Title: Harmful Tax Prevention Act
Policy area: Health

Summary:
Harmful Tax Prevention Act
This bill amends the Patient Protection and Affordable Care Act to allow a health insurer to reduce its 2018 annual fee by the amount of premium rebates provided to enrollees under this bill. Premium rebates must be equal to the lesser of 2% of the net premiums for each individual or the premiums paid by an individual.
For a Medicaid managed care organization, the 2018 annual fee shall be reduced by 2% of the net premiums.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4894 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 4894

  To amend the Patient Protection and Affordable Care Act to provide 
   temporary relief from the annual fee imposed on health insurance 
                               providers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 29, 2018

  Mrs. Noem introduced the following bill; which was referred to the 
 Committee on Energy and Commerce, and in addition to the Committee on 
   Ways and Means, 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 amend the Patient Protection and Affordable Care Act to provide 
   temporary relief from the annual fee imposed on health insurance 
                               providers.

    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 ``Harmful Tax Prevention Act''.

SEC. 2. PARTIAL RELIEF FROM ANNUAL FEE ON HEALTH INSURANCE PROVIDERS.

    (a) In General.--Section 9010 of the Patient Protection and 
Affordable Care Act is amended by adding at the end the following new 
subsection:
    ``(k) Optional Relief for 2018.--
            ``(1) In general.--In the case of a covered entity that 
        meets the requirements of paragraph (2), the fee described in 
        subsection (a)(1) shall be reduced by the sum of the premium 
        rebates provided pursuant to paragraph (2).
            ``(2) Rebates for individuals.--A covered entity meets the 
        requirements of this paragraph if such entity demonstrates to 
        the satisfaction of the Secretary of the Treasury (in 
        consultation with the Secretary of Health and Human Services, 
        Administrator of the Centers for Medicare and Medicaid 
        Services, and the National Association of Insurance 
        Commissioners, as appropriate) that such entity will provide--
                    ``(A) not later than April 30, 2019, to each 
                individual enrolled in calendar year 2018 in a 
                qualified rebate plan offered by such entity a premium 
                rebate equal to the lesser of--
                            ``(i) 2 percent of the net premiums written 
                        for coverage under such plan for such 
                        individual for calendar year 2018, or
                            ``(ii) the amount of the premiums described 
                        in subparagraph (A) paid by such individual, 
                        and
                    ``(B) for individuals who will receive a premium 
                rebate described in subparagraph (A) after September 
                30, 2018, notice to such individuals by such date of 
                such premium rebate.
            ``(3) Qualified rebate plan.--For purposes of this 
        subsection, the term `qualified rebate plan' means, with 
        respect to a covered entity, any combination, as elected by the 
        covered entity, of the following categories of health plans:
                    ``(A) A health plan offered in the individual 
                market.
                    ``(B) A health plan offered in the group market.
                    ``(C) A Medicare Advantage plan under part C of 
                title XVIII of the Social Security Act.
                    ``(D) A prescription drug plan offered under part D 
                of such title XVIII.
            ``(4) Reduction in premiums treated as rebates.--For 
        purposes of this subsection, a reduction in premiums owed by an 
        individual for a month shall be treated as a premium rebate 
        paid to such individual on the first day of such month.
    ``(l) Medicaid Managed Care Plans Reduction for 2018.--In the case 
of a medicaid managed care organization (as defined in section 
1903(m)(1)(A) of the Social Security Act), the fee described in 
subsection (a)(1) shall be reduced by an amount equal to 2 percent of 
the net premiums written for coverage under a medicaid managed care 
plan (under section 1903(m) or section 1932 of such Act) for calendar 
year 2018.''.
    (b) Medical Loss Ratio.--Section 2718 of the Public Health Service 
Act is amended by adding at the end the following new subsection:
    ``(f) Amounts Expended for Premium Rebates Not Included.--No amount 
expended pursuant to subsections (k) or (l) of section 9010 of the 
Patient Protection and Affordable Care Act shall be taken into account 
for purposes of this section.''.
    (c) Conforming Amendment.--Section 9010(b)(1) of the Patient 
Protection and Affordable Care Act is amended by striking ``the fee 
under this section'' and inserting ``the amount determined under this 
subsection''.
    (d) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply 
        with respect to calendar years beginning after December 31, 
        2017.
            (2) Medical loss ratio.--The amendment made by subsection 
        (b) shall apply with respect to plan years beginning after 
        December 31, 2017.
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