Sec. 205. Clarification regarding determination of affordability of employer-sponsored minimum essential coverage
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/bill/115/s/2582/is/section-205·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Clause
(i)of section 36B(c)(2)(C) of the Internal Revenue Code of 1986 is amended to read as follows: Except as provided in clause (iii), an individual shall not be treated as eligible for minimum essential coverage if such coverage consists of an eligible employer-sponsored plan (as defined in section 5000A(f)(2)) and the required contribution with respect to the plan exceeds 8.5 percent of the applicable taxpayer's household income. In the case of the employee eligible to enroll in the plan, the required contribution for purposes of subclause
(I)is the employee's required contribution (within the meaning of section 5000A(e)(1)(B)(i)) with respect to the plan. In the case of an individual who is eligible to enroll in the plan by reason of a relationship the individual bears to the employee, the required contribution for purposes of subclause
(I)is the employee's required contribution (within the meaning of section 5000A(e)(1)(B)(i), determined by substituting family for self-only ) with respect to the plan. . Clause
(ii)of section 36B(c)(2)(C) of the Internal Revenue Code of 1986 is amended by adding at the end the following: This clause shall also apply to an individual who is eligible to enroll in the plan by reason of a relationship the individual bears to the employee. . Clause
(iii)of section 36B(c)(2)(C) of such Code is amended by striking the last sentence of clause
(i)and inserting clause (i)(III) . Clause
(iv)of section 36B(c)(2)(C) of such Code is amended by striking clause (i)(II) and inserting clause (i)(I) . The amendments made by this section shall apply to taxable years beginning after December 31, 2019.