TITLE IX--REVENUE PROVISIONS
Subtitle A--Revenue Offset Provisions
SEC. 9001. EXCISE TAX ON HIGH COST EMPLOYER-SPONSORED HEALTH COVERAGE. (a) In General- Chapter 43 of the Internal Revenue Code of 1986, as amended by section 1513, is amended by adding at the end the following:
SEC. 4980I. EXCISE TAX ON HIGH COST EMPLOYER-SPONSORED HEALTH COVERAGE. (a) Imposition of Tax- If-- (1) an employee is covered under any applicable employer-sponsored coverage of an employer at any time during a taxable period, and (2) there is any excess benefit with respect to the coverage, there is hereby imposed a tax equal to 40 percent of the excess benefit. (b) Excess Benefit- For purposes of this section-- (1) IN GENERAL- The term `excess benefit' means, with respect to any applicable employer-sponsored coverage made available by an employer to an employee during any taxable period, the sum of the excess amounts determined under paragraph (2) for months during the taxable period. (2) MONTHLY EXCESS AMOUNT- The excess amount determined under this paragraph for any month is the excess (if any) of-- (A) the aggregate cost of the applicable employer-sponsored coverage of the employee for the month, over (B) an amount equal to 1/12 of the annual limitation under paragraph (3) for the calendar year in which the month occurs. (3) ANNUAL LIMITATION- For purposes of this subsection-- (A) IN GENERAL- The annual limitation under this paragraph for any calendar year is the dollar limit determined under subparagraph (C) for the calendar year. (B) APPLICABLE ANNUAL LIMITATION- The annual limitation which applies for any month shall be determined on the basis of the type of coverage (as determined under subsection (f)(1)) provided to the employee by the employer as of the beginning of the month. (C) APPLICABLE DOLLAR LIMIT- Except as provided in subparagraph (D)-- (i) 2013- In the case of 2013, the dollar limit under this subparagraph is-- (I) in the case of an employee with self-only coverage, $8,500, and (II) in the case of an employee with coverage other than self-only coverage, $23,000. (ii) EXCEPTION FOR CERTAIN INDIVIDUALS- In the case of an individual who is a qualified retiree or who participates in a plan sponsored by an employer the majority of whose employees are engaged in a high-risk profession or employed to repair or install electrical or telecommunications lines-- (I) the dollar amount in clause (i)(I) (determined after the application of subparagraph (D)) shall be increased by $1,350, and (II) the dollar amount in clause (i)(II) (determined after the application of subparagraph (D)) shall be increased by $3,000. (iii) SUBSEQUENT YEARS- In the case of any calendar year after 2013, each of the dollar amounts under clauses (i) and (ii) shall be increased to the amount equal to such amount as in effect for the calendar year preceding such year, increased by an amount equal to the product of-- (I) such amount as so in effect, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for such year (determined by substituting the calendar year that is 2 years before such year for `1992' in subparagraph (B) thereof), increased by 1 percentage point. If any amount determined under this clause is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50. (D) TRANSITION RULE FOR STATES WITH HIGHEST COVERAGE COSTS- (i) IN GENERAL- If an employee is a resident of a high cost State on the first day of any month beginning in 2013, 2014, or 2015, the annual limitation under this paragraph for such month with respect to such employee shall be an amount equal to the applicable percentage of the annual limitation (determined without regard to this subparagraph or subparagraph (C)(ii)). (ii) APPLICABLE PERCENTAGE- The applicable percentage is 120 percent for 2013, 110 percent for 2014, and 105 percent for 2015. (iii) HIGH COST STATE- The term `high cost State' means each of the 17 States which the Secretary of Health and Human Services, in consultation with the Secretary, estimates had the highest average cost during 2012 for employer-sponsored coverage under health plans. The Secretary's estimate shall be made on the basis of aggregate premiums paid in the State for such health plans, determined using the most recent data available as of August 31, 2012. (c) Liability To Pay Tax- (1) IN GENERAL- Each coverage provider shall pay the tax imposed by subsection (a) on its applicable share of the excess benefit with respect to an employee for any taxable period.