Repeal and Refund Act

To amend the Internal Revenue Code of 1986 to retroactively repeal the individual mandate for health insurance. 1. Short title This Act may be cited as the Repeal and Refund Act 2. Repeal of individual mandate (a) Repeal of requirement To maintain minimum essential coverage (1) In general The Internal Revenue Code of 1986 is amended by striking chapter 48. (2) Conforming amendments (A) Amendments related to the Internal Revenue Code of 1986 (i) Section 36B (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) of title 22, United States Code (relating to Peace Corps volunteers), or (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. . (ii) Section 36B(c)(2)(B) of such Code is amended to read as follows: (B) Exception for minimum essential coverage The term coverage month . (iii) Clauses (i)(I) and (ii) of section 36B(c)(2)(C) of such Code are each amended by striking section 5000A(f)(2) subsection (g)(2) (iv) (I) Subclause (II) of section 36B(c)(2)(C)(i) of such Code is amended by striking (within the meaning of section 5000A(e)(1)(B)) (II) Paragraph (2) of section 36B(c) of such Code is amended by adding at the end the following new subparagraph: (D) Required contribution For purposes of subparagraph (C)(i)(II), 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 subsection (a) 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). . (v) Section 162(m)(6)(C)(i) of such Code is amended by striking section 5000A(f) section 36B(g) (vi) Subsections (a)(1) and (b)(1) of section 4980H of such Code are each amended by striking section 5000A(f)(2) section 36B(g)(2) (vii) Section 4980I(f)(1)(B) of such Code is amended by striking section 5000A(f) section 36B(g) (viii) Section 6056(b)(2)(b) of such Code is amended by striking section 5000A(f)(2) section 36B(g)(2) (ix) The table of chapters of the Internal Revenue Code of 1986 is amended by striking the item relating to chapter 48. (B) Amendments related to the Patient Protection and Affordable Care Act (i) Section 1251(a)(4)(B)(ii) of the Patient Protection and Affordable Care Act is amended by striking section 500A(f)(2) section 36B(g)(2) (ii) Section 1302(e)(2) of such Act is amended to read as follows: (2) Individuals eligible for enrollment An individual is described in this paragraph for any plan year if the individual has not attained the age of 30 before the beginning of the plan year. . (iii) Section 1311(d)(4) of such Act is amended by striking subparagraph (H). (iv) Section 1312(d)(4) of such Act is amended by striking section 5000A(f) section 36B(g) (v) Section 1363(e)(1)(C) of such Act is amended— (I) by striking section 5000A(f) section 36B(g) (II) by striking or is eligible for an employer-sponsored plan that is not affordable coverage (as determined under section 5000A(e)(2) of such Code) or who is eligible for an employer-sponsored plan and whose household income for the taxable year described in section 1412(b)(1)(B) is less than the amount of gross income specified in section 6012(a)(1) (vi) Section 1332(a)(2)(D) of such Act is amended by striking 36B, 4980H, and 5000A 36B and 4980H (vii) Section 1401(c)(1)(A)(iii) of such Act is amended by striking section 5000A(f) section 36B(g) (viii) Section 1411(a) of such Act is amended— (I) by inserting and (II) in paragraph (3)— (aa) by striking and section 5000A(e)(2) (bb) by striking , and (III) by striking paragraph (4). (ix) Section 1411(b)(4)(C) of such Act is amended by striking 5000A(e)(1)(B) 36B(c)(2)(D) (x) Section 1411(b) of such Act is amended by striking paragraph (5). (xi) Section 1411(e)(4)(B) of such Act is amended by striking clause (iv). (C) Other conforming amendments Section 2715(b)(3)(G)(i) of the Public Health Service Act is amended by striking section 5000A(f) section 36B(g) (3) Effective date The amendments made by this subsection shall apply to taxable years beginning after December 31, 2013. (b) Repeal of reporting of health insurance coverage (1) In general Part III of subchapter A of chapter 61 (2) Conforming amendments (A) Section 6056(d) (d) Coordination with other requirements To the maximum extent feasible, the Secretary may provide that any return or statement required to be provided under this section may be provided as part of any return or statement required under section 6051. . (B) Section 6724(d)(1)(B) of such Code is amended by inserting or (C) Section 6724(d)(2) of such Code is amended by inserting or (D) Subsection (c) of section 1502 of the Patient Protection and Affordable Care Act is repealed. (E) The table of subparts for part III of subchapter A of chapter 61 (3) Effective date The amendments made by this subsection shall apply to calendar years beginning after December 31, 2013. (c) Taxpayer refund program (1) In general The Secretary of the Treasury shall implement a program under which taxpayers who have paid a penalty under section 5000A (2) Waiver of statute of limitations Solely for purposes of claiming the refund under paragraph (1), the period prescribed by section 6511(a)

Summary: Repeal and Refund Act This bill amends the Internal Revenue Code to repeal: (1) the requirement that individuals maintain minimum essential health care coverage (commonly referred to as the individual mandate), and (2) the reporting requirements for health insurance coverage. The Department of the Treasury must implement a program to refund all penalties paid by taxpayers for failing to maintain minimum essential health coverage. Treasury must provide taxpayers with one payment to refund all penalties without regard to whether or not an amended tax return is filed.