In the nature of a substitute.

SA 2874. Mr. McCONNELL proposed an amendment to the bill H.R. 3762,
to provide for reconciliation pursuant to section 2002 of the
concurrent resolution on the budget for fiscal year 2016; as follows:

Strike all after the enacting clause and insert the
following:

TITLE I--FINANCE

SEC. 101. FEDERAL PAYMENT TO STATES.

(a) In General.--Notwithstanding section 504(a),
1902(a)(23), 1903(a), 2002, 2005(a)(4), 2102(a)(7), or
2105(a)(1) of the Social Security Act (42 U.S.C. 704(a),
1396a(a)(23), 1396b(a), 1397a, 1397d(a)(4), 1397bb(a)(7),
1397ee(a)(1)), or the terms of any Medicaid waiver in effect
on the date of enactment of this Act that is approved under
section 1115 or 1915 of the Social Security Act (42 U.S.C.
1315, 1396n), for the 1-year period beginning on the date of
enactment of this Act, no Federal funds provided from a
program referred to in this subsection that is considered
direct spending for any year may be made available to a State
for payments to a prohibited entity, whether made directly to
the prohibited entity or through a managed care organization
under contract with the State.
(b) Definitions.--In this section:
(1) Prohibited entity.--The term ``prohibited entity''
means an entity, including its affiliates, subsidiaries,
successors, and clinics--
(A) that, as of the date of enactment of this Act--
(i) is an organization described in section 501(c)(3) of
the Internal Revenue Code of 1986 and exempt from tax under
section 501(a) of such Code;
(ii) is an essential community provider described in
section 156.235 of title 45, Code of Federal Regulations (as
in effect on the date of enactment of this Act), that is
primarily engaged in family planning services, reproductive
health, and related medical care; and
(iii) provides for abortions, other than an abortion--

(I) if the pregnancy is the result of an act of rape or
incest; or
(II) in the case where a woman suffers from a physical
disorder, physical injury, or physical illness that would, as
certified by a physician, place the woman in danger of death
unless an abortion is performed, including a life-endangering
physical condition caused by or arising from the pregnancy
itself; and

(B) for which the total amount of Federal and State
expenditures under the Medicaid program under title XIX of
the Social Security Act in fiscal year 2014 made directly to
the entity and to any affiliates, subsidiaries, successors,
or clinics of the entity, or made to the entity and to any
affiliates, subsidiaries, successors, or clinics of the
entity as part of a nationwide health care provider network,
exceeded $350,000,000.
(2) Direct spending.--The term ``direct spending'' has the
meaning given that term under section 250(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
900(c)).

SEC. 102. INDIVIDUAL MANDATE.

(a) In General.--Section 5000A(c) of the Internal Revenue
Code of 1986 is amended--
(1) in paragraph (2)(B) by striking clauses (ii) and (iii)
and inserting the following:
``(ii) Zero percent for taxable years beginning after
2014.'', and
(2) in paragraph (3)--
(A) by striking ``$695'' in subparagraph (A) and inserting
``$0'',
(B) by striking ``and $325 for 2015'' in subparagraph (B),
and
(C) by striking subparagraph (D).
(b) Effective Date.--The amendments made by this section
shall apply to months beginning after December 31, 2014.

SEC. 103. EMPLOYER MANDATE.

(a) Large Employers Not Offering Health Coverage.--
Paragraph (1) of section 4980H(c) of the Internal Revenue
Code of 1986 is amended by inserting ``($0 in the case of
months beginning after December 31, 2014)'' after ``$2,000''.
(b) Large Employers Offering Coverage With Employees Who
Qualify for Premium Tax Credits or Cost-sharing Reductions.--
Paragraph (1) of section 4980H(b) of the Internal Revenue
Code of 1986 is amended by inserting ``($0 in the case of
months beginning after December 31, 2014)'' after ``$3,000''.
(c) Effective Date.--The amendments made by this section
shall apply to months beginning after December 31, 2014.

SEC. 104. REPEAL OF MEDICAL DEVICE EXCISE TAX.

(a) In General.--Chapter 32 of the Internal Revenue Code of
1986 is amended by striking subchapter E
(b) Effective Date.--The amendment made by this section
shall apply to sales in calendar quarters beginning after the
date of the enactment of this Act.

SEC. 105. REPEAL OF THE TAX ON EMPLOYEE HEALTH INSURANCE
PREMIUMS AND HEALTH PLAN BENEFITS.

(a) Excise Tax.--Chapter 43 of the Internal Revenue Code of
1986 is amended by striking section 4980I.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2017.
(c) Reinstatement.--The amendment made by subsection (a)
shall not apply to taxable years beginning after December 31,
2024, and chapter 43 of the Internal Revenue Code of 1986 is
amended to read as such chapter would read if such subsection
had never been enacted.

SEC. 106. RECAPTURE OF EXCESS ADVANCE PAYMENTS OF PREMIUM TAX
CREDITS.

(a) In General.--Subparagraph (2) of section 36B(f) of the
Internal Revenue Code of 1986 is amended by striking
subparagraph (B).
(b) Effective Date.--The amendment made by this section
shall apply to taxable years ending after December 31, 2015.

TITLE II--HEALTH, EDUCATION, LABOR AND PENSIONS

SEC. 201. REPEAL OF THE PREVENTION AND PUBLIC HEALTH FUND.

(a) In General.--Section 4002(b) of the Patient Protection
and Affordable Care Act (42 U.S.C. 300u-11(b)) is amended--
(1) in paragraph (2), by striking ``2017'' and inserting
``2015''; and
(2) by striking paragraphs (3) through (5).
(b) Rescission of Unobligated Funds.--Of the funds made
available by such section 4002, the unobligated balance is
rescinded.

SEC. 202. FUNDING FOR COMMUNITY HEALTH CENTER PROGRAM.

Effective as if included in the enactment of the Medicare
Access and CHIP Reauthorization Act of 2015 (Public Law 114-
10, 129 Stat. 87), paragraph (1) of section 221(a) of such
Act is amended by inserting after ``Section 10503(b)(1)(E) of
the Patient Protection and Affordable Care Act (42 U.S.C.
254b-2(b)(1)(E)) is amended'' the following: ``by striking

[[Page S8246]]

`$3,600,000,000' and inserting `$3,835,000,000' and''.

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