Introduced (House) — Coronavirus Aid, Relief, and Economic Security Act (CARES Act)

Record facts

Summary

H.R. 748 of the 116th Congress, 1st Session, as introduced in the House of Representatives on January 24, 2019 by Mr. Courtney with seven cosponsors and referred to the Committee on Ways and Means. The bill, titled the Middle Class Health Benefits Tax Repeal Act of 2019, would amend the Internal Revenue Code of 1986 to repeal the excise tax on high cost employer-sponsored health coverage by striking section 4980I from chapter 43. A conforming amendment to section 6051 adds a subsection (g) defining applicable employer-sponsored coverage, its exceptions, and how the cost of coverage is determined for health FSAs, Archer MSAs and HSAs. The amendments would apply to taxable years beginning after December 31, 2019.

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Full text

I 
116TH CONGRESS 
1ST SESSION 
H. R. 748 
To amend the Internal Revenue Code of 1986 to repeal the excise tax 
on high cost employer-sponsored health coverage. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 24, 2019 
Mr. COURTNEY (for himself, Mr. KELLY of Pennsylvania, Ms. DELBENE, Ms. 
STEFANIK, Mr. NORCROSS, Mr. SMITH of New Jersey, Mr. FITZPATRICK, 
and Ms. TITUS) 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 repeal 
the excise tax on high cost employer-sponsored health 
coverage. 
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled, 
2
SECTION 1. SHORT TITLE. 
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This Act may be cited as the ‘‘Middle Class Health 
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Benefits Tax Repeal Act of 2019’’. 
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SEC. 2. REPEAL OF EXCISE TAX ON HIGH COST EMPLOYER- 
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SPONSORED HEALTH COVERAGE. 
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(a) IN GENERAL.—Chapter 43 of the Internal Rev-
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enue Code of 1986 is amended by striking section 4980I. 
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•HR 748 IH
(b) CONFORMING AMENDMENT.—Section 6051 of 
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such Code is amended— 
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(1) in paragraph (14) of subsection (a), by 
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striking ‘‘section 4980I(d)(1)’’ and inserting ‘‘sub-
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section (g)’’, and 
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(2) by adding at the end the following: 
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‘‘(g) APPLICABLE
EMPLOYER-SPONSORED
COV-
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ERAGE.—For purposes of subsection (a)(14)— 
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‘‘(1) IN GENERAL.—The term ‘applicable em-
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ployer-sponsored coverage’ means, with respect to 
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any employee, coverage under any group health plan 
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made available to the employee by an employer 
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which is excludable from the employee’s gross in-
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come under section 106, or would be so excludable 
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if it were employer-provided coverage (within the 
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meaning of such section 106). 
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‘‘(2) EXCEPTIONS.—The term ‘applicable em-
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ployer-sponsored coverage’ shall not include— 
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‘‘(A) any coverage (whether through insur-
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ance 
or 
otherwise) 
described 
in 
section 
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9832(c)(1) (other than subparagraph (G) there-
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of) or for long-term care, 
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‘‘(B) any coverage under a separate policy, 
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certificate, or contract of insurance which pro-
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vides benefits substantially all of which are for 
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•HR 748 IH
treatment of the mouth (including any organ or 
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structure within the mouth) or for treatment of 
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the eye, or 
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‘‘(C) any coverage described in section 
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9832(c)(3) the payment for which is not exclud-
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able from gross income and for which a deduc-
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tion under section 162(l) is not allowable. 
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‘‘(3) COVERAGE
INCLUDES
EMPLOYEE
PAID 
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PORTION.—Coverage shall be treated as applicable 
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employer-sponsored coverage without regard to 
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whether the employer or employee pays for the cov-
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erage. 
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‘‘(4) GOVERNMENTAL PLANS INCLUDED.—Ap-
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plicable employer-sponsored coverage shall include 
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coverage under any group health plan established 
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and maintained primarily for its civilian employees 
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by the Government of the United States, by the gov-
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ernment of any State or political subdivision thereof, 
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or by any agency or instrumentality of any such gov-
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ernment. 
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‘‘(5) COST OF COVERAGE.— 
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‘‘(A) HEALTH FSAS.—In the case of appli-
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cable employer-sponsored coverage consisting of 
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coverage under a flexible spending arrangement 
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(as defined in section 106(c)(2)), the cost of the 
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•HR 748 IH
coverage shall be equal to the amount deter-
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mined under rules similar to the rules of section 
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4980B(f)(4) with respect to any reimbursement 
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under the arrangement reduced by the contribu-
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tions described in subsection (a)(14)(B). 
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‘‘(B) ARCHER
MSAS
AND
HSAS.—In the 
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case of applicable employer-sponsored coverage 
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consisting of coverage under an arrangement 
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under which the employer makes contributions 
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described in subsection (b) or (d) of section 
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106, the cost of the coverage shall be equal to 
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the amount of employer contributions under the 
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arrangement. 
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‘‘(C) 
ALLOCATION
ON
A
MONTHLY 
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BASIS.—If cost is determined on other than a 
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monthly basis, the cost shall be allocated to 
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months in a taxable period on such basis as the 
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Secretary may prescribe.’’. 
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(c) CLERICAL AMENDMENT.—The table of sections 
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for chapter 43 of such Code is amended by striking the 
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item relating to section 4980I. 
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(d) EFFECTIVE DATE.—The amendments made by 
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this section shall apply to taxable years beginning after 
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December 31, 2019. 
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Æ 
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