT.
(a) In General.--Subsection (d) of section 223 of the Internal
Revenue Code of 1986 is amended by redesignating paragraph (4) as
paragraph (5) and by inserting after paragraph (3) the following new
paragraph:
``(4) Certain medical expenses incurred before
establishment of account treated as qualified.--
``(A) In general.--For purposes of paragraph (2),
an expense shall not fail to be treated as a qualified
medical expense solely because such expense was
incurred before the establishment of the health savings
account if such expense was incurred during the 60-day
period beginning on the date on which the high
deductible health plan is first effective.
``(B) Special rules.--For purposes of subparagraph
(A)--
``(i) an individual shall be treated as an
eligible individual for any portion of a month
for which the individual is described in
subsection (c)(1), determined without regard to
whether the individual is covered under a high
deductible health plan on the 1st day of such
month, and
``(ii) the effective date of the health
savings account is deemed to be the date on
which the high deductible health plan is first
effective after the date of the enactment of
this paragraph.''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to insurance purchased after the date of the enactment of
this Act in taxable years beginning after such date.
SEC. 9. PROVISIONS RELATING TO MEDICARE.
(a) Individuals Over Age 65 Only Enrolled in Medicare Part A.--
Section 223(b)(7) of the Internal Revenue Code of 1986 (relating to
contribution limitation on Medicare eligible individuals) is amended by
adding at the end the following new sentence: ``This paragraph shall
not apply to any individual during any period the individual's only
entitlement to such benefits is an entitlement to hospital insurance
benefits under part A of title XVIII of such Act pursuant to an
enrollment for such hospital insurance benefits under section 226(a)(1)
of such Act.''.
(b) Medicare Beneficiaries Participating in Medicare Advantage MSA
May Contribute Their Own Money to Their MSA.--Subsection (b) of section
138 of such Code is amended by striking paragraph (2) and redesignating
paragraphs (3) and (4) as paragraphs (2) and (3), respectively.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 10. INDIVIDUALS ELIGIBLE FOR VETERANS BENEFITS FOR A SERVICE-
CONNECTED DISABILITY.
(a) In General.--Section 223(c)(1) of the Internal Revenue Code of
1986 (defining eligible individual) is amended by adding at the end the
following new subparagraph:
``(D) Special rule for individuals eligible for
certain veterans benefits.--For purposes of
subparagraph (A)(ii), an individual shall not be
treated as covered under a health plan described in
such subparagraph merely because the individual
receives periodic hospital care or medical services for
a service-connected disability under any law
administered by the Secretary of Veterans Affairs but
only if the individual is not eligible to receive such
care or services for any condition other than a
service-connected disability.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 11. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CONTRIBUTIONS TO THE SAME
HSA ACCOUNT.
(a) In General.--Paragraph (3) of section 223(b) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(C) Special rule where both spouses are eligible
individuals with 1 account.--If--
``(i) an individual and the individual's
spouse have both attained age 55 before the
close of the taxable year, and
``(ii) the spouse is not an account
beneficiary of a health savings account as of
the close of such year,
the additional contribution amount shall be 200 percent
of the amount otherwise determined under subparagraph
(B).''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 12. FSA AND HRA TERMINATION TO FUND HSAS.
(a) Grace Period Not Required.--Section 106(e)(2) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
sentence: ``A distribution shall not fail to be treated as a qualified
HSA distribution merely because the balance in such arrangement is
determined without regard to the requirement that unused amounts
remaining at the end of a plan year must be forfeited in the absence of
a grace period.''.
(b) Deposit in Limited FSA or HRA of Funds in Excess FSA or HRA
Termination Distribution.--Paragraph (1) of section 106(e) of such Code
is amended by inserting before the period at the end thereof the
following: ``and the deposit of funds in excess of a qualified HSA
distribution amount into a health flexible spending account or health
reimbursement arrangement which is compatible with a health savings
account and which, on the date of such distribution, is a part of the
employer's plan''.
(c) Disclaimer of Disqualifying Coverage.--Subparagraph (B) of
section 223(c)(1) of such Code is amended by striking ``and'' at the
end of clause (ii), by striking the period at the end of clause (iii)
and inserting ``, and'', and by inserting after clause (iii) the
following new clause:
``(iv) any coverage (whether actual or
prospective) otherwise described in
subparagraph (A)(ii) which is disclaimed at the
time of the creation or organization of the
health savings account.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 13. INCLUDING INFORMATION ON ADVANCE DIRECTIVES IN MEDICARE & YOU
HANDBOOK.
(a) In General.--Section 1804(a) of the Social Security Act (42
U.S.C. 1395b-2(a)) is amended--
(1) in paragraph (2), at the end by striking ``and'';
(2) in paragraph (3), at the end by striking the period and
inserting ``; and''; and
(3) by inserting after paragraph (3), the following new
paragraph:
``(4) educational information about advance directives (as
defined in section 1866(f)(3)).''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to information distributed for years beginning on or after the
date of the enactment of this Act.
SEC. 14. RESTORING ACCESS REQUIREMENTS FOR CERTAIN MA PRIVATE FEE-FOR-
SERVICE PLAN PROVISIONS AS IN EXISTENCE BEFORE PUBLIC LAW
110-275.
(a) In General.--Section 1852(d) of the Social Security Act (42
U.S.C. 1395w-22(d)), as amended by section 162(a) of the Medicare
Improvements for Patients and Providers Act of 2008 (Public Law 110-
275), is amended--
(1) in paragraph (4), in the second sentence--
(A) by striking ``Subject to paragraphs (5) and
(6), the Secretary'' and inserting ``The Secretary'';
and
(B) in subparagraph (B), by striking ``sufficient
number and range of providers within such category to
meet the access standards in subparagraphs (A) through
(E) of paragraph (1)'' and inserting ``sufficient
number and range of providers within such category to
provide covered services under the terms of the plan'';
and
(2) by striking paragraphs (5) and (6).
(b) Clarification Regarding Utilization.--Section 1859(b)(2) of the
Social Security Act (42 U.S.C. 1395w-28(b)(2)), as amended by section
162(b) of the Medicare Improvements for Patients and Providers Act of
2008 (Public Law 110-275), is amended by striking ``Nothing in
subparagraph (B)'' through ``specified preventive or screening
services.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Environment and Hazardous Materials.
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