Legislative update: Ways and Means approves health-related tax bills

Ways and Means approves health care-related tax bills

The House Ways and Means Committee reported out (approved) seven health-related tax bills.

Related content

  • H.R. 5447 Small Business Health Care Relief Act of 2016, that would modify the Code to allow employers with 50 or fewer employees additional pre-tax options to financially assist employees with healthcare related cost (passed by "voice vote")
  • H.R. 5445, that would make various modifications to rules governing health savings accounts (HSAs), including raising the contribution limit, allowing two spouses to make catch-up contributions to the same account, and allowing certain expenses incurred prior to opening an account to be reimbursed by the account (passed by 23-15 party-line vote)
  • H.R. 210 Student Worker Exemption Act of 2015, that would exclude student workers from certain calculations related to the Affordable Care Act’s employer mandate for universities (voice vote)
  • H.R. 3590 Halt Tax Increases on the Middle Class and Seniors Act, that would modify the income threshold for determining medical care deduction from current 10% of adjusted gross income (AGI) to previous law 7.5% of AGI, effective for tax years beginning after 2015 (24-11 bipartisan vote)
  • H.R. 5458 Veterans TRICARE Choice Act of 2016, to clarify the interaction between HSAs and TRICARE beneficiaries and makes a number of non-tax related changes to the TRICARE program (voice vote)
  • H.R. 5452 Native American Health Savings Improvement Act, to clarify that individuals receiving care from tribal organizations or the Indian Health Service are eligible to participate in HSAs (voice vote)
  • H.R. 3080 Tribal Employment and Jobs Protection Act, to clarify that tribal employers are not “large employers” for purposes of the Affordable Care Act’s employer mandate (24-13 party-line vote)

Read text of these bills and find the revenue estimates on the Ways and Means website.

The bills will now be referred to the full House of Representatives for possible consideration. A date has not been set for the House to consider the bills. Assuming the House passes the bills, the Senate would need to pass identical legislation and the president would need to sign (or not veto) the legislation. The Senate has not indicated whether it would act on any of these bills.

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