Homecare for Seniors Act |  H.R. 6813

John Darer • October 1, 2018

Bill Would Allow Qualified Distributions from HSA for Certain Home Care Expenses

home health care

What is Health Savings Account?
A Health Savings Account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to qualify for an HSA. HSAs are often set p with high deductible health plans (HDHP). No permission or authorization from the IRS is necessary to establish an HSA. You set up an HSA with a trustee. A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs)or Archer MSAs. The HSA can be established through a trustee that is different from your health plan provider. Source: IRS.gov
What is Home Care?
Home care or custodial care is non-medical care that helps individuals with their daily basic care, such as cooking, eating, dressing, toileting, transferring and bathing. Custodial care for an individual is recommended by an authorized medical personnel, but providers of custodial care are not required to be medical professionals. Home care is desirable because most people want to remain in their homes as long as possible.

What Are Qualified Distributions from a Health Savings Account Today?




Funds can be withdrawn for any purpose, at any time. However, if funds are withdrawn for reasons other than to pay for qualified medical expenses by someone under age 65, the amount withdrawn is taxable and subject to a 10 percent penalty by the IRS. After age 65, there is no penalty for non-qualified withdrawals BUT amounts are taxable.

Funds used to pay for the following are tax-free and penalty-free:

  • Qualified medical expenses as defined under Section 213 of the IRS Code (See IRS Publication 502: Medical and Dental Expenses ). This is the same code section that governs medical savings accounts.
  • COBRA insurance
  • Qualified long -term care insurance
  • Health insurance premiums for individuals receiving unemployment compensation
  • Medicare and retiree health insurance premiums, but not Medicare supplement premiums
  • Funds may be used for eligible expenses for your spouse or dependents, even if they are not covered by the HDHP.
What Does the Homecare for Seniors Act propose?

Section 223(d)(2) of the Internal Revenue Code of 1986 is amended

(1) by striking "medical care (as defined in section 213(d)" in subparagraph (A) and inserting "specified medical care (as defined in subparagraph (D))"; and

(2) by adding at the end the following new subparagraph:

"(D) SPECIFIED MEDICAL CARE.  For purposes of this paragraph

"(i) IN GENERAL.  The term 'specified medical care' means

"(I) medical care (as defined in section 213(d)), and

"(II) qualified home care.

"(ii) QUALIFIED HOME CARE.  The term 'qualified home care' means a contract to provide three or more of the following services in the residence of the service recipient:

"(I) Assistance with eating.

"(II) Assistance with toileting.

"(III) Assistance with transferring.

"(IV) Assistance with bathing.

"(V) Assistance with dressing.

"(VI) Assistance with continence.

"(VII) Medication adherence.

Such term shall not include any contract unless the services provided pursuant to such contract are provided by a service provider which is licensed by the State to provide such services or such services are otherwise provided in a manner that is consistent with State requirements.

"(iii) RELATED PARTIES.  The term 'qualified home care' shall not include any contract which is, directly or indirectly, between a service provider and a service recipient who are related within the meaning of section 267(b) or 707(b).".


    most infomative structured settlement websites

    4structures.com | One of the Most Comprehensive Structured Settlement Resources Says Google AI

    By John Darer • August 26, 2025
    The 4structures.com website is one of the most comprehensive structured settlement resources, particularly for those who want detailed, expert-level information, according to Google AI
    most informative

    4structures.com Website Favorably Reviewed by Super Grok on X

    By John Darer • August 22, 2025
    Based on Grok's review of prominent sites as of August 2025, 4structures.com (including its associated blog at structuredsettlements.typepad.com) stands out as the most comprehensive. Run by structured settlement expert John Darer, it offers detailed guides, and specialized insights
    fountain

    What is a Retained Asset Account?

    By John Darer • August 17, 2025
    Retained asset accounts for life insurance beneficaries, are temporary accounts that earn interest, give you time to breathe and give you time to figure it out.. Retained asset accounts are pay nterest from the date of death to date of settlement of the claim as a general practice,
    knuckles

    Are Structured Settlement Payments Considered Income?

    By John Darer • August 16, 2025
    How to avoid a "Knuckles Sandwich" when entering into settlement of claims or lawsuits involving taxable damages, or elements of taxable damages. What is the intent of the Payor? What happens if the intent of Payor is not clearly set forth in the settlement agreement?
    structured settlements

    Structured Settlement Annuity Issuers | The Test of Time

    By John Darer • August 15, 2025
    Structured settlement annuity issuers have stood the test of time, which is crucial if you're depending on them to pay you stable income for a long time or the rest of your life or pay your beneficiaries . For Structured settlement annuities . Call John Darer at 888-325-8640
    New Y

    New York CPLR 50A/50B Structured Judgments

    By John Darer • August 14, 2025
    While rising yields have narrowed the gap for defendants in New York CPLR 50A and 50B projections, plaintiffs can still " fly inverted" and get plenty of "lift" when negotiating settlements by using savvy settlement experts
    baseball caps of many colors

    What is the Cap Rate on Indexed Linked Structured Settlement?

    By John Darer • July 29, 2025
    The cap rate on index linked structured settlement annuities is a limit set by the insurance company on the maximum interest rate that can be credited to the annuity based on the performance of the underlying index that also helps provide the downside prtection..
    longevity road

    Structured Settlements and Longevity | What are Your Odds?

    By John Darer • July 28, 2025
    Do your financial resources give you enough road, or will the road run out before you do? A structured settlement annuity helps mitigate the risk of outliving your savings, no matter how long you live. A structured settlement can inlcude one or more customized payment streams and types.
    USAA structured settlements

    USAA Life Now Offers COLA on Structured Settlements

    By John Darer • July 16, 2025
    USAA Life Insurance Company, an A++ rated insurance company, issues structured settlement annuities with 1%, 2% and 3% COLAs. USAA Life structured settlements are exceptionally compatitive on lifetime benefit payments with long duration certain periods for ages under 35.
    MetLife Structured Installment Sales Now Available in New York

    MetLife Structured Installment Sale

    By John Darer • July 8, 2025
    Owners of highly appreciated NY businesses or NY real estate may benefit from a structured installment sale tax deferral program as an alternative to a 1031 exchange. MetLife's structured installment sale program is now available in NY and in all 50 states. Call 888-325-8640 for more info
    More Posts