[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 198 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 198
To amend the Internal Revenue Code of 1986 to allow a deduction for
amounts paid for health insurance and prescription drug costs of
individuals.
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IN THE HOUSE OF REPRESENTATIVES
January 7, 2003
Mr. Stearns (for himself, Mr. Terry, and Mr. Paul) introduced the
following bill; which was referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to allow a deduction for
amounts paid for health insurance and prescription drug costs of
individuals.
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 ``Health Care Tax Deduction Act of
2003''.
SEC. 2. DEDUCTION FOR HEALTH INSURANCE AND PRESCRIPTION DRUG COSTS OF
INDIVIDUALS.
(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by redesignating section 223
as section 224 and by inserting after section 222 the following new
section:
``SEC. 223. HEALTH INSURANCE AND PRESCRIPTION DRUG COSTS.
``(a) In General.--In the case of an individual, there shall be
allowed as a deduction an amount equal to the sum of the amount paid
during the taxable year for--
``(1) insurance which constitutes medical care for the
taxpayer and the taxpayer's spouse and dependents, plus
``(2) unreimbursed prescription drug expenses paid by the
taxpayer for the taxpayer and the taxpayer's spouse and
dependents.
``(b) Limitations and Special Rules.--
``(1) Employer contributions to cafeteria plans, flexible
spending arrangements, and medical savings accounts.--Employer
contributions to a cafeteria plan, a flexible spending or
similar arrangement, or a medical savings account which are
excluded from gross income under section 106 shall be treated
for purposes of subsection (a) as paid by the employer.
``(2) Deduction not available for payment of ancillary
coverage premiums.--Any amount paid as a premium for insurance
which provides for--
``(A) coverage for accidents, disability, dental
care, vision care, or a specified illness, or
``(B) making payments of a fixed amount per day (or
other period) by reason of being hospitalized,
shall not be taken into account under subsection (a).
``(3) Coordination with deduction for health insurance of
self-employed individuals.--The amount taken into account by
the taxpayer in computing the deduction under section 162(l)
shall not be taken into account under this section.
``(4) Coordination with medical expense deduction.--The
amount taken into account by the taxpayer in computing the
deduction under this section shall not be taken into account
under section 213.
``(c) Definitions.--For purposes of this section--
``(1) Medical care.--
``(A) In general.--The term `medical care' has the
meaning given such term by section 213(d) without
regard to--
``(i) paragraph (1)(C) thereof, and
``(ii) so much of paragraph (1)(D) thereof
as relates to qualified long-term care
insurance contracts.
``(B) Exclusion of certain other contracts.--The
term `medical care' shall not include insurance if a
substantial portion of its benefits are excepted
benefits (as defined in section 9832(c)).
``(2) Unreimbursed prescription drug expenses.--The term
`unreimbursed prescription drug expenses' means amounts paid or
incurred for a prescribed drug (as defined by section
213(d)(3)) the cost of which to the taxpayer is not reimbursed
by insurance or otherwise.
``(d) Regulations.--The Secretary shall prescribe such regulations
as may be appropriate to carry out this section.''.
(b) Deduction Allowed Whether or Not Taxpayer Itemizes Other
Deductions.--Subsection (a) of section 62 of such Code is amended by
inserting after paragraph (18) the following new item:
``(19) Health insurance and prescription drug costs.--The
deduction allowed by section 223.''.
(c) Clerical Amendments.--The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by striking the last
item and inserting the following new items:
``Sec. 223. Health insurance and
prescription drug costs.
``Sec. 224. Cross reference.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2003.
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