H.R. 127 — Protection from Obamacare Mandates and Congressional Equity Act

This section establishes the short title of the Act as the “Protection from Obamacare Mandates and Congressional Equity Act.”

This section revises the individual shared responsibility exemption under section 5000A(e) of the Internal Revenue Code of 1986 by adding a new exemption for any applicable individual for any month in which fewer than 2 health insurance issuers offer qualified health plans on an Exchange in the county where the individual resides. As background, section 5000A generally requires individuals to maintain minimum essential health coverage or qualify for an exemption. The section also directs that issuers treated as a single employer under section 52(a) or (b), or section 414(m) or (o), are treated as a single health insurance issuer for this purpose. The amendment applies to months beginning after the date of enactment.

This section revises the Affordable Care Act’s rules for Exchange coverage for Members of Congress, congressional staff, the President, the Vice President, and certain executive branch political appointees. It renames the subparagraph to cover “Members of Congress, congressional staff, and political appointees in the exchange” and expands the group referenced in the existing eligibility language to include the President, the Vice President, and political appointees. It also defines “political appointee” to include: (1) individuals in Executive Schedule positions under 5 U.S.C. §§ 5312-5316; (2) limited term, limited emergency, or noncareer Senior Executive Service appointees under 5 U.S.C. § 3132(a)(5)-(7); and (3) individuals in confidential or policy-determining Schedule C positions under 5 C.F.R. part 213, subpart C. In addition, it prohibits any government contribution under 5 U.S.C. § 8906 for coverage under this paragraph for Members of Congress, congressional staff, the President, the Vice President, or political appointees. The section further limits premium assistance and cost-sharing reductions by providing that an individual enrolled under this paragraph may not receive a tax credit under 26 U.S.C. § 36B or reduced cost sharing under section 1402 of the Affordable Care Act in an amount greater than what a similarly situated individual not enrolled under this paragraph would receive. It also bars a Member of Congress from deciding which employees in the Member’s office may enroll through an Exchange and clarifies that the terms “small employer” and “qualified employer” do not include Congress for purposes of Exchange and SHOP Exchange enrollment.