HR317-119

2. Health freedom accounts Section 223 of the Internal Revenue Code of 1986 is amended by striking health savings account and health savings accounts each place such terms appear and inserting health freedom account and health freedom accounts, respectively. Section 223(a) of the Internal Revenue Code of 1986 is amended by striking who is an eligible individual for any month during the taxable year. Section 223(d)(2) of the Internal Revenue Code of 1986 is amended by striking subparagraphs (B) and (C) and the last sentence of subparagraph (A) and by adding at the end the following new subsection: The term qualified medical expenses includes costs associated with direct primary care, health care sharing ministries, and medical cost sharing organizations. Section 223(f)(5) of the Internal Revenue Code of 1986 is amended to read as follows: An amount paid or distributed from a health freedom account is a rollover contribution to the extent the amount received is paid into any other health freedom account not later than the 60th day after the date of such payment or distribution. Section 223(b)(1) of such Code is amended by striking the sum of the monthly and all that follows through eligible individual and inserting $12,000 (twice such amount in the case of a joint return). Section 223(b) of such Code is amended by striking paragraphs (2), (5), (7), and (8) and by redesignating paragraphs (3), (4), and (6) as paragraphs (2), (3), and (4), respectively. Section 223(b)(2) of such Code (as redesignated by paragraph (2)) is amended to read as follows: In the case of an individual who has attained age 55 before the close of the taxable year, the limitation under paragraph (1) shall be increased by $5,000. Section 223(b)(3) of such Code (as redesignated by subparagraph (A)) is amended by striking the last sentence. Section 223 of such Code is amended by striking subsection (c). Section 223(d)(1)(A) of such Code is amended by striking will be accepted and all that follows through the period at the end and inserting will be accepted unless it is in cash.. Section 223(f) of such Code is amended by striking paragraphs (7) and (8). Section 223(g)(1) of such Code is amended— by striking Each dollar amount in subsections (b)(2) and (c)(2)(A) and inserting The dollar amount in subsection (b)(1); by striking thereof and all that follows in subparagraph (B) through calendar year 2003. and inserting calendar year 1997.; and by striking under subsections (b)(2) and (c)(2)(A) and inserting under subsection (b)(1). The table of sections for part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended in the item relating to section 223 by striking savings and inserting freedom. The amendments made by this section shall apply with respect to months in taxable years beginning after the date of the enactment of this Act. (B)Additional expensesThe term qualified medical expenses includes costs associated with direct primary care, health care sharing ministries, and medical cost sharing organizations.. (5)Rollover contributionAn amount paid or distributed from a health freedom account is a rollover contribution to the extent the amount received is paid into any other health freedom account not later than the 60th day after the date of such payment or distribution.. (2)Additional contributions for individuals 55 or olderIn the case of an individual who has attained age 55 before the close of the taxable year, the limitation under paragraph (1) shall be increased by $5,000..