Small Business Healthcare Relief Act of 2014 - Amends the Internal Revenue Code to treat employer payments for employee health care premiums and for amounts paid on behalf of an employee to a health reimbursement arrangement as medical expenses under an accident or health plan and thus excludible from gross income for income tax purposes.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5860 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5860
To amend the Internal Revenue Code of 1986 to allow small businesses to
use pre-tax dollars for assistance to employees purchasing policies in
the individual market and except certain health reimbursement
arrangements from group health plan requirements, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 11, 2014
Mr. Boustany (for himself and Mr. Thompson of California) 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 small businesses to
use pre-tax dollars for assistance to employees purchasing policies in
the individual market and except certain health reimbursement
arrangements from group health plan requirements, 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 ``Small Business Healthcare Relief Act
of 2014''.
SEC. 2. PERMITTING SMALL BUSINESSES TO USE PRE-TAX DOLLARS FOR
ASSISTANCE TO EMPLOYEES PURCHASING POLICIES IN INDIVIDUAL
MARKET.
(a) In General.--Section 106 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(e) Pre-Tax Dollars for Qualified Health Plans.--
``(1) In general.--Amounts paid by an eligible small
employer on behalf of an employee of the employer for premiums
for a qualified health plan (as defined in section 1301 of the
Patient Protection and Affordable Care Act)--
``(A) which covers the employee, employee's spouse,
or any dependent of the employee, and
``(B) which is offered in the individual market
within a State,
shall be treated as employer-provided coverage for medical
expenses under an accident or health plan and shall not be
considered a group health plan for purposes of section 9815.
``(2) Eligible small employer.--For purposes of this
subsection and subsection (f), the term `eligible small
employer' means an employer who--
``(A) is not an applicable large employer (as
defined in section 4980H(c)(2)(A)), and
``(B) does not offer its employees any group health
plan other than an arrangement described in paragraph
(1) or subsection (f).
``(3) Certain controlled groups.--All employees who are
treated as employed by a single employer under subsection (b),
(c), or (m) of section 414 shall be treated as employed by a
single employer for purposes of this subsection.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2013.
SEC. 3. STANDALONE HEALTH REIMBURSEMENT ARRANGEMENTS.
(a) In General.--Section 106 of the Internal Revenue Code is
amended Code of 1986 is amended by adding at the end the following new
subsection:
``(f) Qualified Health Reimbursement Arrangements.--
``(1) In general.--Amounts paid by an eligible small
employer on behalf of an employee of the employer to a
qualified health reimbursement arrangement shall be treated as
employer-provided coverage for medical expenses under an
accident or health plan and shall not be considered a group
health plan for purposes of section 9815.
``(2) In general.--For purposes of this subsection, the
term `qualified health reimbursement arrangement' means an
arrangement--
``(A) under which the employee may be reimbursed--
``(i) for premiums for a qualified health
plan (as defined in section 1301 of the Patient
Protection and Affordable Care Act) which
covers the employee, employee's spouse, or any
dependent of the employee, and is offered in
the individual market within a State, and
``(ii) for expenses incurred for medical
care (as defined in section 213(d)) of the
employee, the employee's spouse, or any such
dependent of the employee,
``(B) which is provided by an eligible small
employer, and
``(C) under which contributions by the employer
with respect to an employee for the taxable year are
not in excess of the dollar amount in effect under
section 125(i) for such taxable year (200 percent of
such amount in the case of family coverage).
``(3) Certain controlled groups.--All employees who are
treated as employed by a single employer under subsection (b),
(c), or, (m) of section 414 shall be treated as employed by a
single employer for purposes of this subsection.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2013.
SEC. 4. NO SUBSIDIES ALLOWED WITH RESPECT TO HEALTH PLAN ACQUIRED
THROUGH PRE-TAX DOLLARS FOR QUALIFIED HEALTH PLAN OR
QUALIFIED HEALTH REIMBURSEMENT ARRANGEMENT.
(a) Coordination With Premium Credit and Reduced Cost-Sharing.--
Section 36B(c)(2)(B) of such Code is amended by adding at the end the
following new clause:
``(iii) Pre-tax dollars for a qualified
health plan and qualified health reimbursement
arrangements.--The term `coverage month' shall
not include any month during which an
individual is covered under a qualified health
plan any premiums for which were reimbursed
under an arrangement described in section
106(e) (relating to pre-tax dollars for a
qualified health plan), or under a qualified
health reimbursement arrangement (as defined in
section 106(f)), during a calendar year which
includes such month.''.
(b) Effective Date.--The amendment made by this section shall apply
to months beginning after December 31, 2013.
SEC. 5. PRE-TAX DOLLARS FOR A QUALIFIED HEALTH PLAN AND QUALIFIED
HEALTH REIMBURSEMENT ARRANGEMENTS EXCEPTED FROM GROUP
HEALTH PLAN REQUIREMENTS.
(a) In General.--Section 9832(c)(1) of such Code is amended by
redesignating subparagraph (H) as subparagraph (J) and by inserting
after subparagraph (G) the following new subparagraphs:
``(H) An arrangement described in section 106(e)
(relating to pre-tax dollars for a qualified health
plan).
``(I) Qualified health reimbursement arrangement
(as defined in section 106(f)).''.
(b) Effective Date.--The amendment made by this section shall apply
to plan years beginning after December 31, 2013.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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