Ross’s Child Health Savings Account Provision Included in House’s Conservative Health Care Plan
Health Care Plan Introduced by Republican Study Committee
U.S. Rep. Dennis Ross (FL-15) issued the following statement regarding the provision in his Patient Health Care Act that was included in the health care plan proposed by the Republican Study Committee (RSC), the 175-member conservative coalition in the U.S. House of Representatives:
“I have always said that we have to put forward solutions and that we can’t just say that we don’t like Obamacare, vote to repeal it, and leave it at that. That’s why I introduced the PATIENT Health Care Act a few months ago. I am encouraged that aspects of the RSC health care plan are similar to mine (including the tax reform aspect and protecting those with pre-existing conditions) and that one of the aspects is even identical - my idea to create a Child Health Savings Account. I am thankful for the opportunity to join the RSC in working hard for all Americans.”
• Rep. Ross introduced H.R. 2688, the “Providing Accountability & Transparency to Incentivize Economically Necessary Transitions in Health Care” Act (PATIENT Health Care Act) on July 15, 2013.
• Child Health Savings Account: Creates a tax incentive for parents who establish a deferred-use Health Savings Account (HSA) on behalf of their child/children prior to the fifth birthday. The Child HSA is treated for tax purposes as “owned” by the parent until the child: (1) reaches the age of 18, and (2) obtains health insurance coverage independent of their parents. Any amount paid or distributed out of the Child HSA prior to satisfying these criteria will be treated as normal yearly income for the parents. In the case that a child becomes disabled, dies, or is medically incapacitated, the parents may roll the HSA funds into: (1) an Individual Retirement Account, (2) their own HSA, or (3) another child’s HSA.
• The RSC’s Health Care Bill: H.R. 3121, The American Health Care Reform Act.