turn, 1⁄2 of the dollar amount determined under 
subparagraph (A), and’’. 
(B) SECA.—Section 1401(b)(2) of the In-
ternal Revenue Code of 1986, as added by sec-
tion 9015 of the Patient Protection and Afford-
able Care Act and amended by section 10906 of 
such Act, is amended— 
(i) in subparagraph (A), by striking 
‘‘and’’ at the end of clause (i), by redesig-
nating clause (ii) as clause (iii), and by in-
serting after clause (i) the following new 
clause: 
‘‘(ii) in the case of a married taxpayer 
(as defined in section 7703) filing a sepa-
rate return, 1⁄2 of the dollar amount deter-
mined under clause (i), and’’; and 
(ii) in subparagraph (B), by striking 
‘‘under clauses (i) and (ii)’’ and inserting 
‘‘under clause (i), (ii), or (iii) (whichever is 
applicable)’’. 
(2) ESTIMATED TAXES.—Section 6654 of the 
Internal Revenue Code of 1986 is amended by redes-
ignating subsection (m) as subsection (n) and by in-
serting after subsection (l) the following new sub-
section:
‘‘(m) SPECIAL RULE FOR MEDICARE TAX.—For pur-
poses of this section, the tax imposed under section 
3101(b)(2) (to the extent not withheld) shall be treated 
as a tax imposed under chapter 2.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to remu-
neration received, and taxable years beginning after, 
December 31, 2012. 
SEC. 1403. DELAY OF LIMITATION ON HEALTH FLEXIBLE 
SPENDING ARRANGEMENTS UNDER CAFE-
TERIA PLANS. 
(a) IN GENERAL.—Section 10902(b) of the Patient 
Protection and Affordable Care Act is amended by strik-
ing ‘‘December 31, 2010’’ and inserting ‘‘December 31, 
2012’’. 
(b) INFLATION ADJUSTMENT.—Paragraph (2) of sec-
tion 125(i) of the Internal Revenue Code of 1986, as 
added by section 9005 of the Patient Protection and Af-
fordable Care Act and amended by section 10902 of such 
Act, is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘December 31, 2011’’ and inserting 
‘‘December 31, 2013’’; and 
(2) in subparagraph (B), by striking ‘‘2010’’ 
and inserting ‘‘2012’’.
SEC. 1404. BRAND NAME PHARMACEUTICALS. 
(a) IN GENERAL.—Section 9008 of the Patient Pro-
tection and Affordable Care Act is amended— 
(1) in subsection (a)(1), by striking ‘‘2009’’ and 
inserting ‘‘2010’’; 
(2) in subsection (b)— 
(A) by striking ‘‘$2,300,000,000’’ in para-
graph 
(1) 
and 
inserting 
‘‘the 
applicable 
amount’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(4) APPLICABLE AMOUNT.—For purposes of 
paragraph (1), the applicable amount shall be deter-
mined in accordance with the following table: 
‘‘Calendar year 
Applicable 
amount 
2011 .......................................................................
$2,500,000,000 
2012 .......................................................................
$2,800,000,000 
2013 .......................................................................
$2,800,000,000 
2014 .......................................................................
$3,000,000,000 
2015 .......................................................................
$3,000,000,000 
2016 .......................................................................
$3,000,000,000 
2017 .......................................................................
$4,000,000,000 
2018 .......................................................................
$4,100,000,000 
2019 and thereafter ...............................................
$2,800,000,000.’’; 
(3) in subsection (d), by adding at the end the 
following new paragraph: 
‘‘(3) JOINT AND SEVERAL LIABILITY.—If more 
than one person is liable for payment of the fee 
under subsection (a) with respect to a single covered 
entity by reason of the application of paragraph (2),
all such persons shall be jointly and severally liable 
for payment of such fee.’’; and 
(4) by striking subsection (j) and inserting the 
following new subsection: 
‘‘(j) EFFECTIVE DATE.—This section shall apply to 
calendar years beginning after December 31, 2010.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in section 9008 
of the Patient Protection and Affordable Care Act. 
SEC. 1405. EXCISE TAX ON MEDICAL DEVICE MANUFACTUR-
ERS. 
(a) IN GENERAL.—Chapter 32 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by inserting after subchapter D the fol-
lowing new subchapter: 
‘‘Subchapter E—Medical Devices 
‘‘Sec. 4191. Medical devices. 
‘‘SEC. 4191. MEDICAL DEVICES. 
‘‘(a) IN GENERAL.—There is hereby imposed on the 
sale of any taxable medical device by the manufacturer, 
producer, or importer a tax equal to 2.3 percent of the 
price for which so sold. 
‘‘(b) TAXABLE MEDICAL DEVICE.—For purposes of 
this section—
‘‘(1) IN GENERAL.—The term ‘taxable medical 
device’ means any device (as defined in section 
201(h) of the Federal Food, Drug, and Cosmetic 
Act) intended for humans. 
‘‘(2) EXEMPTIONS.—Such term shall not in-
clude— 
‘‘(A) eyeglasses, 
‘‘(B) contact lenses, 
‘‘(C) hearing aids, and 
‘‘(D) any other medical device determined 
by the Secretary to be of a type which is gen-
erally purchased by the general public at retail 
for individual use.’’, and 
(2) by inserting after the item relating to sub-
chapter D in the table of subchapters for such chap-
ter the following new item: 
‘‘SUBCHAPTER E. MEDICAL DEVICES’’. 
(b) CERTAIN EXEMPTIONS NOT TO APPLY.— 
(1) Section 4221(a) of the Internal Revenue 
Code of 1986 is amended by adding at the end the 
following new sentence: ‘‘In the case of the tax im-
posed by section 4191, paragraphs (3), (4), (5), and 
(6) shall not apply.’’. 
(2) Section 6416(b)(2) of such Code is amend-
ed by adding at the end the following: ‘‘In the case
of the tax imposed by section 4191, subparagraphs 
(B), (C), (D), and (E) shall not apply.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales after December 31, 2012. 
(d) REPEAL OF SECTION 9009 OF THE PATIENT 
PROTECTION
AND AFFORDABLE CARE ACT.—Section 
9009 of the Patient Protection and Affordable Care Act, 
as amended by section 10904 of such Act, is repealed ef-
fective as of the date of enactment of that Act. 
SEC. 1406. HEALTH INSURANCE PROVIDERS. 
(a) IN GENERAL.—Section 9010 of the Patient Pro-
tection and Affordable Care Act, as amended by section 
10905 of such Act, is amended— 
(1) in subsection (a)(1), by striking ‘‘2010’’ and 
inserting ‘‘2013’’; 
(2) in subsection (b)(2)— 
(A) by striking ‘‘For purposes of para-
graph (1), the net premiums’’ and inserting 
‘‘For purposes of paragraph (1)— 
‘‘(A) IN GENERAL.—The net premiums’’; 
and 
(B) by adding at the end the following sub-
paragraph: 
‘‘(B) PARTIAL
EXCLUSION
FOR
CERTAIN 
EXEMPT ACTIVITIES.—After the application of