II 114TH CONGRESS 1ST SESSION S. 1016 To preserve freedom and choice in health care. IN THE SENATE OF THE UNITED STATES APRIL 20, 2015 Mr. JOHNSON (for himself, Mr. BARRASSO, Mr. BLUNT, Mr. COATS, Mr. COCHRAN, Mr. CORNYN, Mr. DAINES, Mr. ENZI, Mrs. ERNST, Mr. GARDNER, Mr. GRAHAM, Mr. GRASSLEY, Mr. HATCH, Mr. HELLER, Mr. ISAKSON, Mr. MCCAIN, Mr. MCCONNELL, Mr. PERDUE, Mr. ROBERTS, Mr. SCOTT, Mr. THUNE, Mr. TILLIS, Mr. WICKER, Mr. INHOFE, Mr. ROUNDS, Mrs. FISCHER, Mr. SHELBY, Mr. RISCH, Mr. CRAPO, and Mr. SESSIONS) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To preserve freedom and choice in health care. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE. 4 This Act may be cited as the ‘‘Preserving Freedom 5 and Choice in Health Care Act’’. SSpencer on DSK4SPTVN1PROD with BILLS 6 SEC. 2. REPEALING THE INDIVIDUAL MANDATE. 7 Sections 1501 and 1502 and subsections (a), (b), (c), 8 and (d) of section 10106 of the Patient Protection and 9 Affordable Care Act (and the amendments made by such VerDate Sep 11 2014 03:30 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1016.IS S1016 2 1 sections and subsections) are repealed and the Internal 2 Revenue Code of 1986 shall be applied and administered 3 as if such provisions and amendments had never been en4 acted. 5 SEC. 3. REPEALING THE EMPLOYER MANDATE. 6 Sections 1513 and 1514 and subsections (e), (f), and 7 (g) of section 10106 of the Patient Protection and Afford8 able Care Act (and the amendments made by such sections 9 and subsections) are repealed and the Internal Revenue 10 Code of 1986 shall be applied and administered as if such 11 provisions and amendments had never been enacted. 12 SEC. 4. MODIFICATIONS TO PREMIUM ASSISTANCE CREDIT. 13 14 (a) EXTENSION UALS OF CREDIT FOR CERTAIN INDIVID- NOT ENROLLED THROUGH STATE EXCHANGES.— 15 Paragraph (3) of section 36B(b) of the Internal Revenue 16 Code of 1986 is amended by adding at the end the fol17 lowing new subparagraph: SSpencer on DSK4SPTVN1PROD with BILLS 18 ‘‘(F) SPECIAL RULE FOR INDIVIDUALS EN- 19 ROLLED THROUGH A FEDERAL EXCHANGE.—In 20 the case of any applicable taxpayer who is not 21 eligible for the credit allowed under subsection 22 (a) (determined without regard to this subpara- 23 graph) solely as a result of a determination by 24 the Supreme Court of the United States in the 25 case of King v. Burwell (2015), paragraph •S 1016 IS VerDate Sep 11 2014 03:30 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1016.IS S1016 3 1 (2)(A) shall be applied to months beginning be- 2 fore September 2017, by substituting ‘enrolled 3 in through an Exchange established under the 4 Patient Protection and Affordable Care Act’ for 5 ‘enrolled in through an Exchange established by 6 the State under 1311 of the Patient Protection 7 and Affordable Care Act’.’’. 8 9 (b) DENIAL VIOUSLY OF CREDIT FOR INDIVIDUALS NOT PRE- ENROLLED.—Subsection (b) of section 36B of 10 the Internal Revenue Code of 1986 is amended by adding 11 at the end the following new paragraph: 12 ‘‘(4) LIMITATION 13 VIOUSLY ENROLLED.—The 14 it amount shall be zero with respect to any qualified 15 health plan unless such plan covers an individual de- 16 scribed in paragraph (2)(A) who was enrolled in a 17 qualified health plan through an Exchange estab- 18 lished under the Patient Protection and Affordable 19 Care Act before the date of the enactment of this 20 paragraph.’’. 21 (c) EFFECTIVE DATE.—The amendments made by FOR INDIVIDUALS NOT PRE- premium assistance cred- 22 this section shall apply to months beginning after Decem- SSpencer on DSK4SPTVN1PROD with BILLS 23 ber 31, 2013. •S 1016 IS VerDate Sep 11 2014 03:30 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1016.IS S1016 4 1 SEC. 5. FREEDOM TO MAINTAIN EXISTING COVERAGE. 2 (a) IN GENERAL.—Part 2 of subtitle C of title I of 3 the Patient Protection and Affordable Care Act (42 4 U.S.C. 18011 et seq.) is amended by striking section 1251 5 and inserting the following: 6 ‘‘SEC. 1251. FREEDOM TO MAINTAIN EXISTING COVERAGE. 7 ‘‘(a) NO CHANGES TO EXISTING COVERAGE.— 8 ‘‘(1) IN in this Act (or an 9 amendment made by this Act) shall be construed to 10 require that an individual terminate coverage under 11 a group health plan or health insurance coverage in 12 which such individual was enrolled during any part 13 of the period beginning on the date of enactment of 14 this Act and ending on December 31, 2017. 15 SSpencer on DSK4SPTVN1PROD with BILLS GENERAL.—Nothing ‘‘(2) CONTINUATION OF COVERAGE.—With re- 16 spect to a group health plan or health insurance cov- 17 erage in which an individual was enrolled during any 18 part of the period beginning on the date of enact- 19 ment of this Act and ending on December 31, 2017, 20 this subtitle and subtitle A (and the amendments 21 made by such subtitles) shall not apply to such plan 22 or coverage, regardless of whether the individual re- 23 news such coverage. 24 ‘‘(b) ALLOWANCE FOR FAMILY MEMBERS TO JOIN 25 CURRENT COVERAGE.—With respect to a group health 26 plan or health insurance coverage in which an individual •S 1016 IS VerDate Sep 11 2014 03:30 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1016.IS S1016 5 1 was enrolled during any part of the period beginning on 2 the date of enactment of this Act and ending on December 3 31, 2017, and which is renewed, family members of such 4 individual shall be permitted to enroll in such plan or cov5 erage if such enrollment is permitted under the terms of 6 the plan in effect as of such date of enrollment. 7 ‘‘(c) ALLOWANCE FOR NEW EMPLOYEES TO JOIN 8 CURRENT PLAN.—A group health plan that provides cov9 erage during any part of the period beginning on the date 10 of enactment of this Act and ending on December 31, 11 2017, may provide for the enrolling of new employees (and 12 their families) in such plan, and this subtitle and subtitle 13 A (and the amendments made by such subtitles) shall not 14 apply with respect to such plan and such new employees 15 (and their families). 16 17 ‘‘(d) EFFECT MENTS.—In ON COLLECTIVE BARGAINING AGREE- the case of health insurance coverage main- 18 tained pursuant to one or more collective bargaining 19 agreements between employee representatives and one or 20 more employers that was ratified before December 31, 21 2017, the provisions of this subtitle and subtitle A (and 22 the amendments made by such subtitles) shall not apply SSpencer on DSK4SPTVN1PROD with BILLS 23 until the date on which the last of the collective bargaining 24 agreements relating to the coverage terminates. Any cov25 erage amendment made pursuant to a collective bar•S 1016 IS VerDate Sep 11 2014 03:30 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1016.IS S1016 6 1 gaining agreement relating to the coverage which amends 2 the coverage solely to conform to any requirement added 3 by this subtitle or subtitle A (or amendments) shall not 4 be treated as a termination of such collective bargaining 5 agreement. 6 ‘‘(e) DEFINITION.—In this title, the term ‘grand- 7 fathered health plan’ means any group health plan or 8 health insurance coverage to which this section applies.’’. 9 (b) EFFECTIVE DATE.—The amendment made by 10 subsection (a) shall take effect as if included in the Pa11 tient Protection and Affordable Care Act (Public Law 12 111–148). 13 SEC. 6. ESSENTIAL HEALTH BENEFITS. 14 (a) IN GENERAL.—Subsections (a) and (b) of section 15 1302 of the Patient Protection and Affordable Care Act 16 (42 U.S.C. 18022) are amended to read as follows: 17 ‘‘(a) ESSENTIAL HEALTH BENEFITS PACKAGE.—In 18 this title, the term ‘essential health benefits package’ 19 means, with respect to any health plan, coverage that pro20 vide for benefits and cost sharing as required in the States 21 in which such plan is offered. 22 ‘‘(b) ESSENTIAL HEALTH BENEFITS.—Essential SSpencer on DSK4SPTVN1PROD with BILLS 23 health benefits shall be defined to include those required 24 by the State in which a health plan is offered.’’. •S 1016 IS VerDate Sep 11 2014 03:30 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1016.IS S1016 7 1 (b) EFFECTIVE DATE.—The amendment made by 2 subsection (a) shall take effect as if included in the Pa3 tient Protection and Affordable Care Act (Public Law 4 111–148). SSpencer on DSK4SPTVN1PROD with BILLS Æ •S 1016 IS VerDate Sep 11 2014 03:30 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\S1016.IS S1016