H.R. 524 (112th): Restoring Consumer-driven Health Care Act of 2011

112th Congress, 2011–2013. Text as of Feb 08, 2011 (Introduced).

Status & Summary | PDF | Source: GPO

HR 524 IH

112th CONGRESS

1st Session

H. R. 524

To amend the Internal Revenue Code of 1986 to repeal the provisions of the Patient Protection and Affordable Care Act that limit distributions from medical-related tax-preferred accounts for medicines only if the medicines are prescribed drugs or insulin and to repeal the increase in additional tax on distributions from health savings accounts and Archer MSAs not used for qualified medical expenses.

IN THE HOUSE OF REPRESENTATIVES

February 8, 2011

Mr. QUAYLE introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to repeal the provisions of the Patient Protection and Affordable Care Act that limit distributions from medical-related tax-preferred accounts for medicines only if the medicines are prescribed drugs or insulin and to repeal the increase in additional tax on distributions from health savings accounts and Archer MSAs not used for qualified medical expenses.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Restoring Consumer-driven Health Care Act of 2011’.

SEC. 2. REPEAL OF PATIENT PROTECTION AND AFFORDABLE CARE ACT RULE LIMITING DISTRIBUTIONS FOR MEDICINE QUALIFIED ONLY IF FOR PRESCRIBED DRUG OR INSULIN.

    (a) HSAs- Subparagraph (A) of section 223(d)(2) of the Internal Revenue Code of 1986 is amended by striking the last sentence.

    (b) Archer MSAs- Subparagraph (A) of section 220(d)(2) of such Code is amended by striking the last sentence.

    (c) Health Flexible Spending Arrangements and Health Reimbursement Arrangements- Section 106 of such Code is amended by striking subsection (f).

    (d) Effective Dates-

      (1) DISTRIBUTIONS FROM SAVINGS ACCOUNTS- The amendments made by subsections (a) and (b) shall apply to amounts paid with respect to taxable years beginning after December 31, 2010.

      (2) REIMBURSEMENTS- The amendment made by subsection (c) shall apply to expenses incurred with respect to taxable years beginning after December 31, 2010.

SEC. 3. REPEAL OF INCREASE IN ADDITIONAL TAX ON DISTRIBUTIONS FROM HSAS AND ARCHER MSAS NOT USED FOR QUALIFIED MEDICAL EXPENSES.

    (a) HSAs- Section 223(f)(4)(A) of the Internal Revenue Code of 1986 is amended by striking ‘20 percent’ and inserting ‘10 percent’.

    (b) Archer MSAs- Section 220(f)(4)(A) of such Code is amended by striking ‘20 percent’ and inserting ‘15 percent’.

    (c) Effective Date- The amendments made by this section shall apply to distributions made after December 31, 2010.