Relief from Obamacare Mandate Act of 2016

H.R. 6019 · 114th Congress · Sep 13, 2016 · Lineage

A BILL

To amend the Internal Revenue Code of 1986 to provide an exemption to the individual mandate to maintain health coverage for certain individuals whose premium has increased by more than 10 percent, and for other purposes.

Section 1 Short title

This Act may be cited as the “Relief from Obamacare Mandate Act of 2016”.

Sec. 2 Modifications to exemption to requirement to maintain health coverage

(a)

Exemption for Individuals with excessive premium increases— Section 5000A(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

“(6) Individuals with excessive premium increases—Any applicable individual for any month during a calendar year if such applicable individual resides in a State in which either—

“(A) the average premium for self-only coverage for the second lowest cost silver plan within the State for such calendar year is more than 10 percent greater than the average premium for self-only coverage for the second lowest cost silver plan within the State for the preceding calendar year, or

“(B) the average premium for family coverage for the second lowest cost silver plan within the State for such calendar year is more than 10 percent greater than the average premium for family coverage for the second lowest cost silver plan within the State for the preceding calendar year.”

(b)

Modification of rules for determining affordability— Section 5000A(e)(1)(B)(ii) is amended—

(1)

by inserting “the sum of ” before “the annual premium for the lowest cost bronze plan”, and

(2)

by inserting “and the maximum annual deductible for such plan” after “though the Exchange)”.

(c)

Effective date— The amendments made by this section shall apply to months beginning after the date of the enactment of this Act.

Sec. 3 Repeal of distributions for medicine qualified only if for prescribed drug or insulin

(a)

HSAs— Subparagraph (A) of section 223(d)(2) of the Internal Revenue Code of 1986 is amended by striking the last sentence.

(b)

Archer MSAs— Subparagraph (A) of section 220(d)(2) of the Internal Revenue Code of 1986 is amended by striking the last sentence.

(c)

Health flexible spending arrangements and health reimbursement arrangements— Section 106 of the Internal Revenue Code of 1986 is amended by striking subsection (f).

(d)

Effective dates—

(1)

Distributions from savings accounts— The amendments made by subsections (a) and (b) shall apply to amounts paid with respect to taxable years beginning after December 31, 2015.

(2)

Reimbursements— The amendment made by subsection (c) shall apply to expenses incurred with respect to taxable years beginning after December 31, 2016.

Sec. 4 Repeal of limitation on health flexible spending arrangements under cafeteria plans

(a)

In general— Section 125 of the Internal Revenue Code of 1986 is amended—

(1)

by striking subsection (i), and

(2)

by redesignating subsections (j), (k), and (l) as subsections (i), (j), and (k), respectively.

(b)

Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2016.

Sec. 5 Repeal of tax on health savings accounts

(a)

HSAs— Section 223(f)(4)(A) of the Internal Revenue Code of 1986 is amended by striking “20 percent” and inserting “10 percent”.

(b)

Archer MSAs— Section 220(f)(4)(A) of the Internal Revenue Code of 1986 is amended by striking “20 percent” and inserting “15 percent”.

(c)

Effective date— The amendments made by this section shall apply to distributions made after December 31, 2016.