CO-OP Consumer Protection Act of 2016

CO-OP Consumer Protection Act of 2016

This bill amends the Internal Revenue Code to exempt from penalties for failing to purchase and maintain minimum essential health care coverage individuals whose coverage under a plan offered by a qualified nonprofit health insurance issuer receiving funds through the Consumer Operated and Oriented Plan program was terminated.

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3311 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 3311

To amend the Internal Revenue Code of 1986 to exempt individuals whose 
health plans under the Consumer Operated and Oriented Plan program have 
          been terminated from the individual mandate penalty.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 12, 2016

 Mr. Sasse (for himself, Mr. Portman, Mr. Cotton, Mr. McCain, and Mr. 
    Vitter) 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 exempt individuals whose 
health plans under the Consumer Operated and Oriented Plan program have 
          been terminated from the individual mandate penalty.

    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 ``CO-OP Consumer Protection Act of 
2016''.

SEC. 2. EXEMPTION OF PARTICIPANTS IN TERMINATED PLANS UNDER CONSUMER 
              OPERATED AND ORIENTED PLAN PROGRAM.

    (a) In General.--Subsection (e) of section 5000A of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(6) Participants in certain terminated consumer operated 
        and oriented plan program plans.--Any applicable individual, 
        if--
                    ``(A) the individual was enrolled in a qualified 
                health plan offered by a qualified nonprofit health 
                insurance issuer (as defined in subsection (c) of 
                section 1322 of the Patient Protection and Affordable 
                Care Act) receiving funds through the Consumer Operated 
                and Oriented Plan program established under such 
                section for such plan, and
                    ``(B) during any month while the individual was so 
                enrolled, such issuer terminated or otherwise 
                discontinued providing all plans of the issuer in the 
                area in which the individual resides,
        for such month and any subsequent month.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to months in taxable years beginning after December 31, 2013.
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