,,ii  #aaeth ,,congress  #ast ,session  
,s4 #dj  ,,in ,,the ,,senate ,,of ,,the 
,,united ,,states  ,january #e1         
#bjag,mr4 ,heller introduced the        
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to repeal the   
excise tax on high cost                 
employer-sponsored health coverage4  #a4
 ,short title ,this ,act may be cited as
 the ,middle ,class ,health ,benefits   
,tax ,repeal ,act of #bjag4  #b4 ,repeal
 of excise tax on high cost             
employer-sponsored health coverage  7a7 
,in general ,chapter #dc of the         
,internal ,revenue ,code of #aihf is    
amended by striking section #dihj;,i4   
7b7 ,conforming amendment ,section #fjea
 of such ,code is amended-- 7#a7 in     
paragraph 7#ad7 of subsection 7a71 by   
striking section #dihj;,i7d77#a7 and    
inserting subsection 7g71 and  7#b7 by  
adding at the end the following3  7g7   
,applicable ,employer-,sponsored        

,coverage ,for purposes of subsection   
7a77#ad7--  7#a7 ,in general ,the term  
applicable employer-sponsored coverage  
means1 with respect to any employee1    
coverage under any group health plan    
made available to the employee by an    
employer which is excludable from the   
employee's gross income under section   
#ajf1 or would be so excludable if it   
were employer-provided coverage 7within 
the meaning of such section #ajf74  7#b7
 ,exceptions ,the term applicable       
employer-sponsored coverage shall not   
include-- 7,a7 any coverage 7whether    
through insurance or otherwise7         
described in section #ihcb7;c77#a7      
7other than subparagraph 7,g7 thereof7  
or for long-term care1 or  7,b7 any     
coverage under a separate policy1       
certificate1 or contract of insurance   
which provides benefits substantially   
all of which are for treatment of the   
mouth 7including any organ or structure 
within the mouth7 or for treatment of   
the eye1 or  7,c7 any coverage described

 in section #ihcb7;c77#c7 the payment   
for which is not excludable from gross  
income and for which a deduction under  
section #afb7l7 is not allowable4  7#c7 
,coverage includes employee paid portion
 ,coverage shall be treated as          
applicable employer-sponsored coverage  
without regard to whether the employer  
or employee pays for the coverage4  7#d7
 ,governmental plans included           
,applicable employer-sponsored coverage 
shall include coverage under any group  
health plan established and maintained  
primarily for its civilian employees by 
the ,government of the ,united ,states1 
by the government of any ,state or      
political subdivision thereof1 or by any
 agency or instrumentality of any such  
government4  7#e7 ,cost of coverage     
7,a7 ,health ,f,s,as ,in the case of    
applicable employer-sponsored coverage  
consisting of coverage under a flexible 
spending arrangement 7as defined in     
section #ajf7;c77#b771 the cost of the  
coverage shall be equal to the amount   

determined under rules similar to the   
rules of section #dihj;,b7f77#d7 with   
respect to any reimbursement under the  
arrangement reduced by the contributions
 described in subsection 7a77#ad77;,b74 
7,b7 ,archer ,m,s,as and ,h,s,as ,in the
 case of applicable employer-sponsored  
coverage consisting of coverage under an
 arrangement under which the employer   
makes contributions described in        
subsection 7b7 or 7d7 of section #ajf1  
the cost of the coverage shall be equal 
to the amount of employer contributions 
under the arrangement4  7,c7 ,allocation
 on a monthly basis ,if cost is         
determined on other than a monthly      
basis1 the cost shall be allocated to   
months in a taxable period on such basis
 as the ,secretary may prescribe4  4    
7c7 ,clerical amendment ,the table of   
sections for chapter #dc of such ,code  
is amended by striking the item relating
 to section #dihj;,i4  7d7 ,effective   
date ,the amendments made by this       
section shall apply to taxable years    

beginning after ,december #ca1 #bjag4