To repeal certain tax increases enacted as part of health care reform.

Summary: Total Repeal of the Unfair Taxes on Healthcare Act of 2012 or the TRUTH Act of 2012 - Amends the Internal Revenue Code, with respect to health care provisions added by the Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act of 2010, to repeal: (1) the excise tax on the excess benefit from certain high cost employer-sponsored health coverage plans; (2) the excise tax on net investment income in the Medicare taxable base; (3) the prohibition against payments from health flexible spending arrangements, health savings accounts (HSAs), and Archer medical savings accounts (MSAs) for over-the-counter drugs; (4) the increased penalty on distributions from an HSA or Archer MSA not used for qualified medical expenses; (5) the limitation on annual salary reduction contributions by an employee to a health flexible spending arrangement under a cafeteria plan; (6) the increase in the income threshold for claiming an itemized deduction for medical expenses; (7) the excise tax on indoor tanning services; (8) the requirement that individuals maintain minimal essential health care coverage; and (9) the excise tax on medical devices.

Repeals provisions of PPACA that require: (1) annual fees on branded prescription drug manufacturers and importers and on health insurance providers, and (2) a report by the Secretary of Veteran Affairs (VA) on the effect of fees assessed by such Act on the cost of medical care provided to veterans and on access by veterans to medical devices and branded prescription drugs.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Total Repeal of 
the Unfair Taxes on Healthcare Act of 2012'' or as the ``TRUTH Act of 
2012''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Repeal of excise tax on comprehensive health plans.
Sec. 3. Repeal of surtax on investment income.
Sec. 4. Repeal of disqualification of expenses for over-the-counter 
                            drugs under health flexible spending 
                            arrangements and health savings accounts.
Sec. 5. Repeal of increase in tax on nonqualified distributions from 
                            health savings accounts.
Sec. 6. Repeal of limitation on health flexible spending arrangements 
                            under cafeteria plans.
Sec. 7. Repeal of increased threshold for itemized deduction for 
                            medical expenses.
Sec. 8. Repeal of excise tax on indoor tanning services.
Sec. 9. Repeal of individual health insurance mandate.
Sec. 10. Repeal of employer health insurance mandate.
Sec. 11. Repeal of excise tax on medical devices.
Sec. 12. Repeal of annual fee on branded prescription drug 
                            manufacturers.
Sec. 13. Repeal of annual fee on health insurance providers.
Sec. 14. Repeal of study and report on repealed provisions.

SEC. 2. REPEAL OF EXCISE TAX ON COMPREHENSIVE HEALTH PLANS.

    Chapter 43 of the Internal Revenue Code of 1986 is amended by 
striking section 4980I (and by striking the item relating to such 
section in the table of sections for such chapter).

SEC. 3. REPEAL OF SURTAX ON INVESTMENT INCOME.

    (a) In General.--Subtitle A of the Internal Revenue Code of 1986 is 
amended by striking chapter 2A and by striking the item relating to 
chapter 2A from the table of chapters for such subtitle.
    (b) Conforming Amendments.--Section 6654 of such Code is amended--
            (1) in subsection (a), by striking ``the tax under chapter 
        2, and the tax under chapter 2A'' and inserting ``and the tax 
        under chapter 2'', and
            (2) in subsection (f)--
                    (A) by striking ``plus'' at the end of paragraph 
                (2) and inserting ``minus'', and
                    (B) by striking paragraph (3) and redesignating 
                paragraph (4) as paragraph (3).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.

SEC. 4. REPEAL OF DISQUALIFICATION OF EXPENSES FOR OVER-THE-COUNTER 
              DRUGS UNDER HEALTH FLEXIBLE SPENDING ARRANGEMENTS AND 
              HEALTH SAVINGS ACCOUNTS.

    (a) Health Flexible Spending Arrangements and Health Reimbursement 
Arrangements.--Section 106 of the Internal Revenue Code of 1986 is 
amended by striking subsection (f).
    (b) HSAs.--Subparagraph (A) of section 223(d)(2) of such Code is 
amended by striking the last sentence.
    (c) Archer MSAs.--Subparagraph (A) of section 220(d)(2) of such 
Code is amended by striking the last sentence.
    (d) Effective Dates.--
            (1) Reimbursements.--The amendment made by subsection (a) 
        shall apply to expenses incurred with respect to taxable years 
        beginning after December 31, 2010.
            (2) Distributions from savings accounts.--The amendments 
        made by subsections (b) and (c) shall apply to amounts paid 
        with respect to taxable years beginning after December 31, 
        2010.

SEC. 5. REPEAL OF INCREASE IN TAX ON NONQUALIFIED DISTRIBUTIONS FROM 
              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 such Code 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, 2010.

SEC. 6. 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 by striking subsection (i).
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2012.

SEC. 7. REPEAL OF INCREASED THRESHOLD FOR ITEMIZED DEDUCTION FOR 
              MEDICAL EXPENSES.

    (a) In General.--Subsection (a) of section 213 of the Internal 
Revenue Code of 1986 is amended by striking ``10 percent'' and 
inserting ``7.5 percent''.
    (b) Conforming Amendments.--
            (1) Section 56(b)(1)(B) of such Code is amended by striking 
        ``without regard to subsection (f) of such section'' and 
        inserting ``by substituting `10 percent' for `7.5 percent'''.
            (2) Section 213 of such Code is amended by striking 
        subsection (f).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.

SEC. 8. REPEAL OF EXCISE TAX ON INDOOR TANNING SERVICES.

    (a) In General.--Subtitle D of the Internal Revenue Code of 1986 is 
amended by striking chapter 49 (and by striking the item relating to 
such chapter in the table of chapters for such subtitle).
    (b) Effective Date.--The amendment made by this section shall apply 
to services performed after the date of the enactment of this Act.

SEC. 9. REPEAL OF INDIVIDUAL HEALTH INSURANCE MANDATE.

    Section 5000A of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subsection:
    ``(h) Termination.--This section shall not apply with respect to 
any month beginning after the date of the enactment of this 
subsection.''.

SEC. 10. REPEAL OF EMPLOYER HEALTH INSURANCE MANDATE.

    (a) In General.--Chapter 43 of the Internal Revenue Code of 1986 is 
amended by striking section 4980H.
    (b) Repeal of Related Reporting Requirements.--Subpart D of part 
III of subchapter A of chapter 61 of such Code is amended by striking 
section 6056.
    (c) Conforming Amendments.--
            (1) Subparagraph (B) of section 6724(d)(1) of such Code is 
        amended by inserting ``or'' at the end of clause (xxiii), by 
        striking ``and'' at the end of clause (xxiv) and inserting 
        ``or'', and by striking clause (xxv).
            (2) Paragraph (2) of section 6724(d) of such Code is 
        amended by inserting ``or'' at the end of subparagraph (FF), by 
        striking ``, or'' at the end of subparagraph (GG) and inserting 
        a period, and by striking subparagraph (HH).
            (3) The table of sections for chapter 43 of such Code is 
        amended by striking the item relating to section 4980H.
            (4) The table of sections for subpart D of part III of 
        subchapter A of chapter 61 of such Code is amended by striking 
        the item relating to section 6056.
            (5) Section 1513 of the Patient Protection and Affordable 
        Care Act is amended by striking subsection (c).
    (d) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        months and other periods beginning after December 31, 2013.
            (2) Repeal of study and report.--The amendment made by 
        subsection (c)(5) shall take effect on the date of the 
        enactment of this Act.

SEC. 11. REPEAL OF EXCISE TAX ON MEDICAL DEVICES.

    (a) In General.--Chapter 32 of the Internal Revenue Code of 1986 is 
amended by striking subchapter E (and by striking the item relating to 
such subchapter in the table of subchapters of such chapter).
    (b) Conforming Amendments.--
            (1) Section 4221(a) of such Code is amended by striking the 
        last sentence.
            (2) Section 6416(b)(2) of such Code is amended by striking 
        the last sentence.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales after December 31, 2012.

SEC. 12. REPEAL OF ANNUAL FEE ON BRANDED PRESCRIPTION DRUG 
              MANUFACTURERS.

    (a) In General.--The Patient Protection and Affordable Care Act is 
amended by striking section 9008.
    (b) Conforming Amendment.--Section 1841(a) of the Social Security 
Act is amended by striking ``or section 9008(c) of the Patient 
Protection and Affordable Care Act of 2009''.
    (c) Effective Date.--The amendment made by this section shall apply 
to calendar years beginning after December 31, 2011.

SEC. 13. REPEAL OF ANNUAL FEE ON HEALTH INSURANCE PROVIDERS.

    (a) In General.--The Patient Protection and Affordable Care Act is 
amended by striking section 9010.
    (b) Effective Date.--The amendment made by this section shall apply 
to calendar years beginning after December 31, 2013.

SEC. 14. REPEAL OF STUDY AND REPORT ON REPEALED PROVISIONS.

    The Patient Protection and Affordable Care Act is amended by 
striking section 9011.