S 1360 IS
109th CONGRESS
1st Session
S. 1360
To amend the Internal Revenue Code of 1986 to extend the exclusion
from gross income for employer-provided health coverage to designated plan
beneficiaries of employees, and for other purposes.
IN THE SENATE OF THE UNITED STATES
June 30, 2005
Mr. SMITH (for himself, Mr. SCHUMER, Mr. JEFFORDS, and Mr. WYDEN) 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 extend the exclusion
from gross income for employer-provided health coverage to designated plan
beneficiaries of employees, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Domestic Partner Health Benefits Equity
Act'.
SEC. 2. EXTENSION OF EXCLUSION FOR AMOUNTS RECEIVED BY AN EMPLOYEE THROUGH
ACCIDENT OR HEALTH INSURANCE AS REIMBURSEMENT FOR EXPENSES FOR MEDICAL
CARE.
(a) In General- Section 105(b) of the Internal Revenue Code of 1986
(relating to amounts expended for medical care) is amended by adding at the
end the following new sentence: `For the purposes of this subsection, the term
`dependents' shall include any individual who is an eligible beneficiary as
defined in the employer's accident or health insurance arrangement.'
(b) Effective Date- The amendment made by this section shall apply to
taxable years beginning after December 31, 2005.
SEC. 3. EXTENSION OF EXCLUSION FOR CONTRIBUTIONS BY EMPLOYER TO ACCIDENT AND
HEALTH PLANS.
(a) In General- Section 106 of the Internal Revenue Code of 1986 (relating
to contributions by employer to accident and health plans) is amended by
adding at the end the following new subsection:
`(e) Coverage Provided for Eligible Beneficiaries of Employees- Subsection
(a) shall not fail to apply by reason of the coverage of an eligible
beneficiary as defined in the employer's accident or health plan.'.
(b) Effective Date- The amendment made by this section shall apply to
taxable years beginning after December 31, 2005.
SEC. 4. EXTENSION OF DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-EMPLOYED
INDIVIDUALS.
(a) In General- Paragraph (1) of section 162(l) of the Internal Revenue
Code of 1986 (relating to special rules for health insurance costs of
self-employed individuals) is amended to read as follows:
`(1) ALLOWANCE OF DEDUCTION- In the case of an individual who is an
employee within the meaning of section 401(c)(1), there shall be allowed as
a deduction under this section an amount equal to the amount paid during the
taxable year for insurance which constitutes medical care for the taxpayer,
his spouse, and dependents. For the purposes of this subparagraph, the term
`dependents' shall include any individual who is an eligible beneficiary as
defined in the insurance arrangement which constitutes medical care.'.
(b) Effective Date- The amendment made by this section shall apply to
taxable years beginning after December 31, 2005.
SEC. 5. EXTENSION OF SICK AND ACCIDENT BENEFITS PROVIDED TO MEMBERS OF A
VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION AND THEIR DEPENDENTS.
(a) In General- Section 501(c)(9) of the Internal Revenue Code of 1986
(relating to list of exempt organizations) is amended by adding at the end the
following new sentence: `For purposes of providing for the payment of sick and
accident benefits to members of such an association and their dependents, the
term `dependents' shall include any individual who is an eligible beneficiary
as determined under the terms of a medical benefit, health insurance, or other
program under which members and their dependents are entitled to sick and
accident benefits.'.
(b) Effective Date- The amendment made by this section shall apply to
taxable years beginning after December 31, 2005.
SEC. 6. AMENDMENTS TO VARIOUS DEFINITIONS.
(1) IN GENERAL- Section 3121 of the Internal Revenue Code of 1986
(relating to definitions) is amended by adding at the end the following new
subsection:
`(z) Exclusion of Certain Amounts From Wages- For purposes of applying
subsection (a) with respect to expenses described in paragraph (2)(B) of such
subsection, the term `dependents' shall include any individual who is an
eligible beneficiary as defined in the plan or system established by the
employer.'.
(2) CONFORMING AMENDMENT- Section 209 of the Social Security Act (42
U.S.C. 409) is amended by adding at the end the following new
subsection:
`(l) For purposes of applying subsection (a) with respect to medical or
hospitalization expenses described in paragraph (2) thereof, the term
`dependents' shall include any individual who is an eligible beneficiary as
defined in the plan or system established by the employer.'.
(1) IN GENERAL- Section 3231(e) of the Internal Revenue Code of 1986
(defining compensation) is amended by adding at the end the following new
paragraph:
`(13) TREATMENT OF CERTAIN DEPENDENTS- For purposes of applying this
subsection with respect to medical or hospitalization expenses described in
paragraph (1)(I), the term `dependents' shall include any individual who is
an eligible beneficiary as defined in the plan or system established by the
employer.'.
(2) CONFORMING AMENDMENT- Section 1(h) of the Railroad Retirement Act of
1974 (45 U.S.C. 231(h)) is amended by adding at the end the following new
paragraph:
`(9) For purposes of applying this subsection, with respect to medical or
hospitalization expenses described in paragraph (6)(v), the term `dependents'
shall include any individual who is an eligible beneficiary as defined in the
plan or system established by the employer.'.
(c) FUTA- Section 3306 of the Internal Revenue Code of 1986 (relating to
definitions) is amended by adding at the end the following new subsection:
`(v) Exclusion of Certain Amounts From Wages- For purposes of applying
subsection (b) with respect to expenses described in paragraph (2)(B) of such
subsection, the term `dependents' shall include any individual who is an
eligible beneficiary as defined in the plan or system established by the
employer.'.
(d) Effective Date- The amendments made by this section shall apply to
remuneration paid after December 31, 2005.
END