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Compliance March 9, 2004
Bill to Make HDHP Premiums Deductible Introduced
March 9, 2004 (PLANSPONSOR.com) - Legislation was
introduced in the US House of Representatives to allow health
savings account (HSA) holders to deduct premiums required
under their high deductible health plans (HDHPs).
Reported by Alison Cooke
>Currently, only the employer contributions made to HSAs are deductible.
>Bill H.R. 3901, HSAs for the Uninsured Act of 2004 would amend the Internal Revenue Code of 1986 to create section 224, which would allow for a deduction for HDHP premiums and would apply to taxable years beginning after December 31, 2003.
>The deduction would only be allowed by one plan, even if individuals were covered in multiple plans. It would also be allowed even if the individual does not itemize other deductions. The deduction could not count against the deduction for health insurance of self-employed individuals allowed under Internal Revenue Code section 162 or against the medical expense deduction provided for in section 213.
>The bill is co-sponsored by 44 representatives of both parties and was referred to the House Committee on Ways and Means.