[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3251 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 3251

 To amend the Internal Revenue Code of 1986 to provide an exemption to 
    the individual mandate to maintain health coverage for certain 
 individuals whose premium has increased by more than 10 percent, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 14, 2016

  Mr. Cotton (for himself, Ms. Ayotte, Mr. McCain, Mr. Lankford, Mr. 
 Johnson, and Mr. Burr) 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 provide an exemption to 
    the individual mandate to maintain health coverage for certain 
 individuals whose premium has increased by more than 10 percent, 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 ``Relief from Obamacare Mandate Act of 
2016''.

SEC. 2. MODIFICATIONS TO EXEMPTION TO REQUIREMENT TO MAINTAIN HEALTH 
              COVERAGE.

    (a) Exemption for Individuals With Excessive Premium Increases.--
Section 5000A(e) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph:
            ``(6) Individuals with excessive premium increases.--Any 
        applicable individual for any month during a calendar year if 
        such applicable individual resides in a State in which either--
                    ``(A) the average premium for self-only coverage 
                for the second lowest cost silver plan within the State 
                for such calendar year is more than 10 percent greater 
                than the average premium for self-only coverage for the 
                second lowest cost silver plan within the State for the 
                preceding calendar year, or
                    ``(B) the average premium for family coverage for 
                the second lowest cost silver plan within the State for 
                such calendar year is more than 10 percent greater than 
                the average premium for family coverage for the second 
                lowest cost silver plan within the State for the 
                preceding calendar year.''.
    (b) Modification of Rules for Determining Affordability.--Section 
5000A(e)(1)(B)(ii) is amended--
            (1) by inserting ``the sum of'' before ``the annual premium 
        for the lowest cost bronze plan'', and
            (2) by inserting ``and the maximum annual deductible for 
        such plan'' after ``through the Exchange)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to months beginning after the date of the enactment of this Act.

SEC. 3. REPEAL OF DISTRIBUTIONS FOR MEDICINE QUALIFIED ONLY IF FOR 
              PRESCRIBED DRUG OR INSULIN.

    (a) HSAs.--Subparagraph (A) of section 223(d)(2) of the Internal 
Revenue Code of 1986 is amended by striking the last sentence.
    (b) Archer MSAs.--Subparagraph (A) of section 220(d)(2) of the 
Internal Revenue Code of 1986 is amended by striking the last sentence.
    (c) Health Flexible Spending Arrangements and Health Reimbursement 
Arrangements.--Section 106 of the Internal Revenue Code of 1986 is 
amended by striking subsection (f).
    (d) Effective Dates.--
            (1) Distributions from savings accounts.--The amendments 
        made by subsections (a) and (b) shall apply to amounts paid 
        with respect to taxable years beginning after December 31, 
        2015.
            (2) Reimbursements.--The amendment made by subsection (c) 
        shall apply to expenses incurred with respect to taxable years 
        beginning after December 31, 2016.

SEC. 4. REPEAL OF LIMITATION ON HEALTH FLEXIBLE SPENDING ARRANGEMENTS 
              UNDER CAFETERIA PLANS.

    (a) In General.--Section 125 of the Internal Revenue Code of 1986 
is amended--
            (1) by striking subsection (i), and
            (2) by redesignating subsections (j), (k), and (l) as 
        subsections (i), (j), and (k), respectively.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.

SEC. 5. REPEAL OF TAX ON HEALTH SAVINGS ACCOUNTS.

    (a) HSAs.--Section 223(f)(4)(A) of the Internal Revenue Code of 
1986 is amended by striking ``20 percent'' and inserting ``10 
percent''.
    (b) Archer MSAs.--Section 220(f)(4)(A) of the Internal Revenue Code 
of 1986 is amended by striking ``20 percent'' and inserting ``15 
percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2016.
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