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Full Text of this Amendment

SA 3492. Mr. DeMINT submitted an amendment intended to be proposed by him to the bill H.R. 3963, to amend title XXI of the Social Security Act to extend and improve the Children's Health Insurance Program, and for other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle C of title VI, add the following:
SEC. __X. ABOVE-THE-LINE DEDUCTION FOR HEALTH INSURANCE PREMIUMS AND OUT-OF-POCKET EXPENSES.
(a) In General.--Section 62(a) of the Internal Revenue Code of 1986 (defining adjusted gross income) is amended by inserting after paragraph (21) the following new paragraph:
``(22) HEALTH INSURANCE PAYMENTS.--
``(A) IN GENERAL.--Any amount allowable as a deduction under section 213 (determined without regard to any income limitation under subsection (a) thereof) by reason of subsection (d)(1)(D) thereof for qualified health insurance and for any deductible and other out-of-pocket expenses required to be paid under such insurance.
``(B) QUALIFIED HEALTH INSURANCE.--For purposes of this paragraph--
``(i) IN GENERAL.--The term `qualified health insurance' means insurance which constitutes medical care as defined in 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.
``(ii) EXCLUSION OF CERTAIN OTHER CONTRACTS.--Such term shall not include insurance if a substantial portion of its benefits are excepted benefits (as defined in section 9832(c)).''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. __X. USE OF HEALTH SAVINGS ACCOUNTS FOR NON-GROUP HIGH DEDUCTIBLE HEALTH PLAN PREMIUMS.
(a) In General.--Section 223(d)(2)(C) of the Internal Revenue Code of 1986 (relating to exceptions) is amended by striking ``or'' at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ``, or'', and by adding at the end the following new clause:
``(v) a high deductible health plan, other than a group health plan (as defined in section 5000(b)(1)).''.
(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2007.
SEC. __X. CLARIFICATION OF DEFINITION OF GROUP HEALTH PLAN UNDER HIPAA.
(a) ERISA.--Section 733(a)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1191b(a)(1)) is amended by adding at the end the following: ``Such term does not include an arrangement maintained by an employer the sole effect of which is to provide reimbursement to employees for the purchase by such employees of health insurance coverage offered in the individual market (as defined in section 2791(e)(1)) of the Public Health Service Act), notwithstanding that the employer
or an employee organization negotiates the cost or benefits of the arrangement.''.
(b) PHSA.--Section 2791(a)(1) of the Public Health Service Act (42 U.S.C. 300gg-91(a)(1)) is amended by adding at the end the following: ``Such term does not include an arrangement maintained by an employer the sole effect of which is to provide reimbursement to employees for the purchase by such employees of health insurance coverage offered in the individual market, notwithstanding that the employer or an employee organization negotiates the cost or benefits of the arrangement.''.
(c) IRC.--Section 9832(a) of the Internal Revenue Code of 1986 (relating to definitions) is amended by inserting before the period the following: ``, except that such term does not include an arrangement maintained by an employer the sole effect of which is to provide reimbursement to employees for the purchase by such employees of health insurance coverage offered in the individual market (as defined in section 2791(e)(1)) of the Public Health Service Act), notwithstanding that the
employer or an employee organization negotiates the cost or benefits of the arrangement.''.
(d) Effective Date.--The amendments made by this section shall apply to plan years beginning after December 31, 2007.


(As printed in the Congressional Record for the Senate on Oct 31, 2007.)