Reclaiming Individual Liberty Act
This bill repeals the provision in the Internal Revenue Code, as added by the Patient Protection and Affordable Care Act, that requires individual taxpayers to purchase and maintain minimum essential health care coverage.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 117 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 117
To amend the Internal Revenue Code of 1986 to repeal the mandate that
individuals purchase health insurance.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 6, 2015
Mr. Garrett 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 repeal the mandate that
individuals purchase health insurance.
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 ``Reclaiming Individual Liberty Act''.
SEC. 2. REPEAL OF INDIVIDUAL HEALTH INSURANCE MANDATE.
(a) In General.--Chapter 48 of the Internal Revenue Code of 1986 is
hereby repealed.
(b) Conforming Amendments to the Internal Revenue Code of 1986.--
(1) Section 36B(c)(2)(B) of such Code is amended to read as
follows:
``(B) Exception for minimum essential coverage.--
The term `coverage month' shall not include any month
with respect to an individual if for such month the
individual is eligible for minimum essential coverage
other than eligibility for coverage described in
subsection (g)(1)(C) (relating to coverage in the
individual market).''.
(2) Section 36B(c)(2)(C)(i)(I) of such Code is amended by
striking ``(as defined in section 5000A(f)(2))''.
(3) Section 36B(c)(2)(C)(i)(II) of such Code is amended by
striking ``(within the meaning of section 5000A(e)(1)(B))''.
(4) Section 36B(c)(2)(C)(ii) of such Code is amended by
striking ``(as defined in section 5000A(f)(2))''.
(5) Section 36B(c)(2) of such Code is amended by adding at
the end the following new subparagraph:
``(D) Required contribution.--For purposes of this
paragraph--
``(i) In general.--the term `required
contribution' means--
``(I) in the case of an individual
eligible to purchase minimum essential
coverage consisting of coverage through
an eligible-employer-sponsored plan,
the portion of the annual premium which
would be paid by the individual
(without regard to whether paid through
salary reduction or otherwise) for
self-only coverage, or
``(II) in the case of an individual
eligible only to purchase minimum
essential coverage described in
subsection (g)(1)(C), the annual
premium for the lowest cost bronze plan
available in the individual market
through the Exchange in the State in
the rating area in which the individual
resides (without regard to whether the
individual purchased a qualified health
plan through the Exchange), reduced by
the amount of the credit allowable
under this section for the taxable year
(determined as if the individual was
covered by a qualified health plan
offered through the Exchange for the
entire taxable year).
``(ii) Special rules for individuals
related to employees.--For purposes of clause
(i)(I), if an individual is eligible for
minimum essential coverage through an employer
by reason of a relationship to an employee, the
determination under subparagraph (C)(i)(II)
shall be made by reference to required
contribution of the employee.''.
(6) Section 36B of such Code is amended by redesignating
subsection (g) as subsection (h) and by inserting after
subsection (f) the following new subsection:
``(g) Minimum Essential Coverage.--For purposes of this section--
``(1) In general.--The term `minimum essential coverage'
means any of the following:
``(A) Government sponsored programs.--Coverage
under--
``(i) the Medicare program under part A of
title XVIII of the Social Security Act,
``(ii) the Medicaid program under title XIX
of the Social Security Act,
``(iii) the CHIP program under title XXI of
the Social Security Act,
``(iv) medical coverage under chapter 55 of
title 10, United States Code, including
coverage under the TRICARE program,
``(v) a health care program under chapter
17 or 18 of title 38, United States Code, as
determined by the Secretary of Veterans
Affairs, in coordination with the Secretary of
Health and Human Services and the Secretary,
``(vi) a health plan under section 2504(e)
of title 22, United States Code (relating to
Peace Corps volunteers), or
``(vii) the Nonappropriated Fund Health
Benefits Program of the Department of Defense,
established under section 349 of the National
Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 10 U.S.C. 1587 note).
``(B) Employer-sponsored plan.--Coverage under an
eligible employer-sponsored plan.
``(C) Plans in the individual market.--Coverage
under a health plan offered in the individual market
within a State.
``(D) Grandfathered health plan.--Coverage under a
grandfathered health plan.
``(E) Other coverage.--Such other health benefits
coverage, such as a State health benefits risk pool, as
the Secretary of Health and Human Services, in
coordination with the Secretary, recognizes for
purposes of this subsection.
``(2) Eligible employer-sponsored plan.--The term `eligible
employer-sponsored plan' means, with respect to any employee, a
group health plan or group health insurance coverage offered by
an employer to the employee which is--
``(A) a governmental plan (within the meaning of
section 2791(d)(8) of the Public Health Service Act),
or
``(B) any other plan or coverage offered in the
small or large group market within a State.
Such term shall include a grandfathered health plan described
in paragraph (1)(D) offered in a group market.
``(3) Excepted benefits not treated as minimum essential
coverage.--The term `minimum essential coverage' shall not
include health insurance coverage which consists of coverage of
excepted benefits--
``(A) described in paragraph (1) of subsection (c)
of section 2791 of the Public Health Service Act, or
``(B) described in paragraph (2), (3), or (4) of
such subsection if the benefits are provided under a
separate policy, certificate, or contract of insurance.
``(4) Individuals residing outside united states or
residents of territories.--Any applicable individual shall be
treated as having minimum essential coverage for any month--
``(A) if such month occurs during any period
described in subparagraph (A) or (B) of section
911(d)(1) which is applicable to the individual, or
``(B) if such individual is a bona fide resident of
any possession of the United States (as determined
under section 937(a)) for such month.
``(5) Insurance-related terms.--Any term used in this
section which is also used in title I of the Patient Protection
and Affordable Care Act shall have the same meaning as when
used in such title.''.
(7) Section 162(m)(6)(C)(i)(II) of such Code is amended by
striking ``section 5000A(f)'' and inserting ``section 36B(g)''.
(8) Subsections (a)(1) and (b)(1)(A) of section 4980H of
such Code are each amended by striking ``section 5000A(f)(2)''
and inserting ``section 36B(g)(2)''.
(9) Section 4980I(f)(1)(B) of such Code is amended by
striking ``section 5000A(f)'' and inserting ``section 36B(g)''.
(10) Section 6055(e) of such Code is amended by striking
``section 5000A(f)'' and inserting ``section 36B(g)''.
(11) Section 6056(b)(2)(B) of such Code is amended by
striking ``section 5000A(f)(2)'' and inserting ``section
36B(g)(2)''.
(12) The table of chapters for subtitle D of such Code is
amended by striking the item relating to chapter 48.
(c) Conforming Amendments to Other Laws.--
(1) Section 2715(b)(3)(G)(i) of the Public Health Service
Act is amended by striking ``section 5000A(f)'' and inserting
``section 36B(g)''.
(2) Section 1251(a)(4)(B)(ii) of the Patient Protection and
Affordable Care Act is amended by striking ``section
5000A(f)(2)'' and inserting ``section 36B(g)(2)''.
(3) Section 1302(e)(2)(B) of the Patient Protection and
Affordable Care Act is amended to read as follows:
``(B) has a certification in effect for any plan
year under this title that--
``(i) the individual's required
contribution (determined on an annual basis)
for coverage for the month exceeds 8 percent of
such individual's household income for the
taxable year described in section
1412(b)(1)(B), or
``(ii) the individual has been determined
by the Secretary of Health and Human Services
under section 1311(d)(4)(H) to have suffered a
hardship with respect to the capability to
obtain coverage under a qualified health
plan.''.
(4) Section 1302(e) of the Patient Protection and
Affordable Care Act is amended by adding at the end the
following new paragraph:
``(4) Determination of individual's required contribution
and household income.--For purposes of this subsection--
``(A) Required contribution.--The term `required
contribution' means--
``(i) in the case of an individual eligible
to purchase minimum essential coverage
consisting of coverage through an eligible-
employer-sponsored plan (as defined in section
36B(g)(2) of the Internal Revenue Code of
1986), the portion of the annual premium which
would be paid by the individual (without regard
to whether paid through salary reduction or
otherwise) for self-only coverage, or
``(ii) in the case of an individual
eligible only to purchase minimum essential
coverage described in section 36B(g)(1)(C) of
the Internal Revenue Code of 1986, the annual
premium for the lowest cost bronze plan
available in the individual market through the
Exchange in the State in the rating area in
which the individual resides (without regard to
whether the individual purchased a qualified
health plan through the Exchange), reduced by
the amount of the credit allowable under
section 36B of such Code for the taxable year
(determined as if the individual was covered by
a qualified health plan offered through the
Exchange for the entire taxable year).
``(B) Special rules for individuals related to
employees.--For purposes of subparagraph (A)(i), if an
individual is eligible for minimum essential coverage
(as defined in section 36B(g) of the Internal Revenue
Code of 1986) through an employer by reason of a
relationship to an employee, the determination under
paragraph (2)(B)(i) shall be made by reference to
required contribution of the employee.
``(C) Indexing.--In the case of plan years
beginning in any calendar year after 2014, paragraph
(2)(B)(i) shall be applied by substituting for `8
percent' the percentage the Secretary of Health and
Human Services determines reflects the excess of the
rate of premium growth between the preceding calendar
year and 2013 over the rate of income growth for such
period.
``(D) Household income.--For purposes of paragraph
(2)(B)(i), the taxpayer's household income shall be
increased by any exclusion from gross income for any
portion of the required contribution made through a
salary reduction arrangement.''.
(5) Section 1311(d)(4) of the Patient Protection and
Affordable Care Act is amended by striking subparagraph (H) and
by redesignating subparagraphs (I), (J), and (K) as
subparagraphs (H), (I), and (J), respectively.
(6) Section 1312(d)(4) of the Patient Protection and
Affordable Care Act is amended by striking ``section 5000A(f)''
and inserting ``section 36B(g)''.
(7) Section 1331(e)(1)(C) of the Patient Protection and
Affordable Care Act is amended--
(A) by striking ``section 5000A(f)'' and inserting
``section 36B(g)'', and
(B) by striking ``section 5000A(e)(2) of such
Code'' and inserting ``section 1411(a)(4)''.
(8) Section 1332(a)(2)(D) of the Patient Protection and
Affordable Care Act is amended by striking ``Sections 36B,
4980H, and 5000A'' and inserting ``Sections 36B and 4980H''.
(9) Section 1401(c)(1)(A)(iii) of the Patient Protection
and Affordable Care Act is amended by striking ``section
5000A(f)'' and inserting ``section 36B(g)''.
(10) Section 1411(a) of the Patient Protection and
Affordable Care Act is amended--
(A) by adding ``and'' at the end of paragraph (2),
(B) by striking ``sections 36B(c)(2)(C) and
5000A(e)(2); and'' in paragraph (3) and inserting
``section 36B(c)(2)(C).'', and
(C) by striking paragraph (4).
(11) Section 1411(b)(4)(C) of the Patient Protection and
Affordable Care Act is amended by striking ``section
5000A(e)(1)(B)'' and inserting ``section 36B(c)(2)(D)''.
(12) Section 1411(b) of the Patient Protection and
Affordable Care Act is amended by striking paragraph (5).
(13) Section 1411(e)(4)(B) of the Patient Protection and
Affordable Care Act is amended by striking clause (iv).
(d) Effective Date.--The amendments and repeal made by this section
shall apply to taxable years ending after December 31, 2013.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Health.
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