II 

115TH CONGRESS 

1ST SESSION S. 1967 

To amend the Internal Revenue Code of 1986 to provide additional 

exemptions to the individual mandate, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 17, 2017 

Mr. COTTON (for himself and Mr. TOOMEY) 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 

additional exemptions to the individual mandate, and 

for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Mandate Relief Act 

5 of 2017’’. 

6 SEC. 2. MODIFICATIONS TO EXEMPTION TO REQUIREMENT 

7 TO MAINTAIN HEALTH COVERAGE. 

8 (a) EXEMPTION FOR INDIVIDUALS WITH A HOUSE9 HOLD INCOME LESS THAN THE NATIONAL MEDIAN AND

10 FOR INDIVIDUALS WITH EXCESSIVE PREMIUM INVerDate Sep 11 2014 01:03 Oct 18, 2017 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1967.IS S1967

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•S 1967 IS

1 CREASES.—Section 5000A(e) of the Internal Revenue 

2 Code of 1986 is amended by striking paragraphs (1) and 

3 (2) and inserting the following: 

4 ‘‘(1) INDIVIDUALS WITH HOUSEHOLD INCOMES

5 BELOW THE NATIONAL MEDIAN.—Any applicable in6 dividual for any month if the applicable individual 

7 has a household income for the taxable year which 

8 is less than the national median household income 

9 for the most recent calendar year. 

10 ‘‘(2) INDIVIDUALS WITH EXCESSIVE PREMIUM

11 INCREASES.—Any applicable individual for any 

12 month during a calendar year if such applicable indi13 vidual resides in a State in which either— 

14 ‘‘(A) the average premium for self-only 

15 coverage for the second lowest cost silver plan 

16 within the State for such calendar year is more 

17 than 10 percent greater than the average pre18 mium for self-only coverage for the second low19 est cost silver plan within the State for the pre20 ceding calendar year, or 

21 ‘‘(B) the average premium for family cov22 erage for the second lowest cost silver plan 

23 within the State for such calendar year is more 

24 than 10 percent greater than the average pre25 mium for family coverage for the second lowest 


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•S 1967 IS

1 cost silver plan within the State for the pre2 ceding calendar year.’’. 

3 (b) ADDITIONAL EXEMPTIONS.—Section 5000A(e) of 

4 the Internal Revenue Code of 1986 is amended by adding 

5 at the end the following new paragraph: 

6 ‘‘(6) INDIVIDUALS IN AREAS WITH FEWER

7 THAN 2 ISSUERS OFFERING PLANS ON AN EX8 CHANGE.— 

9 ‘‘(A) IN GENERAL.—Any applicable indi10 vidual for any period during a calendar year if 

11 there are fewer than 2 health insurance issuers 

12 offering qualified health plans on an Exchange 

13 for such period in the county in which the ap14 plicable individual resides. 

15 ‘‘(B) AGGREGATION RULES.—For purposes 

16 of subparagraph (A), all health insurance 

17 issuers treated as a single employer under sub18 section (a) or (b) of section 52, or subsection 

19 (m) or (o) of section 414, shall be treated as a 

20 single health insurance issuer.’’. 

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

22 this section shall apply to months beginning after the date 

23 of the enactment of this Act. 


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•S 1967 IS

1 SEC. 3. REPEAL OF DISTRIBUTIONS FOR MEDICINE QUALI2 FIED ONLY IF FOR PRESCRIBED DRUG OR IN3 SULIN. 

4 (a) HSAS.—Subparagraph (A) of section 223(d)(2) 

5 of the Internal Revenue Code of 1986 is amended by strik6 ing the last sentence. 

7 (b) ARCHER MSAS.—Subparagraph (A) of section 

8 220(d)(2) of the Internal Revenue Code of 1986 is amend9 ed by striking the last sentence. 

10 (c) HEALTH FLEXIBLE SPENDING ARRANGEMENTS

11 AND HEALTH REIMBURSEMENT ARRANGEMENTS.—Sec12 tion 106 of the Internal Revenue Code of 1986 is amended 

13 by striking subsection (f). 

14 (d) EFFECTIVE DATES.— 

15 (1) DISTRIBUTIONS FROM SAVINGS AC16 COUNTS.—The amendments made by subsections (a) 

17 and (b) shall apply to amounts paid with respect to 

18 taxable years beginning after December 31, 2016. 

19 (2) REIMBURSEMENTS.—The amendment made 

20 by subsection (c) shall apply to expenses incurred 

21 with respect to taxable years beginning after Decem22 ber 31, 2017. 


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•S 1967 IS

1 SEC. 4. REPEAL OF LIMITATION ON HEALTH FLEXIBLE 

2 SPENDING ARRANGEMENTS UNDER CAFE3 TERIA PLANS. 

4 (a) IN GENERAL.—Section 125 of the Internal Rev5 enue Code of 1986 is amended— 

6 (1) by striking subsection (i); and 

7 (2) by redesignating subsections (j), (k), and (l) 

8 as subsections (i), (j), and (k), respectively. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2017. 

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

13 (a) HSAS.—Section 223(f)(4)(A) of the Internal 

14 Revenue Code of 1986 is amended by striking ‘‘20 per15 cent’’ and inserting ‘‘10 percent’’. 

16 (b) ARCHER MSAS.—Section 220(f)(4)(A) of the In17 ternal Revenue Code of 1986 is amended by striking ‘‘20 

18 percent’’ and inserting ‘‘15 percent’’. 

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

20 this section shall apply to distributions made after Decem21 ber 31, 2017. 

Æ 


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