[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2698 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 2698

 To amend the Internal Revenue Code of 1986 to exclude certain health 
arrangements from the excise tax on employer-sponsored health coverage.


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                   IN THE SENATE OF THE UNITED STATES

                             March 16, 2016

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

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                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to exclude certain health 
arrangements from the excise tax on employer-sponsored health coverage.

    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 ``Preserving Consumer Health Accounts 
Act of 2016''.

SEC. 2. EXCLUSION OF CERTAIN HEALTH ARRANGEMENTS FROM EMPLOYER-
              SPONSORED EXCISE TAX.

    (a) In General.--Subparagraph (B) of section 4980I(d)(1) of the 
Internal Revenue Code of 1986 is amended by striking the period at the 
end of clause (iii) and inserting ``, or'' and by adding at the end the 
following new clause:
                            ``(iv) any amounts contributed to an Archer 
                        MSA under section 106(b), a health savings 
                        account under section 106(d), or a health 
                        flexible spending arrangement--
                                    ``(I) by an employee, or
                                    ``(II) by an employer through 
                                salary reduction contributions.''.
    (b) Conforming Amendments.--
            (1) Section 4980I(d)(2)(B) of the Internal Revenue Code of 
        1986 is amended by striking ``shall be equal to the sum of'' 
        and all that follows and inserting ``shall be equal to the 
        amount determined under subparagraph (A) with respect to any 
        reimbursement under the arrangement in excess of any employer 
        contributions under any salary reduction election under the 
        arrangement.''.
            (2) Section 4980I(d)(2)(C) of such Code is amended by 
        inserting ``(determined without regard to any employer 
        contributions under any salary reduction election under the 
        arrangement)'' before the period at the end.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.
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