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adherent of established tenets or teachings of such 
sect or division as described in such section. 
‘‘(B) HEALTH CARE SHARING MINISTRY.— 
‘‘(i) IN
GENERAL.—Such term shall 
not include any individual for any month 
if such individual is a member of a health 
care sharing ministry for the month. 
‘‘(ii) HEALTH
CARE
SHARING
MIN-
ISTRY.—The term ‘health care sharing min-
istry’ means an organization— 
‘‘(I) which is described in section 
501(c)(3) and is exempt from taxation 
under section 501(a), 
‘‘(II) members of which share a 
common set of ethical or religious be-
liefs and share medical expenses among 
members in accordance with those be-
liefs and without regard to the State in 
which a member resides or is em-
ployed, 
‘‘(III) members of which retain 
membership even after they develop a 
medical condition, 
‘‘(IV) which (or a predecessor of 
which) has been in existence at all 
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times since December 31, 1999, and 
medical expenses of its members have 
been shared continuously and without 
interruption since at least December 
31, 1999, and 
‘‘(V) which conducts an annual 
audit which is performed by an inde-
pendent certified public accounting 
firm in accordance with generally ac-
cepted 
accounting 
principles 
and 
which is made available to the public 
upon request. 
‘‘(3) INDIVIDUALS NOT LAWFULLY PRESENT.— 
Such term shall not include an individual for any 
month if for the month the individual is not a citizen 
or national of the United States or an alien lawfully 
present in the United States. 
‘‘(4) INCARCERATED
INDIVIDUALS.—Such term 
shall not include an individual for any month if for 
the month the individual is incarcerated, other than 
incarceration pending the disposition of charges. 
‘‘(e) EXEMPTIONS.—No penalty shall be imposed 
under subsection (a) with respect to— 
‘‘(1) INDIVIDUALS
WHO
CANNOT
AFFORD
COV-
ERAGE.— 
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‘‘(A) IN
GENERAL.—Any applicable indi-
vidual for any month if the applicable individ-
ual’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) of the Patient Protection and Af-
fordable Care Act. For purposes of applying this 
subparagraph, the taxpayer’s household income 
shall be increased by any exclusion from gross 
income for any portion of the required contribu-
tion made through a salary reduction arrange-
ment. 
‘‘(B) REQUIRED CONTRIBUTION.—For pur-
poses of this paragraph, the term ‘required con-
tribution’ means— 
‘‘(i) in the case of an individual eligi-
ble 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 
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‘‘(ii) in the case of an individual eligi-
ble only to purchase minimum essential 
coverage described in subsection (f)(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 indi-
vidual purchased a qualified health plan 
through the Exchange), reduced by the 
amount of the credit allowable under section 
36B 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). 
‘‘(C) SPECIAL RULES FOR INDIVIDUALS RE-
LATED
TO
EMPLOYEES.—For purposes of sub-
paragraph (B)(i), if an applicable individual is 
eligible for minimum essential coverage through 
an employer by reason of a relationship to an 
employee, the determination shall be made by 
reference to the affordability of the coverage to 
the employee. 
‘‘(D) INDEXING.—In the case of plan years 
beginning in any calendar year after 2014, sub-
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paragraph (A) shall be applied by substituting 
for ‘8 percent’ the percentage the Secretary of 
Health and Human Services determines reflects 
the excess of the rate of premium growth between 
the preceding calendar year and 2013 over the 
rate of income growth for such period. 
‘‘(2) TAXPAYERS WITH INCOME UNDER 100 PER-
CENT OF POVERTY LINE.—Any applicable individual 
for any month during a calendar year if the individ-
ual’s household income for the taxable year described 
in section 1412(b)(1)(B) of the Patient Protection and 
Affordable Care Act is less than 100 percent of the 
poverty line for the size of the family involved (deter-
mined in the same manner as under subsection 
(b)(4)). 
‘‘(3) MEMBERS OF INDIAN TRIBES.—Any appli-
cable individual for any month during which the in-
dividual is a member of an Indian tribe (as defined 
in section 45A(c)(6)). 
‘‘(4) MONTHS DURING SHORT COVERAGE GAPS.— 
‘‘(A) IN GENERAL.—Any month the last day 
of which occurred during a period in which the 
applicable individual was not covered by min-
imum essential coverage for a continuous period 
of less than 3 months. 
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‘‘(B) SPECIAL RULES.—For purposes of ap-
plying this paragraph— 
‘‘(i) the length of a continuous period 
shall be determined without regard to the 
calendar years in which months in such pe-
riod occur, 
‘‘(ii) if a continuous period is greater 
than the period allowed under subpara-
graph (A), no exception shall be provided 
under this paragraph for any month in the 
period, and 
‘‘(iii) if there is more than 1 contin-
uous period described in subparagraph (A) 
covering months in a calendar year, the ex-
ception provided by this paragraph shall 
only apply to months in the first of such pe-
riods. 
The Secretary shall prescribe rules for the collec-
tion of the penalty imposed by this section in 
cases where continuous periods include months 
in more than 1 taxable year. 
‘‘(5) HARDSHIPS.—Any applicable individual 
who for any month is determined by the Secretary of 
Health 
and 
Human 
Services 
under 
section 
1311(d)(4)(H) to have suffered a hardship with re-
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spect to the capability to obtain coverage under a 
qualified health plan. 
‘‘(f) MINIMUM ESSENTIAL COVERAGE.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The term ‘minimum essen-
tial coverage’ means any of the following: 
‘‘(A) 
GOVERNMENT
SPONSORED
PRO-
GRAMS.—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) the TRICARE for Life program, 
‘‘(v) the veteran’s health care program 
under chapter 17 of title 38, United States 
Code, or 
‘‘(vi) a health plan under section 
2504(e) of title 22, United States Code (re-
lating to Peace Corps volunteers). 
‘‘(B) EMPLOYER-SPONSORED
PLAN.—Cov-
erage under an eligible employer-sponsored plan. 
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‘‘(C) PLANS IN THE INDIVIDUAL MARKET.— 
Coverage under a health plan offered in the indi-
vidual 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, rec-
ognizes for purposes of this subsection. 
‘‘(2) ELIGIBLE EMPLOYER-SPONSORED PLAN.— 
The term ‘eligible employer-sponsored plan’ means, 
with respect to any employee, a group health plan or 
group health insurance coverage offered by an em-
ployer to the employee which is— 
‘‘(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 MIN-
IMUM ESSENTIAL COVERAGE.—The term ‘minimum 
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essential coverage’ shall not include health insurance 
coverage which consists of coverage of excepted bene-
fits— 
‘‘(A) described in paragraph (1) of sub-
section (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 appli-
cable individual shall be treated as having minimum 
essential coverage for any month— 
‘‘(A) if such month occurs during any pe-
riod described in subparagraph (A) or (B) of sec-
tion 911(d)(1) which is applicable to the indi-
vidual, or 
‘‘(B) if such individual is a bona fide resi-
dent 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 
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the Patient Protection and Affordable Care Act shall 
have the same meaning as when used in such title. 
‘‘(g) ADMINISTRATION AND PROCEDURE.— 
‘‘(1) IN GENERAL.—The penalty provided by this 
section shall be paid upon notice and demand by the 
Secretary, and except as provided in paragraph (2), 
shall be assessed and collected in the same manner as 
an assessable penalty under subchapter B of chapter 
68. 
‘‘(2) SPECIAL
RULES.—Notwithstanding any 
other provision of law— 
‘‘(A) WAIVER OF CRIMINAL PENALTIES.—In 
the case of any failure by a taxpayer to timely 
pay any penalty imposed by this section, such 
taxpayer shall not be subject to any criminal 
prosecution or penalty with respect to such fail-
ure. 
‘‘(B) LIMITATIONS ON LIENS AND LEVIES.— 
The Secretary shall not— 
‘‘(i) file notice of lien with respect to 
any property of a taxpayer by reason of 
any failure to pay the penalty imposed by 
this section, or 
‘‘(ii) levy on any such property with 
respect to such failure.’’. 
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(c) CLERICAL AMENDMENT.—The table of chapters for 
subtitle D of the Internal Revenue Code of 1986 is amended 
by inserting after the item relating to chapter 47 the fol-
lowing new item: 
‘‘CHAPTER 48—MAINTENANCE OF MINIMUM ESSENTIAL COVERAGE.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years ending after December 
31, 2013. 
SEC. 1502. REPORTING OF HEALTH INSURANCE COVERAGE. 
(a) IN GENERAL.—Part III of subchapter A of chapter 
61 of the Internal Revenue Code of 1986 is amended by 
inserting after subpart C the following new subpart: 
‘‘Subpart D—Information Regarding Health 
Insurance Coverage 
‘‘Sec. 6055. Reporting of health insurance coverage. 
‘‘SEC. 6055. REPORTING OF HEALTH INSURANCE COV-
ERAGE. 
‘‘(a) IN GENERAL.—Every person who provides min-
imum essential coverage to an individual during a calendar 
year shall, at such time as the Secretary may prescribe, 
make a return described in subsection (b). 
‘‘(b) FORM AND MANNER OF RETURN.— 
‘‘(1) IN GENERAL.—A return is described in this 
subsection if such return— 
‘‘(A) is in such form as the Secretary may 
prescribe, and 
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‘‘(B) contains— 
‘‘(i) the name, address and TIN of the 
primary insured and the name and TIN of 
each other individual obtaining coverage 
under the policy, 
‘‘(ii) the dates during which such indi-
vidual was covered under minimum essen-
tial coverage during the calendar year, 
‘‘(iii) in the case of minimum essential 
coverage which consists of health insurance 
coverage, information concerning— 
‘‘(I) whether or not the coverage is 
a qualified health plan offered through 
an Exchange established under section 
1311 of the Patient Protection and Af-
fordable Care Act, and 
‘‘(II) in the case of a qualified 
health plan, the amount (if any) of 
any advance payment under section 
1412 of the Patient Protection and Af-
fordable Care Act of any cost-sharing 
reduction under section 1402 of such 
Act or of any premium tax credit 
under section 36B with respect to such 
coverage, and 
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‘‘(iv) such other information as the 
Secretary may require. 
‘‘(2) INFORMATION RELATING TO EMPLOYER-PRO-
VIDED
COVERAGE.—If minimum essential coverage 
provided to an individual under subsection (a) con-
sists of health insurance coverage of a health insur-
ance issuer provided through a group health plan of 
an employer, a return described in this subsection 
shall include— 
‘‘(A) the name, address, and employer iden-
tification number of the employer maintaining 
the plan, 
‘‘(B) the portion of the premium (if any) 
required to be paid by the employer, and 
‘‘(C) if the health insurance coverage is a 
qualified health plan in the small group market 
offered through an Exchange, such other infor-
mation as the Secretary may require for admin-
istration of the credit under section 45R (relat-
ing to credit for employee health insurance ex-
penses of small employers). 
‘‘(c) STATEMENTS TO BE FURNISHED TO INDIVIDUALS 
WITH RESPECT TO WHOM INFORMATION IS REPORTED.— 
‘‘(1) IN
GENERAL.—Every person required to 
make a return under subsection (a) shall furnish to 
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each individual whose name is required to be set forth 
in such return a written statement showing— 
‘‘(A) the name and address of the person re-
quired to make such return and the phone num-
ber of the information contact for such person, 
and 
‘‘(B) the information required to be shown 
on the return with respect to such individual. 
‘‘(2) TIME FOR FURNISHING STATEMENTS.—The 
written statement required under paragraph (1) shall 
be furnished on or before January 31 of the year fol-
lowing the calendar year for which the return under 
subsection (a) was required to be made. 
‘‘(d) 
COVERAGE
PROVIDED
BY
GOVERNMENTAL 
UNITS.—In the case of coverage provided by any govern-
mental unit or any agency or instrumentality thereof, the 
officer or employee who enters into the agreement to provide 
such coverage (or the person appropriately designated for 
purposes of this section) shall make the returns and state-
ments required by this section. 
‘‘(e) MINIMUM ESSENTIAL COVERAGE.—For purposes 
of this section, the term ‘minimum essential coverage’ has 
the meaning given such term by section 5000A(f).’’. 
(b) ASSESSABLE PENALTIES.— 
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(1) Subparagraph (B) of section 6724(d)(1) of 
the Internal Revenue Code of 1986 (relating to defini-
tions) is amended by striking ‘‘or’’ at the end of 
clause (xxii), by striking ‘‘and’’ at the end of clause 
(xxiii) and inserting ‘‘or’’, and by inserting after 
clause (xxiii) the following new clause: 
‘‘(xxiv) section 6055 (relating to re-
turns relating to information regarding 
health insurance coverage), and’’. 
(2) Paragraph (2) of section 6724(d) of such 
Code is amended by striking ‘‘or’’ at the end of sub-
paragraph (EE), by striking the period at the end of 
subparagraph (FF) and inserting ‘‘, or’’ and by in-
serting after subparagraph (FF) the following new 
subparagraph: 
‘‘(GG) section 6055(c) (relating to state-
ments relating to information regarding health 
insurance coverage).’’. 
(c) NOTIFICATION
OF NONENROLLMENT.—Not later 
than June 30 of each year, the Secretary of the Treasury, 
acting through the Internal Revenue Service and in con-
sultation with the Secretary of Health and Human Serv-
ices, shall send a notification to each individual who files 
an individual income tax return and who is not enrolled 
in minimum essential coverage (as defined in section 5000A 
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of the Internal Revenue Code of 1986). Such notification 
shall contain information on the services available through 
the Exchange operating in the State in which such indi-
vidual resides. 
(d) CONFORMING AMENDMENT.—The table of subparts 
for part III of subchapter A of chapter 61 of such Code 
is amended by inserting after the item relating to subpart 
C the following new item: 
‘‘SUBPART D—INFORMATION REGARDING HEALTH INSURANCE COVERAGE’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to calendar years beginning after 2013. 
PART II—EMPLOYER RESPONSIBILITIES 
SEC. 1511. AUTOMATIC ENROLLMENT FOR EMPLOYEES OF 
LARGE EMPLOYERS. 
The Fair Labor Standards Act of 1938 is amended by 
inserting after section 18 (29 U.S.C. 218) the following: 
‘‘SEC. 18A. AUTOMATIC ENROLLMENT FOR EMPLOYEES OF 
LARGE EMPLOYERS. 
‘‘In accordance with regulations promulgated by the 
Secretary, an employer to which this Act applies that has 
more than 200 full-time employees and that offers employees 
enrollment in 1 or more health benefits plans shall auto-
matically enroll new full-time employees in one of the plans 
offered (subject to any waiting period authorized by law) 
and to continue the enrollment of current employees in a 
health benefits plan offered through the employer. Any auto-
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matic enrollment program shall include adequate notice 
and the opportunity for an employee to opt out of any cov-
erage the individual or employee were automatically en-
rolled in. Nothing in this section shall be construed to super-
sede any State law which establishes, implements, or con-
tinues in effect any standard or requirement relating to em-
ployers in connection with payroll except to the extent that 
such standard or requirement prevents an employer from 
instituting the automatic enrollment program under this 
section.’’. 
SEC. 1512. EMPLOYER REQUIREMENT TO INFORM EMPLOY-
EES OF COVERAGE OPTIONS. 
The Fair Labor Standards Act of 1938 is amended by 
inserting after section 18A (as added by section 1513) the 
following: 
‘‘SEC. 18B. NOTICE TO EMPLOYEES. 
‘‘(a) IN GENERAL.—In accordance with regulations 
promulgated by the Secretary, an employer to which this 
Act applies, shall provide to each employee at the time of 
hiring (or with respect to current employees, not later than 
March 1, 2013), written notice— 
‘‘(1) informing the employee of the existence of 
an Exchange, including a description of the services 
provided by such Exchange, and the manner in which 
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the employee may contact the Exchange to request as-
sistance; 
‘‘(2) if the employer plan’s share of the total al-
lowed costs of benefits provided under the plan is less 
than 60 percent of such costs, that the employee may 
be eligible for a premium tax credit under section 
36B of the Internal Revenue Code of 1986 and a cost 
sharing reduction under section 1402 of the Patient 
Protection and Affordable Care Act if the employee 
purchases a qualified health plan through the Ex-
change; and 
‘‘(3) if the employee purchases a qualified health 
plan through the Exchange, the employee will lose the 
employer contribution (if any) to any health benefits 
plan offered by the employer and that all or a portion 
of such contribution may be excludable from income 
for Federal income tax purposes. 
‘‘(b) EFFECTIVE DATE.—Subsection (a) shall take ef-
fect with respect to employers in a State beginning on 
March 1, 2013.’’. 
SEC. 1513. SHARED RESPONSIBILITY FOR EMPLOYERS. 
(a) IN GENERAL.—Chapter 43 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following: 
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(F) by transferring such section (as amend-
ed by this paragraph) to appear at the end of 
section 2702 (as added by section 1001(4)); 
(9) in section 2732 (42 U.S.C. 300gg–12), as so 
redesignated by section 1001(3)— 
(A) by striking the section heading and all 
that follows through subsection (a); 
(B) in subsection (b)— 
(i) in the matter preceding paragraph 
(1), by striking ‘‘group health plan in the 
small or large group market’’ and inserting 
‘‘health insurance coverage offered in the 
group or individual market’’; 
(ii) in paragraph (1), by inserting ‘‘, 
or individual, as applicable,’’ after ‘‘plan 
sponsor’’; 
(iii) in paragraph (2), by inserting ‘‘, 
or individual, as applicable,’’ after ‘‘plan 
sponsor’’; and 
(iv) by striking paragraph (3) and in-
serting the following: 
‘‘(3) VIOLATION
OF
PARTICIPATION
OR
CON-
TRIBUTION RATES.—In the case of a group health 
plan, the plan sponsor has failed to comply with a 
material plan provision relating to employer con-
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ing (or being treated as if receiving) 
supplemental security income benefits 
under title XVI, and individuals who 
are eligible as a result of being or 
being deemed to be a child in foster 
care under the responsibility of the 
State. 
‘‘(II) Individuals who have at-
tained age 65. 
‘‘(III) Individuals who qualify for 
medical assistance under the State 
plan or under any waiver of such plan 
on the basis of being blind or disabled 
(or being treated as being blind or dis-
abled) without regard to whether the 
individual is eligible for supplemental 
security income benefits under title 
XVI on the basis of being blind or dis-
abled and including an individual who 
is eligible for medical assistance on the 
basis of section 1902(e)(3). 
‘‘(IV) Individuals described in 
subsection (a)(10)(C). 
‘‘(V) Individuals described in any 
clause of subsection (a)(10)(E). 
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