Of a perfecting nature.

SA 667. Mr. McCONNELL proposed an amendment to amendment SA 267
proposed by Mr. McConnell to the bill H.R. 1628, to provide for
reconciliation pursuant to title II of the concurrent resolution on the
budget for fiscal year 2017; as follows:

Strike all after the first word and insert the following:

SHORT TITLE.

This Act may be cited as the ``Health Care Freedom Act of
2017''.

TITLE I

SEC. 101. INDIVIDUAL MANDATE.

(a) In General.--Section 5000A(c) of the Internal Revenue
Code of 1986 is amended--
(1) in paragraph (2)(B)(iii), by striking ``2.5 percent''
and inserting ``Zero percent'', and
(2) in paragraph (3)--
(A) by striking ``$695'' in subparagraph (A) and inserting
``$0'', and
(B) by striking subparagraph (D).
(b) Effective Date.--The amendments made by this section
shall apply to months beginning after December 31, 2015.

SEC. 102. EMPLOYER MANDATE.

(a) In General.--
(1) 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, 2015, and before
January 1, 2025)'' after ``$2,000''.
(2) 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, 2015, and before
January 1, 2025)'' after ``$3,000''.
(b) Effective Date.--The amendments made by this section
shall apply to months beginning after December 31, 2015.

SEC. 103. EXTENSION OF MORATORIUM ON MEDICAL DEVICE EXCISE
TAX.

(a) In General.--Section 4191(c) of the Internal Revenue
Code of 1986 is amended by striking ``December 31, 2017'' and
inserting ``December 31, 2020''.
(b) Effective Date.--The amendment made by this section
shall apply to sales after December 31, 2017.

SEC. 104. MAXIMUM CONTRIBUTION LIMIT TO HEALTH SAVINGS
ACCOUNT INCREASED TO AMOUNT OF DEDUCTIBLE AND
OUT-OF-POCKET LIMITATION.

(a) In General.--Subsection (b) of section 223 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(9) Increased limitation.--In the case of any month
beginning after December 31, 2017, and before January 1,
2021--
``(A) paragraph (2)(A) shall be applied by substituting
`the amount in effect under subsection (c)(2)(A)(ii)(I)' for
`$2,250', and
``(B) paragraph (2)(B) shall be applied by substituting
`the amount in effect under subsection (c)(2)(A)(ii)(II)' for
`$4,500'.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2017.

SEC. 105. FEDERAL PAYMENTS 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 $1,000,000.
(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)).

TITLE II

SEC. 201. THE PREVENTION AND PUBLIC HEALTH FUND.

Subsection (b) of section 4002 of the Patient Protection
and Affordable Care Act (42 U.S.C. 300u-11) is amended--
(1) in paragraph (3), by striking ``each of fiscal years
2018 and 2019'' and inserting ``fiscal year 2018''; and
(2) by striking paragraphs (4) through (8).

[[Page S4580]]

SEC. 202. 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 ``, and an additional
$422,000,000 for fiscal year 2017'' after ``2017''.

SEC. 203. WAIVERS FOR STATE INNOVATION.

Section 1332 of the Patient Protection and Affordable Care
Act (42 U.S.C. 18052) is amended--
(1) in subsection (a)(3)--
(A) in the first sentence, by inserting ``or would qualify
for a reduction in'' after ``would not qualify for'';
(B) by adding after the second sentence the following: ``A
State may request that all of, or any portion of, such
aggregate amount of such credits or reductions be paid to the
State as described in the first sentence.'';
(C) in the paragraph heading, by striking ``Pass through of
funding'' and inserting ``Funding'';
(D) by striking ``With respect'' and inserting the
following:
``(A) Pass through of funding.--With respect''; and
(E) by adding at the end the following:
``(B) Additional funding.--There is authorized to be
appropriated, and is appropriated, to the Secretary of Health
and Human Services, out of monies in the Treasury not
otherwise obligated, $2,000,000,000, to remain available
until the end of fiscal year 2019. Such amounts shall be used
to provide grants to States that request financial assistance
for the purpose of--
``(i) submitting an application for a waiver granted under
this section; or
``(ii) implementing the State plan under such waiver.'';
(2) in subsection (b)(1), in the matter preceding
subparagraph (A)--
(A) by striking ``may'' and inserting ``shall''; and
(B) by striking ``only'';
(3) in subsection (d)(1), by striking ``180'' and inserting
``45''; and
(4) in subsection (e), by striking ``No waiver'' and all
that follows through the period at the end and inserting the
following: ``A waiver under this section--
``(1) shall be in effect for a period of 8 years unless the
State requests a shorter duration;
``(2) may be renewed for unlimited additional 8-year
periods upon application by the State; and
``(3) may not be cancelled by the Secretary before the
expiration of the 8-year period (including any renewal period
under paragraph (2)).''.
______