I 
114TH CONGRESS 
1ST SESSION H. R. 2653 
To repeal the Patient Protection and Affordable Care Act and related rec-
onciliation provisions, to promote patient-centered health care, to provide 
for the creation of a safe harbor for defendants in medical malpractice 
actions who demonstrate adherence to clinical practice guidelines, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 4, 2015 
Mr. ROE of Tennessee (for himself, Mr. AUSTIN SCOTT of Georgia, Mr. FLO-
RES, Mr. BARR, Mrs. BLACKBURN, Mr. CARTER of Georgia, Mrs. 
ELLMERS of North Carolina, Mr. FLEMING, Mr. GOSAR, Mr. HARRIS, 
Mr. HILL, Mr. ROKITA, Mr. SCALISE, Mr. BUCSHON, Mr. GIBBS, Mr. 
BISHOP
of Michigan, Mr. WALBERG, Mr. WEBER
of Texas, Mr. 
WENSTRUP, Mr. FARENTHOLD, Mr. HUELSKAMP, Mr. BYRNE, Mr. 
HUIZENGA of Michigan, Mr. ROUZER, Mr. YODER, Mr. LAMBORN, Mr. 
NEUGEBAUER, Mr. FRANKS of Arizona, Mr. PITTENGER, Mr. COLE, Mr. 
BABIN, Mr. ROONEY of Florida, Mr. STUTZMAN, Mr. ROTHFUS, Mrs. 
HARTZLER, Mrs. WAGNER, Mr. DESJARLAIS, Mr. MCKINLEY, Mr. 
BENISHEK, Mr. FINCHER, Mr. WILSON of South Carolina, Mr. OLSON, 
Mr. PALAZZO, Mr. MESSER, Mr. MCCLINTOCK, and Mr. MCCAUL) intro-
duced the following bill; which was referred to the Committee on Energy 
and Commerce, and in addition to the Committees on Ways and Means, 
Education and the Workforce, the Judiciary, Natural Resources, House 
Administration, Rules, Appropriations, Veterans’ Affairs, and the Budget, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To repeal the Patient Protection and Affordable Care Act 
and related reconciliation provisions, to promote patient- 
centered health care, to provide for the creation of a 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
safe harbor for defendants in medical malpractice actions 
who demonstrate adherence to clinical practice guide-
lines, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Health Care Reform Act of 2015’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—REPEAL OF OBAMACARE 
Sec. 101. Repeal of PPACA and health care-related provisions in the Health 
Care and Education Reconciliation Act of 2010. 
Sec. 102. Budgetary effects. 
TITLE II—INCREASING ACCESS TO PORTABLE, AFFORDABLE 
HEALTH INSURANCE 
Sec. 200. Amendment of 1986 Code. 
Subtitle A—Standard Deduction for Health Insurance 
Sec. 201. Standard deduction for health insurance. 
Sec. 202. Changes to existing tax preferences for medical coverage and costs 
for individuals eligible for standard deduction for health insur-
ance. 
Sec. 203. Exclusion of standard deduction for health insurance from employ-
ment taxes. 
Sec. 204. Information reporting. 
Sec. 205. Election to disregard inclusion of contributions by employer to acci-
dent or health plan. 
Subtitle B—Enhancement of Health Savings Accounts 
Sec. 221. Allow both spouses to make catch-up contributions to the same HSA 
account. 
Sec. 222. Provisions relating to Medicare. 
Sec. 223. Individuals eligible for veterans benefits for a service-connected dis-
ability. 
Sec. 224. Individuals eligible for Indian Health Service assistance. 
Sec. 225. Individuals eligible for TRICARE coverage. 
Sec. 226. FSA and HRA interaction with HSAs. 
Sec. 227. Purchase of health insurance from HSA account. 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6211
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
Sec. 228. Special rule for certain medical expenses incurred before establish-
ment of account. 
Sec. 229. Preventive care prescription drug clarification. 
Sec. 230. Equivalent bankruptcy protections for health savings accounts as re-
tirement funds. 
Sec. 231. Administrative error correction before due date of return. 
Sec. 232. Reauthorization of Medicaid health opportunity accounts. 
Sec. 233. Members of health care sharing ministries eligible to establish health 
savings accounts. 
Sec. 234. High deductible health plans renamed HSA qualified plans. 
Sec. 235. Treatment of direct primary care service arrangements. 
Sec. 236. Certain exercise equipment and physical fitness programs treated as 
medical care. 
Sec. 237. Certain nutritional and dietary supplements to be treated as medical 
care. 
Sec. 238. Certain provider fees to be treated as medical care. 
Sec. 239. Increase the maximum contribution limit to an HSA to match de-
ductible and out-of-pocket expense limitation. 
Sec. 240. Child health savings account. 
Sec. 241. Allowing minimum distributions from tax-deferred retirement ac-
counts to be deposited into HSAs. 
Sec. 242. Distributions for abortion expenses from health savings accounts in-
cluded in gross income. 
Subtitle C—Enhanced Wellness Incentives 
Sec. 251. Providing financial incentives for treatment compliance. 
TITLE III—IMPROVING ACCESS TO INSURANCE FOR VULNERABLE 
AMERICANS 
Subtitle A—Eliminating Barriers to Insurance Coverage 
Sec. 301. Elimination of certain requirements for guaranteed availability in in-
dividual market. 
Subtitle B—Ensuring Coverage for Individuals With Preexisting Conditions 
and Multiple Health Care Needs Through High Risk Pools 
Sec. 311. Improvement of high risk pools. 
TITLE IV—ENCOURAGING A MORE COMPETITIVE HEALTH CARE 
MARKET 
Subtitle A—Expanding Patient Choice 
Sec. 401. Cooperative governing of individual health insurance coverage. 
Subtitle B—McCarran-Ferguson Reform 
Sec. 411. Restoring the application of antitrust laws to health sector insurers. 
Subtitle C—Medicare Price Transparency 
Sec. 421. Public availability of Medicare claims data. 
Subtitle D—State Transparency Portals 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6211
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
Sec. 431. Providing information on health coverage options and health care 
providers. 
Subtitle E—Protecting the Doctor-Patient Relationship 
Sec. 441. Rule of construction. 
Sec. 442. Repeal of Federal Coordinating Council for Comparative Effective-
ness Research. 
Subtitle F—Establishing Association Health Plans 
Sec. 451. Rules governing association health plans. 
Sec. 452. Clarification of treatment of single employer arrangements. 
Sec. 453. Enforcement provisions relating to association health plans. 
Sec. 454. Cooperation between Federal and State authorities. 
Sec. 455. Effective date and transitional and other rules. 
Subtitle G—Greater Choice for Veterans 
Sec. 461. Removing barriers to health care choice for Category 1 veterans and 
medal of honor recipients. 
TITLE V—REFORMING MEDICAL LIABILITY LAW 
Sec. 501. Requirements for selection of clinical practice guidelines. 
Sec. 502. Development. 
Sec. 503. No liability for guideline producers. 
Sec. 504. Internet publication of guidelines. 
Sec. 505. State flexibility and protection of States’ rights. 
Sec. 506. Federal cause of action. 
Sec. 507. Right of removal. 
Sec. 508. Mandatory review by independent medical panel. 
Sec. 509. Definitions. 
TITLE VI—MEDICAL BREAKTHROUGH FUND 
Sec. 601. Medical Breakthrough Fund. 
TITLE VII—OTHER PROVISIONS 
Sec. 701. Respecting human life. 
Sec. 702. Offsets. 
TITLE I—REPEAL OF 
OBAMACARE 
SEC. 101. REPEAL OF PPACA AND HEALTH CARE-RELATED 
PROVISIONS IN THE HEALTH CARE AND EDU-
CATION RECONCILIATION ACT OF 2010. 
(a) PPACA.—Effective on January 1, 2016, the Pa-
tient Protection and Affordable Care Act (Public Law 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
111–148) is repealed, and the provisions of law amended 
or repealed by such Act are restored or revived as if such 
Act had not been enacted. 
(b) HEALTH CARE-RELATED PROVISIONS IN THE 
HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 
2010.—Effective on January 1, 2016, title I and subtitle 
B of title II of the Health Care and Education Reconcili-
ation Act of 2010 (Public Law 111–152) are repealed, and 
the provisions of law amended or repealed by such title 
or subtitle, respectively, are restored or revived as if such 
title and subtitle had not been enacted. 
SEC. 102. BUDGETARY EFFECTS. 
The budgetary effects of this Act shall not be entered 
on either PAYGO scorecard maintained pursuant to sec-
tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 
TITLE II—INCREASING ACCESS 
TO PORTABLE, AFFORDABLE 
HEALTH INSURANCE 
SEC. 200. AMENDMENT OF 1986 CODE. 
Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Internal Revenue Code 
of 1986. 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
Subtitle A—Standard Deduction 
for Health Insurance 
SEC. 201. STANDARD DEDUCTION FOR HEALTH INSUR-
ANCE. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 is amended by redesignating section 224 as section 
225 and by inserting after section 223 the following new 
section: 
‘‘SEC. 224. STANDARD DEDUCTION FOR HEALTH INSUR-
ANCE. 
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual, there shall be allowed as a deduction to the tax-
payer for the taxable year the standard deduction for 
health insurance. 
‘‘(b) STANDARD DEDUCTION FOR HEALTH INSUR-
ANCE.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘standard deduc-
tion for health insurance’ means the sum of the 
monthly limitations for months during the taxable 
year. 
‘‘(2) MONTHLY LIMITATION.— 
‘‘(A) IN GENERAL.—The monthly limita-
tion for any month is 1⁄12 of— 
‘‘(i) $20,500, in the case of a tax-
payer who is allowed a deduction under 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
section 151 for more than one individual 
who for such month is an eligible indi-
vidual, and 
‘‘(ii) $7,500, in the case of a taxpayer 
who is allowed a deduction under section 
151 for only one individual who for such 
month is an eligible individual. 
‘‘(B) COST-OF-LIVING ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of tax-
able years beginning in calendar years 
after the first calendar year to which this 
section applies, the dollar amounts under 
subparagraph (A) shall be increased by an 
amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which such 
taxable year begins, determined by 
substituting ‘the calendar year pre-
ceding the first calendar year to which 
section 224 applies’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
‘‘(ii) ROUNDING.—If any increase 
under clause (i) is not a multiple of $50, 
such increase shall be rounded to the near-
est multiple of $50. 
‘‘(3) YEARLY
LIMITATION.—The amount al-
lowed as a deduction under subsection (a) for any 
taxable year shall not exceed the taxpayer’s earned 
income (as defined in section 32(c)(2)) for such tax-
able year. 
‘‘(c) LIMITATIONS AND SPECIAL RULES RELATING 
TO STANDARD DEDUCTION.—For purposes of this sec-
tion— 
‘‘(1) SPECIAL RULE FOR MARRIED INDIVIDUALS 
FILING SEPARATELY.—In the case of a married indi-
vidual who files a separate return for the taxable 
year, the deduction allowed under subsection (a) 
shall be equal to one-half of the amount which would 
otherwise be determined under subsection (a) if such 
individual filed a joint return for the taxable year. 
‘‘(2) DENIAL
OF
DEDUCTION
TO
DEPEND-
ENTS.—No deduction shall be allowed under this 
section to any individual with respect to whom a de-
duction under section 151 is allowable to another 
taxpayer for a taxable year beginning in the cal-
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
endar year in which such individual’s taxable year 
begins. 
‘‘(3) COORDINATION WITH OTHER HEALTH TAX 
INCENTIVES.— 
‘‘(A) DENIAL OF DEDUCTION IF HEALTH 
INSURANCE COSTS CREDIT ALLOWED.—No de-
duction shall be allowed under this section to 
any taxpayer if a credit is allowed to the tax-
payer under section 35 for the taxable year. 
‘‘(B) REDUCTION
FOR
INSURANCE
PUR-
CHASED
WITH
MSA
OR
HSA
FUNDS.—The 
amount allowed as a deduction under subsection 
(a) for the taxable year shall be reduced by the 
aggregate amount— 
‘‘(i) paid during the taxable year from 
an 
Archer 
MSA 
to 
which 
section 
220(d)(2)(B)(ii) (other than subclause (II) 
thereof) applies, and 
‘‘(ii) paid during the taxable year 
from a health savings account to which 
section 223(d)(2)(C) (other than clause (ii) 
thereof) applies. 
‘‘(4) SPECIAL RULE FOR DIVORCED PARENTS, 
ETC.—Notwithstanding subsection (b)(1), an indi-
vidual who is a child may be taken into account on 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
the return of the parent other than the parent for 
whom a deduction with respect to the child is al-
lowed under section 151 for a taxable year beginning 
in a calendar year if— 
‘‘(A) the parent for whom the deduction 
under section 151 is allowed for a taxable year 
beginning in such calendar year signs a written 
declaration (in such manner and form as the 
Secretary may by regulations prescribe) that 
such parent will not claim the deduction allow-
able under this section with respect to the child 
for taxable years beginning in such calendar 
year, and 
‘‘(B) the parent for whom the deduction 
under section 151 is not allowed attaches such 
written declaration to the parent’s return for 
the taxable year beginning in such calendar 
year. 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) ELIGIBLE INDIVIDUAL.— 
‘‘(A) IN GENERAL.—The term ‘eligible in-
dividual’ means, with respect to any month, an 
individual who is covered under a qualified 
health plan as of the 1st day of such month. 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
‘‘(B) COVERAGE UNDER MEDICARE, MED-
ICAID, SCHIP, TRICARE, AND GRANDFATHERED 
EMPLOYER COVERAGE.—The term ‘eligible indi-
vidual’ shall not include any individual who for 
any month is— 
‘‘(i) entitled to benefits under part A 
of title XVIII of the Social Security Act or 
enrolled under part B of such title, 
‘‘(ii) enrolled in the program under 
title XIX or XXI of such Act (other than 
under section 1928 of such Act), 
‘‘(iii) receiving benefits (other than 
under continuation coverage under section 
4980B) which constitute medical care from 
an employer— 
‘‘(I) from whom such individual 
is separated from service at the time 
of receipt of such benefits, and 
‘‘(II) after such separation, if 
such benefits began before January 1, 
2017, unless such individual is also 
covered by a qualified health plan as 
of the 1st day of such month, or 
‘‘(iv) entitled to receive benefits under 
chapter 55 of title 10, United States Code. 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
‘‘(C) IDENTIFICATION
REQUIREMENTS.— 
The term ‘eligible individual’ shall not include 
any individual for any month unless the policy 
number associated with coverage under the 
qualified health plan and the TIN of each eligi-
ble individual covered under such coverage for 
such month is included on the return for the 
taxable year in which such month occurs. 
‘‘(2) QUALIFIED HEALTH PLAN.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
health plan’ means a health plan (within the 
meaning of section 223(c)(2), without regard to 
subparagraph (A)(i) thereof) which, under regu-
lations prescribed by the Secretary, meets the 
following requirements: 
‘‘(i) The plan has coverage for inpa-
tient and outpatient care, emergency bene-
fits, and physician care. 
‘‘(ii) The plan has coverage which 
meaningfully limits individual economic ex-
posure to extraordinary medical expenses 
‘‘(B) EXCLUSION
OF
CERTAIN
PLANS.— 
The term ‘qualified health plan’ does not in-
clude— 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
‘‘(i) a health plan if substantially all 
of its coverage is coverage described in sec-
tion 223(c)(1)(B), 
‘‘(ii) any program or benefits referred 
to in clause (i), (ii), or (iii) of paragraph 
(1)(B), and 
‘‘(iii) a Medicare supplemental policy 
(as defined in section 1882 of the Social 
Security Act). 
‘‘(e) REGULATIONS.—The Secretary may prescribe 
such regulations as may be necessary to carry out this 
section.’’. 
(b) DEDUCTION ALLOWED WHETHER OR NOT INDI-
VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 
of section 62 is amended by inserting before the last sen-
tence at the end the following new paragraph: 
‘‘(22) STANDARD DEDUCTION FOR HEALTH IN-
SURANCE.—The deduction allowed by section 224.’’. 
(c) ELECTION TO TAKE HEALTH INSURANCE COSTS 
CREDIT.—Section 35(g) is amended by redesignating 
paragraphs (9), (10), and (11) as paragraphs (10), (11), 
and (12), respectively, and by inserting after paragraph 
(8) the following new paragraph: 
‘‘(9) ELECTION NOT TO CLAIM CREDIT.—This 
section shall not apply to a taxpayer for any taxable 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
year if such taxpayer elects to have this section not 
apply for such taxable year.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 is amended by 
striking the item relating to section 224 and adding at 
the end the following new items: 
‘‘Sec. 224. Standard deduction for health insurance. 
‘‘Sec. 225. Cross reference.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 202. CHANGES TO EXISTING TAX PREFERENCES FOR 
MEDICAL COVERAGE AND COSTS FOR INDI-
VIDUALS ELIGIBLE FOR STANDARD DEDUC-
TION FOR HEALTH INSURANCE. 
(a) EXCLUSION FOR CONTRIBUTIONS BY EMPLOYER 
TO ACCIDENT AND HEALTH PLANS.— 
(1) IN GENERAL.—Section 106 is amended by 
adding at the end the following new subsection: 
‘‘(g) SUBSECTIONS (a) AND (c) APPLY ONLY TO IN-
DIVIDUALS COVERED BY MEDICARE, MEDICAID, SCHIP, 
TRICARE, OR GRANDFATHERED EMPLOYER PLANS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), subsections (a) and (c) shall not apply for 
any taxable year with respect to which a deduction 
under section 224 is allowable. 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
‘‘(2) EXCEPTION
FOR
INDIVIDUALS
COVERED 
BY
MEDICARE, 
MEDICAID, 
SCHIP, 
OR
GRAND-
FATHERED EMPLOYER PLANS.—Paragraph (1) shall 
not apply to an individual for any taxable year if 
such individual is not an eligible individual (as de-
fined in section 224(d)(1)) for any month during 
such taxable year by reason of coverage described in 
section 224(d)(1)(B).’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 106(b)(1) is amended— 
(i) by inserting ‘‘gross income does 
not include’’ before ‘‘amounts contrib-
uted’’, and 
(ii) by striking ‘‘shall be treated as 
employer-provided coverage for medical ex-
penses under an accident or health plan’’. 
(B) Section 106(d)(1) is amended— 
(i) by inserting ‘‘gross income does 
not include’’ before ‘‘amounts contrib-
uted’’, and 
(ii) by striking ‘‘shall be treated as 
employer-provided coverage for medical ex-
penses under an accident or health plan’’. 
(b) TERMINATION OF DEDUCTION FOR HEALTH IN-
SURANCE COSTS
OF SELF-EMPLOYED INDIVIDUALS.— 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
Subsection (l) of section 162 is amended by adding at the 
end the following new paragraph: 
‘‘(6) TERMINATION.—This subsection shall not 
apply to taxable years with respect to which a deduc-
tion under section 224 is allowable.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 203. EXCLUSION OF STANDARD DEDUCTION FOR 
HEALTH INSURANCE FROM EMPLOYMENT 
TAXES. 
(a) IN GENERAL.—Chapter 25 is amended by adding 
at the end the following new section: 
‘‘SEC. 3512. EXCLUSION OF STANDARD DEDUCTION FROM 
EMPLOYMENT TAXES. 
‘‘(a) IN GENERAL.—For purposes of chapters 21, 22, 
and 23, each of the following amounts for any period (de-
termined without regard to this section) shall be reduced 
by the portion of the standard deduction for health insur-
ance (as defined in section 224) allocable to the period: 
‘‘(1) The amount of wages determined under 
section 3121(a). 
‘‘(2) The amount of compensation determined 
under section 3231(e). 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
‘‘(3) The amount of wages determined under 
section 3306(b). 
‘‘(b) DETERMINATION
OF STANDARD DEDUCTION 
ALLOCABLE TO A PERIOD.—For purposes of subsection 
(a)— 
‘‘(1) IN GENERAL.—The determination of the 
portion of the standard deduction for health insur-
ance allocable to a period shall be made on the basis 
of a qualified certificate of eligible coverage fur-
nished by the employee to the employer. 
‘‘(2) QUALIFIED
CERTIFICATE
OF
ELIGIBLE 
COVERAGE.—The term ‘qualified certificate of eligi-
ble coverage’ means a statement of eligibility for the 
deduction allowable under section 224 which con-
tains such information, is in such form, and is pro-
vided at such times, as the Secretary may prescribe. 
‘‘(3) ONLY 1 CERTIFICATE IN EFFECT AT A 
TIME.—Except as provided by the Secretary, an em-
ployee may have only 1 qualified certificate of eligi-
ble coverage in effect for any period. 
‘‘(4) ELECTION.—An employee may elect not to 
have this section apply for any period for purposes 
of chapter 21 or 22. 
‘‘(c) RECONCILIATION
OF ERRONEOUS PAYMENTS 
TO BE MADE AT EMPLOYEE LEVEL.— 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
‘‘(1) IN GENERAL.—If the application of this 
subsection results in an incorrect amount being 
treated as wages or compensation for purposes of 
chapter 21, 22, or 23, whichever is applicable, with 
respect to any employee for 1 or more periods end-
ing within a taxable year of the employee— 
‘‘(A) in the case of an aggregate overpay-
ment of the taxes imposed by any such chapter 
for all such periods, there shall be allowed as a 
credit against the tax imposed by chapter 1 for 
such taxable year on such employee an amount 
equal to the amount of such overpayment, and 
‘‘(B) in the case of an aggregate under-
payment of the taxes imposed by any such 
chapter for all such periods, the employee shall 
be liable for payment of the entire amount of 
such underpayment. 
‘‘(2) CREDITS TREATED AS REFUNDABLE.—For 
purposes of this title, any credit determined under 
paragraph (1)(A) or subsection (d)(2) shall be treat-
ed as if it were a credit allowed under subpart C of 
part IV of subchapter A of chapter 1. 
‘‘(3) RULES FOR REPORTING AND COLLECTION 
OF TAX.—Any tax required to be paid by an em-
ployee under paragraph (1)(B) shall be included 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
with the employee’s return of Federal income tax for 
the taxable year. 
‘‘(4) SECRETARIAL AUTHORITY.—The Secretary 
shall prescribe such rules as may be necessary to 
carry out the provisions of this subsection.’’. 
(b) SELF-EMPLOYMENT INCOME.—Section 1402 is 
amended by adding at the end the following: 
‘‘(m) STANDARD DEDUCTION FOR HEALTH INSUR-
ANCE.—For purposes of this chapter— 
‘‘(1) IN
GENERAL.—The self-employment in-
come of a taxpayer for any period (determined with-
out regard to this subsection) shall be reduced by 
the excess (if any) of— 
‘‘(A) the portion of the standard deduction 
for health insurance (as defined in section 224) 
allocable to the period, over 
‘‘(B) the amount of any reduction in wages 
or compensation for such period under section 
3512. 
‘‘(2) DETERMINATION
OF
STANDARD
DEDUC-
TION ALLOCABLE TO A PERIOD.—For purposes of 
paragraph (1), the portion of the standard deduction 
allocable to any period shall be determined in a man-
ner similar to the manner under section 3512.’’. 
(c) CONFORMING AMENDMENTS.— 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS
(1) Section 3121(a)(2) is amended by inserting 
‘‘which is excludable from gross income under sec-
tion 105 or 106’’ after ‘‘such payment)’’. 
(2) Subsection (a) of section 209 of the Social 
Security Act (42 U.S.C. 409) is amended by striking 
‘‘or’’ at the end of paragraph (19), by striking the 
period at the end of paragraph (20) and inserting ‘‘; 
or’’, and by inserting after paragraph (20) the fol-
lowing new paragraph: 
‘‘(21) any amount excluded from wages under 
section 3512(a) of the Internal Revenue Code of 
1986 (relating to exclusion of standard deduction 
from employment taxes).’’. 
(3) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘, or the credit 
under section 3512(c)(2) of such Code’’ before the 
period at the end. 
(4) Section 209(k)(2) of the Social Security Act 
(42 U.S.C. 409(k)(2)) is amended by redesignating 
subparagraphs (C) and (D) as subparagraphs (D) 
and (E), respectively, and by inserting after sub-
paragraph (B) the following new subparagraph: 
‘‘(C) by disregarding the exclusion from 
wages in subsection (a)(21),’’. 
VerDate Sep 11 2014 
20:34 Jun 08, 2015
Jkt 049200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2653.IH
H2653
srobinson on DSK5SPTVN1PROD with BILLS