S. 1967 - Mandate Relief Act of 2017

115TH CONGRESS
1ST SESSION

S. 1967

To amend the Internal Revenue Code of 1986 to provide additional
exemptions to the individual mandate, and for other purposes.

IN THE SENATE OF THE UNITED STATES

OCTOBER 17, 2017

Mr. COTTON (for himself and Mr. TOOMEY) introduced the following bill;
which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide additional exemptions to the individual mandate, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Mandate Relief Act of 2017’’.

SEC. 2. MODIFICATIONS TO EXEMPTION TO REQUIREMENT TO MAINTAIN HEALTH COVERAGE.

(a) EXEMPTION FOR INDIVIDUALS WITH A HOUSEHOLD INCOME LESS THAN THE NATIONAL MEDIAN AND FOR INDIVIDUALS WITH EXCESSIVE PREMIUM INCREASES. — Section 5000A(e) of the Internal Revenue Code of 1986 is amended by striking paragraphs (1) and (2) and inserting the following:

‘‘(1) INDIVIDUALS WITH HOUSEHOLD INCOMES BELOW THE NATIONAL MEDIAN. — Any applicable individual for any month if the applicable individual has a household income for the taxable year which is less than the national median household income for the most recent calendar year.

‘‘(2) 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) ADDITIONAL EXEMPTIONS. — Section 5000A(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

‘‘(6) INDIVIDUALS IN AREAS WITH FEWER THAN 2 ISSUERS OFFERING PLANS ON AN EXCHANGE. —

‘‘(A) IN GENERAL. — Any applicable individual for any period during a calendar year if there are fewer than 2 health insurance issuers offering qualified health plans on an Exchange for such period in the county in which the applicable individual resides.

‘‘(B) AGGREGATION RULES. — For purposes of subparagraph (A), all health insurance issuers treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or (o) of section 414, shall be treated as a single health insurance issuer.’’.

(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, 2016.

(2) REIMBURSEMENTS. — The amendment made by subsection (c) shall apply to expenses incurred with respect to taxable years beginning after December 31, 2017.

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, 2017.

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, 2017.