[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3762 Enrolled Bill (ENR)]
H.R.3762
One Hundred Fourteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the fourth day of January, two thousand and sixteen
An Act
To provide for reconciliation pursuant to section 2002 of the concurrent
resolution on the budget for fiscal year 2016.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I--HEALTH, EDUCATION, LABOR, AND PENSIONS
SEC. 101. THE PREVENTION AND PUBLIC HEALTH FUND.
(a) In General.--Subsection (b) of section 4002 of the Patient
Protection and Affordable Care Act (42 U.S.C. 300u-11) is amended--
(1) in paragraph (2), by striking ``2017'' and inserting
``2015''; and
(2) by striking paragraphs (3) through (5).
(b) Rescission of Unobligated Funds.--Of the funds made available
by such section 4002, the unobligated balance is rescinded.
SEC. 102. COMMUNITY HEALTH CENTER PROGRAM.
Effective as if included in the enactment of the Medicare Access
and CHIP Reauthorization Act of 2015 (Public Law 114-10, 129 Stat. 87),
paragraph (1) of section 221(a) of such Act is amended by inserting
after ``Section 10503(b)(1)(E) of the Patient Protection and Affordable
Care Act (42 U.S.C. 254b-2(b)(1)(E)) is amended'' the following: ``by
striking `$3,600,000,000' and inserting `$3,835,000,000' and''.
SEC. 103. TERRITORIES.
Section 1323(c) of the Patient Protection and Affordable Care Act
(42 U.S.C. 18043(c)) is amended by adding at the end the following:
``(3) No force and effect.--Effective January 1, 2018, this
subsection shall have no force or effect.''.
SEC. 104. REINSURANCE, RISK CORRIDOR, AND RISK ADJUSTMENT PROGRAMS.
(a) Transitional Reinsurance Program for Individual Market.--
Section 1341 of the Patient Protection and Affordable Care Act (42
U.S.C. 18061) is amended by adding at the end the following:
``(e) No Force and Effect.--Effective January 1, 2016, the
Secretary shall not collect fees and shall not make payments under this
section.''.
SEC. 105. SUPPORT FOR STATE RESPONSE TO SUBSTANCE ABUSE PUBLIC
HEALTH CRISIS AND URGENT MENTAL HEALTH NEEDS.
(a) In General.--There are authorized to be appropriated, and are
appropriated, out of monies in the Treasury not otherwise obligated,
$750,000,000 for each of fiscal years 2016 and 2017, to the Secretary
of Health and Human Services (referred to in this section as the
``Secretary'') to award grants to States to address the substance abuse
public health crisis or to respond to urgent mental health needs within
the State. In awarding grants under this section, the Secretary may
give preference to States with an incidence or prevalence of substance
use disorders that is substantial relative to other States or to States
that identify mental health needs within their communities that are
urgent relative to such needs of other States. Funds appropriated under
this subsection shall remain available until expended.
(b) Use of Funds.--Grants awarded to a State under subsection (a)
shall be used for one or more of the following public health-related
activities:
(1) Improving State prescription drug monitoring programs.
(2) Implementing prevention activities, and evaluating such
activities to identify effective strategies to prevent substance
abuse.
(3) Training for health care practitioners, such as best
practices for prescribing opioids, pain management, recognizing
potential cases of substance abuse, referral of patients to
treatment programs, and overdose prevention.
(4) Supporting access to health care services provided by
federally certified opioid treatment programs or other appropriate
health care providers to treat substance use disorders or mental
health needs.
(5) Other public health-related activities, as the State
determines appropriate, related to addressing the substance abuse
public health crisis or responding to urgent mental health needs
within the State.
TITLE II--FINANCE
SEC. 201. RECAPTURE EXCESS ADVANCE PAYMENTS OF PREMIUM TAX CREDITS.
Subparagraph (B) of section 36B(f)(2) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new clause:
``(iii) Nonapplicability of limitation.--This
subparagraph shall not apply to taxable years ending after
December 31, 2015, and before January 1, 2018.''.
SEC. 202. PREMIUM TAX CREDIT AND COST-SHARING SUBSIDIES.
(a) Repeal of Premium Tax Credit.--Subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986 is
amended by striking section 36B.
(b) Repeal of Cost-Sharing Subsidy.--Section 1402 of the Patient
Protection and Affordable Care Act is repealed.
(c) Repeal of Eligibility Determinations.--The following sections
of the Patient Protection and Affordable Care Act are repealed:
(1) Section 1411 (other than subsection (i), the last sentence
of subsection (e)(4)(A)(ii), and such provisions of such section
solely to the extent related to the application of the last
sentence of subsection (e)(4)(A)(ii)).
(2) Section 1412.
(d) Protecting Americans by Repeal of Disclosure Authority To Carry
Out Eligibility Requirements for Certain Programs.--
(1) In general.--Paragraph (21) of section 6103(l) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subparagraph:
``(D) Termination.--No disclosure may be made under this
paragraph after December 31, 2017.''.
(e) Effective Dates.--
(1) Premium tax credit.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31, 2017.
(2) Cost sharing-subsidies and eligibility determinations.--The
repeals in subsection (b) and (c) shall take effect on December 31,
2017.
(3) Protecting americans by rescinding disclosure authority.--
The amendments made by subsection (d) shall take effect on December
31, 2017.
SEC. 203. SMALL BUSINESS TAX CREDIT.
(a) In General.--Section 45R of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(j) Shall Not Apply.--This section shall not apply with respect
to amounts paid or incurred in taxable years beginning after December
31, 2017.''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred in taxable years beginning after December
31, 2017.
SEC. 204. INDIVIDUAL MANDATE.
(a) In General.--Section 5000A(c) of the Internal Revenue Code of
1986 is amended--
(1) in paragraph (2)(B) by striking clauses (ii) and (iii) and
inserting the following:
``(ii) Zero percent for taxable years beginning after
2014.'', and
(2) in paragraph (3)--
(A) by striking ``$695'' in subparagraph (A) and inserting
``$0'',
(B) by striking ``and $325 for 2015'' in subparagraph (B),
and
(C) by striking subparagraph (D).
(b) Effective Date.--The amendments made by this section shall
apply to months beginning after December 31, 2014.
SEC. 205. EMPLOYER MANDATE.
(a) In General.--
(1) Paragraph (1) of section 4980H(c) of the Internal Revenue
Code of 1986 is amended by inserting ``($0 in the case of months
beginning after December 31, 2014)'' after ``$2,000''.
(2) Paragraph (1) of section 4980H(b) of the Internal Revenue
Code of 1986 is amended by inserting ``($0 in the case of months
beginning after December 31, 2014)'' after ``$3,000''.
(b) Effective Date.--The amendments made by this section shall
apply to months beginning after December 31, 2014.
SEC. 206. FEDERAL PAYMENTS TO STATES.
(a) In General.--Notwithstanding section 504(a), 1902(a)(23),
1903(a), 2002, 2005(a)(4), 2102(a)(7), or 2105(a)(1) of the Social
Security Act (42 U.S.C. 704(a), 1396a(a)(23), 1396b(a), 1397a,
1397d(a)(4), 1397bb(a)(7), 1397ee(a)(1)), or the terms of any Medicaid
waiver in effect on the date of enactment of this Act that is approved
under section 1115 or 1915 of the Social Security Act (42 U.S.C. 1315,
1396n), for the 1-year period beginning on the date of enactment of
this Act, no Federal funds provided from a program referred to in this
subsection that is considered direct spending for any year may be made
available to a State for payments to a prohibited entity, whether made
directly to the prohibited entity or through a managed care
organization under contract with the State.
(b) Definitions.--In this section:
(1) Prohibited entity.--The term ``prohibited entity'' means an
entity, including its affiliates, subsidiaries, successors, and
clinics--
(A) that, as of the date of enactment of this Act--
(i) is an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986 and exempt from tax
under section 501(a) of such Code;
(ii) is an essential community provider described in
section 156.235 of title 45, Code of Federal Regulations
(as in effect on the date of enactment of this Act), that
is primarily engaged in family planning services,
reproductive health, and related medical care; and
(iii) provides for abortions, other than an abortion--
(I) if the pregnancy is the result of an act of
rape or incest; or
(II) in the case where a woman suffers from a
physical disorder, physical injury, or physical illness
that would, as certified by a physician, place the
woman in danger of death unless an abortion is
performed, including a life-endangering physical
condition caused by or arising from the pregnancy
itself; and
(B) for which the total amount of Federal and State
expenditures under the Medicaid program under title XIX of the
Social Security Act in fiscal year 2014 made directly to the
entity and to any affiliates, subsidiaries, successors, or
clinics of the entity, or made to the entity and to any
affiliates, subsidiaries, successors, or clinics of the entity
as part of a nationwide health care provider network, exceeded
$350,000,000.
(2) Direct spending.--The term ``direct spending'' has the
meaning given that term under section 250(c) of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)).
SEC. 207. MEDICAID.
The Social Security Act (42 U.S.C. 301 et seq.) is amended--
(1) in section 1108(g)(5), by striking ``2019'' and inserting
``2017'';
(2) in section 1902--
(A) in subsection (a)(10)(A), in each of clauses (i)(VIII)
and (ii)(XX), by inserting ``and ending December 31, 2017,''
after ``January 1, 2014,'';
(B) in subsection (a)(47)(B), by inserting ``and provided
that any such election shall cease to be effective on January
1, 2018, and no such election shall be made after that date''
before the semicolon at the end; and
(C) in subsection (l)(2)(C), by inserting ``and ending
December 31, 2017,'' after ``January 1, 2014,'';
(3) in each of sections 1902(gg)(2) and 2105(d)(3)(A), by
striking ``September 30, 2019'' and inserting ``September 30,
2017'';
(4) in section 1905--
(A) in the first sentence of subsection (b), by inserting
``(50 percent on or after January 1, 2018)'' after ``55
percent'';
(B) in subsection (y)(1), by striking the semicolon at the
end of subparagraph (B) and all that follows through
``thereafter''; and
(C) in subsection (z)(2)--
(i) in subparagraph (A), by striking ``each year
thereafter'' and inserting ``through 2017''; and
(ii) in subparagraph (B)(ii), by striking the semicolon
at the end of subclause (IV) and all that follows through
``100 percent'';
(5) in section 1915(k)(2), by striking ``during the period
described in paragraph (1)'' and inserting ``on or after the date
referred to in paragraph (1) and before January 1, 2018'';
(6) in section 1920(e), by adding at the end the following:
``This subsection shall not apply after December 31, 2017.'';
(7) in section 1937(b)(5), by adding at the end the following:
``This paragraph shall not apply after December 31, 2017.''; and
(8) in section 1943(a), by inserting ``and before January 1,
2018,'' after ``January 1, 2014,''.
SEC. 208. REPEAL OF DSH ALLOTMENT REDUCTIONS.
Section 1923(f) of the Social Security Act (42 U.S.C. 1396r-4(f))
is amended by striking paragraphs (7) and (8).
SEC. 209. REPEAL OF THE TAX ON EMPLOYEE HEALTH INSURANCE PREMIUMS
AND HEALTH PLAN BENEFITS.
(a) In General.--Chapter 43 of the Internal Revenue Code of 1986 is
amended by striking section 4980I.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2017.
SEC. 210. REPEAL OF TAX ON OVER-THE-COUNTER MEDICATIONS.
(a) HSAs.--Subparagraph (A) of section 223(d)(2) of the Internal
Revenue Code of 1986 is amended by striking ``Such term'' and all that
follows through the period.
(b) Archer MSAs.--Subparagraph (A) of section 220(d)(2) of the
Internal Revenue Code of 1986 is amended by striking ``Such term'' and
all that follows through the period.
(c) Health Flexible Spending Arrangements and Health Reimbursement
Arrangements.--Section 106 of the Internal Revenue Code of 1986 is
amended by striking subsection (f).
(d) Effective Dates.--
(1) Distributions from savings accounts.--The amendments made
by subsections (a) and (b) shall apply to amounts paid with respect
to taxable years beginning after December 31, 2015.
(2) Reimbursements.--The amendment made by subsection (c) shall
apply to expenses incurred with respect to taxable years beginning
after December 31, 2015.
SEC. 211. REPEAL OF TAX ON HEALTH SAVINGS ACCOUNTS.
(a) HSAs.--Section 223(f)(4)(A) of the Internal Revenue Code of
1986 is amended by striking ``20 percent'' and inserting ``10
percent''.
(b) Archer MSAs.--Section 220(f)(4)(A) of the Internal Revenue Code
of 1986 is amended by striking ``20 percent'' and inserting ``15
percent''.
(c) Effective Date.--The amendments made by this section shall
apply to distributions made after December 31, 2015.
SEC. 212. REPEAL OF LIMITATIONS ON CONTRIBUTIONS TO FLEXIBLE
SPENDING ACCOUNTS.
(a) In General.--Section 125 of the Internal Revenue Code of 1986
is amended by striking subsection (i).
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2015.
SEC. 213. REPEAL OF TAX ON PRESCRIPTION MEDICATIONS.
Subsection (j) of section 9008 of the Patient Protection and
Affordable Care Act is amended to read as follows:
``(j) Repeal.--This section shall apply to calendar years beginning
after December 31, 2010, and ending before January 1, 2016.''.
SEC. 214. REPEAL OF MEDICAL DEVICE EXCISE TAX.
(a) In General.--Chapter 32 of the Internal Revenue Code of 1986 is
amended by striking subchapter E.
(b) Effective Date.--The amendment made by this section shall apply
to sales in calendar quarters beginning after December 31, 2015.
SEC. 215. REPEAL OF HEALTH INSURANCE TAX.
Subsection (j) of section 9010 of the Patient Protection and
Affordable Care Act is amended to read as follows:
``(j) Repeal.--This section shall apply to calendar years beginning
after December 31, 2013, and ending before January 1, 2016.''.
SEC. 216. REPEAL OF ELIMINATION OF DEDUCTION FOR EXPENSES ALLOCABLE
TO MEDICARE PART D SUBSIDY.
(a) In General.--Section 139A of the Internal Revenue Code of 1986
is amended by adding at the end the following new sentence: ``This
section shall not be taken into account for purposes of determining
whether any deduction is allowable with respect to any cost taken into
account in determining such payment.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2015.
SEC. 217. REPEAL OF CHRONIC CARE TAX.
(a) In General.--Subsection (a) of section 213 of the Internal
Revenue Code of 1986 is amended by striking ``10 percent'' and
inserting ``7.5 percent''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2015.
SEC. 218. REPEAL OF MEDICARE TAX INCREASE.
(a) In General.--Subsection (b) of section 3101 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(b) Hospital Insurance.--In addition to the tax imposed by the
preceding subsection, there is hereby imposed on the income of every
individual a tax equal to 1.45 percent of the wages (as defined in
section 3121(a)) received by such individual with respect to employment
(as defined in section 3121(b).''.
(b) SECA.--Subsection (b) of section 1401 of the Internal Revenue
Code of 1986 is amended to read as follows:
``(b) Hospital Insurance.--In addition to the tax imposed by the
preceding subsection, there shall be imposed for each taxable year, on
the self-employment income of every individual, a tax equal to 2.9
percent of the amount of the self-employment income for such taxable
year.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to remuneration received after, and taxable years
beginning after, December 31, 2015.
SEC. 219. REPEAL OF TANNING TAX.
(a) In General.--The Internal Revenue Code of 1986 is amended by
striking chapter 49.
(b) Effective Date.--The amendment made by this section shall apply
to services performed on or after December 31, 2015.
SEC. 220. REPEAL OF NET INVESTMENT TAX.
(a) In General.--Subtitle A of the Internal Revenue Code of 1986 is
amended by striking chapter 2A.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2015.
SEC. 221. REMUNERATION.
Paragraph (6) of section 162(m) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(I) Termination.--This paragraph shall not apply to
taxable years beginning after December 31, 2015.''.
SEC. 222. ECONOMIC SUBSTANCE DOCTRINE.
(a) In General.--Subsection (o) of section 7701 of the Internal
Revenue Code of 1986 is repealed.
(b) Penalty for Underpayments.--Paragraph (6) of section 6662(b) of
the Internal Revenue Code of 1986 is repealed.
(c) Increased Penalty for Nondisclosed Transactions.--Subsection
(i) of section 6662 of the Internal Revenue Code of 1986 is repealed.
(d) Reasonable Cause Exception for Underpayments.--Paragraph (2) of
section 6664(c) of the Internal Revenue Code of 1986 is repealed.
(e) Reasonable Cause Exception for Nondisclosed Transactions.--
Paragraph (2) of section 6664(d) of the Internal Revenue Code of 1986
is repealed.
(f) Erroneous Claim for Refund or Credit.--Subsection (c) of
section 6676 of the Internal Revenue Code of 1986 is repealed.
(g) Effective Date.--The repeals made by this section shall apply
to transactions entered into, and to underpayments, understatements, or
refunds and credits attributable to transactions entered into, after
December 31, 2015.
SEC. 223. BUDGETARY SAVINGS FOR EXTENDING MEDICARE SOLVENCY.
As a result of policies contained in this Act, the Secretary of the
Treasury shall transfer to the Federal Hospital Insurance Trust Fund
under section 1817 of the Social Security Act (42 U.S.C. 1395i)
$379,300,000,000 (which represents the full amount of on-budget savings
during the period of fiscal years 2016 through 2025) for extending
Medicare solvency, to remain available until expended.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.