| Home > 105th Congressional Bills > H.R. 2544 (rfs) To improve the ability of Federal agencies to license federally owned inventions. ...
H.R. 2544 (rfs) To improve the ability of Federal agencies to license federally owned inventions. ...
108th CONGRESS 1st Session H. R. 2544 To improve the quality, availability, diversity, personal privacy, and innovation of health care in the United States. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES June 19, 2003 Mr. Rohrabacher introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned _______________________________________________________________________ A BILL To improve the quality, availability, diversity, personal privacy, and innovation of health care in the United States. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Medical Independence, Privacy, and Innovation Act of 2003''. (b) Table of Contents.--The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--TAX-RELATED PROVISIONS Sec. 101. Findings. Sec. 102. Deduction of medical expenses for individuals. Sec. 103. Medical checking accounts. Sec. 104. Decrease in minimum annual deductibles under a high deductible health plan for purposes of Archer MSAs. TITLE II--MEDICAL PRIVACY Sec. 201. Findings. Sec. 202. Modification of regulations on privacy of individually identifiable health information. TITLE III--MODIFICATIONS REGARDING REGULATION OF DRUGS UNDER FEDERAL FOOD, DRUG, AND COSMETIC ACT Sec. 301. Definition of drug. Sec. 302. Striking of effectiveness requirement; modifications regarding patent listings, patent certifications, and thirty-month rule. Sec. 303. Granting of exclusive or partially exclusive licenses regarding inventions made with Federal assistance. Sec. 304. Importation of certain drugs. TITLE I--TAX-RELATED PROVISIONS SEC. 101. FINDINGS. The Congress finds the following: (1) Current law confers tax benefits for health insurance provided as an employee fringe benefit, but no similar tax benefit for health insurance purchased by individuals thus creating an unfair bias toward employer provided medical insurance plans and an unfair discrimination against individuals who seek marketplace alternatives to health insurance. (2) Current law confers a tax benefits for third party payment of medical expenses but no similar tax benefits for direct individual payment of medical expenses. This has promoted employer-provided third party payment systems and discouraged direct doctor-patient relationships. (3) The current tax treatment of medical expenses has resulted in a greatly distorted marketplace in medical insurance where decreased opportunities for private personal health insurance has reduced competition both for medical insurance and health care services. This has resulted in an increased costs of both health insurance and health care services and fostered over use of low high premium health insurance plans. (4) The current tax treatment of medical expenses has restricted the freedom of individuals to exercise direct control over their health care dollars. The exclusion from gross income for employer-provided health care with no corresponding tax benefit for health insurance and health care costs bourn by individuals represents a strong incentive toward employers group plans. (5) The tax codes preferment of employer-provided group plans has triggered a marketplace response reflected in the significant increases in large health care delivery, and the creation of a relative few health care conglomerates in lieu of thousands of competitive providers of medical insurance and services. This has increasingly placed medical decisions in the hands of health care bureaucracies and has eroded doctor- patient relationships. (6) The role of the marketplace in both medical insurance and medical services should be strengthened. The discriminatory tax policies in the area of health insurance and health care should be ended. Private individuals should be able to contract for their health insurance and health care delivery in atmosphere free of discriminatory tax pressures. High deductible low premium as well as catastrophic alternatives in health insurance should be viable options for all Americans. SEC. 102. DEDUCTION OF MEDICAL EXPENSES FOR INDIVIDUALS. (a) In General.--Subsection (a) of section 213 of the Internal Revenue Code of 1986 (relating to treatment of medical, dental, etc., expenses) is amended to read as follows: ``(a) Allowance of Deduction.--There shall be allowed as a deduction the expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a dependent (as defined by section 152).''. (b) Deduction Allowed in Computing Adjusted Gross Income.-- Subsection (a) of section 62 of such Code is amended by inserting after paragraph (18) the following new paragraph: ``(19) Medical care.--The deduction allowed by section 213.''. (c) Conforming Amendments.-- (1) Section 56(b)(1) of such Code is amended by striking subparagraph (B). (2) Section 67(b) is amended by striking paragraph (5). (3) Section 72(t)(B) of such Code is amended by striking ``to the extent such distributions do not exceed the amount'' and inserting ``which are''. (4) Sections 104(a) and 105(b) of such Code are both amended by striking ``(and not in excess of)''. (d) Effective Date.-- The amendments made by this section shall apply to taxable years beginning after December 31, 2003. SEC. 103. MEDICAL CHECKING ACCOUNTS. (a) In General.--Subchapter F of chapter 1 of the Internal Revenue Code of 1986 (relating to exempt organizations) is amended by adding at the end the following: ``PART IX--MEDICAL CHECKING ACCOUNTS ``Sec. 530A. Medical checking accounts. ``SEC. 530A. MEDICAL CHECKING ACCOUNTS. ``(a) General Rule.--A medical checking account shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, any medical checking account shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable, etc., organizations). Rules similar to the rules of paragraphs (2) and (4) of section 408(e) shall apply to medical checking accounts, and any amount treated as distributed under such rules shall be treated as not used to pay qualified medical expenses. ``(b) Deduction for Contributions.-- ``(1) In general.--In the case of an individual, there shall be allowed as a deduction an amount equal to the aggregate amount paid in cash during the taxable year to a medical checking account of the taxpayer. ``(2) Limitations.-- ``(A) Maximum annual contribution.--The deduction under paragraph (1) for a taxable year shall not exceed $1,000 ($2,000 in the case of a joint return). ``(B) Maximum allowable deduction based on balance in account.--No deduction shall be allowed for a taxable year for any amount contributed to a medical checking account if the sum of such amount plus the balance in the account determined as the end of the taxable year would exceed $2,000 ($4,000 in the case of married individuals filing a joint return, a surviving spouse, and a head of household). ``(c) Credit for Contributions.-- ``(1) In general.--In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the credit amount with respect to contributions made during the taxable year to the medical checking account of the taxpayer. ``(2) Credit amount.--For purposes of paragraph (1), the credit amount is the lesser of-- ``(A) the total amount of contributions to the medical checking account for the taxable year reduced by the amount of contributions allowed as a deduction under subsection (b), and ``(B) $1,000. ``(d) Definitions and Special Rules.--For purposes of this section-- ``(1) Medical checking account.--The term `medical checking account' means a trust created or organized in the United States for the exclusive benefit of a qualified individual or his beneficiaries, but only if the written governing instrument creating the trust meets the following requirements: ``(A) Except in the case of a rollover contribution described in paragraph (4)(C), no contribution will be accepted unless it is in cash, or it exceeds $1,000 ($2,000 in the case of married individuals filing a joint return, a surviving spouse, and a head of household). ``(B) The trustee is a bank (as defined in section 408(n), an insurance company (as defined in section 816), or another person who demonstrates to the satisfaction of the Secretary that the manner in which such person will administer the trust will be consistent with the requirements of this section. ``(C) No part of the trust assets will be invested in life insurance contracts. ``(D) The assets of the trust will not be commingled with other property except in a common trust fund or common investment fund. ``(E) The interest of an individual in the balance in his account is nonforfeitable. ``(2) Qualified medical expenses.--The term `qualified medical expenses' means, with respect to an account holder, amounts paid by such holder for medical care (as defined in section 213(d) for such individual, the spouse of such individual, and any dependent (as defined in section 152 of such individual, but only to the extent such amounts are not compensated for by insurance or otherwise (including distributions from an Archer MSA which are not includible in gross income by reason of section 220(f)(1)). ``(3) Change in filing status.--In the case of a taxpayer whose filing status changes during the taxable year, the limitation under subparagraph (B) shall be apportioned among the filing statuses of the taxpayer in accordance with regulations prescribed by the Secretary. ``(4) Certain rules to apply.--Rules similar to the following rules shall apply for purposes of this section: ``(A) Section 219(d)(2) (relating to no deduction for rollovers). ``(B) Section 219(f)(3) (relating to time when contributions deemed made). ``(C) Section 219(f)(5) (relating to employer payments). ``(D) Section 220(f)(5) (relating to rollover contributions). ``(E) Section 220(f)(7) (relating to transfer of account incident to divorce). ``(F) Section 220(f)(8) (relating to treatment after death of account holder). ``(G) Section 408(g) (relating to community property laws). ``(H) Section 408(h) (relating to custodial accounts). ``(e) Tax Treatment of Distributions.-- ``(1) Amounts used for qualified medical expenses.--Any amount paid or distributed out of a medical checking account which is used exclusively to pay qualified medical expenses of any account holder shall not be includible in gross income. ``(2) Inclusion of amounts not used for qualified medical expenses.--Any amount paid or distributed out of a medical checking account which is not used exclusively to pay the qualified medical expenses of the account holder shall be included in the gross income of such holder. ``(3) Additional tax on distributions not used for qualified medical expenses.--For purposes of this section, rules similar to the rules of section 220(f)(4) shall apply. ``(4) Coordination with medical expense deduction.--For purposes of determining the amount of the deduction under section 213, any payment or distribution out of a medical checking account for qualified medical expenses shall not be treated as an expense paid for medical care. ``(f) Reports.--The Secretary may require the trustee of a medical checking account to make such reports regarding such account to the Secretary and to the account holder with respect to contributions, distributions, and such other matters as the Secretary determines appropriate. The reports required by this subsection shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required by the Secretary.''. (b) Tax on Excess Contributions.--Section 4973 of such Code (relating to tax on excess contributions to individual retirement accounts, certain section 403(b) contracts, and certain individual retirement annuities) is amended-- (1) in subsection (a) by striking ``or'' at the end of paragraph (3), by inserting ``or'' at the end of paragraph (4), and by inserting after paragraph (4) the following: ``(5) a medical checking account (within the meaning of section 530A(d)),'', and (2) by adding at the end the following new subsection: ``(g) Excess Contributions to Medical Checking Accounts.--For purposes of this section, in the case of medical checking accounts (within the meaning of section 530A(d)), the term `excess contributions' means the sum of-- ``(1) the aggregate amount contributed for the taxable year to the accounts (other than rollover contributions referred to in section 530A(d)(4)(C)) which is neither excludable from gross income under section 106(b) nor allowable as a deduction
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