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S. 4312Senate117th Congress (2021-2023)In Committee

Police and Fire Health Care Protection Act of 2022

Sponsored by Sherrod BrownSen. Sherrod Brown (D-OH)
Introduced May 25, 2022

AI-Generated Summary

Updated February 8, 2026 at 3:39 PM UTC

The Police and Fire Health Care Protection Act of 2022 changes the tax treatment of retirement‑plan distributions used for health or long‑term‑care insurance. It lets those distributions be paid to the employee rather than directly to the insurer, while still allowing the premium cost to be excluded from taxable income. The bill mainly affects government employees—such as police and fire personnel—who use these plans for their health coverage.

Key Provisions

  • Amends the tax code to remove the rule that health or long‑term‑care insurance premiums must be paid directly to the insurer when a distribution from a retirement plan is used for those premiums.
  • Allows the distribution to be made to the employee instead, but requires the employee to certify on their tax return that the amount taken does not exceed the premiums they actually paid for qualified health insurance that year.
  • Applies to all distributions from governmental retirement plans for health or long‑term‑care insurance made after the law is enacted.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

May 25, 2022

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SenateIntro Referral

Introduced in Senate

May 25, 2022

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

May 25, 2022

Bill Text

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Introduced in SenateIssued May 25, 2022

II

117th CONGRESS

2d Session

S. 4312

IN THE SENATE OF THE UNITED STATES

May 25, 2022

Mr. Brown (for himself, Mr. Thune, Mr. Warner, and Mr. Grassley) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to repeal the direct payment requirement on the exclusion from gross income of distributions from governmental plans for health and long-term care insurance.

1.

Short title

This Act may be cited as the Police and Fire Health Care Protection Act of 2022.

2.

Repeal of direct payment requirement on exclusion from gross income of distributions from governmental plans for health and long-term care insurance

(a)

In general

Section 402(l)(5)(A) of the Internal Revenue Code of 1986 is amended to read as follows:

(A)

Direct payment to insurer permitted

(i)

In general

Paragraph (1) shall apply to a distribution without regard to whether payment of the premiums is made directly to the provider of the accident or health plan or qualified long-term care insurance contract by deduction from a distribution from the eligible retirement plan, or is made to the employee.

(ii)

Reporting

In the case of a payment made to the employee as described in clause (i), the employee shall include with the return of tax for the taxable year in which the distribution is made an attestation that the distribution does not exceed the amount paid by the employee for qualified health insurance premiums for such taxable year.

.

(b)

Effective date

The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.