Legislative update: House passes bill to enhance health care tax benefits

House passes bill to enhance health care tax benefits

The U.S. House of Representatives today, by a vote of 243 to 164, passed H.R. 1270, the Restoring Access to Medication Act of 2015.

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Read text [PDF 45 KB] of the bill. Read a revenue estimate of H.R. 1270, prepared by the Joint Committee on Taxation. The bill’s $20.5 billion revenue cost would be offset by repealing a provision of the Affordable Care Act that limits the liability for overpayment of advance payments for premium assistance for persons with household income below 400% of the federal poverty level. 

The bill passed by the House combines three smaller bills—each of which previously had been approved by the Ways and Means Committee:

  • A bill that would make certain over-the-counter drugs eligible for reimbursement through health flexible spending arrangements (FSAs), health reimbursement arrangements (HSAs) and Archer medical savings accounts (Archer MSAs), effective for expenses incurred after December 31, 2016
  • A bill to modify the rules governing HSAs, including measures to increase the contribution limit, allow two spouses to make catch-up contributions to the same account, and allow certain expenses incurred prior to opening an account to be reimbursed by the account, effective for tax years and coverage beginning after December 31, 2016
  • A bill that would require individuals who receive “Obamacare” exchange subsidies that they were not entitled to receive by reason of underreported income to repay the full amount of overpayments to the Treasury

The Senate has not yet scheduled action on the bill, and it is unclear whether the Senate will act on the legislation this year.

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