Reclaiming Individual Liberty Act

To amend the Internal Revenue Code of 1986 to repeal the mandate that individuals purchase health insurance. 1. Short title This Act may be cited as the Reclaiming Individual Liberty Act 2. Repeal of individual health insurance mandate (a) In general Chapter 48 (b) Conforming amendments to the Internal Revenue Code of 1986 (1) Section 36B(c)(2)(B) of such Code is amended to read as follows: (B) Exception for minimum essential coverage The term coverage month . (2) Section 36B(c)(2)(C)(i)(I) of such Code is amended by striking (as defined in section 5000A(f)(2)) (3) Section 36B(c)(2)(C)(i)(II) of such Code is amended by striking (within the meaning of section 5000A(e)(1)(B)) (4) Section 36B(c)(2)(C)(ii) of such Code is amended by striking (as defined in section 5000A(f)(2)) (5) Section 36B(c)(2) of such Code is amended by adding at the end the following new subparagraph: (D) Required contribution For purposes of this paragraph— (i) In general the term required contribution (I) in the case of an individual eligible to purchase minimum essential coverage consisting of coverage through an eligible-employer-sponsored plan, the portion of the annual premium which would be paid by the individual (without regard to whether paid through salary reduction or otherwise) for self-only coverage, or (II) in the case of an individual eligible only to purchase minimum essential coverage described in subsection (g)(1)(C), the annual premium for the lowest cost bronze plan available in the individual market through the Exchange in the State in the rating area in which the individual resides (without regard to whether the individual purchased a qualified health plan through the Exchange), reduced by the amount of the credit allowable under this section for the taxable year (determined as if the individual was covered by a qualified health plan offered through the Exchange for the entire taxable year). (ii) Special rules for individuals related to employees For purposes of clause (i)(I), if an individual is eligible for minimum essential coverage through an employer by reason of a relationship to an employee, the determination under subparagraph (C)(i)(II) shall be made by reference to required contribution of the employee. . (6) Section 36B of such Code is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: (g) Minimum essential coverage For purposes of this section— (1) In general The term minimum essential coverage (A) Government sponsored programs Coverage under— (i) the Medicare program under part A of title XVIII of the Social Security Act, (ii) the Medicaid program under title XIX of the Social Security Act, (iii) the CHIP program under title XXI of the Social Security Act, (iv) medical coverage under chapter 55 (v) a health care program under chapter 17 or 18 of title 38, United States Code, as determined by the Secretary of Veterans Affairs, in coordination with the Secretary of Health and Human Services and the Secretary, (vi) a health plan under section 2504(e) (vii) the Nonappropriated Fund Health Benefits Program of the Department of Defense, established under section 349 of the National Defense Authorization Act for Fiscal Year 1995 ( Public Law 103–337 10 U.S.C. 1587 (B) Employer-sponsored plan Coverage under an eligible employer-sponsored plan. (C) Plans in the individual market Coverage under a health plan offered in the individual market within a State. (D) Grandfathered health plan Coverage under a grandfathered health plan. (E) Other coverage Such other health benefits coverage, such as a State health benefits risk pool, as the Secretary of Health and Human Services, in coordination with the Secretary, recognizes for purposes of this subsection. (2) Eligible employer-sponsored plan The term eligible employer-sponsored plan (A) a governmental plan (within the meaning of section 2791(d)(8) of the Public Health Service Act), or (B) any other plan or coverage offered in the small or large group market within a State. Such term shall include a grandfathered health plan described in paragraph (1)(D) offered in a group market. (3) Excepted benefits not treated as minimum essential coverage The term minimum essential coverage (A) described in paragraph (1) of subsection (c) of section 2791 of the Public Health Service Act, or (B) described in paragraph (2), (3), or (4) of such subsection if the benefits are provided under a separate policy, certificate, or contract of insurance. (4) Individuals residing outside United States or residents of territories Any applicable individual shall be treated as having minimum essential coverage for any month— (A) if such month occurs during any period described in subparagraph (A) or (B) of section 911(d)(1) which is applicable to the individual, or (B) if such individual is a bona fide resident of any possession of the United States (as determined under section 937(a)) for such month. (5) Insurance-related terms Any term used in this section which is also used in title I of the Patient Protection and Affordable Care Act shall have the same meaning as when used in such title. . (7) Section 162(m)(6)(C)(i)(II) of such Code is amended by striking section 5000A(f) section 36B(g) (8) Subsections (a)(1) and (b)(1)(A) of section 4980H of such Code are each amended by striking section 5000A(f)(2) section 36B(g)(2) (9) Section 4980I(f)(1)(B) of such Code is amended by striking section 5000A(f) section 36B(g) (10) Section 6055(e) of such Code is amended by striking section 5000A(f) section 36B(g) (11) Section 6056(b)(2)(B) of such Code is amended by striking section 5000A(f)(2) section 36B(g)(2) (12) The table of chapters for subtitle D of such Code is amended by striking the item relating to chapter 48. (c) Conforming amendments to other laws (1) Section 2715(b)(3)(G)(i) of the Public Health Service Act is amended by striking section 5000A(f) section 36B(g) (2) Section 1251(a)(4)(B)(ii) of the Patient Protection and Affordable Care Act is amended by striking section 5000A(f)(2) section 36B(g)(2) (3) Section 1302(e)(2)(B) of the Patient Protection and Affordable Care Act is amended to read as follows: (B) has a certification in effect for any plan year under this title that— (i) the individual’s required contribution (determined on an annual basis) for coverage for the month exceeds 8 percent of such individual's household income for the taxable year described in section 1412(b)(1)(B), or (ii) the individual has been determined by the Secretary of Health and Human Services under section 1311(d)(4)(H) to have suffered a hardship with respect to the capability to obtain coverage under a qualified health plan. . (4) Section 1302(e) of the Patient Protection and Affordable Care Act is amended by adding at the end the following new paragraph: (4) Determination of individual’s required contribution and household income For purposes of this subsection— (A) Required contribution The term required contribution (i) in the case of an individual eligible to purchase minimum essential coverage consisting of coverage through an eligible-employer-sponsored plan (as defined in section 36B(g)(2) of the Internal Revenue Code of 1986), the portion of the annual premium which would be paid by the individual (without regard to whether paid through salary reduction or otherwise) for self-only coverage, or (ii) in the case of an individual eligible only to purchase minimum essential coverage described in section 36B(g)(1)(C) (B) Special rules for individuals related to employees For purposes of subparagraph (A)(i), if an individual is eligible for minimum essential coverage (as defined in section 36B(g) (C) Indexing In the case of plan years beginning in any calendar year after 2014, paragraph (2)(B)(i) shall be applied by substituting for 8 percent (D) Household income For purposes of paragraph (2)(B)(i), the taxpayer's household income shall be increased by any exclusion from gross income for any portion of the required contribution made through a salary reduction arrangement. . (5) Section 1311(d)(4) of the Patient Protection and Affordable Care Act is amended by striking subparagraph (H) and by redesignating subparagraphs (I), (J), and (K) as subparagraphs (H), (I), and (J), respectively. (6) Section 1312(d)(4) of the Patient Protection and Affordable Care Act is amended by striking section 5000A(f) section 36B(g) (7) Section 1331(e)(1)(C) of the Patient Protection and Affordable Care Act is amended— (A) by striking section 5000A(f) section 36B(g) (B) by striking section 5000A(e)(2) of such Code section 1411(a)(4) (8) Section 1332(a)(2)(D) of the Patient Protection and Affordable Care Act is amended by striking Sections 36B, 4980H, and 5000A Sections 36B and 4980H (9) Section 1401(c)(1)(A)(iii) of the Patient Protection and Affordable Care Act is amended by striking section 5000A(f) section 36B(g) (10) Section 1411(a) of the Patient Protection and Affordable Care Act is amended— (A) by adding and (B) by striking sections 36B(c)(2)(C) and 5000A(e)(2); and section 36B(c)(2)(C). (C) by striking paragraph (4). (11) Section 1411(b)(4)(C) of the Patient Protection and Affordable Care Act is amended by striking section 5000A(e)(1)(B) section 36B(c)(2)(D) (12) Section 1411(b) of the Patient Protection and Affordable Care Act is amended by striking paragraph (5). (13) Section 1411(e)(4)(B) of the Patient Protection and Affordable Care Act is amended by striking clause (iv). (d) Effective date The amendments and repeal made by this section shall apply to taxable years ending after December 31, 2013.

Summary: Reclaiming Individual Liberty Act This bill repeals the provision in the Internal Revenue Code, as added by the Patient Protection and Affordable Care Act, that requires individual taxpayers to purchase and maintain minimum essential health care coverage.