```

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2653 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 2653

 To repeal the Patient Protection and Affordable Care Act and related 
reconciliation provisions, to promote patient-centered health care, to 
  provide for the creation of a safe harbor for defendants in medical 
  malpractice actions who demonstrate adherence to clinical practice 
                  guidelines, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 2015

  Mr. Roe of Tennessee (for himself, Mr. Austin Scott of Georgia, Mr. 
 Flores, Mr. Barr, Mrs. Blackburn, Mr. Carter of Georgia, Mrs. Ellmers 
 of North Carolina, Mr. Fleming, Mr. Gosar, Mr. Harris, Mr. Hill, Mr. 
 Rokita, Mr. Scalise, Mr. Bucshon, Mr. Gibbs, Mr. Bishop of Michigan, 
  Mr. Walberg, Mr. Weber of Texas, Mr. Wenstrup, Mr. Farenthold, Mr. 
Huelskamp, Mr. Byrne, Mr. Huizenga of Michigan, Mr. Rouzer, Mr. Yoder, 
Mr. Lamborn, Mr. Neugebauer, Mr. Franks of Arizona, Mr. Pittenger, Mr. 
Cole, Mr. Babin, Mr. Rooney of Florida, Mr. Stutzman, Mr. Rothfus, Mrs. 
Hartzler, Mrs. Wagner, Mr. DesJarlais, Mr. McKinley, Mr. Benishek, Mr. 
  Fincher, Mr. Wilson of South Carolina, Mr. Olson, Mr. Palazzo, Mr. 
Messer, Mr. McClintock, and Mr. McCaul) introduced the following bill; 
  which was referred to the Committee on Energy and Commerce, and in 
    addition to the Committees on Ways and Means, Education and the 
  Workforce, the Judiciary, Natural Resources, House Administration, 
Rules, Appropriations, Veterans' Affairs, and the Budget, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
 To repeal the Patient Protection and Affordable Care Act and related 
reconciliation provisions, to promote patient-centered health care, to 
  provide for the creation of a safe harbor for defendants in medical 
  malpractice actions who demonstrate adherence to clinical practice 
                  guidelines, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Health 
Care Reform Act of 2015''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--REPEAL OF OBAMACARE

Sec. 101. Repeal of PPACA and health care-related provisions in the 
                            Health Care and Education Reconciliation 
                            Act of 2010.
Sec. 102. Budgetary effects.
  TITLE II--INCREASING ACCESS TO PORTABLE, AFFORDABLE HEALTH INSURANCE

Sec. 200. Amendment of 1986 Code.
          Subtitle A--Standard Deduction for Health Insurance

Sec. 201. Standard deduction for health insurance.
Sec. 202. Changes to existing tax preferences for medical coverage and 
                            costs for individuals eligible for standard 
                            deduction for health insurance.
Sec. 203. Exclusion of standard deduction for health insurance from 
                            employment taxes.
Sec. 204. Information reporting.
Sec. 205. Election to disregard inclusion of contributions by employer 
                            to accident or health plan.
           Subtitle B--Enhancement of Health Savings Accounts

Sec. 221. Allow both spouses to make catch-up contributions to the same 
                            HSA account.
Sec. 222. Provisions relating to Medicare.
Sec. 223. Individuals eligible for veterans benefits for a service-
                            connected disability.
Sec. 224. Individuals eligible for Indian Health Service assistance.
Sec. 225. Individuals eligible for TRICARE coverage.
Sec. 226. FSA and HRA interaction with HSAs.
Sec. 227. Purchase of health insurance from HSA account.
Sec. 228. Special rule for certain medical expenses incurred before 
                            establishment of account.
Sec. 229. Preventive care prescription drug clarification.
Sec. 230. Equivalent bankruptcy protections for health savings accounts 
                            as retirement funds.
Sec. 231. Administrative error correction before due date of return.
Sec. 232. Reauthorization of Medicaid health opportunity accounts.
Sec. 233. Members of health care sharing ministries eligible to 
                            establish health savings accounts.
Sec. 234. High deductible health plans renamed HSA qualified plans.
Sec. 235. Treatment of direct primary care service arrangements.
Sec. 236. Certain exercise equipment and physical fitness programs 
                            treated as medical care.
Sec. 237. Certain nutritional and dietary supplements to be treated as 
                            medical care.
Sec. 238. Certain provider fees to be treated as medical care.
Sec. 239. Increase the maximum contribution limit to an HSA to match 
                            deductible and out-of-pocket expense 
                            limitation.
Sec. 240. Child health savings account.
Sec. 241. Allowing minimum distributions from tax-deferred retirement 
                            accounts to be deposited into HSAs.
Sec. 242. Distributions for abortion expenses from health savings 
                            accounts included in gross income.
                Subtitle C--Enhanced Wellness Incentives

Sec. 251. Providing financial incentives for treatment compliance.
   TITLE III--IMPROVING ACCESS TO INSURANCE FOR VULNERABLE AMERICANS

         Subtitle A--Eliminating Barriers to Insurance Coverage

Sec. 301. Elimination of certain requirements for guaranteed 
                            availability in individual market.
    Subtitle B--Ensuring Coverage for Individuals With Preexisting 
   Conditions and Multiple Health Care Needs Through High Risk Pools

Sec. 311. Improvement of high risk pools.
      TITLE IV--ENCOURAGING A MORE COMPETITIVE HEALTH CARE MARKET

                  Subtitle A--Expanding Patient Choice

Sec. 401. Cooperative governing of individual health insurance 
                            coverage.
                  Subtitle B--McCarran-Ferguson Reform

Sec. 411. Restoring the application of antitrust laws to health sector 
                            insurers.
                Subtitle C--Medicare Price Transparency

Sec. 421. Public availability of Medicare claims data.
                 Subtitle D--State Transparency Portals

Sec. 431. Providing information on health coverage options and health 
                            care providers.
         Subtitle E--Protecting the Doctor-Patient Relationship

Sec. 441. Rule of construction.
Sec. 442. Repeal of Federal Coordinating Council for Comparative 
                            Effectiveness Research.
           Subtitle F--Establishing Association Health Plans

Sec. 451. Rules governing association health plans.
Sec. 452. Clarification of treatment of single employer arrangements.
Sec. 453. Enforcement provisions relating to association health plans.
Sec. 454. Cooperation between Federal and State authorities.
Sec. 455. Effective date and transitional and other rules.
                Subtitle G--Greater Choice for Veterans

Sec. 461. Removing barriers to health care choice for Category 1 
                            veterans and medal of honor recipients.
                TITLE V--REFORMING MEDICAL LIABILITY LAW

Sec. 501. Requirements for selection of clinical practice guidelines.
Sec. 502. Development.
Sec. 503. No liability for guideline producers.
Sec. 504. Internet publication of guidelines.
Sec. 505. State flexibility and protection of States' rights.
Sec. 506. Federal cause of action.
Sec. 507. Right of removal.
Sec. 508. Mandatory review by independent medical panel.
Sec. 509. Definitions.
                  TITLE VI--MEDICAL BREAKTHROUGH FUND

Sec. 601. Medical Breakthrough Fund.
                      TITLE VII--OTHER PROVISIONS

Sec. 701. Respecting human life.
Sec. 702. Offsets.

                      TITLE I--REPEAL OF OBAMACARE

SEC. 101. REPEAL OF PPACA AND HEALTH CARE-RELATED PROVISIONS IN THE 
              HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010.

    (a) PPACA.--Effective on January 1, 2016, the Patient Protection 
and Affordable Care Act (Public Law 111-148) is repealed, and the 
provisions of law amended or repealed by such Act are restored or 
revived as if such Act had not been enacted.
    (b) Health Care-Related Provisions in the Health Care and Education 
Reconciliation Act of 2010.--Effective on January 1, 2016, title I and 
subtitle B of title II of the Health Care and Education Reconciliation 
Act of 2010 (Public Law 111-152) are repealed, and the provisions of 
law amended or repealed by such title or subtitle, respectively, are 
restored or revived as if such title and subtitle had not been enacted.

SEC. 102. BUDGETARY EFFECTS.

    The budgetary effects of this Act shall not be entered on either 
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory 
Pay-As-You-Go Act of 2010.

  TITLE II--INCREASING ACCESS TO PORTABLE, AFFORDABLE HEALTH INSURANCE

SEC. 200. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

          Subtitle A--Standard Deduction for Health Insurance

SEC. 201. STANDARD DEDUCTION FOR HEALTH INSURANCE.

    (a) In General.--Part VII of subchapter B of chapter 1 is amended 
by redesignating section 224 as section 225 and by inserting after 
section 223 the following new section:

``SEC. 224. STANDARD DEDUCTION FOR HEALTH INSURANCE.

    ``(a) Deduction Allowed.--In the case of an individual, there shall 
be allowed as a deduction to the taxpayer for the taxable year the 
standard deduction for health insurance.
    ``(b) Standard Deduction for Health Insurance.--For purposes of 
this section--
            ``(1) In general.--The term `standard deduction for health 
        insurance' means the sum of the monthly limitations for months 
        during the taxable year.
            ``(2) Monthly limitation.--
                    ``(A) In general.--The monthly limitation for any 
                month is \1/12\ of--
                            ``(i) $20,500, in the case of a taxpayer 
                        who is allowed a deduction under section 151 
                        for more than one individual who for such month 
                        is an eligible individual, and
                            ``(ii) $7,500, in the case of a taxpayer 
                        who is allowed a deduction under section 151 
                        for only one individual who for such month is 
                        an eligible individual.
                    ``(B) Cost-of-living adjustment.--
                            ``(i) In general.--In the case of taxable 
                        years beginning in calendar years after the 
                        first calendar year to which this section 
                        applies, the dollar amounts under subparagraph 
                        (A) shall be increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                such taxable year begins, determined by 
                                substituting `the calendar year 
                                preceding the first calendar year to 
                                which section 224 applies' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                            ``(ii) Rounding.--If any increase under 
                        clause (i) is not a multiple of $50, such 
                        increase shall be rounded to the nearest 
                        multiple of $50.
            ``(3) Yearly limitation.--The amount allowed as a deduction 
        under subsection (a) for any taxable year shall not exceed the 
        taxpayer's earned income (as defined in section 32(c)(2)) for 
        such taxable year.
    ``(c) Limitations and Special Rules Relating to Standard 
Deduction.--For purposes of this section--
            ``(1) Special rule for married individuals filing 
        separately.--In the case of a married individual who files a 
        separate return for the taxable year, the deduction allowed 
        under subsection (a) shall be equal to one-half of the amount 
        which would otherwise be determined under subsection (a) if 
        such individual filed a joint return for the taxable year.
            ``(2) Denial of deduction to dependents.--No deduction 
        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.
            ``(3) Coordination with other health tax incentives.--
                    ``(A) Denial of deduction if health insurance costs 
                credit allowed.--No deduction shall be allowed under 
                this section to any taxpayer if a credit is allowed to 
                the taxpayer under section 35 for the taxable year.
                    ``(B) Reduction for insurance purchased with msa or 
                hsa funds.--The amount allowed as a deduction under 
                subsection (a) for the taxable year shall be reduced by 
                the aggregate amount--
                            ``(i) paid during the taxable year from an 
                        Archer MSA to which section 220(d)(2)(B)(ii) 
                        (other than subclause (II) thereof) applies, 
                        and
                            ``(ii) paid during the taxable year from a 
                        health savings account to which section 
                        223(d)(2)(C) (other than clause (ii) thereof) 
                        applies.
            ``(4) Special rule for divorced parents, etc.--
        Notwithstanding subsection (b)(1), an individual who is a child 
        may be taken into account on the return of the parent other 
        than the parent for whom a deduction with respect to the child 
        is allowed under section 151 for a taxable year beginning in a 
        calendar year if--
                    ``(A) the parent for whom the deduction under 
                section 151 is allowed for a taxable year beginning in 
                such calendar year signs a written declaration (in such 
                manner and form as the Secretary may by regulations 
                prescribe) that such parent will not claim the 
                deduction allowable under this section with respect to 
                the child for taxable years beginning in such calendar 
                year, and
                    ``(B) the parent for whom the deduction under 
                section 151 is not allowed attaches such written 
                declaration to the parent's return for the taxable year 
                beginning in such calendar year.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Eligible individual.--
                    ``(A) In general.--The term `eligible individual' 
                means, with respect to any month, an individual who is 
                covered under a qualified health plan as of the 1st day 
                of such month.
                    ``(B) Coverage under medicare, medicaid, schip, 
                tricare, and grandfathered employer coverage.--The term 
                `eligible individual' shall not include any individual 
                who for any month is--
                            ``(i) entitled to benefits under part A of 
                        title XVIII of the Social Security Act or 
                        enrolled under part B of such title,
                            ``(ii) enrolled in the program under title 
                        XIX or XXI of such Act (other than under 
                        section 1928 of such Act),
                            ``(iii) receiving benefits (other than 
                        under continuation coverage under section 
                        4980B) which constitute medical care from an 
                        employer--
                                    ``(I) from whom such individual is 
                                separated from service at the time of 
                                receipt of such benefits, and
                                    ``(II) after such separation, if 
                                such benefits began before January 1, 
                                2017, unless such individual is also 
                                covered by a qualified health plan as 
                                of the 1st day of such month, or
                            ``(iv) entitled to receive benefits under 
                        chapter 55 of title 10, United States Code.
                    ``(C) Identification requirements.--The term 
                `eligible individual' shall not include any individual 
                for any month unless the policy number associated with 
                coverage under the qualified health plan and the TIN of 
                each eligible individual covered under such coverage 
                for such month is included on the return for the 
                taxable year in which such month occurs.
            ``(2) Qualified health plan.--
                    ``(A) In general.--The term `qualified health plan' 
                means a health plan (within the meaning of section 
                223(c)(2), without regard to subparagraph (A)(i) 
                thereof) which, under regulations prescribed by the 
                Secretary, meets the following requirements:
                            ``(i) The plan has coverage for inpatient 
                        and outpatient care, emergency benefits, and 
                        physician care.
                            ``(ii) The plan has coverage which 
                        meaningfully limits individual economic 
                        exposure to extraordinary medical expenses
                    ``(B) Exclusion of certain plans.--The term 
                `qualified health plan' does not include--
                            ``(i) a health plan if substantially all of 
                        its coverage is coverage described in section 
                        223(c)(1)(B),
                            ``(ii) any program or benefits referred to 
                        in clause (i), (ii), or (iii) of paragraph 
                        (1)(B), and
                            ``(iii) a Medicare supplemental policy (as 
                        defined in section 1882 of the Social Security 
                        Act).
    ``(e) Regulations.--The Secretary may prescribe such regulations as 
may be necessary to carry out this section.''.
    (b) Deduction Allowed Whether or Not Individual Itemizes Other 
Deductions.--Subsection (a) of section 62 is amended by inserting 
before the last sentence at the end the following new paragraph:
            ``(22) Standard deduction for health insurance.--The 
        deduction allowed by section 224.''.
    (c) Election To Take Health Insurance Costs Credit.--Section 35(g) 
is amended by redesignating paragraphs (9), (10), and (11) as 
paragraphs (10), (11), and (12), respectively, and by inserting after 
paragraph (8) the following new paragraph:
            ``(9) Election not to claim credit.--This section shall not 
        apply to a taxpayer for any taxable year if such taxpayer 
        elects to have this section not apply for such taxable year.''.
    (d) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 is amended by striking the item relating to 
section 224 and adding at the end the following new items:

``Sec. 224. Standard deduction for health insurance.
``Sec. 225. Cross reference.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 202. CHANGES TO EXISTING TAX PREFERENCES FOR MEDICAL COVERAGE AND 
              COSTS FOR INDIVIDUALS ELIGIBLE FOR STANDARD DEDUCTION FOR 
              HEALTH INSURANCE.

    (a) Exclusion for Contributions by Employer to Accident and Health 
Plans.--
            (1) In general.--Section 106 is amended by adding at the 
        end the following new subsection:
    ``(g) Subsections (a) and (c) Apply Only to Individuals Covered by 
Medicare, Medicaid, SCHIP, TRICARE, or Grandfathered Employer Plans.--
            ``(1) In general.--Except as provided in paragraph (2), 
        subsections (a) and (c) shall not apply for any taxable year 
        with respect to which a deduction under section 224 is 
        allowable.
            ``(2) Exception for individuals covered by medicare, 
        medicaid, schip, or grandfathered employer plans.--Paragraph 
        (1) shall not apply to an individual for any taxable year if 
        such individual is not an eligible individual (as defined in 
        section 224(d)(1)) for any month during such taxable year by 
        reason of coverage described in section 224(d)(1)(B).''.
            (2) Conforming amendments.--
                    (A) Section 106(b)(1) is amended--
                            (i) by inserting ``gross income does not 
                        include'' before ``amounts contributed'', and
                            (ii) by striking ``shall be treated as 
                        employer-provided coverage for medical expenses 
                        under an accident or health plan''.
                    (B) Section 106(d)(1) is amended--
                            (i) by inserting ``gross income does not 
                        include'' before ``amounts contributed'', and
                            (ii) by striking ``shall be treated as 
                        employer-provided coverage for medical expenses 
                        under an accident or health plan''.
    (b) Termination of Deduction for Health Insurance Costs of Self-
Employed Individuals.--Subsection (l) of section 162 is amended by 
adding at the end the following new paragraph:
            ``(6) Termination.--This subsection shall not apply to 
        taxable years with respect to which a deduction under section 
        224 is allowable.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 203. EXCLUSION OF STANDARD DEDUCTION FOR HEALTH INSURANCE FROM 
              EMPLOYMENT TAXES.

    (a) In General.--Chapter 25 is amended by adding at the end the 
following new section:

``SEC. 3512. EXCLUSION OF STANDARD DEDUCTION FROM EMPLOYMENT TAXES.

    ``(a) In General.--For purposes of chapters 21, 22, and 23, each of 
the following amounts for any period (determined without regard to this 
section) shall be reduced by the portion of the standard deduction for 
health insurance (as defined in section 224) allocable to the period:
            ``(1) The amount of wages determined under section 3121(a).
            ``(2) The amount of compensation determined under section 
        3231(e).
            ``(3) The amount of wages determined under section 3306(b).
    ``(b) Determination of Standard Deduction Allocable to a Period.--
For purposes of subsection (a)--
            ``(1) In general.--The determination of the portion of the 
        standard deduction for health insurance allocable to a period 
        shall be made on the basis of a qualified certificate of 
        eligible coverage furnished by the employee to the employer.
            ``(2) Qualified certificate of eligible coverage.--The term 
        `qualified certificate of eligible coverage' means a statement 
        of eligibility for the deduction allowable under section 224 
        which contains such information, is in such form, and is 
        provided at such times, as the Secretary may prescribe.
            ``(3) Only 1 certificate in effect at a time.--Except as 
        provided by the Secretary, an employee may have only 1 
        qualified certificate of eligible coverage in effect for any 
        period.
            ``(4) Election.--An employee may elect not to have this 
        section apply for any period for purposes of chapter 21 or 22.
    ``(c) Reconciliation of Erroneous Payments To Be Made at Employee 
Level.--
            ``(1) In general.--If the application of this subsection 
        results in an incorrect amount being treated as wages or 
        compensation for purposes of chapter 21, 22, or 23, whichever 
        is applicable, with respect to any employee for 1 or more 
        periods ending within a taxable year of the employee--
                    ``(A) in the case of an aggregate overpayment of 
                the taxes imposed by any such chapter for all such 
                periods, there shall be allowed as a credit against the 
                tax imposed by chapter 1 for such taxable year on such 
                employee an amount equal to the amount of such 
                overpayment, and
                    ``(B) in the case of an aggregate underpayment of 
                the taxes imposed by any such chapter for all such 
                periods, the employee shall be liable for payment of 
                the entire amount of such underpayment.
            ``(2) Credits treated as refundable.--For purposes of this 
        title, any credit determined under paragraph (1)(A) or 
        subsection (d)(2) shall be treated as if it were a credit 
        allowed under subpart C of part IV of subchapter A of chapter 
        1.
            ``(3) Rules for reporting and collection of tax.--Any tax 
        required to be paid by an employee under paragraph (1)(B) shall 
        be included with the employee's return of Federal income tax 
        for the taxable year.
            ``(4) Secretarial authority.--The Secretary shall prescribe 
        such rules as may be necessary to carry out the provisions of 
        this subsection.''.
    (b) Self-Employment Income.--Section 1402 is amended by adding at 
the end the following:
    ``(m) Standard Deduction for Health Insurance.--For purposes of 
this chapter--
            ``(1) In general.--The self-employment income of a taxpayer 
        for any period (determined without regard to this subsection) 
        shall be reduced by the excess (if any) of--
                    ``(A) the portion of the standard deduction for 
                health insurance (as defined in section 224) allocable 
                to the period, over
                    ``(B) the amount of any reduction in wages or 
                compensation for such period under section 3512.
            ``(2) Determination of standard deduction allocable to a 
        period.--For purposes of paragraph (1), the portion of the 
        standard deduction allocable to any period shall be determined 
        in a manner similar to the manner under section 3512.''.
    (c) Conforming Amendments.--
            (1) Section 3121(a)(2) is amended by inserting ``which is 
        excludable from gross income under section 105 or 106'' after 
        ``such payment)''.
            (2) Subsection (a) of section 209 of the Social Security 
        Act (42 U.S.C. 409) is amended by striking ``or'' at the end of 
        paragraph (19), by striking the period at the end of paragraph 
        (20) and inserting ``; or'', and by inserting after paragraph 
        (20) the following new paragraph:
            ``(21) any amount excluded from wages under section 3512(a) 
        of the Internal Revenue Code of 1986 (relating to exclusion of 
        standard deduction from employment taxes).''.
            (3) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``, or the credit under section 3512(c)(2) 
        of such Code'' before the period at the end.
            (4) Section 209(k)(2) of the Social Security Act (42 U.S.C. 
        409(k)(2)) is amended by redesignating subparagraphs (C) and 
        (D) as subparagraphs (D) and (E), respectively, and by 
        inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) by disregarding the exclusion from wages in 
                subsection (a)(21),''.
            (5) The table of sections for chapter 25 is amended by 
        adding at the end the following new item:

``Sec. 3512. Exclusion of standard deduction from employment taxes.''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to remuneration 
        paid or accrued for periods on or after December 31, 2015.
            (2) Reconciliation and self-employed.--Sections 3512(c) and 
        (d)(2) of the Internal Revenue Code of 1986 (as added by 
        subsection (a)), and the amendments made by subsection (b), 
        shall apply to taxable years beginning after December 31, 2015.

SEC. 204. INFORMATION REPORTING.

    (a) Health Plan Providers.--Subpart B of part III of subchapter A 
of chapter 61 is amended by adding at the end the following new 
section:

``SEC. 6050X. COVERAGE UNDER QUALIFIED HEALTH PLAN.

    ``(a) In General.--Every person providing coverage under a 
qualified health plan (as defined in section 224(d)(2)) during a 
calendar year shall, on or before January 31 of the succeeding year, 
make a return described in subsection (b) with respect to each 
individual who is covered by such person under a qualified health plan 
for any month during the calendar year.
    ``(b) Return.--A return is described in this subsection if such 
return--
            ``(1) is in such form as the Secretary prescribes, and
            ``(2) contains--
                    ``(A) the name of the person providing coverage 
                under the qualified health plan,
                    ``(B) the name, address, and TIN of the individual 
                covered by the plan,
                    ``(C) if such individual is the owner of the policy 
                under which such plan is provided, the name, address, 
                and TIN of each other individual covered by such policy 
                and the relationship of each such individual to such 
                owner, and
                    ``(D) the specific months of the year for which 
                each individual referred to in subparagraph (B) is, as 
                of the first day of each such month, covered by such 
                plan.
    ``(c) Statement To Be Furnished 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 under subsection (b)(2)(A) a written statement showing--
            ``(1) the name, address, and phone number of the 
        information contact of the person required to make such return, 
        and
            ``(2) the information described in subsection (b)(2).
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) was required to be 
made.''.
    (b) Employers.--Subsection (a) of section 6051 is amended by 
striking ``and'' at the end of paragraph (13), by striking the period 
at the end of paragraph (14) and inserting ``, and'', and by inserting 
after paragraph (14) the following new paragraph:
            ``(15) the value (determined under section 4980B(f)(4)) of 
        employer-provided coverage for each month under an accident or 
        health plan and the category of such coverage for purposes of 
        section 6116.''.
    (c) Application to Retirees.--Subsection (a) of section 6051 is 
amended by adding at the end the following: ``In the case of a retiree, 
this section shall (to the extent established by the Secretary by 
regulation) apply only with respect to paragraph (15).''.
    (d) Assessable Penalties.--
            (1) Subparagraph (B) of section 6724(d)(1) 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 
        adding at the end the following new clause:
                            ``(xxvi) section 6050X (relating to returns 
                        relating to payments for qualified health 
                        insurance), and''.
            (2) Paragraph (2) of section 6724(d) 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 
        adding at the end the following new subparagraph:
                    ``(II) section 6050X(d) (relating to returns 
                relating to payments for qualified health 
                insurance).''.
    (e) Clerical Amendment.--The table of sections for such subpart B 
is amended by adding at the end the following new item:

``Sec. 6050X. Coverage under qualified health plan.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 2015.

SEC. 205. ELECTION TO DISREGARD INCLUSION OF CONTRIBUTIONS BY EMPLOYER 
              TO ACCIDENT OR HEALTH PLAN.

    (a) In General.--Subparagraph (B) of section 32(c)(2) is amended by 
striking ``and'' at the end of clause (v), by striking the period at 
the end of clause (vi) and inserting ``, and'', and by adding at the 
end the following new clause:
                            ``(vii) a taxpayer may elect to exclude 
                        from earned income amounts that would have been 
                        excluded from gross income under section 106 
                        but for subsection (g) thereof.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to taxable years beginning after December 31, 2015.

           Subtitle B--Enhancement of Health Savings Accounts

SEC. 221. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CONTRIBUTIONS TO THE SAME 
              HSA ACCOUNT.

    (a) In General.--Paragraph (3) of section 223(b) is amended by 
adding at the end the following new subparagraph:
                    ``(C) Special rule where both spouses are eligible 
                individuals with 1 account.--If--
                            ``(i) an individual and the individual's 
                        spouse have both attained age 55 before the 
                        close of the taxable year, and
                            ``(ii) the spouse is not an account 
                        beneficiary of a health savings account as of 
                        the close of such year,
                the additional contribution amount shall be 200 percent 
                of the amount otherwise determined under subparagraph 
                (B).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 222. PROVISIONS RELATING TO MEDICARE.

    (a) Individuals Over Age 65 Only Enrolled in Medicare Part A.--
Paragraph (7) of section 223(b) is amended by adding at the end the 
following: ``This paragraph shall not apply to any individual during 
any period for which the individual's only entitlement to such benefits 
is an entitlement to hospital insurance benefits under part A of title 
XVIII of such Act pursuant to an enrollment for such hospital insurance 
benefits under section 226(a)(1) of such Act.''.
    (b) Medicare Beneficiaries Participating in Medicare Advantage MSA 
May Contribute Their Own Money to Their MSA.--
            (1) In general.--Subsection (b) of section 138 is amended 
        by striking paragraph (2) and by redesignating paragraphs (3) 
        and (4) as paragraphs (2) and (3), respectively.
            (2) Conforming amendment.--Paragraph (4) of section 138(c) 
        is amended by striking ``and paragraph (2)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 223. INDIVIDUALS ELIGIBLE FOR VETERANS BENEFITS FOR A SERVICE-
              CONNECTED DISABILITY.

    (a) In General.--Paragraph (1) of section 223(c) is amended by 
adding at the end the following new subparagraph:
                    ``(C) Special rule for individuals eligible for 
                certain veterans benefits.--For purposes of 
                subparagraph (A)(ii), an individual shall not be 
                treated as covered under a health plan described in 
                such subparagraph merely because the individual 
                receives periodic hospital care or medical services for 
                a service-connected disability under any law 
                administered by the Secretary of Veterans Affairs but 
                only if the individual is not eligible to receive such 
                care or services for any condition other than a 
                service-connected disability.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 224. INDIVIDUALS ELIGIBLE FOR INDIAN HEALTH SERVICE ASSISTANCE.

    (a) In General.--Paragraph (1) of section 223(c), as amended by 
this Act, is amended by adding at the end the following new 
subparagraph:
                    ``(D) Special rule for individuals eligible for 
                assistance under indian health service programs.--For 
                purposes of subparagraph (A)(ii), an individual shall 
                not be treated as covered under a health plan described 
                in such subparagraph merely because the individual 
                receives hospital care or medical services under a 
                medical care program of the Indian Health Service or of 
                a tribal organization.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 225. INDIVIDUALS ELIGIBLE FOR TRICARE COVERAGE.

    (a) In General.--Paragraph (1) of section 223(c), as amended by 
this Act, is amended by adding at the end the following new 
subparagraph:
                    ``(E) Special rule for individuals eligible for 
                assistance under tricare.--For purposes of subparagraph 
                (A)(ii), an individual shall not be treated as covered 
                under a health plan described in such subparagraph 
                merely because the individual is eligible to receive 
                hospital care, medical services, or prescription drugs 
                under chapter 55 of title 10, United States Code, under 
                TRICARE Extra or TRICARE Standard and such individual 
                is not enrolled in TRICARE Prime.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 226. FSA AND HRA INTERACTION WITH HSAS.

    (a) Eligible Individuals Include FSA and HRA Participants.--
Subparagraph (B) of section 223(c)(1) is amended--
            (1) by striking ``and'' at the end of clause (ii),
            (2) by striking the period at the end of clause (iii) and 
        inserting ``, and'', and
            (3) by inserting after clause (iii) the following new 
        clause:
                            ``(iv) coverage under a health flexible 
                        spending arrangement or a health reimbursement 
                        arrangement in the plan year a qualified HSA 
                        distribution as described in section 106(e) is 
                        made on behalf of the individual if after the 
                        qualified HSA distribution is made and for the 
                        remaining duration of the plan year, the 
                        coverage provided under the health flexible 
                        spending arrangement or health reimbursement 
                        arrangement is converted to--
                                    ``(I) coverage that does not pay or 
                                reimburse any medical expense incurred 
                                before the minimum annual deductible 
                                under paragraph (2)(A)(i) (prorated for 
                                the period occurring after the 
                                qualified HSA distribution is made) is 
                                satisfied,
                                    ``(II) coverage that, after the 
                                qualified HSA distribution is made, 
                                does not pay or reimburse any medical 
                                expense incurred after the qualified 
                                HSA distribution is made other than 
                                preventive care as defined in paragraph 
                                (2)(C),
                                    ``(III) coverage that, after the 
                                qualified HSA distribution is made, 
                                pays or reimburses benefits for 
                                coverage described in clause (ii) (but 
                                not through insurance or for long-term 
                                care services),
                                    ``(IV) coverage that, after the 
                                qualified HSA distribution is made, 
                                pays or reimburses benefits for 
                                permitted insurance or coverage 
                                described in clause (ii) (but not for 
                                long-term care services),
                                    ``(V) coverage that, after the 
                                qualified HSA distribution is made, 
                                pays or reimburses only those medical 
                                expenses incurred after an individual's 
                                retirement (and no expenses incurred 
                                before retirement), or
                                    ``(VI) coverage that, after the 
                                qualified HSA distribution is made, is 
                                suspended, pursuant to an election made 
                                on or before the date the individual 
                                elects a qualified HSA distribution or, 
                                if later, on the date of the individual 
                                enrolls in a high deductible health 
                                plan, that does not pay or reimburse, 
                                at any time, any medical expense 
                                incurred during the suspension period 
                                except as defined in the preceding 
                                subclauses of this clause.''.
    (b) Qualified HSA Distribution Shall Not Affect Flexible Spending 
Arrangement.--Paragraph (1) of section 106(e) is amended to read as 
follows:
            ``(1) In general.--A plan shall not fail to be treated as a 
        health flexible spending arrangement under this section, 
        section 105, or section 125, or as a health reimbursement 
        arrangement under this section or section 105, merely because 
        such plan provides for a qualified HSA distribution.''.
    (c) FSA Balances at Year End Shall Not Forfeit.--Paragraph (2) of 
section 125(d) is amended by adding at the end the following new 
subparagraph:
                    ``(E) Exception for qualified hsa distributions.--
                Subparagraph (A) shall not apply to the extent that 
                there is an amount remaining in a health flexible 
                spending account at the end of a plan year that an 
                individual elects to contribute to a health savings 
                account pursuant to a qualified HSA distribution (as 
                defined in section 106(e)(2)).''.
    (d) Simplification of Limitations on FSA and HRA Rollovers.--
Paragraph (2) of section 106(e) is amended to read as follows:
            ``(2) Qualified hsa distribution.--
                    ``(A) In general.--The term `qualified HSA 
                distribution' means a distribution from a health 
                flexible spending arrangement or health reimbursement 
                arrangement to the extent that such distribution does 
                not exceed the lesser of--
                            ``(i) the balance in such arrangement as of 
                        the date of such distribution, or
                            ``(ii) the amount determined under 
                        subparagraph (B).
                Such term shall not include more than 1 distribution 
                with respect to any arrangement.
                    ``(B) Dollar limitations.--
                            ``(i) Distributions from a health flexible 
                        spending arrangement.--A qualified HSA 
                        distribution from a health flexible spending 
                        arrangement shall not exceed the applicable 
                        amount.
                            ``(ii) Distributions from a health 
                        reimbursement arrangement.--A qualified HSA 
                        distribution from a health reimbursement 
                        arrangement shall not exceed--
                                    ``(I) the applicable amount divided 
                                by 12, multiplied by
                                    ``(II) the number of months during 
                                which the individual is a participant 
                                in the health reimbursement 
                                arrangement.
                            ``(iii) Applicable amount.--For purposes of 
                        this subparagraph, the applicable amount is--
                                    ``(I) $2,250 in the case of an 
                                eligible individual who has self-only 
                                coverage under a high deductible health 
                                plan at the time of such distribution, 
                                and
                                    ``(II) $4,500 in the case of an 
                                eligible individual who has family 
                                coverage under a high deductible health 
                                plan at the time of such 
                                distribution.''.
    (e) Elimination of Additional Tax for Failure To Maintain High 
Deductible Health Plan Coverage.--Subsection (e) of section 106 is 
amended--
            (1) by striking paragraph (3) and redesignating paragraphs 
        (4) and (5) as paragraphs (3) and (4), respectively, and
            (2) by striking subparagraph (A) of paragraph (3), as so 
        redesignated, and redesignating subparagraphs (B) and (C) of 
        such paragraph as subparagraphs (A) and (B) thereof, 
        respectively.
    (f) Limited Purpose FSAs and HRAs.--Subsection (e) of section 106, 
as amended by this section, is amended by adding at the end the 
following new paragraph:
            ``(5) Limited purpose fsas and hras.--A plan shall not fail 
        to be a health flexible spending arrangement or health 
        reimbursement arrangement under this section or section 105 
        merely because the plan converts coverage for individuals who 
        enroll in a high deductible health plan described in section 
        223(c)(2) to coverage described in section 223(c)(1)(B)(iv). 
        Coverage for such individuals may be converted as of the date 
        of enrollment in the high deductible health plan, without 
        regard to the period of coverage under the health flexible 
        spending arrangement or health reimbursement arrangement, and 
        without requiring any change in coverage to individuals who do 
        not enroll in a high deductible health plan.''.
    (g) Distribution Amounts Adjusted for Cost-of-Living.--Subsection 
(e) of section 106, as amended by this section, is amended by adding at 
the end the following new paragraph:
            ``(6) Cost-of-living adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2015, each of the 
                dollar amounts in paragraph (2)(B)(iii) shall be 
                increased by an amount equal to such dollar amount, 
                multiplied by the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                such taxable year begins by substituting `calendar year 
                2014' for `calendar year 1992' in subparagraph (B) 
                thereof.
                    ``(B) Rounding.--If any increase under paragraph 
                (1) is not a multiple of $50, such increase shall be 
                rounded to the nearest multiple of $50.''.
    (h) Disclaimer of Disqualifying Coverage.--Subparagraph (B) of 
section 223(c)(1), as amended by this section, is amended--
            (1) by striking ``and'' at the end of clause (iii),
            (2) by striking the period at the end of clause (iv) and 
        inserting ``, and'', and
            (3) by inserting after clause (iv) the following new 
        clause:
                            ``(v) any coverage (including prospective 
                        coverage) under a health plan that is not a 
                        high deductible health plan which is disclaimed 
                        in writing, at the time of the creation or 
                        organization of the health savings account, 
                        including by execution of a trust described in 
                        subsection (d)(1) through a governing 
                        instrument that includes such a disclaimer, or 
                        by acceptance of an amendment to such a trust 
                        that includes such a disclaimer.''.
    (i) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 227. PURCHASE OF HEALTH INSURANCE FROM HSA ACCOUNT.

    (a) In General.--Paragraph (2) of section 223(d) is amended to read 
as follows:
            ``(2) Qualified medical expenses.--
                    ``(A) In general.--The term `qualified medical 
                expenses' means, with respect to an account 
                beneficiary, amounts paid by such beneficiary for 
                medical care (as defined in section 213(d)) for any 
                individual covered by a high deductible health plan of 
                the account beneficiary, but only to the extent such 
                amounts are not compensated for by insurance or 
                otherwise.
                    ``(B) Health insurance may not be purchased from 
                account.--Except as provided in subparagraph (C), 
                subparagraph (A) shall not apply to any payment for 
                insurance.
                    ``(C) Exceptions.--Subparagraph (B) shall not apply 
                to any expense for coverage under--
                            ``(i) a health plan during any period of 
                        continuation coverage required under any 
                        Federal law,
                            ``(ii) a qualified long-term care insurance 
                        contract (as defined in section 7702B(b)),
                            ``(iii) a health plan during any period in 
                        which the individual is receiving unemployment 
                        compensation under any Federal or State law,
                            ``(iv) a high deductible health plan, or
                            ``(v) any health insurance under title 
                        XVIII of the Social Security Act, other than a 
                        Medicare supplemental policy (as defined in 
                        section 1882 of such Act).''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to insurance purchased after the date of the enactment of 
this Act in taxable years beginning after December 31, 2015.

SEC. 228. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE 
              ESTABLISHMENT OF ACCOUNT.

    (a) In General.--Paragraph (2) of section 223(d), as amended by 
this Act, is amended by adding at the end the following new 
subparagraph:
                    ``(D) Certain medical expenses incurred before 
                establishment of account treated as qualified.--An 
                expense shall not fail to be treated as a qualified 
                medical expense solely because such expense was 
                incurred before the establishment of the health savings 
                account if such expense was incurred--
                            ``(i) during either--
                                    ``(I) the taxable year in which the 
                                health savings account was established, 
                                or
                                    ``(II) the preceding taxable year 
                                in the case of a health savings account 
                                established after the taxable year in 
                                which such expense was incurred but 
                                before the time prescribed by law for 
                                filing the return for such taxable year 
                                (not including extensions thereof), and
                            ``(ii) for medical care of an individual 
                        during a period that such individual was 
                        covered by a high deductible health plan and 
                        met the requirements of subsection 
                        (c)(1)(A)(ii) (after application of subsection 
                        (c)(1)(B)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 229. PREVENTIVE CARE PRESCRIPTION DRUG CLARIFICATION.

    (a) Clarify Use of Drugs in Preventive Care.--Subparagraph (C) of 
section 223(c)(2) is amended by adding at the end the following: 
``Preventive care shall include prescription and over-the-counter drugs 
and medicines which have the primary purpose of preventing the onset 
of, further deterioration from, or complications associated with 
chronic conditions, illnesses, or diseases.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2003.

SEC. 230. EQUIVALENT BANKRUPTCY PROTECTIONS FOR HEALTH SAVINGS ACCOUNTS 
              AS RETIREMENT FUNDS.

    (a) In General.--Section 522 of title 11, United States Code, is 
amended by adding at the end the following new subsection:
    ``(r) Treatment of Health Savings Accounts.--For purposes of this 
section, any health savings account (as described in section 223 of the 
Internal Revenue Code of 1986) shall be treated in the same manner as 
an individual retirement account described in section 408 of such 
Code.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to cases commencing under title 11, United States Code, after the date 
of the enactment of this Act.

SEC. 231. ADMINISTRATIVE ERROR CORRECTION BEFORE DUE DATE OF RETURN.

    (a) In General.--Paragraph (4) of section 223(f) is amended by 
adding at the end the following new subparagraph:
                    ``(D) Exception for administrative errors corrected 
                before due date of return.--Subparagraph (A) shall not 
                apply if any payment or distribution is made to correct 
                an administrative, clerical or payroll contribution 
                error and if--
                            ``(i) such distribution is received by the 
                        individual on or before the last day prescribed 
                        by law (including extensions of time) for 
                        filing such individual's return for such 
                        taxable year, and
                            ``(ii) such distribution is accompanied by 
                        the amount of net income attributable to such 
                        contribution.
                Any net income described in clause (ii) shall be 
                included in the gross income of the individual for the 
                taxable year in which it is received.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 232. REAUTHORIZATION OF MEDICAID HEALTH OPPORTUNITY ACCOUNTS.

    (a) In General.--Section 1938 of the Social Security Act (42 U.S.C. 
1396u-8) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Initial demonstration.--The demonstration program 
        under this section shall begin again on January 1, 2016. The 
        Secretary shall approve States to conduct demonstration 
        programs under this section for a 5-year period, with each 
        State demonstration program covering one or more geographic 
        areas specified by the State. With respect to a State, after 
        the initial 5-year period of any demonstration program 
        conducted under this section by the State, unless the Secretary 
        finds, taking into account cost-effectiveness and quality of 
        care, that the State demonstration program has been 
        unsuccessful, the demonstration program may be extended or made 
        permanent in the State.''; and
                    (B) in paragraph (3), in the matter preceding 
                subparagraph (A)--
                            (i) by striking ``not''; and
                            (ii) by striking ``unless'' and inserting 
                        ``if'';
            (2) in subsection (b)--
                    (A) in paragraph (3), by inserting ``clause (i) 
                through (vii), (viii) (without regard to the amendment 
                made by section 2004(c)(2) of Public Law 111-148), (x), 
                or (xi) of'' after ``described in''; and
                    (B) by striking paragraphs (4), (5), and (6);
            (3) in subsection (c)--
                    (A) in paragraph (6), by striking ``Subject to 
                subparagraphs (D) and (E)'' and inserting ``Subject to 
                subparagraph (D)'';
                    (B) by striking paragraphs (3) and (4); and
                    (C) by redesignating paragraphs (5) through (8) as 
                paragraphs (3) through (6), respectively; and
            (4) in subsection (d)--
                    (A) in paragraph (2), by striking subparagraph (E); 
                and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A)(ii), by striking 
                        ``Subject to subparagraph (B)(ii), in'' and 
                        inserting ``In''; and
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B) Maintenance of health opportunity account 
                after becoming ineligible for public benefit.--
                Notwithstanding any other provision of law, if an 
                account holder of a health opportunity account becomes 
                ineligible for benefits under this title because of an 
                increase in income or assets--
                            ``(i) no additional contribution shall be 
                        made into the account under paragraph 
                        (2)(A)(i); and
                            ``(ii) the account shall remain available 
                        to the account holder for 3 years after the 
                        date on which the individual becomes ineligible 
                        for such benefits for withdrawals under the 
                        same terms and conditions as if the account 
                        holder remained eligible for such benefits, and 
                        such withdrawals shall be treated as medical 
                        assistance in accordance with subsection 
                        (c)(4).''.
    (b) Conforming Amendment.--Section 613 of the Children's Health 
Insurance Program Reauthorization Act of 2009 (Public Law 111-3; 42 
U.S.C. 1396u-8 note) is repealed.

SEC. 233. MEMBERS OF HEALTH CARE SHARING MINISTRIES ELIGIBLE TO 
              ESTABLISH HEALTH SAVINGS ACCOUNTS.

    (a) In General.--Section 223 is amended by adding at the end the 
following new subsection:
    ``(i) Application to Health Care Sharing Ministries.--For purposes 
of this section, membership in a health care sharing ministry (as 
defined in section 5000A(d)(2)(B)(ii)) shall be treated as coverage 
under a high deductible health plan.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 234. HIGH DEDUCTIBLE HEALTH PLANS RENAMED HSA QUALIFIED PLANS.

    (a) In General.--Section 223, as amended by this subtitle, is 
amended by striking ``high deductible health plan'' each place it 
appears and inserting ``HSA qualified health plan''.
    (b) Conforming Amendments.--
            (1) Section 106(e), as amended by this subtitle, is amended 
        by striking ``high deductible health plan'' each place it 
        appears and inserting ``HSA qualified health plan''.
            (2) The heading for paragraph (2) of section 223(c) is 
        amended by striking ``High deductible health plan'' and 
        inserting ``HSA qualified health plan''.
            (3) Section 408(d)(9) is amended--
                    (A) by striking ``high deductible health plan'' 
                each place it appears in subparagraph (C) and inserting 
                ``HSA qualified health plan'', and
                    (B) by striking ``High deductible health plan'' in 
                the heading of subparagraph (D) and inserting ``HSA 
                qualified health plan''.

SEC. 235. TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS.

    (a) In General.--Section 223(c) is amended by adding at the end the 
following new paragraph:
            ``(6) Treatment of direct primary care service 
        arrangements.--An arrangement under which an individual is 
        provided coverage restricted to primary care services in 
        exchange for a fixed periodic fee--
                    ``(A) shall not be treated as a health plan for 
                purposes of paragraph (1)(A)(ii), and
                    ``(B) shall not be treated as insurance for 
                purposes of subsection (d)(2)(B).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 236. CERTAIN EXERCISE EQUIPMENT AND PHYSICAL FITNESS PROGRAMS 
              TREATED AS MEDICAL CARE.

    (a) In General.--Subsection (d) of section 213 is amended by adding 
at the end the following new paragraph:
            ``(12) Exercise equipment and physical fitness programs.--
                    ``(A) In general.--The term `medical care' shall 
                include amounts paid--
                            ``(i) to purchase or use equipment used in 
                        a program (including a self-directed program) 
                        of physical exercise,
                            ``(ii) to participate, or receive 
                        instruction, in a program of physical exercise, 
                        and
                            ``(iii) for membership dues in a fitness 
                        club the primary purpose of which is to provide 
                        access to equipment and facilities for physical 
                        exercise.
                    ``(B) Limitation.--Amounts treated as medical care 
                under subparagraph (A) shall not exceed $1,000 with 
                respect to any individual for any taxable year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 237. CERTAIN NUTRITIONAL AND DIETARY SUPPLEMENTS TO BE TREATED AS 
              MEDICAL CARE.

    (a) In General.--Subsection (d) of section 213, as amended by this 
Act, is amended by adding at the end the following new paragraph:
            ``(13) Nutritional and dietary supplements.--
                    ``(A) In general.--The term `medical care' shall 
                include amounts paid to purchase herbs, vitamins, 
                minerals, homeopathic remedies, meal replacement 
                products, and other dietary and nutritional 
                supplements.
                    ``(B) Limitation.--Amounts treated as medical care 
                under subparagraph (A) shall not exceed $1,000 with 
                respect to any individual for any taxable year.
                    ``(C) Meal replacement product.--For purposes of 
                this paragraph, the term `meal replacement product' 
                means any product that--
                            ``(i) is permitted to bear labeling making 
                        a claim described in section 403(r)(3) of the 
                        Federal Food, Drug, and Cosmetic Act, and
                            ``(ii) is permitted to claim under such 
                        section that such product is low in fat and is 
                        a good source of protein, fiber, and multiple 
                        essential vitamins and minerals.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 238. CERTAIN PROVIDER FEES TO BE TREATED AS MEDICAL CARE.

    (a) In General.--Subsection (d) of section 213, as amended by this 
Act, is amended by adding at the end the following new paragraph:
            ``(14) Periodic provider fees.--The term `medical care' 
        shall include periodic fees paid to a primary care physician 
        for the right to receive medical services on an as-needed 
        basis.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 239. INCREASE THE MAXIMUM CONTRIBUTION LIMIT TO AN HSA TO MATCH 
              DEDUCTIBLE AND OUT-OF-POCKET EXPENSE LIMITATION.

    (a) Self-Only Coverage.--Subparagraph (A) of section 223(b)(2) is 
amended by striking ``$2,250'' and inserting ``the amount in effect 
under subsection (c)(2)(A)(ii)(I)''.
    (b) Family Coverage.--Subparagraph (B) of section 223(b)(2) is 
amended by striking ``$4,500'' and inserting ``the amount in effect 
under subsection (c)(2)(A)(ii)(II)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 240. CHILD HEALTH SAVINGS ACCOUNT.

    (a) In General.--Section 223, as amended by this Act, is amended by 
adding at the end the following new subsection:
    ``(j) Child Health Savings Accounts.--
            ``(1) In general.--In the case of an individual, in 
        addition to any deduction allowed under subsection (a) for any 
        taxable year, there shall be allowed as a deduction under this 
        section an amount equal to the aggregate amount paid in cash by 
        the taxpayer during the taxable year to a child health savings 
        account of a child of the taxpayer.
            ``(2) Limitation.--The amount taken into account under 
        paragraph (1) with respect to each child of the taxpayer for 
        the taxable year shall not exceed an amount equal to $3,000.
            ``(3) Child health savings account.--For purposes of this 
        subsection, the term `child health savings account' means a 
        health savings account designated as a child health savings 
        account and established for the benefit of a child of a 
        taxpayer, but only if--
                    ``(A) such account was established for the benefit 
                of the child before the child attains the age of 5, and
                    ``(B) under the written governing instrument 
                creating the trust, no contribution will be accepted to 
                the extent such contribution, when added to previous 
                contributions to the trust for the calendar year, 
                exceeds the dollar amount in effect under paragraph 
                (2).
            ``(4) Treatment of account before age 18.--For purposes of 
        this section, except as otherwise provided in this subsection, 
        a child health savings account established for the benefit of 
        the child of a taxpayer shall be treated as a health savings 
        account of the taxpayer until the child attains the age of 18, 
        after which such account shall be treated as a health savings 
        account of the child.
            ``(5) Distributions.--
                    ``(A) In general.--In the case of a child health 
                savings account established under this section for the 
                benefit of a child of a taxpayer--
                            ``(i) Before age 18.--Any amount paid or 
                        distributed out of such account before the 
                        child has attained the age of 18, shall be 
                        included in the gross income of the taxpayer, 
                        and subparagraph (A) of subsection (f) shall 
                        apply (relating to additional tax on 
                        distributions not used for qualified medical 
                        expenses).
                            ``(ii) Age 18 and older.--Any amount paid 
                        or distributed out of such account after the 
                        child has attained the age of 18 may only be 
                        treated as used to pay qualified medical 
                        expenses to the extent such child is not 
                        covered as a dependent under insurance (other 
                        than permitted insurance) of a parent.
                    ``(B) Exceptions for disability or death of 
                child.--If the child becomes disabled within the 
                meaning of section 72(m)(7) or dies--
                            ``(i) subparagraph (A) shall not apply to 
                        any subsequent payment or distribution, and
                            ``(ii) the taxpayer may rollover the amount 
                        in such account to an individual retirement 
                        plan of the taxpayer, to any health savings 
                        account of the taxpayer, or to any child health 
                        savings account of any other child of the 
                        taxpayer.
                    ``(C) Health insurance may be purchased from 
                account.--Subparagraph (B) of subsection (d)(2) shall 
                not apply to any health savings account originally 
                established as a child health savings account.
            ``(6) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out the purposes of 
        this subsection, including rules for determining application of 
        this subsection in the case of legal guardians and in the case 
        of parents of a child who file separately, are separated, or 
        are not married.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 241. ALLOWING MINIMUM DISTRIBUTIONS FROM TAX-DEFERRED RETIREMENT 
              ACCOUNTS TO BE DEPOSITED INTO HSAS.

    (a) Transfer From Retirement Plan.--
            (1) Individual retirement accounts.--Section 408(d) is 
        amended by adding at the end the following new paragraph:
            ``(10) Required minimum distribution transferred to health 
        savings account.--
                    ``(A) In general.--In the case of an individual who 
                has attained the age of 70\1/2\ and who elects the 
                application of this paragraph for a taxable year, gross 
                income of the individual for the taxable year does not 
                include a qualified HSA transfer to the extent such 
                transfer is otherwise includible in gross income.
                    ``(B) Qualified hsa transfer.--For purposes of this 
                paragraph, the term `qualified HSA transfer' means any 
                distribution from an individual retirement plan--
                            ``(i) to a health savings account of the 
                        individual in a direct trustee-to-trustee 
                        transfer,
                            ``(ii) to the extent such distribution does 
                        not exceed the required minimum distribution 
                        determined under section 401(a)(9) for the 
                        distribution calendar year ending during the 
                        taxable year.
                    ``(C) Application of section 72.--Notwithstanding 
                section 72, in determining the extent to which an 
                amount is treated as a distribution for purposes of 
                paragraph (1), the entire amount of the distribution 
                shall be treated as includible in gross income without 
                regard to paragraph (1) to the extent that such amount 
                does not exceed the aggregate amount which would have 
                been so includible if all amounts in all individual 
                retirement plans of the individual were distributed 
                during such taxable year and all such plans were 
                treated as 1 contract for purposes of determining under 
                section 72 the aggregate amount which would have been 
                so includible. Proper adjustments shall be made in 
                applying section 72 to other distributions in such 
                taxable year and subsequent taxable years.
                    ``(D) Coordination.--An election may not be made 
                under subparagraph (A) for a taxable year for which an 
                election is in effect under paragraph (9).''.
            (2) Other retirement plans.--Section 402 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new subsection:
    ``(m) Required Minimum Distribution Transferred to Health Savings 
Account.--
            ``(1) In general.--In the case of an individual who has 
        attained the age of 70\1/2\ and who elects the application of 
        this subsection for a taxable year, gross income of the 
        individual for the taxable year does not include a qualified 
        HSA transfer to the extent such transfer is otherwise 
        includible in gross income.
            ``(2) Qualified hsa transfer.--For purposes of this 
        subsection, the term `qualified HSA transfer' means any 
        distribution from an individual retirement plan--
                    ``(A) to a health savings account of the individual 
                in a direct trustee-to-trustee transfer,
                    ``(B) to the extent such distribution does not 
                exceed the required minimum distribution determined 
                under section 401(a)(9) for the distribution calendar 
                year ending during the taxable year.
            ``(3) Application of section 72.--Notwithstanding section 
        72, in determining the extent to which an amount is treated as 
        a distribution for purposes of paragraph (1), the entire amount 
        of the distribution shall be treated as includible in gross 
        income without regard to paragraph (1) to the extent that such 
        amount does not exceed the aggregate amount which would have 
        been so includible if all amounts in all eligible retirement 
        plans of the individual were distributed during such taxable 
        year and all such plans were treated as 1 contract for purposes 
        of determining under section 72 the aggregate amount which 
        would have been so includible. Proper adjustments shall be made 
        in applying section 72 to other distributions in such taxable 
        year and subsequent taxable years.
            ``(4) Eligible retirement plan.--For purposes of this 
        subsection, the term `eligible retirement plan' has the meaning 
        given such term by subsection (c)(8)(B) (determined without 
        regard to clauses (i) and (ii) thereof).''.
    (b) Transfer to Health Savings Account.--
            (1) In general.--Subparagraph (A) of section 223(d)(1) is 
        amended by striking ``or'' at the end of clause (i), by 
        striking the period at the end of clause (ii)(II) and inserting 
        ``, or'', and by adding at the end the following new clause:
                            ``(iii) unless it is in a qualified HSA 
                        transfer described in section 408(d)(10) or 
                        402(m).''.
            (2) Excise tax inapplicable to qualified hsa transfer.--
        Paragraph (1) of section 4973(g) is amended by inserting ``or 
        in a qualified HSA transfer described in section 408(d)(10) or 
        402(m)'' after ``or 223(f)(5)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after the date of the enactment of this 
Act, in taxable years ending after such date.

SEC. 242. DISTRIBUTIONS FOR ABORTION EXPENSES FROM HEALTH SAVINGS 
              ACCOUNTS INCLUDED IN GROSS INCOME.

    (a) In General.--Subsection (f) of section 223 is amended by adding 
at the end the following new paragraph:
            ``(9) Exception for certain abortion expenses.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                any amount used to pay for an abortion (other than an 
                abortion described in subparagraph (B)) shall be 
                included in the gross income of such beneficiary.
                    ``(B) Exceptions.--Subparagraph (A) shall not apply 
                to--
                            ``(i) an abortion--
                                    ``(I) in the case of a pregnancy 
                                that is the result of an act of rape or 
                                incest, or
                                    ``(II) in the case where a woman 
                                suffers from a physical disorder, 
                                physical injury, or physical illness 
                                that would, as certified by a 
                                physician, place the woman in danger of 
                                death unless an abortion is performed, 
                                including a life-endangering physical 
                                condition caused by or arising from the 
                                pregnancy, and
                            ``(ii) the treatment of any infection, 
                        injury, disease, or disorder that has been 
                        caused by or exacerbated by the performance of 
                        an abortion.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

                Subtitle C--Enhanced Wellness Incentives

SEC. 251. PROVIDING FINANCIAL INCENTIVES FOR TREATMENT COMPLIANCE.

    (a) Limitation on Exception for Wellness Programs Under HIPAA 
Discrimination Rules.--
            (1) Employee retirement income security act of 1974 
        amendment.--Section 702(b)(2) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1182(b)(2)) is amended by 
        adding at the end the following flush sentence:
        ``In applying subparagraph (B), a group health plan (or a 
        health insurance issuer with respect to health insurance 
        coverage) may vary premiums and cost-sharing by up to 50 
        percent of the value of the benefits under the plan (or 
        coverage) based on participation (or lack of participation) in 
        a standards-based wellness program.''.
            (2) PHSA amendment.--Section 2705(b)(2) of the Public 
        Health Service Act (42 U.S.C. 300gg-4(b)(2)) is amended by 
        adding at the end the following flush sentence:
        ``In applying subparagraph (B), a group health plan (or a 
        health insurance issuer with respect to health insurance 
        coverage) may vary premiums and cost-sharing by up to 50 
        percent of the value of the benefits under the plan (or 
        coverage) based on participation (or lack of participation) in 
        a standards-based wellness program.''.
            (3) IRC amendment.--Section 9802(b)(2) of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following flush sentence:
        ``In applying subparagraph (B), a group health plan may vary 
        premiums and cost-sharing by up to 50 percent of the value of 
        the benefits under the plan based on participation (or lack of 
        participation) in a standards-based wellness program.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to plan years beginning more than 1 year after the date of the 
enactment of this Act.

   TITLE III--IMPROVING ACCESS TO INSURANCE FOR VULNERABLE AMERICANS

         Subtitle A--Eliminating Barriers to Insurance Coverage

SEC. 301. ELIMINATION OF CERTAIN REQUIREMENTS FOR GUARANTEED 
              AVAILABILITY IN INDIVIDUAL MARKET.

    (a) In General.--Section 2741(b) of the Public Health Service Act 
(42 U.S.C. 300gg-41(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``(1)(A)'' and inserting ``(1)''; 
                and
                    (B) by striking ``and (B)'' and all that follows up 
                to the semicolon at the end;
            (2) by adding ``and'' at the end of paragraph (2);
            (3) in paragraph (3)--
                    (A) by striking ``(1)(A)'' and inserting ``(1)''; 
                and
                    (B) by striking the semicolon at the end and 
                inserting a period; and
            (4) by striking paragraphs (4) and (5).
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act.

    Subtitle B--Ensuring Coverage for Individuals With Preexisting 
   Conditions and Multiple Health Care Needs Through High Risk Pools

SEC. 311. IMPROVEMENT OF HIGH RISK POOLS.

    Section 2745 of the Public Health Service Act (42 U.S.C. 300gg-45) 
is amended--
            (1) in subsection (a), by adding at the end the following: 
        ``The Secretary shall provide from the funds appropriated under 
        subsection (d)(3)(A) a grant of up to $5,000,000 to each State 
        that has not created a qualified high risk pool as of September 
        1, 2015, for the State's costs of creation and initial 
        operation of such a pool.'';
            (2) in paragraphs (1) and (2) of subsection (b), by 
        striking ``and (2)(A)'' and inserting ``(2)(A), (3)(B), and 
        (4)'' each place it appears;
            (3) in subsection (b)(3), by inserting ``with respect to 
        funds made available for fiscal years before fiscal year 
        2014,''after ``applicable standard risks,'';
            (4) by adding at the end of subsection (b) the following 
        new paragraph:
            ``(5) Verification of citizenship or alien qualification.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, effective upon the date of the 
                enactment of this paragraph, only citizens and 
                nationals of the United States shall be eligible to 
                participate in a qualified high risk pool that receives 
                funds under this section.
                    ``(B) Condition of participation.--As a condition 
                of a State receiving such funds under this subsection 
                for a fiscal year beginning with fiscal year 2016, the 
                Secretary shall require the State to certify, to the 
                satisfaction of the Secretary, that such State requires 
                all applicants for coverage in the qualified high risk 
                pool to provide satisfactory documentation of 
                citizenship or nationality in a manner consistent with 
                section 1903(x) of the Social Security Act.
                    ``(C) Records.--The Secretary shall keep sufficient 
                records such that a determination of citizenship or 
                nationality only has to be made once for any individual 
                under this paragraph.''; and
            (5) in subsection (d)--
                    (A) in paragraphs (1)(B) and (2) by striking 
                ``paragraph (4)'' and inserting ``paragraph (6)'';
                    (B) in paragraph (4), by striking ``or (2)'' and 
                inserting ``(2), (3)(B), or (4)'';
                    (C) by redesignating paragraphs (3) through (5) as 
                paragraphs (5) through (7), respectively; and
                    (D) by inserting after paragraph (2) the following:
            ``(3) Authorization of appropriations for fiscal year 
        2016.--There are authorized to be appropriated for fiscal year 
        2016--
                    ``(A) $50,000,000 to carry out the second sentence 
                of subsection (a); and
                    ``(B) $2,450,000,000 which, subject to paragraph 
                (6), shall be made available for allotments under 
                subsection (b)(2).
            ``(4) Authorization of appropriations for fiscal years 2017 
        through 2025.--There are authorized to be appropriated 
        $2,500,000,000 for each of fiscal years 2017 through 2025 
        which, subject to paragraph (6), shall be made available for 
        allotments under subsection (b)(2).''.

      TITLE IV--ENCOURAGING A MORE COMPETITIVE HEALTH CARE MARKET

                  Subtitle A--Expanding Patient Choice

SEC. 401. COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH INSURANCE 
              COVERAGE.

    (a) In General.--Title XXVII of the Public Health Service Act (42 
U.S.C. 300gg et seq.) is amended by adding at the end the following new 
part:

``PART D--COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH INSURANCE COVERAGE

``SEC. 2795. DEFINITIONS.

    ``In this part:
            ``(1) Primary state.--The term `primary State' means, with 
        respect to individual health insurance coverage offered by a 
        health insurance issuer, the State designated by the issuer as 
        the State whose covered laws shall govern the health insurance 
        issuer in the sale of such coverage under this part. An issuer, 
        with respect to a particular policy, may only designate one 
        such State as its primary State with respect to all such 
        coverage it offers. Such an issuer may not change the 
        designated primary State with respect to individual health 
        insurance coverage once the policy is issued, except that such 
        a change may be made upon renewal of the policy. With respect 
        to such designated State, the issuer is deemed to be doing 
        business in that State.
            ``(2) Secondary state.--The term `secondary State' means, 
        with respect to individual health insurance coverage offered by 
        a health insurance issuer, any State that is not the primary 
        State. In the case of a health insurance issuer that is selling 
        a policy in, or to a resident of, a secondary State, the issuer 
        is deemed to be doing business in that secondary State.
            ``(3) Health insurance issuer.--The term `health insurance 
        issuer' has the meaning given such term in section 2791(b)(2), 
        except that such an issuer must be licensed in the primary 
        State and be qualified to sell individual health insurance 
        coverage in that State.
            ``(4) Individual health insurance coverage.--The term 
        `individual health insurance coverage' means health insurance 
        coverage offered in the individual market, as defined in 
        section 2791(e)(1).
            ``(5) Applicable state authority.--The term `applicable 
        State authority' means, with respect to a health insurance 
        issuer in a State, the State insurance commissioner or official 
        or officials designated by the State to enforce the 
        requirements of this title for the State with respect to the 
        issuer.
            ``(6) Hazardous financial condition.--The term `hazardous 
        financial condition' means that, based on its present or 
        reasonably anticipated financial condition, a health insurance 
        issuer is unlikely to be able--
                    ``(A) to meet obligations to policyholders with 
                respect to known claims and reasonably anticipated 
                claims; or
                    ``(B) to pay other obligations in the normal course 
                of business.
            ``(7) Covered laws.--
                    ``(A) In general.--The term `covered laws' means 
                the laws, rules, regulations, agreements, and orders 
                governing the insurance business pertaining to--
                            ``(i) individual health insurance coverage 
                        issued by a health insurance issuer;
                            ``(ii) the offer, sale, rating (including 
                        medical underwriting), renewal, and issuance of 
                        individual health insurance coverage to an 
                        individual;
                            ``(iii) the provision to an individual in 
                        relation to individual health insurance 
                        coverage of health care and insurance related 
                        services;
                            ``(iv) the provision to an individual in 
                        relation to individual health insurance 
                        coverage of management, operations, and 
                        investment activities of a health insurance 
                        issuer; and
                            ``(v) the provision to an individual in 
                        relation to individual health insurance 
                        coverage of loss control and claims 
                        administration for a health insurance issuer 
                        with respect to liability for which the issuer 
                        provides insurance.
                    ``(B) Exception.--Such term does not include any 
                law, rule, regulation, agreement, or order governing 
                the use of care or cost management techniques, 
                including any requirement related to provider 
                contracting, network access or adequacy, health care 
                data collection, or quality assurance.
            ``(8) State.--The term `State' means the 50 States and 
        includes the District of Columbia, Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, and the Northern Mariana 
        Islands.
            ``(9) Unfair claims settlement practices.--The term `unfair 
        claims settlement practices' means only the following 
        practices:
                    ``(A) Knowingly misrepresenting to claimants and 
                insured individuals relevant facts or policy provisions 
                relating to coverage at issue.
                    ``(B) Failing to acknowledge with reasonable 
                promptness pertinent communications with respect to 
                claims arising under policies.
                    ``(C) Failing to adopt and implement reasonable 
                standards for the prompt investigation and settlement 
                of claims arising under policies.
                    ``(D) Failing to effectuate prompt, fair, and 
                equitable settlement of claims submitted in which 
                liability has become reasonably clear.
                    ``(E) Refusing to pay claims without conducting a 
                reasonable investigation.
                    ``(F) Failing to affirm or deny coverage of claims 
                within a reasonable period of time after having 
                completed an investigation related to those claims.
                    ``(G) A pattern or practice of compelling insured 
                individuals or their beneficiaries to institute suits 
                to recover amounts due under its policies by offering 
                substantially less than the amounts ultimately 
                recovered in suits brought by them.
                    ``(H) A pattern or practice of attempting to settle 
                or settling claims for less than the amount that a 
                reasonable person would believe the insured individual 
                or his or her beneficiary was entitled by reference to 
                written or printed advertising material accompanying or 
                made part of an application.
                    ``(I) Attempting to settle or settling claims on 
                the basis of an application that was materially altered 
                without notice to, or knowledge or consent of, the 
                insured.
                    ``(J) Failing to provide forms necessary to present 
                claims within 15 calendar days of a request with 
                reasonable explanations regarding their use.
                    ``(K) Attempting to cancel a policy in less time 
                than that prescribed in the policy or by the law of the 
                primary State.
            ``(10) Fraud and abuse.--The term `fraud and abuse' means 
        an act or omission committed by a person who, knowingly and 
        with intent to defraud, commits, or conceals any material 
        information concerning, one or more of the following:
                    ``(A) Presenting, causing to be presented or 
                preparing with knowledge or belief that it will be 
                presented to or by an insurer, a reinsurer, broker or 
                its agent, false information as part of, in support of 
                or concerning a fact material to one or more of the 
                following:
                            ``(i) An application for the issuance or 
                        renewal of an insurance policy or reinsurance 
                        contract.
                            ``(ii) The rating of an insurance policy or 
                        reinsurance contract.
                            ``(iii) A claim for payment or benefit 
                        pursuant to an insurance policy or reinsurance 
                        contract.
                            ``(iv) Premiums paid on an insurance policy 
                        or reinsurance contract.
                            ``(v) Payments made in accordance with the 
                        terms of an insurance policy or reinsurance 
                        contract.
                            ``(vi) A document filed with the 
                        commissioner or the chief insurance regulatory 
                        official of another jurisdiction.
                            ``(vii) The financial condition of an 
                        insurer or reinsurer.
                            ``(viii) The formation, acquisition, 
                        merger, reconsolidation, dissolution or 
                        withdrawal from one or more lines of insurance 
                        or reinsurance in all or part of a State by an 
                        insurer or reinsurer.
                            ``(ix) The issuance of written evidence of 
                        insurance.
                            ``(x) The reinstatement of an insurance 
                        policy.
                    ``(B) Solicitation or acceptance of new or renewal 
                insurance risks on behalf of an insurer reinsurer or 
                other person engaged in the business of insurance by a 
                person who knows or should know that the insurer or 
                other person responsible for the risk is insolvent at 
                the time of the transaction.
                    ``(C) Transaction of the business of insurance in 
                violation of laws requiring a license, certificate of 
                authority or other legal authority for the transaction 
                of the business of insurance.
                    ``(D) Attempt to commit, aiding or abetting in the 
                commission of, or conspiracy to commit the acts or 
                omissions specified in this paragraph.

``SEC. 2796. APPLICATION OF LAW.

    ``(a) In General.--Subject to section 701(d) of the American Health 
Care Reform Act of 2015, the covered laws of the primary State shall 
apply to individual health insurance coverage offered by a health 
insurance issuer in the primary State and in any secondary State, but 
only if the coverage and issuer comply with the conditions of this 
section with respect to the offering of coverage in any secondary 
State.
    ``(b) Exemptions From Covered Laws in a Secondary State.--Except as 
provided in this section, a health insurance issuer with respect to its 
offer, sale, rating (including medical underwriting), renewal, and 
issuance of individual health insurance coverage in any secondary State 
is exempt from any covered laws of the secondary State (and any rules, 
regulations, agreements, or orders sought or issued by such State under 
or related to such covered laws) to the extent that such laws would--
            ``(1) make unlawful, or regulate, directly or indirectly, 
        the operation of the health insurance issuer operating in the 
        secondary State, except that any secondary State may require 
        such an issuer--
                    ``(A) to pay, on a nondiscriminatory basis, 
                applicable premium and other taxes (including high risk 
                pool assessments) which are levied on insurers and 
                surplus lines insurers, brokers, or policyholders under 
                the laws of the State;
                    ``(B) to register with and designate the State 
                insurance commissioner as its agent solely for the 
                purpose of receiving service of legal documents or 
                process;
                    ``(C) to submit to an examination of its financial 
                condition by the State insurance commissioner in any 
                State in which the issuer is doing business to 
                determine the issuer's financial condition, if--
                            ``(i) the State insurance commissioner of 
                        the primary State has not done an examination 
                        within the period recommended by the National 
                        Association of Insurance Commissioners; and
                            ``(ii) any such examination is conducted in 
                        accordance with the examiners' handbook of the 
                        National Association of Insurance Commissioners 
                        and is coordinated to avoid unjustified 
                        duplication and unjustified repetition;
                    ``(D) to comply with a lawful order issued--
                            ``(i) in a delinquency proceeding commenced 
                        by the State insurance commissioner if there 
                        has been a finding of financial impairment 
                        under subparagraph (C); or
                            ``(ii) in a voluntary dissolution 
                        proceeding;
                    ``(E) to comply with an injunction issued by a 
                court of competent jurisdiction, upon a petition by the 
                State insurance commissioner alleging that the issuer 
                is in hazardous financial condition;
                    ``(F) to participate, on a nondiscriminatory basis, 
                in any insurance insolvency guaranty association or 
                similar association to which a health insurance issuer 
                in the State is required to belong;
                    ``(G) to comply with any State law regarding fraud 
                and abuse (as defined in section 2795(10)), except that 
                if the State seeks an injunction regarding the conduct 
                described in this subparagraph, such injunction must be 
                obtained from a court of competent jurisdiction;
                    ``(H) to comply with any State law regarding unfair 
                claims settlement practices (as defined in section 
                2795(9)); or
                    ``(I) to comply with the applicable requirements 
                for independent review under section 2798 with respect 
                to coverage offered in the State;
            ``(2) require any individual health insurance coverage 
        issued by the issuer to be countersigned by an insurance agent 
        or broker residing in that Secondary State; or
            ``(3) otherwise discriminate against the issuer issuing 
        insurance in both the primary State and in any secondary State.
    ``(c) Clear and Conspicuous Disclosure.--A health insurance issuer 
shall provide the following notice, in 12-point bold type, in any 
insurance coverage offered in a secondary State under this part by such 
a health insurance issuer and at renewal of the policy, with the 5 
blank spaces therein being appropriately filled with the name of the 
health insurance issuer, the name of primary State, the name of the 
secondary State, the name of the secondary State, and the name of the 
secondary State, respectively, for the coverage concerned:

                               ```Notice

    ```This policy is issued by _____ and is governed by the laws and 
regulations of the State of _____, and it has met all the laws of that 
State as determined by that State's Department of Insurance. This 
policy may be less expensive than others because it is not subject to 
all of the insurance laws and regulations of the State of _____, 
including coverage of some services or benefits mandated by the law of 
the State of _____. Additionally, this policy is not subject to all of 
the consumer protection laws or restrictions on rate changes of the 
State of _____. As with all insurance products, before purchasing this 
policy, you should carefully review the policy and determine what 
health care services the policy covers and what benefits it provides, 
including any exclusions, limitations, or conditions for such services 
or benefits.'.
    ``(d) Prohibition on Certain Reclassifications and Premium 
Increases.--
            ``(1) In general.--For purposes of this section, a health 
        insurance issuer that provides individual health insurance 
        coverage to an individual under this part in a primary or 
        secondary State may not upon renewal--
                    ``(A) move or reclassify the individual insured 
                under the health insurance coverage from the class such 
                individual is in at the time of issue of the contract 
                based on the health-status related factors of the 
                individual; or
                    ``(B) increase the premiums assessed the individual 
                for such coverage based on a health status-related 
                factor or change of a health status-related factor or 
                the past or prospective claim experience of the insured 
                individual.
            ``(2) Construction.--Nothing in paragraph (1) shall be 
        construed to prohibit a health insurance issuer--
                    ``(A) from terminating or discontinuing coverage or 
                a class of coverage in accordance with subsections (b) 
                and (c) of section 2742;
                    ``(B) from raising premium rates for all policy 
                holders within a class based on claims experience;
                    ``(C) from changing premiums or offering discounted 
                premiums to individuals who engage in wellness 
                activities at intervals prescribed by the issuer, if 
                such premium changes or incentives--
                            ``(i) are disclosed to the consumer in the 
                        insurance contract;
                            ``(ii) are based on specific wellness 
                        activities that are not applicable to all 
                        individuals; and
                            ``(iii) are not obtainable by all 
                        individuals to whom coverage is offered;
                    ``(D) from reinstating lapsed coverage; or
                    ``(E) from retroactively adjusting the rates 
                charged an insured individual if the initial rates were 
                set based on material misrepresentation by the 
                individual at the time of issue.
    ``(e) Prior Offering of Policy in Primary State.--A health 
insurance issuer may not offer for sale individual health insurance 
coverage in a secondary State unless that coverage is currently offered 
for sale in the primary State.
    ``(f) Licensing of Agents or Brokers for Health Insurance 
Issuers.--Any State may require that a person acting, or offering to 
act, as an agent or broker for a health insurance issuer with respect 
to the offering of individual health insurance coverage obtain a 
license from that State, with commissions or other compensation subject 
to the provisions of the laws of that State, except that a State may 
not impose any qualification or requirement which discriminates against 
a nonresident agent or broker.
    ``(g) Documents for Submission to State Insurance Commissioner.--
Each health insurance issuer issuing individual health insurance 
coverage in both primary and secondary States shall submit--
            ``(1) to the insurance commissioner of each State in which 
        it intends to offer such coverage, before it may offer 
        individual health insurance coverage in such State--
                    ``(A) a copy of the plan of operation or 
                feasibility study or any similar statement of the 
                policy being offered and its coverage (which shall 
                include the name of its primary State and its principal 
                place of business);
                    ``(B) written notice of any change in its 
                designation of its primary State; and
                    ``(C) written notice from the issuer of the 
                issuer's compliance with all the laws of the primary 
                State; and
            ``(2) to the insurance commissioner of each secondary State 
        in which it offers individual health insurance coverage, a copy 
        of the issuer's quarterly financial statement submitted to the 
        primary State, which statement shall be certified by an 
        independent public accountant and contain a statement of 
        opinion on loss and loss adjustment expense reserves made by--
                    ``(A) a member of the American Academy of 
                Actuaries; or
                    ``(B) a qualified loss reserve specialist.
    ``(h) Power of Courts To Enjoin Conduct.--Nothing in this section 
shall be construed to affect the authority of any Federal or State 
court to enjoin--
            ``(1) the solicitation or sale of individual health 
        insurance coverage by a health insurance issuer to any person 
        or group who is not eligible for such insurance; or
            ``(2) the solicitation or sale of individual health 
        insurance coverage that violates the requirements of the law of 
        a secondary State which are described in subparagraphs (A) 
        through (H) of section 2796(b)(1).
    ``(i) Power of Secondary States To Take Administrative Action.--
Nothing in this section shall be construed to affect the authority of 
any State to enjoin conduct in violation of that State's laws described 
in section 2796(b)(1).
    ``(j) State Powers To Enforce State Laws.--
            ``(1) In general.--Subject to the provisions of subsection 
        (b)(1)(G) (relating to injunctions) and paragraph (2), nothing 
        in this section shall be construed to affect the authority of 
        any State to make use of any of its powers to enforce the laws 
        of such State with respect to which a health insurance issuer 
        is not exempt under subsection (b).
            ``(2) Courts of competent jurisdiction.--If a State seeks 
        an injunction regarding the conduct described in paragraphs (1) 
        and (2) of subsection (h), such injunction must be obtained 
        from a Federal or State court of competent jurisdiction.
    ``(k) States' Authority To Sue.--Nothing in this section shall 
affect the authority of any State to bring action in any Federal or 
State court.
    ``(l) Generally Applicable Laws.--Nothing in this section shall be 
construed to affect the applicability of State laws generally 
applicable to persons or corporations.
    ``(m) Guaranteed Availability of Coverage to HIPAA Eligible 
Individuals.--To the extent that a health insurance issuer is offering 
coverage in a primary State that does not accommodate residents of 
secondary States or does not provide a working mechanism for residents 
of a secondary State, and the issuer is offering coverage under this 
part in such secondary State which has not adopted a qualified high 
risk pool as its acceptable alternative mechanism (as defined in 
section 2744(c)(2)), the issuer shall, with respect to any individual 
health insurance coverage offered in a secondary State under this part, 
comply with the guaranteed availability requirements for eligible 
individuals in section 2741.

``SEC. 2797. PRIMARY STATE MUST MEET FEDERAL FLOOR BEFORE ISSUER MAY 
              SELL INTO SECONDARY STATES.

    ``A health insurance issuer may not offer, sell, or issue 
individual health insurance coverage in a secondary State if the State 
insurance commissioner does not use a risk-based capital formula for 
the determination of capital and surplus requirements for all health 
insurance issuers.

``SEC. 2798. INDEPENDENT EXTERNAL APPEALS PROCEDURES.

    ``(a) Right to External Appeal.--A health insurance issuer may not 
offer, sell, or issue individual health insurance coverage in a 
secondary State under the provisions of this title unless--
            ``(1) both the secondary State and the primary State have 
        legislation or regulations in place establishing an independent 
        review process for individuals who are covered by individual 
        health insurance coverage, or
            ``(2) in any case in which the requirements of subparagraph 
        (A) are not met with respect to the either of such States, the 
        issuer provides an independent review mechanism substantially 
        identical (as determined by the applicable State authority of 
        such State) to that prescribed in the `Health Carrier External 
        Review Model Act' of the National Association of Insurance 
        Commissioners for all individuals who purchase insurance 
        coverage under the terms of this part, except that, under such 
        mechanism, the review is conducted by an independent medical 
        reviewer, or a panel of such reviewers, with respect to whom 
        the requirements of subsection (b) are met.
    ``(b) Qualifications of Independent Medical Reviewers.--In the case 
of any independent review mechanism referred to in subsection (a)(2)--
            ``(1) In general.--In referring a denial of a claim to an 
        independent medical reviewer, or to any panel of such 
        reviewers, to conduct independent medical review, the issuer 
        shall ensure that--
                    ``(A) each independent medical reviewer meets the 
                qualifications described in paragraphs (2) and (3);
                    ``(B) with respect to each review, each reviewer 
                meets the requirements of paragraph (4) and the 
                reviewer, or at least 1 reviewer on the panel, meets 
                the requirements described in paragraph (5); and
                    ``(C) compensation provided by the issuer to each 
                reviewer is consistent with paragraph (6).
            ``(2) Licensure and expertise.--Each independent medical 
        reviewer shall be a physician (allopathic or osteopathic) or 
        health care professional who--
                    ``(A) is appropriately credentialed or licensed in 
                1 or more States to deliver health care services; and
                    ``(B) typically treats the condition, makes the 
                diagnosis, or provides the type of treatment under 
                review.
            ``(3) Independence.--
                    ``(A) In general.--Subject to subparagraph (B), 
                each independent medical reviewer in a case shall--
                            ``(i) not be a related party (as defined in 
                        paragraph (7));
                            ``(ii) not have a material familial, 
                        financial, or professional relationship with 
                        such a party; and
                            ``(iii) not otherwise have a conflict of 
                        interest with such a party (as determined under 
                        regulations).
                    ``(B) Exception.--Nothing in subparagraph (A) shall 
                be construed to--
                            ``(i) prohibit an individual, solely on the 
                        basis of affiliation with the issuer, from 
                        serving as an independent medical reviewer if--
                                    ``(I) a non-affiliated individual 
                                is not reasonably available;
                                    ``(II) the affiliated individual is 
                                not involved in the provision of items 
                                or services in the case under review;
                                    ``(III) the fact of such an 
                                affiliation is disclosed to the issuer 
                                and the enrollee (or authorized 
                                representative) and neither party 
                                objects; and
                                    ``(IV) the affiliated individual is 
                                not an employee of the issuer and does 
                                not provide services exclusively or 
                                primarily to or on behalf of the 
                                issuer;
                            ``(ii) prohibit an individual who has staff 
                        privileges at the institution where the 
                        treatment involved takes place from serving as 
                        an independent medical reviewer merely on the 
                        basis of such affiliation if the affiliation is 
                        disclosed to the issuer and the enrollee (or 
                        authorized representative), and neither party 
                        objects; or
                            ``(iii) prohibit receipt of compensation by 
                        an independent medical reviewer from an entity 
                        if the compensation is provided consistent with 
                        paragraph (6).
            ``(4) Practicing health care professional in same field.--
                    ``(A) In general.--In a case involving treatment, 
                or the provision of items or services--
                            ``(i) by a physician, a reviewer shall be a 
                        practicing physician (allopathic or 
                        osteopathic) of the same or similar specialty, 
                        as a physician who, acting within the 
                        appropriate scope of practice within the State 
                        in which the service is provided or rendered, 
                        typically treats the condition, makes the 
                        diagnosis, or provides the type of treatment 
                        under review; or
                            ``(ii) by a non-physician health care 
                        professional, the reviewer, or at least 1 
                        member of the review panel, shall be a 
                        practicing non-physician health care 
                        professional of the same or similar specialty 
                        as the non-physician health care professional 
                        who, acting within the appropriate scope of 
                        practice within the State in which the service 
                        is provided or rendered, typically treats the 
                        condition, makes the diagnosis, or provides the 
                        type of treatment under review.
                    ``(B) Practicing defined.--For purposes of this 
                paragraph, the term `practicing' means, with respect to 
                an individual who is a physician or other health care 
                professional, that the individual provides health care 
                services to individual patients on average at least 2 
                days per week.
            ``(5) Pediatric expertise.--In the case of an external 
        review relating to a child, a reviewer shall have expertise 
        under paragraph (2) in pediatrics.
            ``(6) Limitations on reviewer compensation.--Compensation 
        provided by the issuer to an independent medical reviewer in 
        connection with a review under this section shall--
                    ``(A) not exceed a reasonable level; and
                    ``(B) not be contingent on the decision rendered by 
                the reviewer.
            ``(7) Related party defined.--For purposes of this section, 
        the term `related party' means, with respect to a denial of a 
        claim under a coverage relating to an enrollee, any of the 
        following:
                    ``(A) The issuer involved, or any fiduciary, 
                officer, director, or employee of the issuer.
                    ``(B) The enrollee (or authorized representative).
                    ``(C) The health care professional that provides 
                the items or services involved in the denial.
                    ``(D) The institution at which the items or 
                services (or treatment) involved in the denial are 
                provided.
                    ``(E) The manufacturer of any drug or other item 
                that is included in the items or services involved in 
                the denial.
                    ``(F) Any other party determined under any 
                regulations to have a substantial interest in the 
                denial involved.
            ``(8) Definitions.--For purposes of this subsection:
                    ``(A) Enrollee.--The term `enrollee' means, with 
                respect to health insurance coverage offered by a 
                health insurance issuer, an individual enrolled with 
                the issuer to receive such coverage.
                    ``(B) Health care professional.--The term `health 
                care professional' means an individual who is licensed, 
                accredited, or certified under State law to provide 
                specified health care services and who is operating 
                within the scope of such licensure, accreditation, or 
                certification.

``SEC. 2799. ENFORCEMENT.

    ``(a) In General.--Subject to subsection (b) and section 701(d) of 
the American Health Care Reform Act of 2015, with respect to specific 
individual health insurance coverage the primary State for such 
coverage has sole jurisdiction to enforce the primary State's covered 
laws in the primary State and any secondary State.
    ``(b) Secondary State's Authority.--Nothing in subsection (a) shall 
be construed to affect the authority of a secondary State to enforce 
its laws as set forth in the exception specified in section 2796(b)(1).
    ``(c) Court Interpretation.--In reviewing action initiated by the 
applicable secondary State authority, the court of competent 
jurisdiction shall apply the covered laws of the primary State.
    ``(d) Notice of Compliance Failure.--In the case of individual 
health insurance coverage offered in a secondary State that fails to 
comply with the covered laws of the primary State, the applicable State 
authority of the secondary State may notify the applicable State 
authority of the primary State.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to individual health insurance coverage offered, issued, or sold 
after the date that is one year after the date of the enactment of this 
Act.
    (c) GAO Ongoing Study and Reports.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct an ongoing study concerning the effect of the 
        amendment made by subsection (a) on--
                    (A) the number of uninsured and under-insured;
                    (B) the availability and cost of health insurance 
                policies for individuals with pre-existing medical 
                conditions;
                    (C) the availability and cost of health insurance 
                policies generally;
                    (D) the elimination or reduction of different types 
                of benefits under health insurance policies offered in 
                different States; and
                    (E) cases of fraud or abuse relating to health 
                insurance coverage offered under such amendment and the 
                resolution of such cases.
            (2) Annual reports.--The Comptroller General shall submit 
        to Congress an annual report, after the end of each of the 5 
        years following the effective date of the amendment made by 
        subsection (a), on the ongoing study conducted under paragraph 
        (1).

                  Subtitle B--McCarran-Ferguson Reform

SEC. 411. RESTORING THE APPLICATION OF ANTITRUST LAWS TO HEALTH SECTOR 
              INSURERS.

    (a) Amendment to McCarran-Ferguson Act.--Section 3 of the Act of 
March 9, 1945 (15 U.S.C. 1013), commonly known as the McCarran-Ferguson 
Act, is amended by adding at the end the following:
    ``(c)(1) Nothing contained in this Act shall modify, impair, or 
supersede the operation of any of the antitrust laws with respect to 
the business of health insurance (including the business of dental 
insurance). For purposes of the preceding sentence, the term `antitrust 
laws' has the meaning given it in subsection (a) of the first section 
of the Clayton Act, except that such term includes section 5 of the 
Federal Trade Commission Act to the extent that such section 5 applies 
to unfair methods of competition.
    ``(2) For purposes of paragraph (1), the term `business of health 
insurance (including the business of dental insurance)' does not 
include--
            ``(A) the business of life insurance (including annuities); 
        or
            ``(B) the business of property or casualty insurance, 
        including but not limited to, any insurance or benefits defined 
        as `excepted benefits' under paragraph (1), subparagraphs (B) 
        or (C) of paragraph (2), or paragraph (3) of section 9832(c) of 
        the Internal Revenue Code of 1986 (26 U.S.C. 9832(c)) whether 
        offered separately or in combination with insurance or benefits 
        described in paragraph (2)(A) of such section.''.
    (b) Related Provision.--For purposes of section 5 of the Federal 
Trade Commission Act (15 U.S.C. 45) to the extent such section applies 
to unfair methods of competition, section 3(c) of the McCarran-Ferguson 
Act shall apply with respect to the business of health insurance 
without regard to whether such business is carried on for profit, 
notwithstanding the definition of ``Corporation'' contained in section 
4 of the Federal Trade Commission Act.

                Subtitle C--Medicare Price Transparency

SEC. 421. PUBLIC AVAILABILITY OF MEDICARE CLAIMS DATA.

    (a) In General.--Section 1128J of the Social Security Act (42 
U.S.C. 1320a-7k) is amended by adding at the end the following new 
subsection:
    ``(f) Public Availability of Medicare Claims Data.--
            ``(1) In general.--The Secretary shall, to the extent 
        consistent with applicable information, privacy, security, and 
        disclosure laws, including the regulations promulgated under 
        the Health Insurance Portability and Accountability Act of 1996 
        and section 552a of title 5, United States Code, make available 
        to the public claims and payment data of the Department of 
        Health and Human Services related to title XVIII, including 
        data on payments made to any provider of services or supplier 
        under such title.
            ``(2) Implementation.--
                    ``(A) In general.--Not later than December 31, 
                2015, the Secretary shall promulgate regulations to 
                carry out this subsection.
                    ``(B) Requirements.--The regulations promulgated 
                under subparagraph (A) shall ensure that--
                            ``(i) the data described in paragraph (1) 
                        is made available to the public through a 
                        searchable database that the public can access 
                        at no cost;
                            ``(ii) such database--
                                    ``(I) includes the amount paid to 
                                each provider of services or supplier 
                                under title XVIII, the items or 
                                services for which such payment was 
                                made, and the location of the provider 
                                of services or supplier;
                                    ``(II) is organized based on the 
                                specialty or the type of provider of 
                                services or supplier involved;
                                    ``(III) is searchable based on the 
                                type of items or services furnished; 
                                and
                                    ``(IV) includes a disclaimer that 
                                the aggregate data in the database does 
                                not reflect on the quality of the items 
                                or services furnished or of the 
                                provider of services or supplier who 
                                furnished the items or services; and
                            ``(iii) each provider of services or 
                        supplier in the database is identified by a 
                        unique identifier that is available to the 
                        public (such as the National Provider 
                        Identifier of the provider of services or 
                        supplier).
                    ``(C) Scope of data.--The database shall include 
                data for fiscal year 2016, and each year fiscal year 
                thereafter.''.
    (b) Information Not Exempt Under the Freedom of Information Act.--
The term ``personnel and medical files and similar files the disclosure 
of which would constitute a clearly unwarranted invasion of personal 
privacy'', as used in section 552(b)(6) of title 5, United States Code, 
does not include the information required to be made available to the 
public under section 1128J(f) of the Social Security Act, as added by 
subsection (a).

                 Subtitle D--State Transparency Portals

SEC. 431. PROVIDING INFORMATION ON HEALTH COVERAGE OPTIONS AND HEALTH 
              CARE PROVIDERS.

    (a) State-Based Portal.--A State (by itself or jointly with other 
States) may contract with a private entity to establish a Health Plan 
and Provider Portal Web site (referred to in this section as a ``plan 
portal'') for the purposes of providing standardized information--
            (1) on health insurance plans that have been certified to 
        be available for purchase in that State; and
            (2) on price and quality information on health care 
        providers (including physicians, hospitals, and other health 
        care institutions).
    (b) Prohibitions.--
            (1) Direct enrollment.--A plan portal may not directly 
        enroll individuals in health insurance plans or under a State 
        Medicaid plan or a State children's health insurance plan.
            (2) Conflicts of interest.--
                    (A) Companies.--A health insurance issuer offering 
                a health insurance plan through a plan portal may not--
                            (i) be the private entity developing and 
                        maintaining a plan portal under this section; 
                        or
                            (ii) have an ownership interest in such 
                        private entity or in the plan portal.
                    (B) Individuals.--An individual employed by a 
                health insurance issuer offering a health insurance 
                plan through a plan portal may not serve as a director 
                or officer for--
                            (i) the private entity developing and 
                        maintaining a plan portal under this section; 
                        or
                            (ii) the plan portal.
    (c) Construction.--Nothing in this section shall be construed to 
prohibit health insurance brokers and agents from--
            (1) utilizing the plan portal for any purpose; or
            (2) marketing or offering health insurance products.
    (d) State Defined.--In this section, the term ``State'' has the 
meaning given such term for purposes of title XIX of the Social 
Security Act.
    (e) Health Insurance Plans.--For purposes of this section, the term 
``health insurance plan'' does not include coverage of excepted 
benefits, as defined in section 2791(c) of the Public Health Service 
Act (42 U.S.C. 300gg-91(c)).
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated $50,000,000 for fiscal year 2016 to provide funding for 
the Secretary of Health and Human Services to award grants to States to 
enter into contracts to establish a portal plan under this section, to 
remain available until expended.

         Subtitle E--Protecting the Doctor-Patient Relationship

SEC. 441. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to interfere with the 
doctor-patient relationship or the practice of medicine.

SEC. 442. REPEAL OF FEDERAL COORDINATING COUNCIL FOR COMPARATIVE 
              EFFECTIVENESS RESEARCH.

    Effective on the date of the enactment of this Act, section 804 of 
the American Recovery and Reinvestment Act of 2009 (42 U.S.C. 299b-8) 
is repealed.

           Subtitle F--Establishing Association Health Plans

SEC. 451. RULES GOVERNING ASSOCIATION HEALTH PLANS.

    (a) In General.--Subtitle B of title I of the Employee Retirement 
Income Security Act of 1974 is amended by adding after part 7 the 
following new part:

           ``PART 8--RULES GOVERNING ASSOCIATION HEALTH PLANS

``SEC. 801. ASSOCIATION HEALTH PLANS.

    ``(a) In General.--For purposes of this part, the term `association 
health plan' means a group health plan whose sponsor is (or is deemed 
under this part to be) described in subsection (b).
    ``(b) Sponsorship.--The sponsor of a group health plan is described 
in this subsection if such sponsor--
            ``(1) is organized and maintained in good faith, with a 
        constitution and bylaws specifically stating its purpose and 
        providing for periodic meetings on at least an annual basis, as 
        a bona fide trade association, a bona fide industry association 
        (including a rural electric cooperative association or a rural 
        telephone cooperative association), a bona fide professional 
        association, or a bona fide chamber of commerce (or similar 
        bona fide business association, including a corporation or 
        similar organization that operates on a cooperative basis 
        (within the meaning of section 1381 of the Internal Revenue 
        Code of 1986)), for substantial purposes other than that of 
        obtaining or providing medical care;
            ``(2) is established as a permanent entity which receives 
        the active support of its members and requires for membership 
        payment on a periodic basis of dues or payments necessary to 
        maintain eligibility for membership in the sponsor; and
            ``(3) does not condition membership, such dues or payments, 
        or coverage under the plan on the basis of health status-
        related factors with respect to the employees of its members 
        (or affiliated members), or the dependents of such employees, 
        and does not condition such dues or payments on the basis of 
        group health plan participation.
Any sponsor consisting of an association of entities which meet the 
requirements of paragraphs (1), (2), and (3) shall be deemed to be a 
sponsor described in this subsection.

``SEC. 802. CERTIFICATION OF ASSOCIATION HEALTH PLANS.

    ``(a) In General.--The applicable authority shall prescribe by 
regulation a procedure under which, subject to subsection (b), the 
applicable authority shall certify association health plans which apply 
for certification as meeting the requirements of this part.
    ``(b) Standards.--Under the procedure prescribed pursuant to 
subsection (a), in the case of an association health plan that provides 
at least one benefit option which does not consist of health insurance 
coverage, the applicable authority shall certify such plan as meeting 
the requirements of this part only if the applicable authority is 
satisfied that the applicable requirements of this part are met (or, 
upon the date on which the plan is to commence operations, will be met) 
with respect to the plan.
    ``(c) Requirements Applicable to Certified Plans.--An association 
health plan with respect to which certification under this part is in 
effect shall meet the applicable requirements of this part, effective 
on the date of certification (or, if later, on the date on which the 
plan is to commence operations).
    ``(d) Requirements for Continued Certification.--The applicable 
authority may provide by regulation for continued certification of 
association health plans under this part.
    ``(e) Class Certification for Fully Insured Plans.--The applicable 
authority shall establish a class certification procedure for 
association health plans under which all benefits consist of health 
insurance coverage. Under such procedure, the applicable authority 
shall provide for the granting of certification under this part to the 
plans in each class of such association health plans upon appropriate 
filing under such procedure in connection with plans in such class and 
payment of the prescribed fee under section 807(a).
    ``(f) Certification of Self-Insured Association Health Plans.--An 
association health plan which offers one or more benefit options which 
do not consist of health insurance coverage may be certified under this 
part only if such plan consists of any of the following:
            ``(1) a plan which offered such coverage on the date of the 
        enactment of this part,
            ``(2) a plan under which the sponsor does not restrict 
        membership to one or more trades and businesses or industries 
        and whose eligible participating employers represent a broad 
        cross-section of trades and businesses or industries, or
            ``(3) a plan whose eligible participating employers 
        represent one or more trades or businesses, or one or more 
        industries, consisting of any of the following: agriculture; 
        equipment and automobile dealerships; barbering and 
        cosmetology; certified public accounting practices; child care; 
        construction; dance, theatrical and orchestra productions; 
        disinfecting and pest control; financial services; fishing; 
        food service establishments; hospitals; labor organizations; 
        logging; manufacturing (metals); mining; medical and dental 
        practices; medical laboratories; professional consulting 
        services; sanitary services; transportation (local and 
        freight); warehousing; wholesaling/distributing; or any other 
        trade or business or industry which has been indicated as 
        having average or above-average risk or health claims 
        experience by reason of State rate filings, denials of 
        coverage, proposed premium rate levels, or other means 
        demonstrated by such plan in accordance with regulations.

``SEC. 803. REQUIREMENTS RELATING TO SPONSORS AND BOARDS OF TRUSTEES.

    ``(a) Sponsor.--The requirements of this subsection are met with 
respect to an association health plan if the sponsor has met (or is 
deemed under this part to have met) the requirements of section 801(b) 
for a continuous period of not less than 3 years ending with the date 
of the application for certification under this part.
    ``(b) Board of Trustees.--The requirements of this subsection are 
met with respect to an association health plan if the following 
requirements are met:
            ``(1) Fiscal control.--The plan is operated, pursuant to a 
        trust agreement, by a board of trustees which has complete 
        fiscal control over the plan and which is responsible for all 
        operations of the plan.
            ``(2) Rules of operation and financial controls.--The board 
        of trustees has in effect rules of operation and financial 
        controls, based on a 3-year plan of operation, adequate to 
        carry out the terms of the plan and to meet all requirements of 
        this title applicable to the plan.
            ``(3) Rules governing relationship to participating 
        employers and to contractors.--
                    ``(A) Board membership.--
                            ``(i) In general.--Except as provided in 
                        clauses (ii) and (iii), the members of the 
                        board of trustees are individuals selected from 
                        individuals who are the owners, officers, 
                        directors, or employees of the participating 
                        employers or who are partners in the 
                        participating employers and actively 
                        participate in the business.
                            ``(ii) Limitation.--
                                    ``(I) General rule.--Except as 
                                provided in subclauses (II) and (III), 
                                no such member is an owner, officer, 
                                director, or employee of, or partner 
                                in, a contract administrator or other 
                                service provider to the plan.
                                    ``(II) Limited exception for 
                                providers of services solely on behalf 
                                of the sponsor.--Officers or employees 
                                of a sponsor which is a service 
                                provider (other than a contract 
                                administrator) to the plan may be 
                                members of the board if they constitute 
                                not more than 25 percent of the 
                                membership of the board and they do not 
                                provide services to the plan other than 
                                on behalf of the sponsor.
                                    ``(III) Treatment of providers of 
                                medical care.--In the case of a sponsor 
                                which is an association whose 
                                membership consists primarily of 
                                providers of medical care, subclause 
                                (I) shall not apply in the case of any 
                                service provider described in subclause 
                                (I) who is a provider of medical care 
                                under the plan.
                            ``(iii) Certain plans excluded.--Clause (i) 
                        shall not apply to an association health plan 
                        which is in existence on the date of the 
                        enactment of this part.
                    ``(B) Sole authority.--The board has sole authority 
                under the plan to approve applications for 
                participation in the plan and to contract with a 
                service provider to administer the day-to-day affairs 
                of the plan.
    ``(c) Treatment of Franchise Networks.--In the case of a group 
health plan which is established and maintained by a franchiser for a 
franchise network consisting of its franchisees--
            ``(1) the requirements of subsection (a) and section 801(a) 
        shall be deemed met if such requirements would otherwise be met 
        if the franchiser were deemed to be the sponsor referred to in 
        section 801(b), such network were deemed to be an association 
        described in section 801(b), and each franchisee were deemed to 
        be a member (of the association and the sponsor) referred to in 
        section 801(b); and
            ``(2) the requirements of section 804(a)(1) shall be deemed 
        met.
The Secretary may by regulation define for purposes of this subsection 
the terms `franchiser', `franchise network', and `franchisee'.

``SEC. 804. PARTICIPATION AND COVERAGE REQUIREMENTS.

    ``(a) Covered Employers and Individuals.--The requirements of this 
subsection are met with respect to an association health plan if, under 
the terms of the plan--
            ``(1) each participating employer must be--
                    ``(A) a member of the sponsor,
                    ``(B) the sponsor, or
                    ``(C) an affiliated member of the sponsor with 
                respect to which the requirements of subsection (b) are 
                met,
        except that, in the case of a sponsor which is a professional 
        association or other individual-based association, if at least 
        one of the officers, directors, or employees of an employer, or 
        at least one of the individuals who are partners in an employer 
        and who actively participates in the business, is a member or 
        such an affiliated member of the sponsor, participating 
        employers may also include such employer; and
            ``(2) all individuals commencing coverage under the plan 
        after certification under this part must be--
                    ``(A) active or retired owners (including self-
                employed individuals), officers, directors, or 
                employees of, or partners in, participating employers; 
                or
                    ``(B) the beneficiaries of individuals described in 
                subparagraph (A).
    ``(b) Coverage of Previously Uninsured Employees.--In the case of 
an association health plan in existence on the date of the enactment of 
this part, an affiliated member of the sponsor of the plan may be 
offered coverage under the plan as a participating employer only if--
            ``(1) the affiliated member was an affiliated member on the 
        date of certification under this part; or
            ``(2) during the 12-month period preceding the date of the 
        offering of such coverage, the affiliated member has not 
        maintained or contributed to a group health plan with respect 
        to any of its employees who would otherwise be eligible to 
        participate in such association health plan.
    ``(c) Individual Market Unaffected.--The requirements of this 
subsection are met with respect to an association health plan if, under 
the terms of the plan, no participating employer may provide health 
insurance coverage in the individual market for any employee not 
covered under the plan which is similar to the coverage 
contemporaneously provided to employees of the employer under the plan, 
if such exclusion of the employee from coverage under the plan is based 
on a health status-related factor with respect to the employee and such 
employee would, but for such exclusion on such basis, be eligible for 
coverage under the plan.
    ``(d) Prohibition of Discrimination Against Employers and Employees 
Eligible To Participate.--The requirements of this subsection are met 
with respect to an association health plan if--
            ``(1) under the terms of the plan, all employers meeting 
        the preceding requirements of this section are eligible to 
        qualify as participating employers for all geographically 
        available coverage options, unless, in the case of any such 
        employer, participation or contribution requirements of the 
        type referred to in section 2711 of the Public Health Service 
        Act are not met;
            ``(2) upon request, any employer eligible to participate is 
        furnished information regarding all coverage options available 
        under the plan; and
            ``(3) the applicable requirements of sections 701, 702, and 
        703 are met with respect to the plan.

``SEC. 805. OTHER REQUIREMENTS RELATING TO PLAN DOCUMENTS, CONTRIBUTION 
              RATES, AND BENEFIT OPTIONS.

    ``(a) In General.--The requirements of this section are met with 
respect to an association health plan if the following requirements are 
met:
            ``(1) Contents of governing instruments.--The instruments 
        governing the plan include a written instrument, meeting the 
        requirements of an instrument required under section 402(a)(1), 
        which--
                    ``(A) provides that the board of trustees serves as 
                the named fiduciary required for plans under section 
                402(a)(1) and serves in the capacity of a plan 
                administrator (referred to in section 3(16)(A));
                    ``(B) provides that the sponsor of the plan is to 
                serve as plan sponsor (referred to in section 
                3(16)(B)); and
                    ``(C) incorporates the requirements of section 806.
            ``(2) Contribution rates must be nondiscriminatory.--
                    ``(A) The contribution rates for any participating 
                small employer do not vary on the basis of any health 
                status-related factor in relation to employees of such 
                employer or their beneficiaries and do not vary on the 
                basis of the type of business or industry in which such 
                employer is engaged.
                    ``(B) Nothing in this title or any other provision 
                of law shall be construed to preclude an association 
                health plan, or a health insurance issuer offering 
                health insurance coverage in connection with an 
                association health plan, from--
                            ``(i) setting contribution rates based on 
                        the claims experience of the plan; or
                            ``(ii) varying contribution rates for small 
                        employers in a State to the extent that such 
                        rates could vary using the same methodology 
                        employed in such State for regulating premium 
                        rates in the small group market with respect to 
                        health insurance coverage offered in connection 
                        with bona fide associations (within the meaning 
                        of section 2791(d)(3) of the Public Health 
                        Service Act),
                subject to the requirements of section 702(b) relating 
                to contribution rates.
            ``(3) Floor for number of covered individuals with respect 
        to certain plans.--If any benefit option under the plan does 
        not consist of health insurance coverage, the plan has as of 
        the beginning of the plan year not fewer than 1,000 
        participants and beneficiaries.
            ``(4) Marketing requirements.--
                    ``(A) In general.--If a benefit option which 
                consists of health insurance coverage is offered under 
                the plan, State-licensed insurance agents shall be used 
                to distribute to small employers coverage which does 
                not consist of health insurance coverage in a manner 
                comparable to the manner in which such agents are used 
                to distribute health insurance coverage.
                    ``(B) State-licensed insurance agents.--For 
                purposes of subparagraph (A), the term `State-licensed 
                insurance agents' means one or more agents who are 
                licensed in a State and are subject to the laws of such 
                State relating to licensure, qualification, testing, 
                examination, and continuing education of persons 
                authorized to offer, sell, or solicit health insurance 
                coverage in such State.
            ``(5) Regulatory requirements.--Such other requirements as 
        the applicable authority determines are necessary to carry out 
        the purposes of this part, which shall be prescribed by the 
        applicable authority by regulation.
    ``(b) Ability of Association Health Plans To Design Benefit 
Options.--Subject to section 514(d), nothing in this part or any 
provision of State law (as defined in section 514(c)(1)) shall be 
construed to preclude an association health plan, or a health insurance 
issuer offering health insurance coverage in connection with an 
association health plan, from exercising its sole discretion in 
selecting the specific items and services consisting of medical care to 
be included as benefits under such plan or coverage, except (subject to 
section 514) in the case of (1) any law to the extent that it is not 
preempted under section 731(a)(1) with respect to matters governed by 
section 711, 712, or 713, (2) any law of the State with which filing 
and approval of a policy type offered by the plan was initially 
obtained to the extent that such law prohibits an exclusion of a 
specific disease from such coverage, or (3) any law described in 
section 701(d) of the American Health Care Reform Act of 2015.

``SEC. 806. MAINTENANCE OF RESERVES AND PROVISIONS FOR SOLVENCY FOR 
              PLANS PROVIDING HEALTH BENEFITS IN ADDITION TO HEALTH 
              INSURANCE COVERAGE.

    ``(a) In General.--The requirements of this section are met with 
respect to an association health plan if--
            ``(1) the benefits under the plan consist solely of health 
        insurance coverage; or
            ``(2) if the plan provides any additional benefit options 
        which do not consist of health insurance coverage, the plan--
                    ``(A) establishes and maintains reserves with 
                respect to such additional benefit options, in amounts 
                recommended by the qualified actuary, consisting of--
                            ``(i) a reserve sufficient for unearned 
                        contributions;
                            ``(ii) a reserve sufficient for benefit 
                        liabilities which have been incurred, which 
                        have not been satisfied, and for which risk of 
                        loss has not yet been transferred, and for 
                        expected administrative costs with respect to 
                        such benefit liabilities;
                            ``(iii) a reserve sufficient for any other 
                        obligations of the plan; and
                            ``(iv) a reserve sufficient for a margin of 
                        error and other fluctuations, taking into 
                        account the specific circumstances of the plan; 
                        and
                    ``(B) establishes and maintains aggregate and 
                specific excess/stop loss insurance and solvency 
                indemnification, with respect to such additional 
                benefit options for which risk of loss has not yet been 
                transferred, as follows:
                            ``(i) The plan shall secure aggregate 
                        excess/stop loss insurance for the plan with an 
                        attachment point which is not greater than 125 
                        percent of expected gross annual claims. The 
                        applicable authority may by regulation provide 
                        for upward adjustments in the amount of such 
                        percentage in specified circumstances in which 
                        the plan specifically provides for and 
                        maintains reserves in excess of the amounts 
                        required under subparagraph (A).
                            ``(ii) The plan shall secure specific 
                        excess/stop loss insurance for the plan with an 
                        attachment point which is at least equal to an 
                        amount recommended by the plan's qualified 
                        actuary. The applicable authority may by 
                        regulation provide for adjustments in the 
                        amount of such insurance in specified 
                        circumstances in which the plan specifically 
                        provides for and maintains reserves in excess 
                        of the amounts required under subparagraph (A).
                            ``(iii) The plan shall secure 
                        indemnification insurance for any claims which 
                        the plan is unable to satisfy by reason of a 
                        plan termination.
Any person issuing to a plan insurance described in clause (i), (ii), 
or (iii) of subparagraph (B) shall notify the Secretary of any failure 
of premium payment meriting cancellation of the policy prior to 
undertaking such a cancellation. Any regulations prescribed by the 
applicable authority pursuant to clause (i) or (ii) of subparagraph (B) 
may allow for such adjustments in the required levels of excess/stop 
loss insurance as the qualified actuary may recommend, taking into 
account the specific circumstances of the plan.
    ``(b) Minimum Surplus in Addition to Claims Reserves.--In the case 
of any association health plan described in subsection (a)(2), the 
requirements of this subsection are met if the plan establishes and 
maintains surplus in an amount at least equal to--
            ``(1) $500,000, or
            ``(2) such greater amount (but not greater than $2,000,000) 
        as may be set forth in regulations prescribed by the applicable 
        authority, considering the level of aggregate and specific 
        excess/stop loss insurance provided with respect to such plan 
        and other factors related to solvency risk, such as the plan's 
        projected levels of participation or claims, the nature of the 
        plan's liabilities, and the types of assets available to assure 
        that such liabilities are met.
    ``(c) Additional Requirements.--In the case of any association 
health plan described in subsection (a)(2), the applicable authority 
may provide such additional requirements relating to reserves, excess/
stop loss insurance, and indemnification insurance as the applicable 
authority considers appropriate. Such requirements may be provided by 
regulation with respect to any such plan or any class of such plans.
    ``(d) Adjustments for Excess/Stop Loss Insurance.--The applicable 
authority may provide for adjustments to the levels of reserves 
otherwise required under subsections (a) and (b) with respect to any 
plan or class of plans to take into account excess/stop loss insurance 
provided with respect to such plan or plans.
    ``(e) Alternative Means of Compliance.--The applicable authority 
may permit an association health plan described in subsection (a)(2) to 
substitute, for all or part of the requirements of this section (except 
subsection (a)(2)(B)(iii)), such security, guarantee, hold-harmless 
arrangement, or other financial arrangement as the applicable authority 
determines to be adequate to enable the plan to fully meet all its 
financial obligations on a timely basis and is otherwise no less 
protective of the interests of participants and beneficiaries than the 
requirements for which it is substituted. The applicable authority may 
take into account, for purposes of this subsection, evidence provided 
by the plan or sponsor which demonstrates an assumption of liability 
with respect to the plan. Such evidence may be in the form of a 
contract of indemnification, lien, bonding, insurance, letter of 
credit, recourse under applicable terms of the plan in the form of 
assessments of participating employers, security, or other financial 
arrangement.
    ``(f) Measures To Ensure Continued Payment of Benefits by Certain 
Plans in Distress.--
            ``(1) Payments by certain plans to association health plan 
        fund.--
                    ``(A) In general.--In the case of an association 
                health plan described in subsection (a)(2), the 
                requirements of this subsection are met if the plan 
                makes payments into the Association Health Plan Fund 
                under this subparagraph when they are due. Such 
                payments shall consist of annual payments in the amount 
                of $5,000, and, in addition to such annual payments, 
                such supplemental payments as the Secretary may 
                determine to be necessary under paragraph (2). Payments 
                under this paragraph are payable to the Fund at the 
                time determined by the Secretary. Initial payments are 
                due in advance of certification under this part. 
                Payments shall continue to accrue until a plan's assets 
                are distributed pursuant to a termination procedure.
                    ``(B) Penalties for failure to make payments.--If 
                any payment is not made by a plan when it is due, a 
                late payment charge of not more than 100 percent of the 
                payment which was not timely paid shall be payable by 
                the plan to the Fund.
                    ``(C) Continued duty of the secretary.--The 
                Secretary shall not cease to carry out the provisions 
                of paragraph (2) on account of the failure of a plan to 
                pay any payment when due.
            ``(2) Payments by secretary to continue excess/stop loss 
        insurance coverage and indemnification insurance coverage for 
        certain plans.--In any case in which the applicable authority 
        determines that there is, or that there is reason to believe 
        that there will be: (A) a failure to take necessary corrective 
        actions under section 809(a) with respect to an association 
        health plan described in subsection (a)(2); or (B) a 
        termination of such a plan under section 809(b) or 810(b)(8) 
        (and, if the applicable authority is not the Secretary, 
        certifies such determination to the Secretary), the Secretary 
        shall determine the amounts necessary to make payments to an 
        insurer (designated by the Secretary) to maintain in force 
        excess/stop loss insurance coverage or indemnification 
        insurance coverage for such plan, if the Secretary determines 
        that there is a reasonable expectation that, without such 
        payments, claims would not be satisfied by reason of 
        termination of such coverage. The Secretary shall, to the 
        extent provided in advance in appropriation Acts, pay such 
        amounts so determined to the insurer designated by the 
        Secretary.
            ``(3) Association health plan fund.--
                    ``(A) In general.--There is established on the 
                books of the Treasury a fund to be known as the 
                `Association Health Plan Fund'. The Fund shall be 
                available for making payments pursuant to paragraph 
                (2). The Fund shall be credited with payments received 
                pursuant to paragraph (1)(A), penalties received 
                pursuant to paragraph (1)(B); and earnings on 
                investments of amounts of the Fund under subparagraph 
                (B).
                    ``(B) Investment.--Whenever the Secretary 
                determines that the moneys of the fund are in excess of 
                current needs, the Secretary may request the investment 
                of such amounts as the Secretary determines advisable 
                by the Secretary of the Treasury in obligations issued 
                or guaranteed by the United States.
    ``(g) Excess/Stop Loss Insurance.--For purposes of this section--
            ``(1) Aggregate excess/stop loss insurance.--The term 
        `aggregate excess/stop loss insurance' means, in connection 
        with an association health plan, a contract--
                    ``(A) under which an insurer (meeting such minimum 
                standards as the applicable authority may prescribe by 
                regulation) provides for payment to the plan with 
                respect to aggregate claims under the plan in excess of 
                an amount or amounts specified in such contract;
                    ``(B) which is guaranteed renewable; and
                    ``(C) which allows for payment of premiums by any 
                third party on behalf of the insured plan.
            ``(2) Specific excess/stop loss insurance.--The term 
        `specific excess/stop loss insurance' means, in connection with 
        an association health plan, a contract--
                    ``(A) under which an insurer (meeting such minimum 
                standards as the applicable authority may prescribe by 
                regulation) provides for payment to the plan with 
                respect to claims under the plan in connection with a 
                covered individual in excess of an amount or amounts 
                specified in such contract in connection with such 
                covered individual;
                    ``(B) which is guaranteed renewable; and
                    ``(C) which allows for payment of premiums by any 
                third party on behalf of the insured plan.
    ``(h) Indemnification Insurance.--For purposes of this section, the 
term `indemnification insurance' means, in connection with an 
association health plan, a contract--
            ``(1) under which an insurer (meeting such minimum 
        standards as the applicable authority may prescribe by 
        regulation) provides for payment to the plan with respect to 
        claims under the plan which the plan is unable to satisfy by 
        reason of a termination pursuant to section 809(b) (relating to 
        mandatory termination);
            ``(2) which is guaranteed renewable and noncancellable for 
        any reason (except as the applicable authority may prescribe by 
        regulation); and
            ``(3) which allows for payment of premiums by any third 
        party on behalf of the insured plan.
    ``(i) Reserves.--For purposes of this section, the term `reserves' 
means, in connection with an association health plan, plan assets which 
meet the fiduciary standards under part 4 and such additional 
requirements regarding liquidity as the applicable authority may 
prescribe by regulation.
    ``(j) Solvency Standards Working Group.--
            ``(1) In general.--Within 90 days after the date of the 
        enactment of this part, the applicable authority shall 
        establish a Solvency Standards Working Group. In prescribing 
        the initial regulations under this section, the applicable 
        authority shall take into account the recommendations of such 
        Working Group.
            ``(2) Membership.--The Working Group shall consist of not 
        more than 15 members appointed by the applicable authority. The 
        applicable authority shall include among persons invited to 
        membership on the Working Group at least one of each of the 
        following:
                    ``(A) a representative of the National Association 
                of Insurance Commissioners;
                    ``(B) a representative of the American Academy of 
                Actuaries;
                    ``(C) a representative of the State governments, or 
                their interests;
                    ``(D) a representative of existing self-insured 
                arrangements, or their interests;
                    ``(E) a representative of associations of the type 
                referred to in section 801(b)(1), or their interests; 
                and
                    ``(F) a representative of multiemployer plans that 
                are group health plans, or their interests.

``SEC. 807. REQUIREMENTS FOR APPLICATION AND RELATED REQUIREMENTS.

    ``(a) Filing Fee.--Under the procedure prescribed pursuant to 
section 802(a), an association health plan shall pay to the applicable 
authority at the time of filing an application for certification under 
this part a filing fee in the amount of $5,000, which shall be 
available in the case of the Secretary, to the extent provided in 
appropriation Acts, for the sole purpose of administering the 
certification procedures applicable with respect to association health 
plans.
    ``(b) Information To Be Included in Application for 
Certification.--An application for certification under this part meets 
the requirements of this section only if it includes, in a manner and 
form which shall be prescribed by the applicable authority by 
regulation, at least the following information:
            ``(1) Identifying information.--The names and addresses 
        of--
                    ``(A) the sponsor; and
                    ``(B) the members of the board of trustees of the 
                plan.
            ``(2) States in which plan intends to do business.--The 
        States in which participants and beneficiaries under the plan 
        are to be located and the number of them expected to be located 
        in each such State.
            ``(3) Bonding requirements.--Evidence provided by the board 
        of trustees that the bonding requirements of section 412 will 
        be met as of the date of the application or (if later) 
        commencement of operations.
            ``(4) Plan documents.--A copy of the documents governing 
        the plan (including any bylaws and trust agreements), the 
        summary plan description, and other material describing the 
        benefits that will be provided to participants and 
        beneficiaries under the plan.
            ``(5) Agreements with service providers.--A copy of any 
        agreements between the plan and contract administrators and 
        other service providers.
            ``(6) Funding report.--In the case of association health 
        plans providing benefits options in addition to health 
        insurance coverage, a report setting forth information with 
        respect to such additional benefit options determined as of a 
        date within the 120-day period ending with the date of the 
        application, including the following:
                    ``(A) Reserves.--A statement, certified by the 
                board of trustees of the plan, and a statement of 
                actuarial opinion, signed by a qualified actuary, that 
                all applicable requirements of section 806 are or will 
                be met in accordance with regulations which the 
                applicable authority shall prescribe.
                    ``(B) Adequacy of contribution rates.--A statement 
                of actuarial opinion, signed by a qualified actuary, 
                which sets forth a description of the extent to which 
                contribution rates are adequate to provide for the 
                payment of all obligations and the maintenance of 
                required reserves under the plan for the 12-month 
                period beginning with such date within such 120-day 
                period, taking into account the expected coverage and 
                experience of the plan. If the contribution rates are 
                not fully adequate, the statement of actuarial opinion 
                shall indicate the extent to which the rates are 
                inadequate and the changes needed to ensure adequacy.
                    ``(C) Current and projected value of assets and 
                liabilities.--A statement of actuarial opinion signed 
                by a qualified actuary, which sets forth the current 
                value of the assets and liabilities accumulated under 
                the plan and a projection of the assets, liabilities, 
                income, and expenses of the plan for the 12-month 
                period referred to in subparagraph (B). The income 
                statement shall identify separately the plan's 
                administrative expenses and claims.
                    ``(D) Costs of coverage to be charged and other 
                expenses.--A statement of the costs of coverage to be 
                charged, including an itemization of amounts for 
                administration, reserves, and other expenses associated 
                with the operation of the plan.
                    ``(E) Other information.--Any other information as 
                may be determined by the applicable authority, by 
                regulation, as necessary to carry out the purposes of 
                this part.
    ``(c) Filing Notice of Certification With States.--A certification 
granted under this part to an association health plan shall not be 
effective unless written notice of such certification is filed with the 
applicable State authority of each State in which at least 25 percent 
of the participants and beneficiaries under the plan are located. For 
purposes of this subsection, an individual shall be considered to be 
located in the State in which a known address of such individual is 
located or in which such individual is employed.
    ``(d) Notice of Material Changes.--In the case of any association 
health plan certified under this part, descriptions of material changes 
in any information which was required to be submitted with the 
application for the certification under this part shall be filed in 
such form and manner as shall be prescribed by the applicable authority 
by regulation. The applicable authority may require by regulation prior 
notice of material changes with respect to specified matters which 
might serve as the basis for suspension or revocation of the 
certification.
    ``(e) Reporting Requirements for Certain Association Health 
Plans.--An association health plan certified under this part which 
provides benefit options in addition to health insurance coverage for 
such plan year shall meet the requirements of section 103 by filing an 
annual report under such section which shall include information 
described in subsection (b)(6) with respect to the plan year and, 
notwithstanding section 104(a)(1)(A), shall be filed with the 
applicable authority not later than 90 days after the close of the plan 
year (or on such later date as may be prescribed by the applicable 
authority). The applicable authority may require by regulation such 
interim reports as it considers appropriate.
    ``(f) Engagement of Qualified Actuary.--The board of trustees of 
each association health plan which provides benefits options in 
addition to health insurance coverage and which is applying for 
certification under this part or is certified under this part shall 
engage, on behalf of all participants and beneficiaries, a qualified 
actuary who shall be responsible for the preparation of the materials 
comprising information necessary to be submitted by a qualified actuary 
under this part. The qualified actuary shall utilize such assumptions 
and techniques as are necessary to enable such actuary to form an 
opinion as to whether the contents of the matters reported under this 
part--
            ``(1) are in the aggregate reasonably related to the 
        experience of the plan and to reasonable expectations; and
            ``(2) represent such actuary's best estimate of anticipated 
        experience under the plan.
The opinion by the qualified actuary shall be made with respect to, and 
shall be made a part of, the annual report.

``SEC. 808. NOTICE REQUIREMENTS FOR VOLUNTARY TERMINATION.

    ``Except as provided in section 809(b), an association health plan 
which is or has been certified under this part may terminate (upon or 
at any time after cessation of accruals in benefit liabilities) only if 
the board of trustees, not less than 60 days before the proposed 
termination date--
            ``(1) provides to the participants and beneficiaries a 
        written notice of intent to terminate stating that such 
        termination is intended and the proposed termination date;
            ``(2) develops a plan for winding up the affairs of the 
        plan in connection with such termination in a manner which will 
        result in timely payment of all benefits for which the plan is 
        obligated; and
            ``(3) submits such plan in writing to the applicable 
        authority.
Actions required under this section shall be taken in such form and 
manner as may be prescribed by the applicable authority by regulation.

``SEC. 809. CORRECTIVE ACTIONS AND MANDATORY TERMINATION.

    ``(a) Actions To Avoid Depletion of Reserves.--An association 
health plan which is certified under this part and which provides 
benefits other than health insurance coverage shall continue to meet 
the requirements of section 806, irrespective of whether such 
certification continues in effect. The board of trustees of such plan 
shall determine quarterly whether the requirements of section 806 are 
met. In any case in which the board determines that there is reason to 
believe that there is or will be a failure to meet such requirements, 
or the applicable authority makes such a determination and so notifies 
the board, the board shall immediately notify the qualified actuary 
engaged by the plan, and such actuary shall, not later than the end of 
the next following month, make such recommendations to the board for 
corrective action as the actuary determines necessary to ensure 
compliance with section 806. Not later than 30 days after receiving 
from the actuary recommendations for corrective actions, the board 
shall notify the applicable authority (in such form and manner as the 
applicable authority may prescribe by regulation) of such 
recommendations of the actuary for corrective action, together with a 
description of the actions (if any) that the board has taken or plans 
to take in response to such recommendations. The board shall thereafter 
report to the applicable authority, in such form and frequency as the 
applicable authority may specify to the board, regarding corrective 
action taken by the board until the requirements of section 806 are 
met.
    ``(b) Mandatory Termination.--In any case in which--
            ``(1) the applicable authority has been notified under 
        subsection (a) (or by an issuer of excess/stop loss insurance 
        or indemnity insurance pursuant to section 806(a)) of a failure 
        of an association health plan which is or has been certified 
        under this part and is described in section 806(a)(2) to meet 
        the requirements of section 806 and has not been notified by 
        the board of trustees of the plan that corrective action has 
        restored compliance with such requirements; and
            ``(2) the applicable authority determines that there is a 
        reasonable expectation that the plan will continue to fail to 
        meet the requirements of section 806,
the board of trustees of the plan shall, at the direction of the 
applicable authority, terminate the plan and, in the course of the 
termination, take such actions as the applicable authority may require, 
including satisfying any claims referred to in section 
806(a)(2)(B)(iii) and recovering for the plan any liability under 
subsection (a)(2)(B)(iii) or (e) of section 806, as necessary to ensure 
that the affairs of the plan will be, to the maximum extent possible, 
wound up in a manner which will result in timely provision of all 
benefits for which the plan is obligated.

``SEC. 810. TRUSTEESHIP BY THE SECRETARY OF INSOLVENT ASSOCIATION 
              HEALTH PLANS PROVIDING HEALTH BENEFITS IN ADDITION TO 
              HEALTH INSURANCE COVERAGE.

    ``(a) Appointment of Secretary as Trustee for Insolvent Plans.--
Whenever the Secretary determines that an association health plan which 
is or has been certified under this part and which is described in 
section 806(a)(2) will be unable to provide benefits when due or is 
otherwise in a financially hazardous condition, as shall be defined by 
the Secretary by regulation, the Secretary shall, upon notice to the 
plan, apply to the appropriate United States district court for 
appointment of the Secretary as trustee to administer the plan for the 
duration of the insolvency. The plan may appear as a party and other 
interested persons may intervene in the proceedings at the discretion 
of the court. The court shall appoint such Secretary trustee if the 
court determines that the trusteeship is necessary to protect the 
interests of the participants and beneficiaries or providers of medical 
care or to avoid any unreasonable deterioration of the financial 
condition of the plan. The trusteeship of such Secretary shall continue 
until the conditions described in the first sentence of this subsection 
are remedied or the plan is terminated.
    ``(b) Powers as Trustee.--The Secretary, upon appointment as 
trustee under subsection (a), shall have the power--
            ``(1) to do any act authorized by the plan, this title, or 
        other applicable provisions of law to be done by the plan 
        administrator or any trustee of the plan;
            ``(2) to require the transfer of all (or any part) of the 
        assets and records of the plan to the Secretary as trustee;
            ``(3) to invest any assets of the plan which the Secretary 
        holds in accordance with the provisions of the plan, 
        regulations prescribed by the Secretary, and applicable 
        provisions of law;
            ``(4) to require the sponsor, the plan administrator, any 
        participating employer, and any employee organization 
        representing plan participants to furnish any information with 
        respect to the plan which the Secretary as trustee may 
        reasonably need in order to administer the plan;
            ``(5) to collect for the plan any amounts due the plan and 
        to recover reasonable expenses of the trusteeship;
            ``(6) to commence, prosecute, or defend on behalf of the 
        plan any suit or proceeding involving the plan;
            ``(7) to issue, publish, or file such notices, statements, 
        and reports as may be required by the Secretary by regulation 
        or required by any order of the court;
            ``(8) to terminate the plan (or provide for its termination 
        in accordance with section 809(b)) and liquidate the plan 
        assets, to restore the plan to the responsibility of the 
        sponsor, or to continue the trusteeship;
            ``(9) to provide for the enrollment of plan participants 
        and beneficiaries under appropriate coverage options; and
            ``(10) to do such other acts as may be necessary to comply 
        with this title or any order of the court and to protect the 
        interests of plan participants and beneficiaries and providers 
        of medical care.
    ``(c) Notice of Appointment.--As soon as practicable after the 
Secretary's appointment as trustee, the Secretary shall give notice of 
such appointment to--
            ``(1) the sponsor and plan administrator;
            ``(2) each participant;
            ``(3) each participating employer; and
            ``(4) if applicable, each employee organization which, for 
        purposes of collective bargaining, represents plan 
        participants.
    ``(d) Additional Duties.--Except to the extent inconsistent with 
the provisions of this title, or as may be otherwise ordered by the 
court, the Secretary, upon appointment as trustee under this section, 
shall be subject to the same duties as those of a trustee under section 
704 of title 11, United States Code, and shall have the duties of a 
fiduciary for purposes of this title.
    ``(e) Other Proceedings.--An application by the Secretary under 
this subsection may be filed notwithstanding the pendency in the same 
or any other court of any bankruptcy, mortgage foreclosure, or equity 
receivership proceeding, or any proceeding to reorganize, conserve, or 
liquidate such plan or its property, or any proceeding to enforce a 
lien against property of the plan.
    ``(f) Jurisdiction of Court.--
            ``(1) In general.--Upon the filing of an application for 
        the appointment as trustee or the issuance of a decree under 
        this section, the court to which the application is made shall 
        have exclusive jurisdiction of the plan involved and its 
        property wherever located with the powers, to the extent 
        consistent with the purposes of this section, of a court of the 
        United States having jurisdiction over cases under chapter 11 
        of title 11, United States Code. Pending an adjudication under 
        this section such court shall stay, and upon appointment by it 
        of the Secretary as trustee, such court shall continue the stay 
        of, any pending mortgage foreclosure, equity receivership, or 
        other proceeding to reorganize, conserve, or liquidate the 
        plan, the sponsor, or property of such plan or sponsor, and any 
        other suit against any receiver, conservator, or trustee of the 
        plan, the sponsor, or property of the plan or sponsor. Pending 
        such adjudication and upon the appointment by it of the 
        Secretary as trustee, the court may stay any proceeding to 
        enforce a lien against property of the plan or the sponsor or 
        any other suit against the plan or the sponsor.
            ``(2) Venue.--An action under this section may be brought 
        in the judicial district where the sponsor or the plan 
        administrator resides or does business or where any asset of 
        the plan is situated. A district court in which such action is 
        brought may issue process with respect to such action in any 
        other judicial district.
    ``(g) Personnel.--In accordance with regulations which shall be 
prescribed by the Secretary, the Secretary shall appoint, retain, and 
compensate accountants, actuaries, and other professional service 
personnel as may be necessary in connection with the Secretary's 
service as trustee under this section.

``SEC. 811. STATE ASSESSMENT AUTHORITY.

    ``(a) In General.--Notwithstanding section 514, a State may impose 
by law a contribution tax on an association health plan described in 
section 806(a)(2), if the plan commenced operations in such State after 
the date of the enactment of this part.
    ``(b) Contribution Tax.--For purposes of this section, the term 
`contribution tax' imposed by a State on an association health plan 
means any tax imposed by such State if--
            ``(1) such tax is computed by applying a rate to the amount 
        of premiums or contributions, with respect to individuals 
        covered under the plan who are residents of such State, which 
        are received by the plan from participating employers located 
        in such State or from such individuals;
            ``(2) the rate of such tax does not exceed the rate of any 
        tax imposed by such State on premiums or contributions received 
        by insurers or health maintenance organizations for health 
        insurance coverage offered in such State in connection with a 
        group health plan;
            ``(3) such tax is otherwise nondiscriminatory; and
            ``(4) the amount of any such tax assessed on the plan is 
        reduced by the amount of any tax or assessment otherwise 
        imposed by the State on premiums, contributions, or both 
        received by insurers or health maintenance organizations for 
        health insurance coverage, aggregate excess/stop loss insurance 
        (as defined in section 806(g)(1)), specific excess/stop loss 
        insurance (as defined in section 806(g)(2)), other insurance 
        related to the provision of medical care under the plan, or any 
        combination thereof provided by such insurers or health 
        maintenance organizations in such State in connection with such 
        plan.

``SEC. 812. DEFINITIONS AND RULES OF CONSTRUCTION.

    ``(a) Definitions.--For purposes of this part--
            ``(1) Group health plan.--The term `group health plan' has 
        the meaning provided in section 733(a)(1) (after applying 
        subsection (b) of this section).
            ``(2) Medical care.--The term `medical care' has the 
        meaning provided in section 733(a)(2).
            ``(3) Health insurance coverage.--The term `health 
        insurance coverage' has the meaning provided in section 
        733(b)(1).
            ``(4) Health insurance issuer.--The term `health insurance 
        issuer' has the meaning provided in section 733(b)(2).
            ``(5) Applicable authority.--The term `applicable 
        authority' means the Secretary, except that, in connection with 
        any exercise of the Secretary's authority regarding which the 
        Secretary is required under section 506(d) to consult with a 
        State, such term means the Secretary, in consultation with such 
        State.
            ``(6) Health status-related factor.--The term `health 
        status-related factor' has the meaning provided in section 
        733(d)(2).
            ``(7) Individual market.--
                    ``(A) In general.--The term `individual market' 
                means the market for health insurance coverage offered 
                to individuals other than in connection with a group 
                health plan.
                    ``(B) Treatment of very small groups.--
                            ``(i) In general.--Subject to clause (ii), 
                        such term includes coverage offered in 
                        connection with a group health plan that has 
                        fewer than 2 participants as current employees 
                        or participants described in section 732(d)(3) 
                        on the first day of the plan year.
                            ``(ii) State exception.--Clause (i) shall 
                        not apply in the case of health insurance 
                        coverage offered in a State if such State 
                        regulates the coverage described in such clause 
                        in the same manner and to the same extent as 
                        coverage in the small group market (as defined 
                        in section 2791(e)(5) of the Public Health 
                        Service Act) is regulated by such State.
            ``(8) Participating employer.--The term `participating 
        employer' means, in connection with an association health plan, 
        any employer, if any individual who is an employee of such 
        employer, a partner in such employer, or a self-employed 
        individual who is such employer (or any dependent, as defined 
        under the terms of the plan, of such individual) is or was 
        covered under such plan in connection with the status of such 
        individual as such an employee, partner, or self-employed 
        individual in relation to the plan.
            ``(9) Applicable state authority.--The term `applicable 
        State authority' means, with respect to a health insurance 
        issuer in a State, the State insurance commissioner or official 
        or officials designated by the State to enforce the 
        requirements of title XXVII of the Public Health Service Act 
        for the State involved with respect to such issuer.
            ``(10) Qualified actuary.--The term `qualified actuary' 
        means an individual who is a member of the American Academy of 
        Actuaries.
            ``(11) Affiliated member.--The term `affiliated member' 
        means, in connection with a sponsor--
                    ``(A) a person who is otherwise eligible to be a 
                member of the sponsor but who elects an affiliated 
                status with the sponsor,
                    ``(B) in the case of a sponsor with members which 
                consist of associations, a person who is a member of 
                any such association and elects an affiliated status 
                with the sponsor, or
                    ``(C) in the case of an association health plan in 
                existence on the date of the enactment of this part, a 
                person eligible to be a member of the sponsor or one of 
                its member associations.
            ``(12) Large employer.--The term `large employer' means, in 
        connection with a group health plan with respect to a plan 
        year, an employer who employed an average of at least 51 
        employees on business days during the preceding calendar year 
        and who employs at least 2 employees on the first day of the 
        plan year.
            ``(13) Small employer.--The term `small employer' means, in 
        connection with a group health plan with respect to a plan 
        year, an employer who is not a large employer.
    ``(b) Rules of Construction.--
            ``(1) Employers and employees.--For purposes of determining 
        whether a plan, fund, or program is an employee welfare benefit 
        plan which is an association health plan, and for purposes of 
        applying this title in connection with such plan, fund, or 
        program so determined to be such an employee welfare benefit 
        plan--
                    ``(A) in the case of a partnership, the term 
                `employer' (as defined in section 3(5)) includes the 
                partnership in relation to the partners, and the term 
                `employee' (as defined in section 3(6)) includes any 
                partner in relation to the partnership; and
                    ``(B) in the case of a self-employed individual, 
                the term `employer' (as defined in section 3(5)) and 
                the term `employee' (as defined in section 3(6)) shall 
                include such individual.
            ``(2) Plans, funds, and programs treated as employee 
        welfare benefit plans.--In the case of any plan, fund, or 
        program which was established or is maintained for the purpose 
        of providing medical care (through the purchase of insurance or 
        otherwise) for employees (or their dependents) covered 
        thereunder and which demonstrates to the Secretary that all 
        requirements for certification under this part would be met 
        with respect to such plan, fund, or program if such plan, fund, 
        or program were a group health plan, such plan, fund, or 
        program shall be treated for purposes of this title as an 
        employee welfare benefit plan on and after the date of such 
        demonstration.''.
    (b) Conforming Amendments to Preemption Rules.--
            (1) Section 514(b)(6) of such Act (29 U.S.C. 1144(b)(6)) is 
        amended by adding at the end the following new subparagraph:
    ``(E) The preceding subparagraphs of this paragraph do not apply 
with respect to any State law in the case of an association health plan 
which is certified under part 8.''.
            (2) Section 514 of such Act (29 U.S.C. 1144) is amended--
                    (A) in subsection (b)(4), by striking ``Subsection 
                (a)'' and inserting ``Subsections (a) and (f)'';
                    (B) in subsection (b)(5), by striking ``subsection 
                (a)'' in subparagraph (A) and inserting ``subsection 
                (a) of this section and subsections (a)(2)(B) and (b) 
                of section 805'', and by striking ``subsection (a)'' in 
                subparagraph (B) and inserting ``subsection (a) of this 
                section or subsection (a)(2)(B) or (b) of section 
                805''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(f)(1) Except as provided in subsection (b)(4), the provisions of 
this title shall supersede any and all State laws insofar as they may 
now or hereafter preclude, or have the effect of precluding, a health 
insurance issuer from offering health insurance coverage in connection 
with an association health plan which is certified under part 8.
    ``(2) Except as provided in paragraphs (4) and (5) of subsection 
(b) of this section--
            ``(A) In any case in which health insurance coverage of any 
        policy type is offered under an association health plan 
        certified under part 8 to a participating employer operating in 
        such State, the provisions of this title shall supersede any 
        and all laws of such State insofar as they may preclude a 
        health insurance issuer from offering health insurance coverage 
        of the same policy type to other employers operating in the 
        State which are eligible for coverage under such association 
        health plan, whether or not such other employers are 
        participating employers in such plan.
            ``(B) In any case in which health insurance coverage of any 
        policy type is offered in a State under an association health 
        plan certified under part 8 and the filing, with the applicable 
        State authority (as defined in section 812(a)(9)), of the 
        policy form in connection with such policy type is approved by 
        such State authority, the provisions of this title shall 
        supersede any and all laws of any other State in which health 
        insurance coverage of such type is offered, insofar as they may 
        preclude, upon the filing in the same form and manner of such 
        policy form with the applicable State authority in such other 
        State, the approval of the filing in such other State.
    ``(3) Nothing in subsection (b)(6)(E) or the preceding provisions 
of this subsection shall be construed, with respect to health insurance 
issuers or health insurance coverage, to supersede or impair the law of 
any State--
            ``(A) providing solvency standards or similar standards 
        regarding the adequacy of insurer capital, surplus, reserves, 
        or contributions, or
            ``(B) relating to prompt payment of claims.
    ``(4) For additional provisions relating to association health 
plans, see subsections (a)(2)(B) and (b) of section 805.
    ``(5) For purposes of this subsection, the term `association health 
plan' has the meaning provided in section 801(a), and the terms `health 
insurance coverage', `participating employer', and `health insurance 
issuer' have the meanings provided such terms in section 812, 
respectively.''.
            (3) Section 514(b)(6)(A) of such Act (29 U.S.C. 
        1144(b)(6)(A)) is amended--
                    (A) in clause (i)(II), by striking ``and'' at the 
                end;
                    (B) in clause (ii), by inserting ``and which does 
                not provide medical care (within the meaning of section 
                733(a)(2)),'' after ``arrangement,'', and by striking 
                ``title.'' and inserting ``title, and''; and
                    (C) by adding at the end the following new clause:
            ``(iii) subject to subparagraph (E), in the case of any 
        other employee welfare benefit plan which is a multiple 
        employer welfare arrangement and which provides medical care 
        (within the meaning of section 733(a)(2)), any law of any State 
        which regulates insurance may apply.''.
            (4) Section 514(d) of such Act (29 U.S.C. 1144(d)) is 
        amended--
                    (A) by striking ``Nothing'' and inserting ``(1) 
                Except as provided in paragraph (2), nothing''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) Nothing in any other provision of law enacted on or after the 
date of the enactment of this paragraph shall be construed to alter, 
amend, modify, invalidate, impair, or supersede any provision of this 
title, except by specific cross-reference to the affected section.''.
    (c) Plan Sponsor.--Section 3(16)(B) of such Act (29 U.S.C. 
102(16)(B)) is amended by adding at the end the following new sentence: 
``Such term also includes a person serving as the sponsor of an 
association health plan under part 8.''.
    (d) Disclosure of Solvency Protections Related to Self-Insured and 
Fully Insured Options Under Association Health Plans.--Section 102(b) 
of such Act (29 U.S.C. 102(b)) is amended by adding at the end the 
following: ``An association health plan shall include in its summary 
plan description, in connection with each benefit option, a description 
of the form of solvency or guarantee fund protection secured pursuant 
to this Act or applicable State law, if any.''.
    (e) Savings Clause.--Section 731(c) of such Act is amended by 
inserting ``or part 8'' after ``this part''.
    (f) Report to the Congress Regarding Certification of Self-Insured 
Association Health Plans.--Not later than January 1, 2014, the 
Secretary of Labor shall report to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate the effect association 
health plans have had, if any, on reducing the number of uninsured 
individuals.
    (g) Clerical Amendment.--The table of contents in section 1 of the 
Employee Retirement Income Security Act of 1974 is amended by inserting 
after the item relating to section 734 the following new items:

           ``Part 8--Rules Governing Association Health Plans

``801. Association health plans.
``802. Certification of association health plans.
``803. Requirements relating to sponsors and boards of trustees.
``804. Participation and coverage requirements.
``805. Other requirements relating to plan documents, contribution 
                            rates, and benefit options.
``806. Maintenance of reserves and provisions for solvency for plans 
                            providing health benefits in addition to 
                            health insurance coverage.
``807. Requirements for application and related requirements.
``808. Notice requirements for voluntary termination.
``809. Corrective actions and mandatory termination.
``810. Trusteeship by the Secretary of insolvent association health 
                            plans providing health benefits in addition 
                            to health insurance coverage.
``811. State assessment authority.
``812. Definitions and rules of construction.''.

SEC. 452. CLARIFICATION OF TREATMENT OF SINGLE EMPLOYER ARRANGEMENTS.

    Section 3(40)(B) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1002(40)(B)) is amended--
            (1) in clause (i), by inserting after ``control group,'' 
        the following: ``except that, in any case in which the benefit 
        referred to in subparagraph (A) consists of medical care (as 
        defined in section 812(a)(2)), two or more trades or 
        businesses, whether or not incorporated, shall be deemed a 
        single employer for any plan year of such plan, or any fiscal 
        year of such other arrangement, if such trades or businesses 
        are within the same control group during such year or at any 
        time during the preceding 1-year period,'';
            (2) in clause (iii), by striking ``(iii) the 
        determination'' and inserting the following:
            ``(iii)(I) in any case in which the benefit referred to in 
        subparagraph (A) consists of medical care (as defined in 
        section 812(a)(2)), the determination of whether a trade or 
        business is under `common control' with another trade or 
        business shall be determined under regulations of the Secretary 
        applying principles consistent and coextensive with the 
        principles applied in determining whether employees of two or 
        more trades or businesses are treated as employed by a single 
        employer under section 4001(b), except that, for purposes of 
        this paragraph, an interest of greater than 25 percent may not 
        be required as the minimum interest necessary for common 
        control, or
            ``(II) in any other case, the determination'';
            (3) by redesignating clauses (iv) and (v) as clauses (v) 
        and (vi), respectively; and
            (4) by inserting after clause (iii) the following new 
        clause:
            ``(iv) in any case in which the benefit referred to in 
        subparagraph (A) consists of medical care (as defined in 
        section 812(a)(2)), in determining, after the application of 
        clause (i), whether benefits are provided to employees of two 
        or more employers, the arrangement shall be treated as having 
        only one participating employer if, after the application of 
        clause (i), the number of individuals who are employees and 
        former employees of any one participating employer and who are 
        covered under the arrangement is greater than 75 percent of the 
        aggregate number of all individuals who are employees or former 
        employees of participating employers and who are covered under 
        the arrangement,''.

SEC. 453. ENFORCEMENT PROVISIONS RELATING TO ASSOCIATION HEALTH PLANS.

    (a) Criminal Penalties for Certain Willful Misrepresentations.--
Section 501 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1131) is amended by adding at the end the following new 
subsection:
    ``(c) Any person who willfully falsely represents, to any employee, 
any employee's beneficiary, any employer, the Secretary, or any State, 
a plan or other arrangement established or maintained for the purpose 
of offering or providing any benefit described in section 3(1) to 
employees or their beneficiaries as--
            ``(1) being an association health plan which has been 
        certified under part 8;
            ``(2) having been established or maintained under or 
        pursuant to one or more collective bargaining agreements which 
        are reached pursuant to collective bargaining described in 
        section 8(d) of the National Labor Relations Act (29 U.S.C. 
        158(d)) or paragraph Fourth of section 2 of the Railway Labor 
        Act (45 U.S.C. 152, paragraph Fourth) or which are reached 
        pursuant to labor-management negotiations under similar 
        provisions of State public employee relations laws; or
            ``(3) being a plan or arrangement described in section 
        3(40)(A)(i),
shall, upon conviction, be imprisoned not more than 5 years, be fined 
under title 18, United States Code, or both.''.
    (b) Cease Activities Orders.--Section 502 of such Act (29 U.S.C. 
1132) is amended by adding at the end the following new subsection:
    ``(n) Association Health Plan Cease and Desist Orders.--
            ``(1) In general.--Subject to paragraph (2), upon 
        application by the Secretary showing the operation, promotion, 
        or marketing of an association health plan (or similar 
        arrangement providing benefits consisting of medical care (as 
        defined in section 733(a)(2))) that--
                    ``(A) is not certified under part 8, is subject 
                under section 514(b)(6) to the insurance laws of any 
                State in which the plan or arrangement offers or 
                provides benefits, and is not licensed, registered, or 
                otherwise approved under the insurance laws of such 
                State; or
                    ``(B) is an association health plan certified under 
                part 8 and is not operating in accordance with the 
                requirements under part 8 for such certification,
        a district court of the United States shall enter an order 
        requiring that the plan or arrangement cease activities.
            ``(2) Exception.--Paragraph (1) shall not apply in the case 
        of an association health plan or other arrangement if the plan 
        or arrangement shows that--
                    ``(A) all benefits under it referred to in 
                paragraph (1) consist of health insurance coverage; and
                    ``(B) with respect to each State in which the plan 
                or arrangement offers or provides benefits, the plan or 
                arrangement is operating in accordance with applicable 
                State laws that are not superseded under section 514.
            ``(3) Additional equitable relief.--The court may grant 
        such additional equitable relief, including any relief 
        available under this title, as it deems necessary to protect 
        the interests of the public and of persons having claims for 
        benefits against the plan.''.
    (c) Responsibility for Claims Procedure.--Section 503 of such Act 
(29 U.S.C. 1133) is amended by inserting ``(a) In General.--'' before 
``In accordance'', and by adding at the end the following new 
subsection:
    ``(b) Association Health Plans.--The terms of each association 
health plan which is or has been certified under part 8 shall require 
the board of trustees or the named fiduciary (as applicable) to ensure 
that the requirements of this section are met in connection with claims 
filed under the plan.''.

SEC. 454. COOPERATION BETWEEN FEDERAL AND STATE AUTHORITIES.

    Section 506 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1136) is amended by adding at the end the following new 
subsection:
    ``(d) Consultation With States With Respect to Association Health 
Plans.--
            ``(1) Agreements with states.--The Secretary shall consult 
        with the State recognized under paragraph (2) with respect to 
        an association health plan regarding the exercise of--
                    ``(A) the Secretary's authority under sections 502 
                and 504 to enforce the requirements for certification 
                under part 8; and
                    ``(B) the Secretary's authority to certify 
                association health plans under part 8 in accordance 
                with regulations of the Secretary applicable to 
                certification under part 8.
            ``(2) Recognition of primary domicile state.--In carrying 
        out paragraph (1), the Secretary shall ensure that only one 
        State will be recognized, with respect to any particular 
        association health plan, as the State with which consultation 
        is required. In carrying out this paragraph--
                    ``(A) in the case of a plan which provides health 
                insurance coverage (as defined in section 812(a)(3)), 
                such State shall be the State with which filing and 
                approval of a policy type offered by the plan was 
                initially obtained, and
                    ``(B) in any other case, the Secretary shall take 
                into account the places of residence of the 
                participants and beneficiaries under the plan and the 
                State in which the trust is maintained.''.

SEC. 455. EFFECTIVE DATE AND TRANSITIONAL AND OTHER RULES.

    (a) Effective Date.--The amendments made by this subtitle shall 
take effect 1 year after the date of the enactment of this Act. The 
Secretary of Labor shall first issue all regulations necessary to carry 
out the amendments made by this subtitle within 1 year after the date 
of the enactment of this Act.
    (b) Treatment of Certain Existing Health Benefits Programs.--
            (1) In general.--In any case in which, as of the date of 
        the enactment of this Act, an arrangement is maintained in a 
        State for the purpose of providing benefits consisting of 
        medical care for the employees and beneficiaries of its 
        participating employers, at least 200 participating employers 
        make contributions to such arrangement, such arrangement has 
        been in existence for at least 10 years, and such arrangement 
        is licensed under the laws of one or more States to provide 
        such benefits to its participating employers, upon the filing 
        with the applicable authority (as defined in section 812(a)(5) 
        of the Employee Retirement Income Security Act of 1974 (as 
        amended by this subtitle)) by the arrangement of an application 
        for certification of the arrangement under part 8 of subtitle B 
        of title I of such Act--
                    (A) such arrangement shall be deemed to be a group 
                health plan for purposes of title I of such Act;
                    (B) the requirements of sections 801(a) and 803(a) 
                of the Employee Retirement Income Security Act of 1974 
                shall be deemed met with respect to such arrangement;
                    (C) the requirements of section 803(b) of such Act 
                shall be deemed met, if the arrangement is operated by 
                a board of directors which--
                            (i) is elected by the participating 
                        employers, with each employer having one vote; 
                        and
                            (ii) has complete fiscal control over the 
                        arrangement and which is responsible for all 
                        operations of the arrangement;
                    (D) the requirements of section 804(a) of such Act 
                shall be deemed met with respect to such arrangement; 
                and
                    (E) the arrangement may be certified by any 
                applicable authority with respect to its operations in 
                any State only if it operates in such State on the date 
                of certification.
        The provisions of this subsection shall cease to apply with 
        respect to any such arrangement at such time after the date of 
        the enactment of this Act as the applicable requirements of 
        this subsection are not met with respect to such arrangement.
            (2) Definitions.--For purposes of this subsection, the 
        terms ``group health plan'', ``medical care'', and 
        ``participating employer'' shall have the meanings provided in 
        section 812 of the Employee Retirement Income Security Act of 
        1974, except that the reference in paragraph (7) of such 
        section to an ``association health plan'' shall be deemed a 
        reference to an arrangement referred to in this subsection.

                Subtitle G--Greater Choice for Veterans

SEC. 461. REMOVING BARRIERS TO HEALTH CARE CHOICE FOR CATEGORY 1 
              VETERANS AND MEDAL OF HONOR RECIPIENTS.

    Section 101(b)(2) of the Veterans Access, Choice, and 
Accountability Act of 2014 (Public Law 113-146; 38 U.S.C. 1701 note) is 
amended--
            (1) in subparagraph (C)(ii), by striking the ``or'' at the 
        end;
            (2) in subparagraph (D)(ii)(II), by striking the period at 
        the end and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(E) is a veteran described in section 1705(a)(1) 
                of title 38, United States Code or a veteran who was 
                awarded the medal of honor under section 3741, 6241, or 
                8741 of title 10 or section 491 of title 14.''.

                TITLE V--REFORMING MEDICAL LIABILITY LAW

SEC. 501. REQUIREMENTS FOR SELECTION OF CLINICAL PRACTICE GUIDELINES.

    (a) Selection.--Not later than 6 months after the date of enactment 
of this Act, eligible professional organizations that have established, 
published, maintained, and updated on a regular basis, clinical 
practice guidelines, including when applicable, appropriate use 
criteria, that incorporate best practices, may submit such guidelines 
to the Secretary. Not later than 6 months after the last day for 
submitting such guidelines, the Secretary shall select and designate 
one or more eligible professional organizations to provide and maintain 
such clinical practice guidelines on behalf of the Secretary. Not later 
than 6 months after designating each such eligible professional 
organization, the Secretary shall enter into an agreement with each 
such eligible professional organization for maintenance, publication, 
and updating of such clinical practice guidelines.
    (b) Maintenance.--
            (1) Periodic review.--Not later than 5 years the Secretary 
        enters into an agreement with each eligible professional 
        organization under subsection (a), and every 5 years 
        thereafter, the Secretary shall review the clinical practice 
        guidelines of such organization and shall, as necessary, enter 
        into agreements with additional eligible professional 
        organizations, as appropriate, in accordance with subsection 
        (a).
            (2) Update by eligible professional organization.--An 
        eligible professional organization that collaborated in the 
        establishment of a clinical practice guidelines may submit 
        amendments to that clinical practice guideline at any time to 
        the Secretary for review by the Secretary.
            (3) Notification required for certain updates.--An 
        amendment under paragraph (2) may not add, materially change, 
        or remove a guideline from a set of guidelines, unless 
        notification of such update is made available to applicable 
        eligible professionals.

SEC. 502. DEVELOPMENT.

    (a) Guideline Standards.--The Secretary shall ensure that, to the 
extent practicable, the development of clinical practice guidelines are 
guided by the Standards for Developing Trustworthy Clinical Practice 
Guidelines of the Institute of Medicine and--
            (1) are developed through a transparent process that 
        minimizes conflicts of interest;
            (2) are developed by a knowledgeable, multidisciplinary 
        panel of experts and representatives from key affected groups;
            (3) take into consideration important patient subgroups and 
        patient preferences, as appropriate;
            (4) are based on a systematic review of the existing 
        evidence;
            (5) provide a clear explanation of the relationship between 
        care options and health outcomes;
            (6) provide ratings of both the quality of evidence and 
        strength of recommendation;
            (7) are reconsidered and revised when new evidence emerges; 
        and
            (8) clearly identify any exceptions to the application of 
        the clinical practice guideline.
    (b) Required Disclosures From Eligible Professional 
Organizations.--Any person who is affiliated with an eligible 
professional organization and who directly participated in the creation 
of a clinical practice guideline shall disclose any conflicts of 
interest pertaining to the development of the clinical practice 
guideline, including any conflict of interest pertaining to any 
instrument, medicine, drug, or any other substance, device, or means 
included in the clinical practice guideline. Disclosures to the 
Secretary by eligible professional organizations shall be made 
promptly, upon submission of the guidelines, and during every review of 
the guidelines. Disclosures shall include the following:
            (1) Scientific methodology and evidence that supports 
        clinical practice guidelines.
            (2) Outside collaborators.
            (3) Endorsements.

SEC. 503. NO LIABILITY FOR GUIDELINE PRODUCERS.

    Neither an eligible professional organization nor the participants 
in its guideline development and approval process, may be held liable 
for any injury alleged to be caused by adhering to a clinical practice 
guideline to which they contributed.

SEC. 504. INTERNET PUBLICATION OF GUIDELINES.

    The Secretary shall publish on the Internet through the National 
Guideline Clearinghouse or other appropriate sites or sources, all 
clinical practice guidelines, including all data and methodology used 
in the development and selection of the guidelines in compliance with 
data disclosure standards in the Health Insurance Portability and 
Accountability Act of 1996 (Public Law 104-191).

SEC. 505. STATE FLEXIBILITY AND PROTECTION OF STATES' RIGHTS.

    (a) Limitation.--This Act shall not preempt or supersede any State 
or Federal law that--
            (1) imposes procedural or substantive protections for 
        health care providers and health care organizations from 
        liability, loss, or damages greater than such protections 
        provided by this title; or
            (2) creates a cause of action related to the provision of 
        health care goods or services.
    (b) State Flexibility.--No provision of this Act shall be construed 
to preempt any defense available to a party in a health care liability 
action under any other provision of State or Federal law.

SEC. 506. FEDERAL CAUSE OF ACTION.

    (a) In General.--Chapter 85 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 1370. Health care liability claims
    ``(a) Definitions.--In this section, the terms `applicable eligible 
professional', `health care goods or services', `health care liability 
action', `health care liability claim', `health care organization', and 
`health care provider' have the meaning given such terms in section 10 
of the Saving Lives, Saving Costs Act.
    ``(b) Jurisdiction of Claims.--The district courts shall have 
original jurisdiction of a health care liability action against an 
applicable eligible professional, health care provider, or health care 
organization.
    ``(c) Substantive Law.--The substantive law for decision in a 
health care liability action brought under subsection (b) shall be 
derived from the law, including choice of law principles, of the State 
in which the provision of, use of, or payment for (or the failure to 
provide, use, or pay for) health care goods or services giving rise to 
the health care liability claim occurred unless such law is 
inconsistent with or preempted by Federal law.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 85 of title 28, United States Code, is amended by adding at the 
end the following:

``1370. Health care liability claims.''.

SEC. 507. RIGHT OF REMOVAL.

    Section 1441 of title 28, United States Code, is amended by adding 
at the end the following:
    ``(g) Certain Actions Against Medical Professionals.--(1) A health 
care liability action brought in a State court against an applicable 
eligible professional, health care provider, or health care 
organization may be removed by any defendant or the defendants to the 
district court of the United States for the district and division 
embracing the place where such action is pending.
    ``(2) In this subsection, the terms `applicable eligible 
professional', `health care liability action', `health care 
organization', and `health care provider' have the meaning given such 
terms in section 10 of the Saving Lives, Saving Costs Act.''.

SEC. 508. MANDATORY REVIEW BY INDEPENDENT MEDICAL PANEL.

    (a) In General.--If, in any health care liability action removed to 
Federal court pursuant to section 1441(g) of title 28, United States 
Code, against an applicable eligible professional, health care 
provider, or health care organization, the applicable eligible 
professional, health care provider, or health care organization 
alleges, in response to a filing of the claimant, that the applicable 
eligible professional, health care provider, or health care 
organization adhered to an applicable clinical practice guideline in 
the provision of health care goods or services to the claimant, then 
the court shall suspend further proceedings on the health care 
liability action prior to discovery proceedings, until the completion 
of a review of the action by an independent medical review panel.
    (b) Independent Medical Review Panel.--
            (1) Composition.--An independent medical review panel under 
        this section shall be composed of 3 members who are experts in 
        the relevant field of clinical practice, appointed in 
        accordance with paragraph (5).
            (2) Requirements for member eligibility.--
                    (A) In general.--To be eligible to serve on an 
                independent medical review panel, a member shall--
                            (i) be an experienced physician certified 
                        by a board recognized by the American Board of 
                        Medical Specialties;
                            (ii) not earlier than 2 years prior to the 
                        date of selection to the board, have been in 
                        active medical practice or devoted a 
                        substantial portion of his or her time to 
                        teaching at an accredited medical school, or 
                        have been engaged in university-based research 
                        in relation to the medical care and type of 
                        treatment at issue; and
                            (iii) be approved by his or her specialty 
                        society.
                    (B) Regional preference.--When possible, members 
                should be from the region where the case in question 
                originates to account for geographical practice 
                variation.
            (3) No civil liability for members.--No civil action shall 
        be brought in any court against any member for any act, failure 
        to act, or statement or opinion made, within the scope of his 
        or her duties as a member of the independent medical review 
        panel.
            (4) Considerations in making determinations.--The members 
        of the independent medical review panel shall acknowledge that, 
        under certain circumstances, it may be appropriate for a 
        physician to depart from the recommendations in clinical 
        practice guidelines in the care of individual patients.
            (5) Selection of members.--Each member of the independent 
        medical review panel shall be jointly selected by the parties. 
        A member whose selection one party does not concur in may not 
        serve on the panel, except that, if, not later than 30 days 
        after a response to the health care liability action is filed, 
        3 members have not been selected by the parties, the court 
        shall appoint any remaining members.
            (6) Compensation of members.--The costs of compensation to 
        the members of the independent medical review panel shall be 
        shared between the parties equally, unless otherwise agreed to 
        by the parties.
    (c) Terms of Review.--A review by an independent medical review 
panel under this section shall comply with the following:
            (1) Standard of conduct.--The mandatory independent medical 
        review panel that is charged with the responsibility of making 
        a preliminary finding as to liability of the defendant 
        applicable eligible professional shall deem the prescribed 
        clinical practice guidelines as the standard of conduct, care, 
        and skill expected of members of the medical profession engaged 
        in the defendant's field of practice under the same or similar 
        circumstances, subject to the provisions of subsection (b)(4).
            (2) Record for review.--The independent medical review 
        panel shall make a preliminary finding based solely upon the 
        pre-discovery evidence submitted to it pursuant to Rule 26 of 
        the Federal Rules of Civil Procedure, any medical records that 
        would be discoverable if the lawsuit advances to trial, and the 
        applicable prescribed clinical practice guidelines.
            (3) Limitation.--The independent medical review panel shall 
        not make a finding of negligence from the mere fact that a 
        treatment or procedure was unsuccessful or failed to bring the 
        best result, or that the patient died.
            (4) Use at trial of work product of review panel.--No 
        preliminary finding by the independent medical review panel 
        that the defendant applicable eligible professional breached 
        the standard of care as set forth under the prescribed clinical 
        practice guidelines shall constitute negligence per se or 
        conclusive evidence of liability, but findings, opinions, and 
        conclusions of the review panel shall be admissible as evidence 
        in any and all subsequent proceedings before the court, 
        including for purposes of motions for summary judgment and at 
        trial.
    (d) Results of Review.--
            (1) In general.--Not later than 60 days after all members 
        of the independent medical review panel have been selected, the 
        panel shall complete a review of the record of the liability 
        action and shall make a finding under this subsection.
            (2) Finding described.--A finding under this subsection 
        shall include the following:
                    (A) A determination of whether there are any 
                applicable clinical practice guidelines to the health 
                care liability action that substantively pertains to 
                the injury suffered by the claimant.
                    (B) Whether the applicable eligible professional 
                has alleged adherence to any such guideline.
                    (C) Whether the applicable eligible professional 
                adhered to any such guideline.
                    (D) Whether there is a reasonable probability 
                that--
                            (i) the applicable eligible professional 
                        violated the applicable clinical practice 
                        guideline;
                            (ii) that violation proximately caused the 
                        claimant's alleged injury; and
                            (iii) the claimant suffered damages as a 
                        result of the injury.
            (3) Use at trial.--The finding under this subsection may be 
        received into evidence by the court. If the independent medical 
        review panel made any finding under paragraph (2)(D) that there 
        was no reasonable probability of the matters described in 
        clauses (i) through (iii), the court may issue a summary 
        judgment in favor of the applicable eligible professional 
        unless the claimant is able to show otherwise by clear and 
        convincing evidence. If the panel made a finding under 
        subparagraphs (A) through (C) of paragraph (2) that there was 
        an applicable clinical practice guideline that the defendant 
        adhered to, the court shall issue summary judgment in favor of 
        the applicable eligible professional unless the claimant is 
        able to show otherwise by clear and convincing evidence. Any 
        preliminary finding that the defendant applicable eligible 
        professional did not breach the standard of care as set forth 
        under the prescribed medical practice guidelines or that the 
        defendant applicable eligible professional's nonadherence to 
        the applicable standard was neither the cause in fact nor the 
        proximate cause of the plaintiff's injury or that the plaintiff 
        did not incur any damages as a result shall be given deference 
        by the court and shall entitle the defendant applicable 
        eligible professional to summary judgment unless the plaintiff 
        is able to show by clear and convincing evidence that the 
        independent medical review panel was in error and that there is 
        a genuine issue as to a material fact in the case.

SEC. 509. DEFINITIONS.

    In this Act:
            (1) Applicable eligible professional.--The term 
        ``applicable eligible professional'' means a physician 
        practicing within clinical practice guidelines submitted by an 
        eligible professional organization and includes employees and 
        agents of a physician.
            (2) Appropriate use criteria.--The term ``appropriate use 
        criteria'' means established evidence-based guidelines 
        developed or endorsed by an eligible professional organization 
        that specify when the health benefits of a procedure or service 
        exceed the expected health risks by a significantly wide 
        margin.
            (3) Clinical practice guideline.--The term ``clinical 
        practice guideline'' means systematically developed statements 
        based on the review of clinical evidence for assisting a health 
        care provider to determine the appropriate health care in 
        specific clinical circumstances.
            (4) Eligible professional organization.--The term 
        ``eligible professional organization'' means a national or 
        State medical society or medical specialty society.
            (5) Federal payor.--The term ``Federal payor'' includes 
        reimbursements made under the Medicare program under title 
        XVIII of the Social Security Act or the Medicaid program under 
        title XIX of the Social Security Act, or medical screenings, 
        treatments, or transfer services provided pursuant to section 
        1867 of the Social Security Act is not made by the individual 
        or any non-Federal third party on behalf of the individual.
            (6) Health care goods or services.--The term ``health care 
        goods or services'' means any goods or services provided by a 
        health care organization, provider, or by any individual 
        working under the supervision of a health care provider, that 
        relates to the diagnosis, prevention, or treatment of any human 
        disease or impairment, or the assessment or care of the health 
        of human beings.
            (7) Health care liability action.--The term ``health care 
        liability action'' means a civil action against an applicable 
        eligible professional, a health care provider, or a health care 
        organization, regardless of the theory of liability on which 
        the claim is based, or the number of plaintiffs, defendants, or 
        other parties, or the number of causes of action, in which the 
        claimant alleges a health care liability claim.
            (8) Health care liability claim.--The term ``health care 
        liability claim'' means a claim by any person against an 
        applicable eligible professional, a health care provider, or a 
        health care organization which is based upon the provision of, 
        use of, or payment for (or the failure to provide, use, or pay 
        for) health care goods or services for which at least partial 
        payment was made by a Federal payor or which was mandated by 
        Federal law, regardless of the theory of liability on which the 
        claim is based.
            (9) Health care organization.--The term ``health care 
        organization'' means any person or entity which is obligated to 
        provide or pay for health benefits under any health plan, 
        including any person or entity acting under a contract or 
        arrangement with a health care organization to provide or 
        administer any health benefit.
            (10) Health care provider.--The term ``health care 
        provider'' means any person or entity required by State or 
        Federal laws or regulations to be licensed, registered, or 
        certified to provide health care services, and being either so 
        licensed, registered, or certified, or exempted from such 
        requirement by other statute or regulation.
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.

                  TITLE VI--MEDICAL BREAKTHROUGH FUND

SEC. 601. MEDICAL BREAKTHROUGH FUND.

    Section 402A of the Public Health Service Act (42 U.S.C. 282a) is 
amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following:
    ``(e) Medical Breakthrough Fund.--
            ``(1) Establishment.--There is established a fund to be 
        known as the Medical Breakthrough Fund to support biomedical 
        research through the funding of basic, translational, and 
        clinical research.
            ``(2) Amounts for the fund.--
                    ``(A) In general.--There are authorized to be 
                appropriated, and appropriated, to the Medical 
                Breakthrough Fund out of any funds in the Treasury not 
                otherwise appropriated, in addition to any amounts 
                otherwise made available to the National Institutes of 
                Health, the following amounts for the following fiscal 
                years:
                            ``(i) For fiscal year 2017--
                                    ``(I) $1,000,000,000 for the CV 
                                Prize (described in paragraph (5)) to 
                                remain available until expended; and
                                    ``(II) $500,000,000.
                            ``(ii) For fiscal year 2018, 
                        $1,500,000,000.
                            ``(iii) For each of fiscal years 2019 
                        through 2024, $2,000,000,000.
                    ``(B) Availability subject to appropriations.--
                Amounts in the Medical Breakthrough Fund shall not be 
                available except to the extent and in such amounts as 
                are provided in appropriation Acts.
                    ``(C) Allocation of amounts for research.--The 
                Director of NIH shall allocate the amounts available in 
                the Medical Breakthrough Fund for a fiscal year for 
                research (not including the CV Prize) consistent with 
                the following:
                            ``(i) 100 percent of such amounts shall be 
                        for research related to Alzheimer's disease, 
                        cancer, heart disease, stoke, or diabetes.
                            ``(ii) Not less than 35 percent of such 
                        amounts shall be for research by early stage 
                        investigators (as defined in paragraph (7)).
                            ``(iii) Not less than 20 percent of such 
                        amounts shall be for research that pursues 
                        innovative approaches to major contemporary 
                        challenges in biomedical research that involve 
                        inherent high risk, but have the potential to 
                        lead to breakthroughs.
                            ``(iv) Not more than 10 percent of such 
                        amounts may be for intramural research.
                            ``(v) No amount may be used for facilities 
                        and administration fees in connection with a 
                        research program or project in excess of 50 
                        percent of the direct costs of such program or 
                        project provided under this subsection.
                    ``(D) Inapplicability of certain provisions.--
                Amounts in the Medical Breakthrough Fund are not 
                subject to--
                            ``(i) any transfer authority of the 
                        Secretary or the Director of NIH under section 
                        241, subsection (c), subsection (d), or any 
                        other provision of law; or
                            ``(ii) the nonrecurring expenses fund under 
                        section 223 of division G of the Consolidated 
                        Appropriations Act, 2008 (42 U.S.C. 3514a).
                    ``(E) Supplement, not supplant.--Amounts 
                appropriated and made available pursuant to this 
                paragraph shall be used to supplement, not supplant, 
                the funds otherwise allocated by the National 
                Institutes of Health for biomedical research.
            ``(3) Authorized uses.--Amounts in the Medical Breakthrough 
        Fund established under paragraph (1) may be used only to 
        develop and implement the strategic plan under paragraph (6), 
        to administer and award the CV Prize, or to conduct and support 
        innovative biomedical research through the following:
                    ``(A) Research in which--
                            ``(i) a principal investigator has a 
                        specific project or specific objectives; and
                            ``(ii) funding is tied to pursuit of such 
                        project or objectives.
                    ``(B) Research in which--
                            ``(i) a principal investigator has shown 
                        promise in biomedical research; and
                            ``(ii) funding is not tied to a specific 
                        project or specific objectives.
                    ``(C) Research to be carried out principally by a 
                small business concern (as defined in section 3 of the 
                Small Business Act).
            ``(4) Coordination.--In funding programs and activities 
        through the Medical Breakthrough Fund, the Secretary, acting 
        through the Director of NIH, shall--
                    ``(A) ensure coordination among the national 
                research institutes, the national centers, and other 
                departments, agencies, and offices of the Federal 
                Government; and
                    ``(B) minimize unnecessary duplication.
            ``(5) CV prize.--
                    ``(A) Awarding the cv prize.--The Director of NIH 
                shall award a Cure and Vaccine Prize (in this 
                subsection referred to as the `CV Prize') consisting of 
                the $1,000,000,000 appropriated under paragraph 
                (2)(A)(i)(I) to the first applicant who the Director 
                determines in accordance with this paragraph has 
                developed a cure or vaccine for Alzheimer's disease.
                    ``(B) Publishing criteria.--Not later than 10 days 
                after receiving recommendations under subparagraph 
                (F)(ii)(I), the Director of NIH shall publish criteria 
                for determining what constitutes a cure or vaccine of 
                Alzheimer's disease on the website of the National 
                Institutes of Health.
                    ``(C) Receiving applications.--The Director of NIH 
                shall--
                            ``(i) receive applications of applicants 
                        claiming to have developed a cure or vaccine 
                        that meets the criteria published under 
                        subparagraph (B); and
                            ``(ii) send a copy of any applications so 
                        received to the CV Advisory Prize Board 
                        established under paragraph (F)(i).
                    ``(D) Evaluating applications.--The Director of NIH 
                shall--
                            ``(i) determine if a cure or vaccine for 
                        Alzheimer's disease described in an application 
                        received under subparagraph (C) meets the 
                        criteria published under subparagraph (B); and
                            ``(ii) when making a determination under 
                        clause (i), take into consideration the 
                        recommendations submitted under subparagraph 
                        (F)(ii)(III)).
                    ``(E) Awarding the prize.--If the Director of NIH 
                determines under subparagraph (D) that a cure or 
                vaccine described in an application received under 
                subparagraph (C) meets criteria published under 
                subparagraph (B), not later than 90 days after the date 
                of such determination, the Director shall award the CV 
                Prize to the applicant who submitted the application.
                    ``(F) CV prize advisory board.--
                            ``(i) Establishment.--Not later than 120 
                        days after the date of the enactment of this 
                        subsection, the Director of NIH shall establish 
                        a CV Prize Advisory Board to advise the 
                        Director with respect to awarding the CV Prize.
                            ``(ii) Duties of the board.--The CV Prize 
                        Advisory Board shall--
                                    ``(I) not later than 180 days after 
                                the date of the enactment of this 
                                subsection, recommend to the Director 
                                of NIH criteria for determining what 
                                constitutes a cure or vaccine of 
                                Alzheimer's disease;
                                    ``(II) review applications of 
                                applicants claiming to have developed a 
                                cure or vaccine that meets the criteria 
                                published under subparagraph (B); and
                                    ``(III) submit recommendations to 
                                the Director of NIH as to whether the 
                                cure or vaccine described in such 
                                application has met such criteria.
                            ``(iii) Members of the board.--The CV Prize 
                        Advisory Board shall consist of 14 members as 
                        follows:
                                    ``(I) 8 members appointed by the 
                                Director of NIH.
                                    ``(II) 1 member appointed by the 
                                Speaker of the House of 
                                Representatives.
                                    ``(III) 1 member appointed by the 
                                majority leader of the Senate.
                                    ``(IV) 1 member appointed by the 
                                minority leader of the House of 
                                Representatives.
                                    ``(V) 1 member appointed by the 
                                minority leader of the Senate.
                                    ``(VI) The Director of NIH, who 
                                shall serve ex-officio.
                                    ``(VII) The Secretary, who shall 
                                serve ex-officio.
            ``(6) Strategic plan.--
                    ``(A) In general.--The Director of NIH shall ensure 
                that scientifically based strategic planning is 
                implemented in support of research priorities of the 
                Medical Breakthrough Fund, including through the 
                development, use, and updating of a strategic research 
                investment plan that--
                            ``(i) is designed to increase the efficient 
                        and effective focus of biomedical research in a 
                        manner that leverages the best scientific 
                        opportunities through a deliberative planning 
                        process;
                            ``(ii) identifies strategic focus areas in 
                        which the resources of the Medical Breakthrough 
                        Fund can address, and find more effective 
                        treatments for, Alzheimer's disease, cancer, 
                        heart disease, stoke, and diabetes;
                            ``(iii) includes objectives for each such 
                        strategic focus area; and
                            ``(iv) ensures that basic research remains 
                        a priority.
                    ``(B) Advisory council.--The Director of NIH shall 
                appoint 18 members to an advisory council to offer 
                recommendations to the Director on the strategic 
                research investment plan implemented pursuant to 
                subparagraph (A). The 18 members shall consist of--
                            ``(i) 3 members who specialize in 
                        Alzheimer's disease;
                            ``(ii) 3 members who specialize in cancer;
                            ``(iii) 3 members who specialize in heart 
                        disease;
                            ``(iv) 3 members who specialize in stoke;
                            ``(v) 3 members who specialize in diabetes; 
                        and
                            ``(vi) 3 members who have broad experience 
                        in biomedical research.
                    ``(C) Updates and reviews.--The Director shall 
                review and, as appropriate, update the research 
                strategic investment plan under subparagraph (A) not 
                less than often every 18 months.
            ``(7) Definition of early stage investigator.--In this 
        subsection, the term `early stage investigator' means, with 
        respect to a research project or program funded under this 
        subsection, an investigator who--
                    ``(A) is the principal investigator or the program 
                director of such project or program;
                    ``(B) has never been awarded, or has been awarded 
                only once, a substantial, competing grant by the 
                National Institutes of Health for independent research; 
                and
                    ``(C) at the time of initial funding for such 
                project or program, is within 10 years of having 
                completed--
                            ``(i) the investigator's terminal degree; 
                        or
                            ``(ii) a medical residency (or the 
                        equivalent).''.

                      TITLE VII--OTHER PROVISIONS

SEC. 701. RESPECTING HUMAN LIFE.

    (a) Prohibition on Abortion Mandates.--Nothing in this Act (or any 
amendment made by this Act) shall be construed to require any health 
plan (including any high-risk pool) to provide coverage of, or access 
to, abortion services or to allow the Secretary of the Treasury, the 
Secretary of Labor, the Secretary of Health and Human Services, or any 
other Federal or non-Federal person or entity in implementing this Act 
(or an amendment made by this Act) to require coverage of, or access 
to, abortion services.
    (b) Prohibition on Certain Research Funding.--
            (1) In general.--No funds authorized or appropriated by 
        this Act (or an amendment made by this Act) may be used to 
        conduct or support research that includes embryo-destructive 
        stem cell research and human cloning.
            (2) Human cloning defined.--In this subsection, the term 
        ``human cloning'' means human asexual reproduction accomplished 
        by introducing the nuclear material from a human diploid cell 
        into an oocyte to produce a living organism at any stage of 
        development with a human or predominantly human genetic 
        constitution.
            (3) Construction.--Nothing in this subsection may be 
        construed to prohibit conducting or supporting research that 
        does not include embryo-destructive stem cell research or human 
        cloning, including research involving nuclear transfer or other 
        cloning techniques to produce molecules, DNA, cells other than 
        human embryos, tissues, or animals other than humans.
    (c) Limitation on Abortion Funding.--
            (1) In general.--No funds authorized or appropriated by 
        this Act (or an amendment made by this Act) may be used to pay 
        for any abortion or to cover any part of the costs of any 
        health plan that includes coverage of abortion (including a 
        high risk pool described in section 2745 of the Public Health 
        Service Act (42 U.S.C. 300gg-45), as amended by section 311 of 
        this Act), except--
                    (A) if the pregnancy is the result of an act of 
                rape or incest; or
                    (B) in the case where a pregnant female suffers 
                from a physical disorder, physical injury, or physical 
                illness that would, as certified by a physician, place 
                the female in danger of death unless an abortion is 
                performed, including a life-endangering physical 
                condition caused by or arising from the pregnancy 
                itself.
            (2) Option to purchase separate coverage or plan.--Nothing 
        in this subsection shall be construed as prohibiting any non-
        Federal entity (including an individual or a State or local 
        government) from purchasing separate coverage for abortions for 
        which funding is prohibited under this subsection, or a health 
        plan that includes such abortions, so long as such coverage or 
        plan is paid for entirely using only funds not authorized or 
        appropriated by this Act.
            (3) Option to offer coverage or plan.--Nothing in this 
        subsection shall restrict any non-Federal health insurance 
        issuer offering a health plan from offering separate coverage 
        for abortions for which funding is prohibited under this 
        subsection, or a health plan that includes such abortions, so 
        long as--
                    (A) premiums for such separate coverage or plan are 
                paid for entirely with funds not authorized or 
                appropriated by this Act; and
                    (B) administrative costs and all services offered 
                through such coverage or plan are paid for using only 
                premiums collected for such coverage or plan.
            (4) Administrative expenses.--No funds authorized or 
        appropriated by this Act shall be available to pay for 
        administrative expenses in connection with any health plan 
        (including an association health plan that has entered into 
        trusteeship) which provides any benefits or coverage for 
        abortions except where the life of the mother would be 
        endangered if the fetus were carried to term, or the pregnancy 
        is the result of an act of rape or incest.
    (d) No Preemption of State Laws.--Nothing in this Act (or an 
amendment made by this Act) shall be construed to preempt or otherwise 
have any effect on State laws--
            (1) protecting conscience rights or restricting or 
        prohibiting abortion or coverage or funding of abortion, as in 
        effect on the date of the enactment of this Act; or
            (2) establishing procedural requirements on abortions, 
        including parental notification or consent for the performance 
        of an abortion on a minor.
    (e) Definitions.--In this section:
            (1) The term ``association health plan'' has the meaning 
        given to such term in section 801 of the Employee Retirement 
        Income Security Act of 1974, as added by section 451 of this 
        Act.
            (2) The term ``high-risk pool'' means a high-risk pool 
        described in section 2745 of the Public Health Service Act (42 
        U.S.C. 300gg-45), as amended by section 311 of this Act.

SEC. 702. OFFSETS.

    Section 251(c) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 901) is amended as follows:
            (1) In paragraph (4)(B), by striking the dollar amount and 
        inserting ``$496,400,000,000''.
            (2) In paragraph (5)(B), by striking the dollar amount and 
        inserting ``$507,300,000,000''.
            (3) In paragraph (6)(B), by striking the dollar amount and 
        inserting ``$523,700,000,000''.
            (4) In paragraph (7)(B), by striking the dollar amount and 
        inserting ``$534,900,000,000''.
            (5) In paragraph (8)(B), by striking the dollar amount and 
        inserting ``$546,700,000,000''.
                                 <all>
```