Title: Broader Options for Americans Act
Policy area: Taxation

Summary:
This bill amends the Internal Revenue Code to allow the premium assistance tax credit to be used for unsubsidized COBRA continuation health coverage.
(Under the Consolidated Omnibus Budget Reconciliation Act of 1985 [COBRA], an individual may continue to receive coverage under an employer-sponsored health plan after an event that would otherwise end coverage, such as a termination of employment. This bill applies to COBRA continuation coverage if the premiums are solely the obligation of the taxpayer.)
"COBRA continuation coverage" includes continuation coverage provided under:
It does not include coverage under a health flexible spending arrangement.
For the coverage to qualify for the tax credit, the plan administrator of the group health plan must certify that the COBRA continuation coverage meets the requirements for qualified health plans.
The bill is contingent on the enactment of the American Health Care Act of 2017 and applies (if at all) after December 31, 2019.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2579 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2579

  To amend the Internal Revenue Code of 1986 to allow the premium tax 
    credit with respect to unsubsidized COBRA continuation coverage.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 2017

  Mr. Tiberi introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to allow the premium tax 
    credit with respect to unsubsidized COBRA continuation coverage.

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

SECTION 1. PREMIUM TAX CREDIT ALLOWED WITH RESPECT TO UNSUBSIDIZED 
              COBRA CONTINUATION COVERAGE.

    (a) In General.--Section 36B(f) of the Internal Revenue Code of 
1986 is amended--
            (1) by inserting after ``in section 9832(b))'' the 
        following: ``offered in the individual health insurance market 
        within a State (within the meaning of section 5000A(f)(1)(C)), 
        or any unsubsidized COBRA continuation coverage,''; and
            (2) by striking paragraph (1) and by redesignating 
        paragraphs (2), (3), (4), and (5) as paragraphs (1), (2), (3), 
        and (4), respectively.
    (b) Certification of Unsubsidized COBRA Continuation Coverage.--
Section 36B(g) of such Code is amended by redesignating paragraph (9) 
as paragraph (10) and by inserting after paragraph (8) the following 
new paragraph:
            ``(9) Special rule for unsubsidized cobra continuation 
        coverage.--In the case of unsubsidized COBRA continuation 
        coverage--
                    ``(A) subsection (d)(1) shall be applied by 
                substituting `COBRA continuation coverage which is 
                certified by the plan administrator (as defined in 
                section 414(g)) of the group health plan' for `health 
                insurance coverage which is certified by the State in 
                which such insurance is offered', and
                    ``(B) the requirements of paragraph (8) shall be 
                treated as satisfied if the certification meets such 
                requirements as the Secretary may provide.''.
    (c) Unsubsidized COBRA Continuation Coverage.--Section 36B of such 
Code is amended by adding at the end the following new subsection:
    ``(h) Unsubsidized COBRA Continuation Coverage.--For purposes of 
this section--
            ``(1) In general.--The term `unsubsidized COBRA 
        continuation coverage' means COBRA continuation coverage the 
        payment of applicable premiums (as defined in section 
        4980B(f)(4)) for which is solely the obligation of the 
        taxpayer.
            ``(2) COBRA continuation coverage.--The term `COBRA 
        continuation coverage' means continuation coverage provided--
                    ``(A) pursuant to part 6 of subtitle B of title I 
                of the Employee Retirement Income Security Act of 1974 
                (other than under sections 602(5) and 609), title XXII 
                of the Public Health Service Act, section 4980B (other 
                than subsection (f)(1) thereof insofar as it relates to 
                pediatric vaccines), or section 8905a of title 5, 
                United States Code,
                    ``(B) under a State law or program that provides 
                coverage comparable to coverage described in 
                subparagraph (A), or
                    ``(C) under a group health plan that is a church 
                plan (as defined in section 414(e)) and is comparable 
                to coverage provided pursuant to section 4980B.
        Such term shall not include coverage under a health flexible 
        spending arrangement.''.
    (d) Conforming Amendment.--
    (1) Section 36B(d)(2)(A) is amended by inserting ``COBRA 
continuation coverage or'' after ``other than''.
    (2) Section 36B(g)(6) of such Code is amended by striking 
``subsection (f)(5)'' and inserting ``subsection (f)(4)''.
    (e) Amendment of Section 36B as Amended by American Health Care Act 
of 2017.--Whenever in this section an amendment is expressed in terms 
of an amendment to section 36B of the Internal Revenue Code of 1986, 
the reference shall be considered to be made to such section as amended 
by the American Health Care Act of 2017 and in effect for months 
beginning after December 31, 2019.
    (f) Effective Date.--The amendments made by this subsection are 
contingent upon the enactment of the American Health Care Act of 2017 
and shall apply (if at all) to months beginning after December 31, 
2019, in taxable years ending after such date.
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