Section 1 Short title
This Act may be cited as the “Middle Class Health Benefits Tax Repeal Act of 2015”.
Middle Class Health Benefits Tax Repeal Act of 2015
A BILL
To amend the Internal Revenue Code of 1986 to repeal the excise tax on high cost employer-sponsored health coverage.
Sec. 2 Repeal of excise tax on high cost employer-sponsored health coverage
In general— Chapter 43 of the Internal Revenue Code of 1986 is amended by striking section 4980I.
Conforming amendment— Section 6051 of such Code is amended by adding at the end the following:
“(g) Applicable Employer-Sponsored Coverage—For purposes of subsection (a)(14)—
“(1) In general—The term applicable employer-sponsored coverage means, with respect to any employee, coverage under any group health plan made available to the employee by an employer which is excludable from the employee’s gross income under section 106, or would be so excludable if it were employer-provided coverage (within the meaning of such section 106).
“(2) Exceptions—The term applicable employer-sponsored coverage shall not include—
“(A) any coverage (whether through insurance or otherwise) described in section 9832(c)(1) (other than subparagraph (G) thereof) or for long-term care, or
“(B) any coverage under a separate policy, certificate, or contract of insurance which provides benefits substantially all of which are for treatment of the mouth (including any organ or structure within the mouth) or for treatment of the eye, or
“(C) any coverage described in section 9832(c)(3) the payment for which is not excludable from gross income and for which a deduction under section 162(l) is not allowable.
“(3) Coverage includes employee paid portion—Coverage shall be treated as applicable employer-sponsored coverage without regard to whether the employer or employee pays for the coverage.
“(4) Self-employed individual—In the case of an individual who is an employee within the meaning of section 401(c)(1), coverage under any group health plan providing health insurance coverage shall be treated as applicable employer-sponsored coverage if a deduction is allowable under section 162(l) with respect to all or any portion of the cost of the coverage.
“(5) Governmental plans included—Applicable employer-sponsored coverage shall include coverage under any group health plan established and maintained primarily for its civilian employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any such government.
“(6) Employee—The term employee includes any former employee, surviving spouse, or other primary insured individual.”
Clerical amendment— The table of sections for chapter 43 of such Code is amended by striking the item relating to section 4980I.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2017.