HR 111 · 119th CongressIn Committee

To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for health insurance premiums.

Latest updateJan 3, 2025

Referred to the House Committee on Ways and Means.

Taxation

Sponsor

Andy Biggs

Introduced

January 3, 2025

Latest action

January 3, 2025

Legislative Progress

How far this bill has traveled through Congress

Introduced

Bill filed in chamber

Committee

Reviewed & reported

Passed Chamber

House or Senate vote

Passed Both

House & Senate agree

President

Sent to White House

Enacted

Signed into law

Introduced

Bill filed in chamber

Committee

Reviewed & reported

Passed Chamber

House or Senate vote

Passed Both

House & Senate agree

President

Sent to White House

Enacted

Signed into law

Latest Action

Referred to the House Committee on Ways and Means.

Plain-Language Summary

AI Generated

Currently, the Internal Revenue Code allows individuals to deduct health insurance premiums only in limited circumstances. Self-employed workers can deduct premiums for themselves and their families, and certain other taxpayers can deduct medical expenses if they exceed 7.5 percent of adjusted gross income. However, most employed individuals cannot deduct health insurance premiums at all, even though employers can deduct the cost of providing health coverage to workers. This asymmetry means that the tax code effectively subsidizes employer-sponsored insurance while offering no tax benefit to individuals who purchase coverage independently or through other means.

This bill amends the Internal Revenue Code to allow all individuals to claim an above-the-line deduction for health insurance premiums paid for themselves, their spouses, and their dependents. The deduction would be available under new Section 224 of the tax code and would be claimed on the front of the tax return, meaning taxpayers can claim it regardless of whether they itemize other deductions. The bill specifies that premiums must constitute medical care as defined in existing tax law, and that the deduction cannot be claimed twice or used to reduce other deductions or credits the taxpayer might otherwise claim.

The change takes effect for tax years beginning after December 31, 2024, meaning it would first apply to returns filed in 2025 for the 2024 tax year. The deduction would reduce federal tax revenue by allowing individuals to exclude premium payments from taxable income. The provision operates independently of existing health insurance arrangements and does not modify employer-sponsored coverage rules, the Affordable Care Act, or other health programs. Individuals would claim the deduction on their annual tax returns, and the Internal Revenue Service would administer the provision through standard tax compliance procedures.

Key Provisions

1Establishes a new above-the-line deduction allowing individuals to deduct health insurance premiums paid for themselves, their spouses, and dependents from taxable income.
2Requires that deductible premiums constitute medical care as defined under existing Internal Revenue Code Section 213(d), ensuring consistency with current tax definitions.
3Prohibits taxpayers from claiming the health insurance premium deduction in a manner that reduces other deductions or credits otherwise available, preventing double-counting of benefits.
4Specifies that the deduction is available whether or not an individual itemizes other deductions, making it accessible to all taxpayers regardless of their deduction strategy.
5Makes the deduction effective for taxable years beginning after December 31, 2024, allowing implementation beginning with the 2024 tax year.

★ Why this matters

The deduction would reduce the amount of income subject to federal taxation for individuals who pay health insurance premiums, lowering their tax liability. This change would make the tax treatment of individually purchased health insurance more similar to employer-sponsored coverage, which is already subsidized through the tax code. Federal tax revenue would decline as a result of the broader deduction. The provision does not modify how health insurance is purchased, regulated, or priced—it only changes the tax treatment of premiums already being paid.

● Who this affects

Individuals who purchase health insurance independently or through the Affordable Care Act marketplace would benefit most directly, as they currently receive no tax deduction for premiums. Self-employed workers and small business owners would see expanded deduction eligibility beyond current law. Employees with employer-sponsored coverage would not be directly affected, as their premiums are already excluded from taxable wages. The Internal Revenue Service would administer the new deduction through tax return processing. Federal taxpayers overall would experience reduced government revenue, affecting funding available for other programs.

Bill Text

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<DOC>

119th CONGRESS
  1st Session
                                H. R. 111

 To amend the Internal Revenue Code of 1986 to allow an above-the-line 
                deduction for health insurance premiums.

                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2025

Mr. Biggs of Arizona 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 allow an above-the-line 
                deduction for health insurance premiums.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEDUCTION FOR HEALTH INSURANCE PREMIUMS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 224 
as section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. DEDUCTION FOR HEALTH INSURANCE PREMIUMS.

    ``In the case of an individual, there shall be allowed as a 
deduction for the taxable year amounts paid by the taxpayer for 
insurance which constitutes medical care (as defined in section 213(d)) 
for the taxpayer and the taxpayer's spouse and dependents. No amount 
allowed as a deduction under the preceding sentence shall be taken into 
account in determining any deduction or credit otherwise allowable to 
the taxpayer (or any other taxpayer) under this chapter.''.
    (b) Deduction Allowed Whether or Not Individual Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting before the last sentence at the end the following new 
paragraph:
            ``(22) Deduction for health insurance premiums.--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 by 
inserting after the item relating to section 223 the following new 
item:

``Sec. 224. Deduction for health insurance premiums.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
                                 <all>

Auto-Whip

Where House representatives currently stand

Built from official statements, public releases, and voting records where they exist. Members without enough evidence are marked as no position.

448 tracked

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445

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Members whose public record points toward backing the bill.

Brendan Boyle

D-Pennsylvania · District 2

Likely support

Representative Boyle demonstrates a clear focus on health care affordability and access based on his website content, including work on cost-saving health care tax credits, lung cancer research, and opposition to cuts to health care funding. He is the Ranking Member of the House Budget Committee, suggesting engagement with fiscal policy. An above-the-line deduction for health insurance premiums aligns with his stated priorities of addressing health care costs and would be consistent with his Democratic party's general support for health care affordability measures. However, there is no explicit statement on this specific bill in the provided content, preventing a stronger confidence assessment.

To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for health insurance premiums.

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Plain-Language Summary

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★ Why this matters

● Who this affects

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To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for health insurance premiums.

Legislative Progress

Plain-Language Summary

Key Provisions

★ Why this matters

● Who this affects

Bill Text

Where House representatives currently stand

Support

Opposition

No Position

Party Positions

Democratic Party

Republican Party

Take Action

Active Organizations