Title: Repeal and Refund Act
Policy area: Taxation

Summary:
Repeal and Refund Act
This bill amends the Internal Revenue Code to repeal: (1) the requirement that individuals maintain minimum essential health care coverage (commonly referred to as the individual mandate), and (2) the reporting requirements for health insurance coverage.
The Department of the Treasury must implement a program to refund all penalties paid by taxpayers for failing to maintain minimum essential health coverage. Treasury must provide taxpayers with one payment to refund all penalties without regard to whether or not an amended tax return is filed.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1898 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1898

To amend the Internal Revenue Code of 1986 to retroactively repeal the 
                individual mandate for health insurance.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 28, 2017

  Mr. Daines introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to retroactively repeal the 
                individual mandate for health insurance.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Repeal and Refund Act''.

SEC. 2. REPEAL OF INDIVIDUAL MANDATE.

    (a) Repeal of Requirement To Maintain Minimum Essential Coverage.--
            (1) In general.--The Internal Revenue Code of 1986 is 
        amended by striking chapter 48.
            (2) Conforming amendments.--
                    (A) Amendments related to the internal revenue code 
                of 1986.--
                            (i) Section 36B of the Internal Revenue 
                        Code of 1986 is amended by redesignating 
                        subsection (g) as subsection (h) and by 
                        inserting after subsection (g) the following 
                        new subsection:
    ``(g) Minimum Essential Coverage.--For purposes of this section--
            ``(1) In general.--The term `minimum essential coverage' 
        means any of the following:
                    ``(A) Government sponsored programs.--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) medical coverage under chapter 55 of 
                        title 10, United States Code, including 
                        coverage under the TRICARE program,
                            ``(v) a health care program under chapter 
                        17 or 18 of title 38, United States Code, as 
                        determined by the Secretary of Veterans 
                        Affairs, in coordination with the Secretary of 
                        Health and Human Services and the Secretary,
                            ``(vi) a health plan under section 2504(e) 
                        of title 22, United States Code (relating to 
                        Peace Corps volunteers), or
                            ``(vii) the Nonappropriated Fund Health 
                        Benefits Program of the Department of Defense, 
                        established under section 349 of the National 
                        Defense Authorization Act for Fiscal Year 1995 
                        (Public Law 103-337; 10 U.S.C. 1587 note).
                    ``(B) Employer-sponsored plan.--Coverage under an 
                eligible employer-sponsored plan.
                    ``(C) Plans in the individual market.--Coverage 
                under a health plan offered in the individual 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, recognizes 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 employer 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 minimum essential 
        coverage.--The term `minimum essential coverage' shall not 
        include health insurance coverage which consists of coverage of 
        excepted benefits--
                    ``(A) described in paragraph (1) of subsection (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 applicable individual shall be 
        treated as having minimum essential coverage for any month--
                    ``(A) if such month occurs during any period 
                described in subparagraph (A) or (B) of section 
                911(d)(1) which is applicable to the individual, or
                    ``(B) if such individual is a bona fide resident 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 the Patient Protection 
        and Affordable Care Act shall have the same meaning as when 
        used in such title.''.
                            (ii) Section 36B(c)(2)(B) of such Code is 
                        amended to read as follows:
                    ``(B) Exception for minimum essential coverage.--
                The term `coverage month' shall not include any month 
                with respect to an individual if for such month the 
                individual is eligible for minimum essential coverage 
                other than eligibility for coverage described in 
                subsection (g)(1)(C) (relating to coverage in the 
                individual market).''.
                            (iii) Clauses (i)(I) and (ii) of section 
                        36B(c)(2)(C) of such Code are each amended by 
                        striking ``section 5000A(f)(2)'' and inserting 
                        ``subsection (g)(2)''.
                            (iv)(I) Subclause (II) of section 
                        36B(c)(2)(C)(i) of such Code is amended by 
                        striking ``(within the meaning of section 
                        5000A(e)(1)(B))''.
                            (II) Paragraph (2) of section 36B(c) of 
                        such Code is amended by adding at the end the 
                        following new subparagraph:
                    ``(D) Required contribution.--For purposes of 
                subparagraph (C)(i)(II), the term `required 
                contribution' means--
                            ``(i) in the case of an individual eligible 
                        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
                            ``(ii) in the case of an individual 
                        eligible only to purchase minimum essential 
                        coverage described in subsection (g)(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 individual purchased a qualified 
                        health plan through the Exchange), reduced by 
                        the amount of the credit allowable under 
                        subsection (a) 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).''.
                            (v) Section 162(m)(6)(C)(i) of such Code is 
                        amended by striking ``section 5000A(f)'' and 
                        inserting ``section 36B(g)''.
                            (vi) Subsections (a)(1) and (b)(1) of 
                        section 4980H of such Code are each amended by 
                        striking ``section 5000A(f)(2)'' and inserting 
                        ``section 36B(g)(2)''.
                            (vii) Section 4980I(f)(1)(B) of such Code 
                        is amended by striking ``section 5000A(f)'' and 
                        inserting ``section 36B(g)''.
                            (viii) Section 6056(b)(2)(b) of such Code 
                        is amended by striking ``section 5000A(f)(2)'' 
                        and inserting ``section 36B(g)(2)''.
                            (ix) The table of chapters of the Internal 
                        Revenue Code of 1986 is amended by striking the 
                        item relating to chapter 48.
                    (B) Amendments related to the patient protection 
                and affordable care act.--
                            (i) Section 1251(a)(4)(B)(ii) of the 
                        Patient Protection and Affordable Care Act is 
                        amended by striking ``section 500A(f)(2)'' and 
                        inserting ``section 36B(g)(2)''.
                            (ii) Section 1302(e)(2) of such Act is 
                        amended to read as follows:
            ``(2) Individuals eligible for enrollment.--An individual 
        is described in this paragraph for any plan year if the 
        individual has not attained the age of 30 before the beginning 
        of the plan year.''.
                            (iii) Section 1311(d)(4) of such Act is 
                        amended by striking subparagraph (H).
                            (iv) Section 1312(d)(4) of such Act is 
                        amended by striking ``section 5000A(f)'' and 
                        inserting ``section 36B(g)''.
                            (v) Section 1363(e)(1)(C) of such Act is 
                        amended--
                                    (I) by striking ``section 
                                5000A(f)'' and inserting ``section 
                                36B(g)'', and
                                    (II) by striking ``or is eligible 
                                for an employer-sponsored plan that is 
                                not affordable coverage (as determined 
                                under section 5000A(e)(2) of such 
                                Code)'' and inserting ``or who is 
                                eligible for an employer-sponsored plan 
                                and whose household income for the 
                                taxable year described in section 
                                1412(b)(1)(B) is less than the amount 
                                of gross income specified in section 
                                6012(a)(1) of the Internal Revenue Code 
                                of 1986 with respect to the taxpayer''.
                            (vi) Section 1332(a)(2)(D) of such Act is 
                        amended by striking ``36B, 4980H, and 5000A'' 
                        and inserting ``36B and 4980H''.
                            (vii) Section 1401(c)(1)(A)(iii) of such 
                        Act is amended by striking ``section 5000A(f)'' 
                        and inserting ``section 36B(g)''.
                            (viii) Section 1411(a) of such Act is 
                        amended--
                                    (I) by inserting ``and'' at the end 
                                of paragraph (2),
                                    (II) in paragraph (3)--
                                            (aa) by striking ``and 
                                        section 5000A(e)(2)'', and
                                            (bb) by striking ``, and'' 
                                        and inserting a period, and
                                    (III) by striking paragraph (4).
                            (ix) Section 1411(b)(4)(C) of such Act is 
                        amended by striking ``5000A(e)(1)(B)'' and 
                        inserting ``36B(c)(2)(D)''.
                            (x) Section 1411(b) of such Act is amended 
                        by striking paragraph (5).
                            (xi) Section 1411(e)(4)(B) of such Act is 
                        amended by striking clause (iv).
                    (C) Other conforming amendments.--Section 
                2715(b)(3)(G)(i) of the Public Health Service Act is 
                amended by striking ``section 5000A(f)'' and inserting 
                ``section 36B(g)''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2013.
    (b) Repeal of Reporting of Health Insurance Coverage.--
            (1) In general.--Part III of subchapter A of chapter 61 of 
        the Internal Revenue Code of 1986 is amended by striking 
        subpart D.
            (2) Conforming amendments.--
                    (A) Section 6056(d) of the Internal Revenue Code of 
                1986 is amended to read as follows:
    ``(d) Coordination With Other Requirements.--To the maximum extent 
feasible, the Secretary may provide that any return or statement 
required to be provided under this section may be provided as part of 
any return or statement required under section 6051.''.
                    (B) Section 6724(d)(1)(B) of such Code is amended 
                by inserting ``or'' at the end of clause (xxiii), by 
                striking clause (xxiv), and by redesignating clause 
                (xxv) as clause (xxiv).
                    (C) Section 6724(d)(2) of such Code is amended by 
                inserting ``or'' at the end of subparagraph (FF), by 
                striking subparagraph (GG), and by redesignating 
                subparagraph (HH) as subparagraph (GG).
                    (D) Subsection (c) of section 1502 of the Patient 
                Protection and Affordable Care Act is repealed.
                    (E) The table of subparts for part III of 
                subchapter A of chapter 61 of the Internal Revenue Code 
                of 1986 is amended by striking the item relating to 
                subpart D.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to calendar years beginning after December 31, 
        2013.
    (c) Taxpayer Refund Program.--
            (1) In general.--The Secretary of the Treasury shall 
        implement a program under which taxpayers who have paid a 
        penalty under section 5000A of the Internal Revenue Code of 
        1986 for any taxable year receive 1 payment in refund of all 
        such penalties paid, without regard to whether or not an 
        amended return is filed. Such payment shall be made not later 
        than April 15, 2018.
            (2) Waiver of statute of limitations.--Solely for purposes 
        of claiming the refund under paragraph (1), the period 
        prescribed by section 6511(a) of the Internal Revenue Code of 
        1986 with respect to any payment of a penalty under section 
        5000A shall be extended until the date prescribed by law 
        (including extensions) for filing the return of tax for the 
        taxable year that includes December 31, 2017.
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