Reclaiming Individual Liberty Act

Summary: Reclaiming Individual Liberty Act This bill repeals the provision in the Internal Revenue Code, as added by the Patient Protection and Affordable Care Act, that requires individual taxpayers to purchase and maintain minimum essential health care coverage.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reclaiming Individual Liberty Act''.

SEC. 2. REPEAL OF INDIVIDUAL HEALTH INSURANCE MANDATE.

    (a) In General.--Chapter 48 of the Internal Revenue Code of 1986 is 
hereby repealed.
    (b) Conforming Amendments to the Internal Revenue Code of 1986.--
            (1) Section 36B(c)(2)(B) of such Code is amended to read as 
        follows:
                    ``(B) Exception for minimum essential coverage.--
                The term `coverage month' shall not include any month 
                with respect to an individual if for such month the 
                individual is eligible for minimum essential coverage 
                other than eligibility for coverage described in 
                subsection (g)(1)(C) (relating to coverage in the 
                individual market).''.
            (2) Section 36B(c)(2)(C)(i)(I) of such Code is amended by 
        striking ``(as defined in section 5000A(f)(2))''.
            (3) Section 36B(c)(2)(C)(i)(II) of such Code is amended by 
        striking ``(within the meaning of section 5000A(e)(1)(B))''.
            (4) Section 36B(c)(2)(C)(ii) of such Code is amended by 
        striking ``(as defined in section 5000A(f)(2))''.
            (5) Section 36B(c)(2) of such Code is amended by adding at 
        the end the following new subparagraph:
                    ``(D) Required contribution.--For purposes of this 
                paragraph--
                            ``(i) In general.--the term `required 
                        contribution' means--
                                    ``(I) in the case of an individual 
                                eligible to purchase minimum essential 
                                coverage consisting of coverage through 
                                an eligible-employer-sponsored plan, 
                                the portion of the annual premium which 
                                would be paid by the individual 
                                (without regard to whether paid through 
                                salary reduction or otherwise) for 
                                self-only coverage, or
                                    ``(II) in the case of an individual 
                                eligible only to purchase minimum 
                                essential coverage described in 
                                subsection (g)(1)(C), the annual 
                                premium for the lowest cost bronze plan 
                                available in the individual market 
                                through the Exchange in the State in 
                                the rating area in which the individual 
                                resides (without regard to whether the 
                                individual purchased a qualified health 
                                plan through the Exchange), reduced by 
                                the amount of the credit allowable 
                                under this section for the taxable year 
                                (determined as if the individual was 
                                covered by a qualified health plan 
                                offered through the Exchange for the 
                                entire taxable year).
                            ``(ii) Special rules for individuals 
                        related to employees.--For purposes of clause 
                        (i)(I), if an individual is eligible for 
                        minimum essential coverage through an employer 
                        by reason of a relationship to an employee, the 
                        determination under subparagraph (C)(i)(II) 
                        shall be made by reference to required 
                        contribution of the employee.''.
            (6) Section 36B of such Code is amended by redesignating 
        subsection (g) as subsection (h) and by inserting after 
        subsection (f) the following new subsection:
    ``(g) Minimum Essential Coverage.--For purposes of this section--
            ``(1) In general.--The term `minimum essential coverage' 
        means any of the following:
                    ``(A) Government sponsored programs.--Coverage 
                under--
                            ``(i) the Medicare program under part A of 
                        title XVIII of the Social Security Act,
                            ``(ii) the Medicaid program under title XIX 
                        of the Social Security Act,
                            ``(iii) the CHIP program under title XXI of 
                        the Social Security Act,
                            ``(iv) medical coverage under chapter 55 of 
                        title 10, United States Code, including 
                        coverage under the TRICARE program,
                            ``(v) a health care program under chapter 
                        17 or 18 of title 38, United States Code, as 
                        determined by the Secretary of Veterans 
                        Affairs, in coordination with the Secretary of 
                        Health and Human Services and the Secretary,
                            ``(vi) a health plan under section 2504(e) 
                        of title 22, United States Code (relating to 
                        Peace Corps volunteers), or
                            ``(vii) the Nonappropriated Fund Health 
                        Benefits Program of the Department of Defense, 
                        established under section 349 of the National 
                        Defense Authorization Act for Fiscal Year 1995 
                        (Public Law 103-337; 10 U.S.C. 1587 note).
                    ``(B) Employer-sponsored plan.--Coverage under an 
                eligible employer-sponsored plan.
                    ``(C) Plans in the individual market.--Coverage 
                under a health plan offered in the individual market 
                within a State.
                    ``(D) Grandfathered health plan.--Coverage under a 
                grandfathered health plan.
                    ``(E) Other coverage.--Such other health benefits 
                coverage, such as a State health benefits risk pool, as 
                the Secretary of Health and Human Services, in 
                coordination with the Secretary, recognizes for 
                purposes of this subsection.
            ``(2) Eligible employer-sponsored plan.--The term `eligible 
        employer-sponsored plan' means, with respect to any employee, a 
        group health plan or group health insurance coverage offered by 
        an employer to the employee which is--
                    ``(A) a governmental plan (within the meaning of 
                section 2791(d)(8) of the Public Health Service Act), 
                or
                    ``(B) any other plan or coverage offered in the 
                small or large group market within a State.
        Such term shall include a grandfathered health plan described 
        in paragraph (1)(D) offered in a group market.
            ``(3) Excepted benefits not treated as minimum essential 
        coverage.--The term `minimum essential coverage' shall not 
        include health insurance coverage which consists of coverage of 
        excepted benefits--
                    ``(A) described in paragraph (1) of subsection (c) 
                of section 2791 of the Public Health Service Act, or
                    ``(B) described in paragraph (2), (3), or (4) of 
                such subsection if the benefits are provided under a 
                separate policy, certificate, or contract of insurance.
            ``(4) Individuals residing outside united states or 
        residents of territories.--Any applicable individual shall be 
        treated as having minimum essential coverage for any month--
                    ``(A) if such month occurs during any period 
                described in subparagraph (A) or (B) of section 
                911(d)(1) which is applicable to the individual, or
                    ``(B) if such individual is a bona fide resident of 
                any possession of the United States (as determined 
                under section 937(a)) for such month.
            ``(5) Insurance-related terms.--Any term used in this 
        section which is also used in title I of the Patient Protection 
        and Affordable Care Act shall have the same meaning as when 
        used in such title.''.
            (7) Section 162(m)(6)(C)(i)(II) of such Code is amended by 
        striking ``section 5000A(f)'' and inserting ``section 36B(g)''.
            (8) Subsections (a)(1) and (b)(1)(A) of section 4980H of 
        such Code are each amended by striking ``section 5000A(f)(2)'' 
        and inserting ``section 36B(g)(2)''.
            (9) Section 4980I(f)(1)(B) of such Code is amended by 
        striking ``section 5000A(f)'' and inserting ``section 36B(g)''.
            (10) Section 6055(e) of such Code is amended by striking 
        ``section 5000A(f)'' and inserting ``section 36B(g)''.
            (11) Section 6056(b)(2)(B) of such Code is amended by 
        striking ``section 5000A(f)(2)'' and inserting ``section 
        36B(g)(2)''.
            (12) The table of chapters for subtitle D of such Code is 
        amended by striking the item relating to chapter 48.
    (c) Conforming Amendments to Other Laws.--
            (1) Section 2715(b)(3)(G)(i) of the Public Health Service 
        Act is amended by striking ``section 5000A(f)'' and inserting 
        ``section 36B(g)''.
            (2) Section 1251(a)(4)(B)(ii) of the Patient Protection and 
        Affordable Care Act is amended by striking ``section 
        5000A(f)(2)'' and inserting ``section 36B(g)(2)''.
            (3) Section 1302(e)(2)(B) of the Patient Protection and 
        Affordable Care Act is amended to read as follows:
                    ``(B) has a certification in effect for any plan 
                year under this title that--
                            ``(i) the individual's required 
                        contribution (determined on an annual basis) 
                        for coverage for the month exceeds 8 percent of 
                        such individual's household income for the 
                        taxable year described in section 
                        1412(b)(1)(B), or
                            ``(ii) the individual has been determined 
                        by the Secretary of Health and Human Services 
                        under section 1311(d)(4)(H) to have suffered a 
                        hardship with respect to the capability to 
                        obtain coverage under a qualified health 
                        plan.''.
            (4) Section 1302(e) of the Patient Protection and 
        Affordable Care Act is amended by adding at the end the 
        following new paragraph:
            ``(4) Determination of individual's required contribution 
        and household income.--For purposes of this subsection--
                    ``(A) Required contribution.--The term `required 
                contribution' means--
                            ``(i) in the case of an individual eligible 
                        to purchase minimum essential coverage 
                        consisting of coverage through an eligible-
                        employer-sponsored plan (as defined in section 
                        36B(g)(2) of the Internal Revenue Code of 
                        1986), the portion of the annual premium which 
                        would be paid by the individual (without regard 
                        to whether paid through salary reduction or 
                        otherwise) for self-only coverage, or
                            ``(ii) in the case of an individual 
                        eligible only to purchase minimum essential 
                        coverage described in section 36B(g)(1)(C) of 
                        the Internal Revenue Code of 1986, the annual 
                        premium for the lowest cost bronze plan 
                        available in the individual market through the 
                        Exchange in the State in the rating area in 
                        which the individual resides (without regard to 
                        whether the individual purchased a qualified 
                        health plan through the Exchange), reduced by 
                        the amount of the credit allowable under 
                        section 36B of such Code for the taxable year 
                        (determined as if the individual was covered by 
                        a qualified health plan offered through the 
                        Exchange for the entire taxable year).
                    ``(B) Special rules for individuals related to 
                employees.--For purposes of subparagraph (A)(i), if an 
                individual is eligible for minimum essential coverage 
                (as defined in section 36B(g) of the Internal Revenue 
                Code of 1986) through an employer by reason of a 
                relationship to an employee, the determination under 
                paragraph (2)(B)(i) shall be made by reference to 
                required contribution of the employee.
                    ``(C) Indexing.--In the case of plan years 
                beginning in any calendar year after 2014, paragraph 
                (2)(B)(i) shall be applied by substituting for `8 
                percent' the percentage the Secretary of Health and 
                Human Services determines reflects the excess of the 
                rate of premium growth between the preceding calendar 
                year and 2013 over the rate of income growth for such 
                period.
                    ``(D) Household income.--For purposes of paragraph 
                (2)(B)(i), the taxpayer's household income shall be 
                increased by any exclusion from gross income for any 
                portion of the required contribution made through a 
                salary reduction arrangement.''.
            (5) Section 1311(d)(4) of the Patient Protection and 
        Affordable Care Act is amended by striking subparagraph (H) and 
        by redesignating subparagraphs (I), (J), and (K) as 
        subparagraphs (H), (I), and (J), respectively.
            (6) Section 1312(d)(4) of the Patient Protection and 
        Affordable Care Act is amended by striking ``section 5000A(f)'' 
        and inserting ``section 36B(g)''.
            (7) Section 1331(e)(1)(C) of the Patient Protection and 
        Affordable Care Act is amended--
                    (A) by striking ``section 5000A(f)'' and inserting 
                ``section 36B(g)'', and
                    (B) by striking ``section 5000A(e)(2) of such 
                Code'' and inserting ``section 1411(a)(4)''.
            (8) Section 1332(a)(2)(D) of the Patient Protection and 
        Affordable Care Act is amended by striking ``Sections 36B, 
        4980H, and 5000A'' and inserting ``Sections 36B and 4980H''.
            (9) Section 1401(c)(1)(A)(iii) of the Patient Protection 
        and Affordable Care Act is amended by striking ``section 
        5000A(f)'' and inserting ``section 36B(g)''.
            (10) Section 1411(a) of the Patient Protection and 
        Affordable Care Act is amended--
                    (A) by adding ``and'' at the end of paragraph (2),
                    (B) by striking ``sections 36B(c)(2)(C) and 
                5000A(e)(2); and'' in paragraph (3) and inserting 
                ``section 36B(c)(2)(C).'', and
                    (C) by striking paragraph (4).
            (11) Section 1411(b)(4)(C) of the Patient Protection and 
        Affordable Care Act is amended by striking ``section 
        5000A(e)(1)(B)'' and inserting ``section 36B(c)(2)(D)''.
            (12) Section 1411(b) of the Patient Protection and 
        Affordable Care Act is amended by striking paragraph (5).
            (13) Section 1411(e)(4)(B) of the Patient Protection and 
        Affordable Care Act is amended by striking clause (iv).
    (d) Effective Date.--The amendments and repeal made by this section 
shall apply to taxable years ending after December 31, 2013.