109th CONGRESS
1st Session
H. R. 4218
To amend the Internal Revenue Code of 1986 to provide a 100 percent
deduction for the health insurance costs of individuals.
IN THE HOUSE OF REPRESENTATIVES
November 3, 2005
Mr. MCHUGH introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide a 100 percent
deduction for the health insurance costs of individuals.
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 `Affordable Health Care for Americans Act of
2005'.
SEC. 2. DEDUCTION FOR QUALIFIED HEALTH INSURANCE COSTS OF INDIVIDUALS.
(a) In General- Part VII of subchapter B of chapter 1 of the Internal Revenue
Code of 1986 (relating to additional itemized deductions) is amended by redesignating
section 224 as section 225 and by inserting after section 223 the following
new section:
`SEC. 224. COSTS OF QUALIFIED HEALTH INSURANCE.
`(a) In General- In the case of an individual, there shall be allowed as a
deduction an amount equal to the amount paid during the taxable year for coverage
for the taxpayer, his spouse, and dependents under qualified health insurance.
`(b) Qualified Health Insurance- For purposes of this section, the term `qualified
health insurance' means insurance which constitutes medical care; except that
such term shall not include any insurance if substantially all of its coverage
is of excepted benefits described in section 9832(c).
`(1) COORDINATION WITH MEDICAL DEDUCTION, ETC- Any amount paid by a taxpayer
for insurance to which subsection (a) applies shall not be taken into account
in computing the amount allowable to the taxpayer as a deduction under section
162(l) or 213(a). Any amount taken into account in determining the credit
allowed under section 35 shall not be taken into account for purposes of
this section.
`(2) DEDUCTION NOT ALLOWED FOR SELF-EMPLOYMENT TAX PURPOSES- The deduction
allowable by reason of this section shall not be taken into account in determining
an individual's net earnings from self-employment (within the meaning of
section 1402(a)) for purposes of chapter 2.'.
(b) Deduction Allowed in Computing Adjusted Gross Income- Subsection (a) of
section 62 of such Code is amended by inserting before the last sentence the
following new paragraph:
`(21) COSTS OF QUALIFIED HEALTH INSURANCE- The deduction allowed by section
224.'.
(c) Clerical Amendment- The table of sections for part VII of subchapter B
of chapter 1 of such Code is amended by redesignating the item relating to
section 224 as an item relating to section 225 and inserting before such item
the following new item:
`Sec. 224. Costs of qualified health insurance.'.
(d) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2005.
END
