American Worker Health Care Tax Relief Act of 2015

To amend the Internal Revenue Code of 1986 to repeal the excise tax on high cost employer-sponsored health coverage and to express the sense of the Senate that the resulting revenue loss should be offset. 1. Short title This Act may be cited as the American Worker Health Care Tax Relief Act of 2015 2. Repeal of excise tax on high cost employer-sponsored health coverage (a) In general Chapter 43 (b) Conforming amendment Section 6051 (1) in paragraph (14) of subsection (a), by striking section 4980I(d)(1) subsection (g) (2) by adding at the end the following: (g) Applicable Employer-Sponsored Coverage For purposes of subsection (a)(14)— (1) In general The term applicable employer-sponsored coverage (2) Exceptions The term applicable employer-sponsored coverage (A) any coverage (whether through insurance or otherwise) described in section 9832(c)(1) (other than subparagraph (G) thereof) or for long-term care, (B) any coverage under a separate policy, certificate, or contract of insurance which provides benefits substantially all of which are for treatment of the mouth (including any organ or structure within the mouth) or for treatment of the eye, or (C) any coverage described in section 9832(c)(3) the payment for which is not excludable from gross income and for which a deduction under section 162(l) is not allowable. (3) Coverage includes employee paid portion Coverage shall be treated as applicable employer-sponsored coverage without regard to whether the employer or employee pays for the coverage. (4) Governmental plans included Applicable employer-sponsored coverage shall include coverage under any group health plan established and maintained primarily for its civilian employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any such government. (5) Cost of coverage (A) Health fsas In the case of applicable employer-sponsored coverage consisting of coverage under a flexible spending arrangement (as defined in section 106(c)(2)), the cost of the coverage shall be equal to the amount determined under rules similar to the rules of section 4980B(f)(4) with respect to any reimbursement under the arrangement, reduced by the contributions described in subsection (a)(14)(B). (B) Archer msas and hsas In the case of applicable employer-sponsored coverage consisting of coverage under an arrangement under which the employer makes contributions described in subsection (b) or (d) of section 106, the cost of the coverage shall be equal to the amount of employer contributions under the arrangement. (C) Allocation on a monthly basis If cost is determined on other than a monthly basis, the cost shall be allocated to months in a taxable period on such basis as the Secretary may prescribe. . (c) Clerical amendment The table of sections for chapter 43 section 4980 (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 3. Sense of the Senate related to offsetting the revenue loss from repeal of the excise tax on high cost employer-sponsored health coverage It is the sense of the Senate that the revenue loss resulting from the repeal of the excise tax on high cost employer-sponsored health coverage under section 4980I

Summary: American Worker Health Care Tax Relief Act of 2015 This bill amends the Internal Revenue Code to repeal, for taxable years beginning after December 31, 2017, the excise tax on employer-sponsored health care coverage for which there is an excess benefit (high-cost plans). The bill expresses the sense of the Senate that the revenue loss resulting from the repeal of such excise tax should be offset by corresponding revenue.