(b) CONFORMING AMENDMENT.—Section 6051 of 
such Code is amended— 
(1) in paragraph (14) of subsection (a), by 
striking ‘‘section 4980I(d)(1)’’ and inserting ‘‘sub-
section (g)’’, and 
(2) by adding at the end the following: 
‘‘(g) APPLICABLE
EMPLOYER-SPONSORED
COV-
ERAGE.—For purposes of subsection (a)(14)— 
‘‘(1) IN GENERAL.—The term ‘applicable em-
ployer-sponsored coverage’ means, with respect to 
any employee, coverage under any group health plan 
made available to the employee by an employer 
which is excludable from the employee’s gross in-
come under section 106, or would be so excludable 
if it were employer-provided coverage (within the 
meaning of such section 106). 
‘‘(2) EXCEPTIONS.—The term ‘applicable em-
ployer-sponsored coverage’ shall not include— 
‘‘(A) any coverage (whether through insur-
ance 
or 
otherwise) 
described 
in 
section 
9832(c)(1) (other than subparagraph (G) there-
of) or for long-term care, 
‘‘(B) any coverage under a separate policy, 
certificate, or contract of insurance which pro-
vides benefits substantially all of which are for 
VerDate Sep 11 2014 
00:09 Jan 11, 2017
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H173.IH
H173
smartinez on DSK3GLQ082PROD with BILLS
treatment of the mouth (including any organ or 
structure within the mouth) or for treatment of 
the eye, or 
‘‘(C) any coverage described in section 
9832(c)(3) the payment for which is not exclud-
able from gross income and for which a deduc-
tion under section 162(l) is not allowable. 
‘‘(3) COVERAGE
INCLUDES
EMPLOYEE
PAID 
PORTION.—Coverage shall be treated as applicable 
employer-sponsored coverage without regard to 
whether the employer or employee pays for the cov-
erage. 
‘‘(4) GOVERNMENTAL PLANS INCLUDED.—Ap-
plicable employer-sponsored coverage shall include 
coverage under any group health plan established 
and maintained primarily for its civilian employees 
by the Government of the United States, by the gov-
ernment of any State or political subdivision thereof, 
or by any agency or instrumentality of any such gov-
ernment. 
‘‘(5) COST OF COVERAGE.— 
‘‘(A) HEALTH FSAS.—In the case of appli-
cable employer-sponsored coverage consisting of 
coverage under a flexible spending arrangement 
(as defined in section 106(c)(2)), the cost of the 
VerDate Sep 11 2014 
00:09 Jan 11, 2017
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H173.IH
H173
smartinez on DSK3GLQ082PROD with BILLS
coverage shall be equal to the amount deter-
mined under rules similar to the rules of section 
4980B(f)(4) with respect to any reimbursement 
under the arrangement reduced by the contribu-
tions described in subsection (a)(14)(B). 
‘‘(B) ARCHER
MSAS
AND
HSAS.—In the 
case of applicable employer-sponsored coverage 
consisting of coverage under an arrangement 
under which the employer makes contributions 
described in subsection (b) or (d) of section 
106, the cost of the coverage shall be equal to 
the amount of employer contributions under the 
arrangement. 
‘‘(C) 
ALLOCATION
ON
A
MONTHLY 
BASIS.—If cost is determined on other than a 
monthly basis, the cost shall be allocated to 
months in a taxable period on such basis as the 
Secretary may prescribe.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for chapter 43 of such Code is amended by striking the 
item relating to section 4980I. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
Æ 
VerDate Sep 11 2014 
00:09 Jan 11, 2017
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H173.IH
H173
smartinez on DSK3GLQ082PROD with BILLS