Mandate Relief Act of 2017

To amend the Internal Revenue Code of 1986 to provide additional exemptions to the individual mandate, and for other purposes. 1. Short title This Act may be cited as the Mandate Relief Act of 2017 2. Modifications to exemption to requirement to maintain health coverage (a) Exemption for individuals with a household income less than the national median and for individuals with excessive premium increases Section 5000A(e) (1) Individuals with household incomes below the national median Any applicable individual for any month if the applicable individual has a household income for the taxable year which is less than the national median household income for the most recent calendar year. (2) Individuals with excessive premium increases Any applicable individual for any month during a calendar year if such applicable individual resides in a State in which either— (A) the average premium for self-only coverage for the second lowest cost silver plan within the State for such calendar year is more than 10 percent greater than the average premium for self-only coverage for the second lowest cost silver plan within the State for the preceding calendar year, or (B) the average premium for family coverage for the second lowest cost silver plan within the State for such calendar year is more than 10 percent greater than the average premium for family coverage for the second lowest cost silver plan within the State for the preceding calendar year. . (b) Additional exemptions Section 5000A(e) (6) Individuals in areas with fewer than 2 issuers offering plans on an exchange (A) In general Any applicable individual for any period during a calendar year if there are fewer than 2 health insurance issuers offering qualified health plans on an Exchange for such period in the county in which the applicable individual resides. (B) Aggregation rules For purposes of subparagraph (A), all health insurance issuers treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or (o) of section 414, shall be treated as a single health insurance issuer. . (c) Effective date The amendments made by this section shall apply to months beginning after the date of the enactment of this Act. 3. Repeal of distributions for medicine qualified only if for prescribed drug or insulin (a) HSAs Subparagraph (A) of section 223(d)(2) (b) Archer MSAs Subparagraph (A) of section 220(d)(2) (c) Health flexible spending arrangements and health reimbursement arrangements Section 106 (d) Effective dates (1) Distributions from savings accounts The amendments made by subsections (a) and (b) shall apply to amounts paid with respect to taxable years beginning after December 31, 2016. (2) Reimbursements The amendment made by subsection (c) shall apply to expenses incurred with respect to taxable years beginning after December 31, 2017. 4. Repeal of limitation on health flexible spending arrangements under cafeteria plans (a) In general Section 125 (1) by striking subsection (i); and (2) by redesignating subsections (j), (k), and (l) as subsections (i), (j), and (k), respectively. (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 5. Repeal of tax on health savings accounts (a) HSAs Section 223(f)(4)(A) 20 percent 10 percent (b) Archer MSAs Section 220(f)(4)(A) 20 percent 15 percent (c) Effective date The amendments made by this section shall apply to distributions made after December 31, 2017.

Summary: Mandate Relief Act of 2017 This bill amends the Internal Revenue Code (IRC) to allow additional exemptions from the requirement under the Patient Protection and Affordable Care Act (PPACA) to maintain minimum essential health coverage (commonly referred to as the individual mandate). The bill exempts individuals who: (1) have household incomes below the national median, (2) reside in a state in which the average premium for self-only or family coverage under the second lowest cost silver plan within the state has increased by more than 10% from the prior year, or (3) reside in a county with fewer than two health insurance issuers offering qualified plans on an exchange. The bill also repeals provisions added to the IRC by PPACA that: (1) restrict payments from health savings accounts (HSAs), Archer medical savings accounts (MSAs), and health flexible spending and reimbursement arrangements for medications to prescription drugs and insulin (thus allowing payments for over-the-counter medications); (2) impose a $2,500 limitation on salary reduction contributions to a health flexible spending arrangement under a cafeteria plan; and (3) impose an additional tax on HSA and Archer MSA distributions not used for qualified medical expenses.