Bill > S2698

This bill, titled the Preserving Consumer Health Accounts Act of 2016, aims to amend the Internal Revenue Code of 1986 to exclude certain health arrangements from an excise tax on employer-sponsored health coverage. Specifically, it proposes to add new language that would exempt amounts contributed to Archer MSAs (Medical Savings Accounts), health savings accounts (HSAs), or health flexible spending arrangements (FSAs) from this tax, whether those contributions are made by an employee or by an employer through salary reduction. The bill also includes conforming amendments to existing tax code sections to align with these changes and specifies that these amendments will take effect for taxable years beginning after December 31, 2019. The excise tax in question, often referred to as the "Cadillac tax," was a provision of the Affordable Care Act intended to discourage overly generous employer-provided health plans, and this bill seeks to carve out certain consumer-directed health accounts from its scope.