S.Amdt. 3117

SA 3117. Mr. WYDEN (for himself, Ms. Collins, and Mr. Bayh) submitted
an amendment intended to be proposed to amendment SA 2786 proposed by
Mr. Reid (for himself, Mr. Baucus, Mr. Dodd, and Mr. Harkin) to the
bill H.R. 3590, to amend the Internal Revenue Code of 1986 to modify
the first-time homebuyers credit in the case of members of the Armed
Forces and certain other Federal employees, and for other purposes;
which was ordered to lie on the table; as follows:

On page 164, between lines 2 and 3, insert the following:

SEC. 13__. OPTIONAL FREE CHOICE VOUCHERS.

(a) In General.--Any employer may provide a free choice
voucher to any employee of such employer, but only if such
employer offers free choice vouchers to--
(1) in the case of an offering employer, all employees of
such employer who are eligible to participate in an employer-
sponsored plan described in subsection (c)(1), and
(2) in the case of any other employer, all employees of the
employer.
(b) Free Choice Voucher.--
(1) Amount.--
(A) Offering employers.--
(i) In general.--In the case of an offering employer, the
amount of the free choice voucher provided under subsection
(a) shall be equal to the monthly portion of the cost of the
eligible employer-sponsored plan which would have been paid
by the employer if the employee were covered under the plan
with respect to which the employer pays the largest portion
of the employee's premium. Such amount shall be equal to the
amount the employer would pay for an employee with self-only
coverage unless such employee elects family coverage (in
which case such amount shall be the amount the employer would
pay for family coverage).
(ii) Determination of cost.--The cost of any health plan
shall be determined under the rules similar to the rules of
section 2204 of the Public Health Service Act, except that
such amount may be adjusted for age and category of coverage
in accordance with regulations established by the Secretary.
(B) Other employers.--In the case of any other employer,
the amount of the voucher provided under subsection (a) shall
be not greater than the amount equal to the lowest cost
bronze plan of the individual market in the rating area in
which the employee resides which--
(i) is offered through an Exchange, and
(ii) provides--

(I) in the case of an employee electing self-only coverage,
self-only coverage, and
(II) in any other case, family coverage.

(2) Use of vouchers.--An Exchange shall credit the amount
of any free choice voucher provided under subsection (a) to
the monthly premium of any qualified health plan in the
Exchange in which the qualified employee is enrolled and the
offering employer shall pay any amounts so credited to the
Exchange.
(3) Payment of excess amounts.--If the amount of the free
choice voucher exceeds the amount of the premium of the
qualified health plan in which the qualified employee is
enrolled for such month, such excess shall be paid to the
employee. Any amount paid to the employee under the preceding
sentence shall not be taken into account in determining the
rate of pay of the employee under the Fair Labor Standards
Act of 1938.
(c) Offering Employer.--For purposes of this section, the
term ``offering employer'' means any employer who--
(1) offers minimum essential coverage to its employees
consisting of coverage through an eligible employer-sponsored
plan; and
(2) pays any portion of the costs of such plan.
(d) Other Definitions.--Any term used in this section which
is also used in section 5000A of the Internal Revenue Code of
1986 shall have the meaning given such term under such
section 5000A.
(e) Accelerated Access to Exchanges.--Notwithstanding
section 1312(f)(2)(B)--
(1) beginning in 2015, each State may allow issuers of
health insurance coverage in the large group market in the
State to offer qualified health plans in such market through
an Exchange, but only in connection with employers who
provide free choice vouchers under subsection (a); and
(2) if a State under paragraph (1) allows issuers to offer
qualified plans in the large group market though an Exchange,
the term ``qualified employer'' (as defined in section
1312(f)(2)) shall include a large employer that--
(A) provides free choice vouchers to its employees under
subsection (a); and
(B) elects to make all full-time employees eligible for 1
or more qualified health plans offered in the large group
market through the Exchange.
(f) Exclusion From Income for Employee.--
(1) In general.--Part III of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 is amended by inserting
after section 139C the following new section:

``SEC. 139D. FREE CHOICE VOUCHERS.

``Gross income shall not include the amount of any free
choice voucher provided by an employer under part I of
subtitle D of title I of the Patient Protection and
Affordable Care Act to the extent that the amount of such
voucher does not exceed the amount paid for a qualified
health plan (as defined in section 1301 of such Act) by the
taxpayer.''.
(2) Clerical amendment.--The table of sections for part III
of subchapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 139C the
following new item:

``Sec. 139D. Free choice vouchers.''.

(3) Effective date.--The amendments made by this subsection
shall apply to vouchers provided after December 31, 2013.
(g) Deduction Allowed to Employer.--
(1) In general.--Section 162(a) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new sentence: ``For purposes of paragraph (1), the amount of
a free choice voucher provided under part I of subtitle D of
title I of the Patient Protection and Affordable Care Act
shall be treated as an amount for compensation for personal
services actually rendered.''.
(2) Effective date.--The amendments made by this subsection
shall apply to vouchers provided after December 31, 2013.
(h) Voucher Taken Into Account in Determining Premium
Credit.--
(1) In general.--Subsection (b)(2) of section 36B of the
Internal Revenue Code of 1986, as added by section 1401, is
amended by adding at the end the following new flush
sentence:
``The amount of any monthly premium under subsection
subparagraph (A) and the amount of the adjusted monthly
premium for the second lowest cost silver plan under
subparagraph (B) shall be reduced by the amount of any free
choice voucher provided to the taxpayer under section ___ of
the Patient Protection and Affordable Care Act.''.

[[Page S12917]]

(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after December 31,
2013.
(i) Coordination With Employer Responsibilities.--
(1) Shared responsibility penalty.--
(A) In general.--Subsection (c) of section 4980H of the
Internal Revenue Code of 1986, as added by section 1513, is
amended by adding at the end the following new paragraph:
``(3) Special rules for employers providing free choice
vouchers.--The assessable payment imposed under paragraph (1)
shall be reduced (but not below zero) by the amount of any
free choice voucher provided to a full-time employee under
section __ of the Patient Protection and Affordable Care Act
for any month during which such employee is enrolled in a
qualified health plan with respect to which an applicable
premium credit or cost-sharing subsidy is allowed or paid
with respect to such employee.''.
(B) Effective date.--The amendment made by this paragraph
shall apply to months beginning after December 31, 2013.
(2) Notification requirement.--Section 18B(a)(3) of the
Fair Labor Standards Act of 1938, as added by section 1512,
is amended--
(A) by inserting ``and the employer does not offer a free
choice voucher'' after ``Exchange''; and
(B) by striking ``will lose'' and inserting ``may lose''.
______