To lower health premiums and increase choice for small businesses.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Health Relief Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
        TITLE I--MAKING COVERAGE AFFORDABLE FOR SMALL BUSINESSES

Sec. 101. Protecting American jobs and wages.
Sec. 102. Increasing flexibility for small businesses.
Sec. 103. Increasing choices for Americans.
Sec. 104. Protecting patients from higher premiums.
Sec. 105. Ensuring affordable coverage.
                 TITLE II--INCREASING CONSUMER CONTROL

Sec. 201. Repeal of the restriction on over-the-counter medicines.
Sec. 202. Repeal of the annual cap.
       TITLE III--ALLOWING INDIVIDUALS TO KEEP COVERAGE THEY LIKE

Sec. 301. Allowing individuals to keep the coverage they have if they 
                            like it.

        TITLE I--MAKING COVERAGE AFFORDABLE FOR SMALL BUSINESSES

SEC. 101. PROTECTING AMERICAN JOBS AND WAGES.

    Sections 1513 and 1514 and subsections (e), (f), and (g) of section 
10106 of the Patient Protection and Affordable Care Act (Public Law 
111-148) and the amendments made by such sections and subsections are 
repealed and the Internal Revenue Code of 1986 shall be applied and 
administered as if such provisions and amendments had never been 
enacted.

SEC. 102. INCREASING FLEXIBILITY FOR SMALL BUSINESSES.

    Section 1302(c)(2) of the Patient Protection and Affordable Care 
Act (Public Law 111-148) is repealed.

SEC. 103. INCREASING CHOICES FOR AMERICANS.

    (a) Qualified Health Plan Coverage Satisfied by High Deductible 
Health Plan With Health Savings Account.--Section 1302(e) of the 
Patient Protection and Affordable Care Act (42 U.S.C. 18022(e)) is 
amended to read as follows:
    ``(e) High Deductible Health Plan With Health Savings Account.--A 
health plan not providing a bronze, silver, gold, or platinum level of 
coverage shall be treated as meeting the requirements of subsection (d) 
with respect to any plan year for any enrollee if the plan meets the 
requirements for a high deductible health plan under section 223(c)(2) 
of the Internal Revenue Code of 1986 and such enrollee has established 
a health savings account (as defined in section 223(d)(1) of such Code) 
in relation to such plan.''.
    (b) Conforming Amendments.--
            (1) Subparagraph (C) of section 1312(d)(3) of the Patient 
        Protection and Affordable Care Act (42 U.S.C. 18032(d)(3)) is 
        amended by striking ``, except'' and all that follows through 
        ``1302(e)(2)''.
            (2) Subparagraph (A) of section 36B(c)(3) of the Internal 
        Revenue Code of 1986, as added by section 1401(a) of the 
        Patient Protection and Affordable Care Act (Public Law 111-
        148), is amended by striking ``, except'' and all that follows 
        through ``such Act''.
            (3) Subparagraph (B) of section 1334(c)(1) of the Patient 
        Protection and Affordable Care Act (42 U.S.C. 18054(c)(1)) is 
        amended by striking ``and catastrophic coverage''.

SEC. 104. PROTECTING PATIENTS FROM HIGHER PREMIUMS.

    Section 9010 of the Patient Protection and Affordable Care Act 
(Public Law 111-148), as amended by section 10905 of such Act, is 
repealed.

SEC. 105. ENSURING AFFORDABLE COVERAGE.

    Section 2701(a)(1)(A)(iii) of the Public Health Service Act (42 
U.S.C. 300(a)(1)(A)(iii)), as added by section 1201 of the Patient 
Protection and Affordable Care Act (Public Law 111-148), is amended by 
striking ``, except'' and all that follows through ``2707(c))''.

                 TITLE II--INCREASING CONSUMER CONTROL

SEC. 201. REPEAL OF THE RESTRICTION ON OVER-THE-COUNTER MEDICINES.

    Section 9003 of the Patient Protection and Affordable Care Act 
(Public Law 111-148) and the amendments made by such section are 
repealed and the Internal Revenue Code of 1986 shall be applied as if 
such section and amendments had never been enacted.

SEC. 202. REPEAL OF THE ANNUAL CAP.

    Sections 9005 and 10902 of the Patient Protection and Affordable 
Care Act (Public Law 111-148) and section 1403 of the Health Care and 
Education Reconciliation Act of 2010 (Public Law 111-152) and the 
amendments made by such sections are repealed and the Internal Revenue 
Code of 1986 shall be applied as if such sections and amendments had 
never been enacted.

       TITLE III--ALLOWING INDIVIDUALS TO KEEP COVERAGE THEY LIKE

SEC. 301. ALLOWING INDIVIDUALS TO KEEP THE COVERAGE THEY HAVE IF THEY 
              LIKE IT.

    (a) In General.--Section 1251(a)(2) of the Patient Protection and 
Affordable Care Act (42 U.S.C. 18011) is amended--
            (1) by striking ``Except as provided in paragraph (3),'' 
        and inserting the following:
                    ``(A) In general.--Except as provided in paragraphs 
                (3) and (4),''; and
            (2) by adding at the end the following:
                    ``(B) Protecting employers and consumers with 
                grandfathered coverage.--
                            ``(i) In general.--A group health plan or 
                        health insurance coverage in which an 
                        individual is enrolled on or after March 23, 
                        2010, but before any plan year beginning not 
                        later than 1 year after the date of the 
                        enactment of this subparagraph, and which is 
                        deemed to be a grandfathered health plan under 
                        this section, shall continue to be considered a 
                        grandfathered health plan with respect to such 
                        individual regardless of any modification to 
                        the cost-sharing levels, employer contribution 
                        rates, or covered benefits under such plan or 
                        coverage as otherwise permitted under this Act 
                        (and the amendments made by this Act).
                            ``(ii) Regulations.--The Secretary shall 
                        promulgate regulations to clarify the 
                        application of clause (i) to a plan or coverage 
                        that continues to be a grandfathered health 
                        plan pursuant to such clause.''.
    (b) Effective Date; Previously Promulgated Regulations Voided.--
            (1) Effective date.--The amendments made by this section 
        shall take effect as if included in the enactment of the 
        Patient Protection and Affordable Care Act.
            (2) Previously promulgated regulations voided.--Any 
        regulations relating to section 1251(a)(2) of such Act 
        promulgated before the date of the enactment of this Act shall 
        have no force or effect.

Summary: Small Business Health Relief Act of 2011 - Repeals provisions of the Internal Revenue Code (IRC), as added by the Patient Protection and Affordable Care Act (PPACA), that: (1) impose fines on large employers (employers with more than 50 full-time employees) who fail to offer their full-time employees the opportunity to enroll in minimum essential health insurance coverage; and (2) require such large employers to file a report with the Secretary of the Treasury on health insurance coverage provided to their full-time employees.

Repeals provision of PPACA that: (1) set limits on the annual deductible on health plans offered in the small group market, (2) allow catastrophic plans to be offered in the individual market to individuals under the age of 30, and (3) impose an annual fee on health insurance entities.

Deems high deductible health plans to meet essential health benefits coverage requirements if the enrollee has established a health savings account.

Amends the Public Health Service Act, as amended by PPACA, to repeal a provision that allows a premium rate variance by age in the individual or small group market.

Repeals restrictions on payments for medications from health savings accounts, medical savings accounts, and health flexible spending arrangements to prescription drugs or insulin.

Repeals provisions limiting annual salary reduction contributions by an employee to a health flexible spending arrangement under a cafeteria plan to $2,500.

Allows a health plan to maintain its status as a grandfathered health plan regardless of any modification to the cost-sharing levels, employer contribution rates, or covered benefits. Requires the Secretary of Health and Human Services (HHS) to promulgate regulations to clarify the application of such provision. Makes this provision effective as if included in PPACA. Voids any regulations promulgated related to such provisions before enactment of this Act.