Senator Orin Hatch (R-Utah) introduced legislation repealing the individual mandate requirement of the Patient Protection and Affordable Care Act (PPACA) (P.L. 111-148). Senate Bill 40 (S. 40), titled the “American Liberty Restoration Act”, was introduced on January 22, 2013 and referred to the Senate Finance Committee for further consideration. The bill currently has 17 cosponsors.
The legislation would repeal sections 1501 and 1502 of PPACA. These sections establish the require individual to obtain and maintain minimum essential coverage. Individuals are required to have a health insurance plan for themselves or any dependents beginning in 2013. Penalties are established for failing to have health insurance for any month of the year. In 2014, the penalty is 1/12th of $95 for each month a person or their dependents do not have coverage. In 2015, the penalty is 1/12th of $350 for each month a person or their dependents do not have insurance coverage. For all other years the penalty is 1/12th of $750 for each month the person or their dependents do not have insurance coverage. The penalty is to be paid with an individual’s tax return.
Section 1502 of PPACA, which would also be repealed by S. 40, requires people to report information about their insurance coverage and providers on their income tax form.
This is not the first time this legislation has been introduced by Senator Hatch. The first time he introduced this legislation was in 2010 as Senate Bill 3502. In 2011, he introduced the same legislation as Senate Bill 19. Both times the legislation did not make it out of the Senate’s Finance Committee.