Winding Down ObamaCare Act

Summary: Winding Down ObamaCare Act This bill amends the Public Health Service Act to require health insurers to offer at least 18 months of continuation coverage to enrollees who lose their health insurance coverage or federal premium assistance as a result of the Supreme Court's decision in King v. Burwell. Continuation coverage must be the same as an enrollee's coverage at the time of the decision, unless the health insurer modifies coverage for all similar enrollees. Individuals must elect continuation coverage within 60 days of the decision. Health insurers cannot raise premiums during the period of continuation coverage. The Department of Health and Human Services (HHS) cannot enter into a new contract with a state to provide the state with technology from the federal health insurance exchange. This bill amends the Internal Revenue Code to establish a new tax credit for individuals with continuation coverage that is equal to 65% of the amount paid for continuation coverage, with the percentage decreasing by 5% each month after six months. The Department of the Treasury must pay advance payments on the tax credit.  This bill amends title XIX (Medicaid) of the Social Security Act to prohibit HHS from waiving state Medicaid plan requirements in order to allow a state to undertake a demonstration project unless HHS establishes project spending limits that are reviewed by actuaries.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Winding Down ObamaCare Act''.

SEC. 2. TRANSITIONAL COVERAGE.

    Part C of title XXVII of the Public Health Service Act (42 U.S.C. 
300gg-91 et seq.) is amended--
            (1) by redesignating the second section 2794 (relating to 
        uniform fraud and abuse referral format) as section 2795; and
            (2) by adding at the end the following:

``SEC. 2796. COBRA-LIKE TRANSITIONAL COVERAGE.

    ``(a) Plans Must Provide Continuation Coverage.--
            ``(1) In general.--A health insurance issuer shall provide, 
        in accordance with this section, that each enrollee in a 
        qualified health plan who would lose coverage under the plan, 
        or who would no longer be eligible for a tax credit under 
        section 36B of the Internal Revenue Code of 1986, as a result 
        of a qualifying event is entitled, under the plan, to elect, 
        within the election period, continuation coverage under the 
        plan.
            ``(2) Coverage.--For purposes of this section, the term 
        `continuation coverage' means coverage that meets the following 
        requirements:
                    ``(A) Type of coverage.--The coverage must consist 
                of that coverage which the enrollee was enrolled in at 
                the time of the qualifying event, except that if such 
                coverage is later modified under the plan for any group 
                of similarly situated enrollees, such coverage shall 
                also be modified in the same manner for all individuals 
                to which this section applies.
                    ``(B) Premium requirement.--The health insurance 
                issuer may require payment of a premium for such 
                coverage for any period of the continuation coverage, 
                except that such premium--
                            ``(i) shall not exceed 100 percent of the 
                        premium amount applicable for the qualified 
                        health plan involved on the day before the 
                        qualifying event;
                            ``(ii) shall not increase at any time 
                        during the period of continuation coverage; and
                            ``(iii) may, at the election of the 
                        enrollee, be paid in monthly installments.
    ``(b) Qualifying Event.--For purposes of this section, the term 
`qualifying event' means, with respect to any enrollee in a qualified 
health plan, a determination by the Supreme Court of the United States 
in the case of King v. Burwell (2015) that would result in--
            ``(1) the enrollee losing coverage under the plan; or
            ``(2) making the enrollee ineligible to receive a tax 
        credit under section 36B of the Internal Revenue Code of 1986 
        with respect to such plan.
    ``(c) Coverage Period.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        continuation coverage provided for under this section shall 
        extend for at least the period beginning on the date of the 
        qualifying event and ending:
                    ``(A) The date that is 18 months after the date of 
                the qualifying event.
            ``(2) Termination.--Notwithstanding paragraph (1), the 
        continuation coverage provided for under this section shall 
        terminate with respect to an enrollee on--
                    ``(A) the date on which the issuer ceases to 
                provide any qualified health plans to individuals (if 
                any); and
                    ``(B) the date on which coverage ceases under the 
                plan by reason of a failure to make timely payment of 
                any premium required under the plan with respect to the 
                enrollee.
    ``(d) Election Period.--For purposes of this section, the term 
`election period' means the period which--
            ``(1) begins on the date on which the qualifying event 
        occurs; and
            ``(2) ends 60 days after such date.
    ``(e) Notice.--The Secretary shall ensure that--
            ``(1) a health insurance issuer shall provide, not later 
        than 10 days after the date of a qualifying event, written 
        notice to each enrollee in a qualified health plan of the 
        rights provided under this section and the deadlines for 
        exercising such rights, including a statement that any 
        continuation coverage under this section shall expire as 
        provided for in subsection (c); and
            ``(2) each enrollee in a qualified health plan is 
        responsible for notifying the health insurance issuer involved, 
        within 45 days of receiving the notice under paragraph (1), of 
        the intent of the enrollee to exercise the rights provided to 
        the enrollee under this section.''.

SEC. 3. PREVENTING BUREAUCRATIC WORKAROUNDS.

    (a) In General.--The Secretary of Health and Human Services shall 
not enter into a new contract with a State to make available to the 
State technology that is otherwise utilized as part of the Federal 
health insurance exchange established under section 1321 of the Patient 
Protection and Affordable Care Act (42 U.S.C. 18041).
    (b) Rule of Construction.--Nothing in subsection (a) shall be 
construed to prohibit a State from establishing a State-based Exchange.

SEC. 4. TRANSITIONAL FINANCIAL ASSISTANCE.

    (a) Allowance of Tax Credit.--Subpart C of part IV of subchapter A 
of chapter 1 of the Internal Revenue Code of 1986 is amended by 
inserting after section 36B the following new section:

``SEC. 36C. CREDIT FOR TRANSITIONAL COVERAGE.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by subtitle A an 
amount equal to the applicable percentage of the amount paid by the 
taxpayer for coverage of the taxpayer and qualifying family members 
under continuation coverage for eligible coverage months beginning in 
the taxable year.
    ``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage is 65 percent reduced by 5 percentage points for 
each coverage month for which a credit is allowable to the taxpayer 
under this section after the sixth such coverage month.
    ``(c) Eligible Individual.--For purposes of this section--
            ``(1) In general.--The term `eligible individual' means any 
        individual who elects to retain continuation of coverage under 
        section 2796 of the Public Health Service Act.
            ``(2) Identification requirements.--The term `eligible 
        individual' shall not include any individual for any month 
        unless the policy number associated with the qualified health 
        insurance and the TIN of each eligible individual covered under 
        such health insurance for such month are included on the return 
        of tax for the taxable year in which such month occurs.
    ``(d) Coverage Month.--For purposes of this section--
            ``(1) In general.--The term `coverage month' means any 
        month if as of the first date of such month the taxpayer is an 
        eligible individual who does not have other specified coverage.
            ``(2) Other specified coverage.--For purposes of paragraph 
        (1), an individual has other specified coverage for any month 
        if, as of the first day of such month if such individual--
                    ``(A) is covered under employer-provided health 
                insurance,
                    ``(B) is entitled to benefits under part A of title 
                XVIII of the Social Security Act or is enrolled under 
                part B of such title,
                    ``(C) is enrolled under the program under title XIX 
                or XXI of such Act (other than under section 1928 of 
                such Act), or
                    ``(D) is entitled to benefits under chapter 55 of 
                title 10, United States Code.
    ``(e) Other Definitions.--For purposes of this section--
            ``(1) Continuation coverage.--The term `continuation 
        coverage' means coverage described in section 2796(a)(2) of the 
        Public Health Service Act.
            ``(2) Qualifying family member.--The term `qualifying 
        family member' has the meaning given such term under section 
        35(d).
    ``(f) Special Rules.--
            ``(1) Limitation on amount of credit.--With respect to any 
        taxable year, the amount which would (but for this subsection) 
        be allowed as a credit to the taxpayer under subsection (a) 
        shall be reduced (but not below zero) by the aggregate amount 
        paid on behalf of such taxpayer under section 7527A for months 
        beginning in such taxable year.
            ``(2) Coordination with medical deduction.--Any amount paid 
        by a taxpayer for insurance to which subsection (a) applies 
        shall not be taken into account in computing the amount 
        allowable to the taxpayer as a credit under this chapter or as 
        a deduction under section 213(a).
            ``(3) Denial of credit to dependents.--No credit shall be 
        allowed under this section to any individual with respect to 
        whom a deduction under section 151 is allowable to another 
        taxpayer for a taxable year beginning in the calendar year in 
        which such individual's taxable year begins.
            ``(4) Married couples must file joint return.--
                    ``(A) In general.--If the taxpayer is married at 
                the close of the taxable year, the credit shall be 
                allowed under subsection (a) only if the taxpayer and 
                his spouse file a joint return for the taxable year.
                    ``(B) Marital status; certain married individuals 
                living apart.--Rules similar to the rules of paragraphs 
                (3) and (4) of section 21(e) shall apply for purposes 
                of this paragraph.
            ``(5) Verification of coverage, etc.--The Secretary shall 
        ensure that procedures are in place to ensure that the coverage 
        eligibility of the individual is verified.
            ``(6) Insurance which covers other individuals; treatment 
        of payments; etc..--Rules similar to the rules of paragraphs 
        (7) and (8) of section 35(g) shall apply for purposes of this 
        section.''.
    (b) Advance Payment of Credit.--Chapter 77 of the Internal Revenue 
Code of 1986 is amended by inserting after section 7527 the following 
new section:

``SEC. 7527A. ADVANCE PAYMENT OF TRANSITIONAL CONTINUATION COVERAGE 
              CREDIT.

    ``(a) In General.--The Secretary shall establish a program for 
making payments on behalf of taxpayers who are eligible individuals 
within the meaning of section 36C(c) to providers of continuation 
coverage (as defined in section 36C(e)(1)) for such individuals.
    ``(b) Limitation.--The Secretary may make payments under subsection 
(a) only to the extent that the Secretary determines that the amount of 
such payments made on behalf of any taxpayer for any month does not 
exceed the applicable percentage under section 36C(b) for the taxpayer 
for such month.''.
    (c) Information Reporting.--
            (1) In general.--Subpart B of part III of subchapter A of 
        chapter 61 of the Internal Revenue Code of 1986 is amended by 
        inserting after section 6050W the following new section:

``SEC. 6050X. RETURNS RELATING TO CONTINUATION COVERAGE CREDIT.

    ``(a) Requirement of Reporting.--Every person who is entitled to 
receive payments for any month of any calendar year under section 7527A 
with respect to any individual shall make the return described in 
subsection (b) with respect to each such individual.
    ``(b) Form and Manner of Returns.--A return is described in this 
subsection if such return--
            ``(1) is in such form as the Secretary may prescribe, and
            ``(2) contains, with respect to each individual referred to 
        in subsection (a)--
                    ``(A) the name, address, and TIN of each such 
                individual,
                    ``(B) the months for which amounts payments under 
                section 7527A were received,
                    ``(C) the amount of each such payment,
                    ``(D) the type of insurance coverage provided by 
                such person with respect to such individual and the 
                policy number associated with such coverage, if 
                applicable,
                    ``(E) the name, address, and TIN of the spouse and 
                each dependent covered under such coverage, and
                    ``(F) such other information as the Secretary may 
                prescribe.
    ``(c) Statements To Be Furnished to Individuals With Respect to 
Whom Information Is Required.--Every person required to make a return 
under subsection (a) shall furnish to each individual whose name is 
required to be set forth in such return a written statement showing--
            ``(1) the name and address of the person required to make 
        such return and the phone number of the information contact for 
        such person, and
            ``(2) the information required to be shown on the return 
        with respect to such individual.
The written statement required under the preceding sentence shall be 
furnished on or before January 31 of the year following the calendar 
year for which the return under subsection (a) is required to be 
made.''.
            (2) Assessable penalties.--
                    (A) Subparagraph (B) of section 6724(d)(1) of such 
                Code is amended by striking ``or'' at the end of clause 
                (xxiv), by striking ``and'' at the end of clause (xxv) 
                and inserting ``or'', and by inserting after clause 
                (xxiii) the following new clause:
                            ``(xxvii) section 6050X (relating to 
                        returns relating to qualified health insurance 
                        credit), and''.
                    (B) Paragraph (2) of section 6724(d) of such Code 
                is amended by striking ``or'' at the end of 
                subparagraph (GG), by striking the period at the end of 
                subparagraph (HH) and inserting ``, or'', and by 
                inserting after subparagraph (HH) the following new 
                subparagraph:
                    ``(II) section 6050X (relating to returns relating 
                to qualified health insurance credit).''.
    (d) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``36C,'' after ``36B,''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by inserting after the item relating to section 36B 
        the following new item:

``Sec. 36C. Credit for continuation coverage under a qualified health 
                            plan.''.
            (3) The table of sections for chapter 77 of such Code is 
        amended by inserting after the item relating to section 7527 
        the following new item:

``Sec. 7527A. Advance payment of continuation coverage credit.''.
            (4) The table of sections for subpart B of part III of 
        subchapter A of chapter 61 of such Code is amended by adding at 
        the end the following new item:

``Sec. 6050X. Returns relating to continuation coverage credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to coverage months beginning after the date of a qualifying event 
determined under section 2796(b) of the Public Health Service Act (as 
added by section 2) with respect to the individual.

SEC. 5. STOPPING BUREAUCRATS FROM SPENDING TAXPAYER DOLLARS.

    (a) In General.--Section 1115 of the Social Security Act (42 U.S.C. 
1315) is amended by adding at the end the following:
    ``(g) No experimental, pilot, or demonstration project undertaken 
under subsection (a) to promote the objectives of title XIX shall be 
approved, renewed, or extended unless--
            ``(1) the Secretary establishes spending limits for the 
        project (which may be annual per population-based limits, 
        aggregate limits (annual or for the waiver period), or a 
        combination thereof) only by applying benchmark growth rates 
        that are determined based on the average of the most recent 
        estimates of nationwide Medicaid beneficiary costs and 
        enrollment growth produced by the Director of the Congressional 
        Budget Office and the Director of the Office of Management and 
        Budget, respectively; and
            ``(2) the establishment and application of such spending 
        limits to the project and the estimated savings resulting from 
        the project are reviewed and certified by an individual who is 
        a member of the American Academy of Actuaries or the Society of 
        Actuaries, using generally accepted actuarial principles and 
        methodologies, and who is not a Federal officer or employee.''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on the date of enactment of this Act and applies to Medicaid 
waivers approved, renewed, or extended under section 1115 of the Social 
Security Act (42 U.S.C. 1315) after that date.