Small Business and Family Health Tax Relief Act of 2017

Small Business and Family Health Tax Relief Act of 2017

This bill suspends the annual fee imposed on health-insurance providers under the Patient Protection and Affordable Care Act for 2019 and makes the fee tax-deductible beginning in 2020.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1978 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1978

To delay the annual fee on health insurance providers until 2020 and to 
                     make such fee tax deductible.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 18, 2017

 Ms. Heitkamp (for herself, Mrs. Shaheen, and Mr. Donnelly) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
To delay the annual fee on health insurance providers until 2020 and to 
                     make such fee tax deductible.

    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 and Family Health Tax 
Relief Act of 2017''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Patient Protection and Affordable Care Act 
        established an annual fee on health insurance providers to be 
        paid by covered entities (as defined in section 9010 of such 
        Act).
            (2) Public Law 114-113 was passed with bipartisan support 
        in 2015 to delay the fee for 1 year through 2017.
            (3) Consumers, employers, seniors, States, and tribes 
        benefitted from this fee not being in effect with lower 
        premiums and additional health benefits.
            (4) Independent analysis by Oliver Wyman found that the 
        average premium reduction from the delay of the fee was 
        approximately 3 percent.
            (5) This fee affects an estimated 156,000,000 consumers 
        with coverage across various markets including the individual 
        group market, the small group market, the Medicare Advantage 
        program under part C of title XVIII of the Social Security Act, 
        the Medicare prescription drug program under part D of title 
        XVIII of the Social Security Act, Medicaid managed care 
        organizations, and stand-alone dental and vision plans.
            (6) These consumers face an impact to their premiums due to 
        the fee taking effect in 2018.
            (7) This Act would provide relief to these consumers and 
        improve affordability of health care coverage.
            (8) Insurance companies have passed the impact of the fee 
        on to consumers in calculating rates for the plan year 
        beginning in 2018.
            (9) Given the complexity of a fee that captures such a 
        varied group of consumers, the Department of Health and Human 
        Service, the Centers for Medicare & Medicaid Services, the 
        Department of the Treasury, State insurance commissioners, 
        insurance providers and other entities making payment of 
        benefits, and others should work together to ensure that 
        consumers benefit from the delay of the fee through rebates, 
        premium reductions, supplemental health benefits, or otherwise 
        in both 2018 and 2019.
            (10) Making this fee deductible in future years will 
        provide greater stability and minimize the negative impact of 
        the fee on consumers.

SEC. 3. DELAY OF APPLICATION OF ANNUAL FEE ON HEALTH INSURANCE 
              PROVIDERS.

    (a) In General.--Section 9010(j) of the Patient Protection and 
Affordable Care Act (26 U.S.C. 4001 note prec.) is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to calendar years beginning after December 31, 2017.

SEC. 4. DEDUCTIBILITY OF FEE.

    (a) In General.--Section 9010(f)(2) of the Patient Protection and 
Affordable Care Act (26 U.S.C. 4001 note prec.) is amended by striking 
``shall be considered'' and inserting ``shall not be considered''.
    (b) Effective Date.--The amendment made by this section shall apply 
to calendar years beginning after December 31, 2019.
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