116TH CONGRESS 

1ST SESSION H. R. 748 

AN ACT 

To amend the Internal Revenue Code of 1986 to repeal 

the excise tax on high cost employer-sponsored health 

coverage. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
2 

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Middle Class Health 

3 Benefits Tax Repeal Act of 2019’’. 

4 SEC. 2. REPEAL OF EXCISE TAX ON HIGH COST EMPLOYER5 SPONSORED HEALTH COVERAGE. 

6 (a) IN GENERAL.—Chapter 43 of the Internal Rev7 enue Code of 1986 is amended by striking section 4980I. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Section 6051 of such Code is amended— 

10 (A) by striking ‘‘section 4980I(d)(1)’’ in 

11 subsection (a)(14) and inserting ‘‘subsection 

12 (g)’’, and 

13 (B) by adding at the end the following new 

14 subsection: 

15 ‘‘(g) APPLICABLE EMPLOYER-SPONSORED COV16 ERAGE.—For purposes of subsection (a)(14)— 

17 ‘‘(1) IN GENERAL.—The term ‘applicable em18 ployer-sponsored coverage’ means, with respect to 

19 any employee, coverage under any group health plan 

20 made available to the employee by an employer 

21 which is excludable from the employee’s gross in22 come under section 106, or would be so excludable 

23 if it were employer-provided coverage (within the 

24 meaning of such section 106). 

25 ‘‘(2) EXCEPTIONS.—The term ‘applicable em26 ployer-sponsored coverage’ shall not include— 
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1 ‘‘(A) any coverage (whether through insur2 ance or otherwise) described in section 

3 9832(c)(1) (other than subparagraph (G) there4 of) or for long-term care, 

5 ‘‘(B) any coverage under a separate policy, 

6 certificate, or contract of insurance which pro7 vides benefits substantially all of which are for 

8 treatment of the mouth (including any organ or 

9 structure within the mouth) or for treatment of 

10 the eye, or 

11 ‘‘(C) any coverage described in section 

12 9832(c)(3) the payment for which is not exclud13 able from gross income and for which a deduc14 tion under section 162(l) is not allowable. 

15 ‘‘(3) COVERAGE INCLUDES EMPLOYEE PAID

16 PORTION.—Coverage shall be treated as applicable 

17 employer-sponsored coverage without regard to 

18 whether the employer or employee pays for the cov19 erage. 

20 ‘‘(4) GOVERNMENTAL PLANS INCLUDED.—Ap21 plicable employer-sponsored coverage shall include 

22 coverage under any group health plan established 

23 and maintained primarily for its civilian employees 

24 by the Government of the United States, by the gov25 ernment of any State or political subdivision thereof, 
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1 or by any agency or instrumentality of any such gov2 ernment.’’. 

3 (2) Section 9831(d)(1) of such Code is amend4 ed by striking ‘‘except as provided in section 

5 4980I(f)(4)’’. 

6 (3) The table of sections for chapter 43 of such 

7 Code is amended by striking the item relating to sec8 tion 4980I. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2019. 

12 SEC. 3. BUDGETARY EFFECTS. 

13 (a) STATUTORY PAYGO SCORECARDS.—The budg14 etary effects of this Act shall not be entered on either 

15 PAYGO scorecard maintained pursuant to section 4(d) of 

16 the Statutory Pay-As-You-Go Act of 2010. 

17 (b) SENATE PAYGO SCORECARDS.—The budgetary 

18 effects of this Act shall not be entered on any PAYGO 

19 scorecard maintained for purposes of section 4106 of H. 

20 Con. Res. 71 (115th Congress). 

Passed the House of Representatives July 17, 2019. 

Attest: 

Clerk. 

116TH CONGRESS 

1ST SESSION H. R. 748 

AN ACT 

To amend the Internal Revenue Code of 1986 to 

sored health coverage. repeal the excise tax on high cost employer-spon-