Posted by
Gabrielle Cusumano on Tuesday, March 16, 2010 2:14:22 PM
Please! You Deomcrats in Congress, Jump Ship Now! Save America and yourselves from a terrible fate. Your leader Obama doesn't care a whit about you.
Obama refuses to campaign for Dems voting NO on healthcare...
Midnight, Sunday, Democrats released a 2,309 page health care bill that will start the process of reconciliation — it’s not the actual reconciliation bill with all the changes you’ve been reading about.
Instead, as Rep. Paul Ryan, the ranking Republican member on the Budget Committee, explained to me last week, this is just the “shell” bill — the vehicle that Democrats need to get moving on health care. Once the bill gets approved (likely Monday), Democrats will send this phantom bill over to the Rules Committee, where it will be stripped, and then they’ll insert in all of the actual changes that they’ve negotiated.
2309 pages. Download PDF here.
http://budget.house.gov/doc-library/FY2010/03.15.2010_reconciliation2010.PDF
Page 7
TITLE IV—AMENDMENTS TO INTERNAL REVENUE CODE OF 1986
Subtitle A—Shared Responsibility
PART 1—INDIVIDUAL RESPONSIBILITY
Sec. 401. Tax on individuals without acceptable health care coverage.
PART 2—EMPLOYER RESPONSIBILITY
Sec. 411. Election to satisfy health coverage participation requirements.
Sec. 412. Responsibilities of nonelecting employers. (much more under picture)
MICHIGAN
Rep. Bart Stupak, Michigan 1st
http://www.house.gov/stupak/
DC Office Number: (202) 225-4735, DC Fax Number: (202) 225-4744
Local Office Number: (906) 786-4504, Local Fax Number: (906) 786-4534
Voted Yes on Stupak, Voted Yes on Health Care, Currently Undecided on Next Health Care Takeover Vote
Rep. Mark Schauer Michigan 7th
http://schauer.house.gov
DC Office Number: (202) 225-6276, DC Fax Number: (202) 225-6281
Local Office Number: (517) 780-9075, Local Fax Number: (517) 780-9081
Voted Yes on Health Care
Currently Undecided
Rep. Gary Peters, Michigan, 9th
http://peters.house.gov/index.html
DC Office Number: (202) 225-5802, DC Fax Number: (202) 226-2356
Local Office Number: (248) 273-4227, Local Fax Number: (248) 273-4704
__________________________________________________________________________________________________________________
(The Bill continued)
Subtitle B—Credit for Small Business Employee Health Coverage Expenses
Sec. 421. Credit for small business employee health coverage expenses.
Subtitle C—Disclosures to Carry Out Health Insurance
Exchange Subsidies
Sec. 431. Disclosures to carry out health insurance exchange subsidies.
Subtitle D—Other Revenue Provisions
PART 1—GENERAL PROVISIONS
Sec. 441. Surcharge on high income individuals.
Sec. 442. Distributions for medicine qualified only if for prescribed drug or insulin.
Sec. 443. Delay in application of worldwide allocation of interest.
PART 2—PREVENTION OF TAX AVOIDANCE
Sec. 451. Limitation on treaty benefits for certain deductible payments.
Sec. 452. Codification of economic substance doctrine.
Sec. 453. Penalties for underpayments.
Page 8
PART 3—PARITY IN HEALTH BENEFITS
Sec. 461. Certain health related benefits applicable to spouses and dependents extended to eligible beneficiaries.
1054
19 SEC. 114. NONDISCRIMINATION IN BENEFITS; PARITY IN
20 MENTAL HEALTH AND SUBSTANCE ABUSE
21 DISORDER BENEFITS.
22 (a) NONDISCRIMINATION IN BENEFITS.—A qualified
23 health benefits plan shall comply with standards estab
24 lished by the Commissioner to prohibit discrimination in
25 health benefits or benefit structures for qualified health
1055
1 benefits plans, building from sections 702 of Employee
2 Retirement Income Security Act of 1974, 2702 of the
3 Public Health Service Act, and section 9802 of the Inter
4 nal Revenue Code of 1986.
5 (b) PARITY IN MENTAL HEALTH AND SUBSTANCE
6 ABUSE DISORDER BENEFITS.—To the extent such provi
7 sions are not superceded by or inconsistent with subtitle
8 C, the provisions of section 2705 (other than subsections
9 (a)(1), (a)(2), and (c)) of section 2705 of the Public
10 Health Service Act shall apply to a qualified health bene
11 fits plan, regardless of whether it is offered in the indi
12 vidual or group market, in the same manner as such provi
13 sions apply to health insurance coverage offered in the
14 large group market.
1223
11 TITLE IV—AMENDMENTS TO IN
12 TERNAL REVENUE CODE OF
13 1986
14 Subtitle A—Shared Responsibility
15 PART 1—INDIVIDUAL RESPONSIBILITY
16 SEC. 401. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE
17 HEALTH CARE COVERAGE.
18 (a) IN GENERAL.—Subchapter A of chapter 1 of the
19 Internal Revenue Code of 1986 is amended by adding at
20 the end the following new part:
21 ‘‘PART VIII—HEALTH CARE RELATED TAXES
‘‘SUBPART A. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE.
22 ‘‘Subpart A—Tax on Individuals Without Acceptable
23 Health Care Coverage
‘‘Sec. 59B. Tax on individuals without acceptable health care coverage.
1224
1 ‘‘SEC. 59B. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE
2 HEALTH CARE COVERAGE.
3 ‘‘(a) TAX IMPOSED.—In the case of any individual
4 who does not meet the requirements of subsection (d) at
5 any time during the taxable year, there is hereby imposed
6 a tax equal to 2.5 percent of the excess of—
7 ‘‘(1) the taxpayer’s modified adjusted gross in
8 come for the taxable year, over
9 ‘‘(2) the amount of gross income specified in
10 section 6012(a)(1) with respect to the taxpayer.
11 ‘‘(b) LIMITATIONS.—
12 ‘‘(1) TAX LIMITED TO AVERAGE PREMIUM.—
13 ‘‘(A) IN GENERAL.—The tax imposed
14 under subsection (a) with respect to any tax
15 payer for any taxable year shall not exceed the
16 applicable national average premium for such
17 taxable year.
18 ‘‘(B) APPLICABLE NATIONAL AVERAGE
19 PREMIUM.—
20 ‘‘(i) IN GENERAL.—For purposes of
21 subparagraph (A), the ‘applicable national
22 average premium’ means, with respect to
23 any taxable year, the average premium (as
24 determined by the Secretary, in coordina
25 tion with the Health Choices Commis
26 sioner) for self-only coverage under a basic
1225
1 plan which is offered in a Health Insur
2 ance Exchange for the calendar year in
3 which such taxable year begins.
4 ‘‘(ii) FAILURE TO PROVIDE COVERAGE
5 FOR MORE THAN ONE INDIVIDUAL.—In the
6 case of any taxpayer who fails to meet the
7 requirements of subsection (e) with respect
8 to more than one individual during the tax
9 able year, clause (i) shall be applied by
10 substituting ‘family coverage’ for ‘self-only
11 coverage’.
12 ‘‘(2) PRORATION FOR PART YEAR FAILURES.—
13 The tax imposed under subsection (a) with respect
14 to any taxpayer for any taxable year shall not exceed
15 the amount which bears the same ratio to the
16 amount of tax so imposed (determined without re
17 gard to this paragraph and after application of para
18 graph (1)) as—
19 ‘‘(A) the aggregate periods during such
20 taxable year for which such individual failed to
21 meet the requirements of subsection (d), bears
22 to
23 ‘‘(B) the entire taxable year.
24 ‘‘(c) EXCEPTIONS.—
1226
1 ‘‘(1) DEPENDENTS.—Subsection (a) shall not
2 apply to any individual for any taxable year if a de
3 duction is allowable under section 151 with respect
4 to such individual to another taxpayer for any tax
5 able year beginning in the same calendar year as
6 such taxable year.
7 ‘‘(2) NONRESIDENT ALIENS.—Subsection (a)
8 shall not apply to any individual who is a non
9 resident alien.
10 ‘‘(3) INDIVIDUALS RESIDING OUTSIDE UNITED
11 STATES.—Any qualified individual (as defined in
12 section 911(d)) (and any qualifying child residing
13 with such individual) shall be treated for purposes of
14 this section as covered by acceptable coverage during
15 the period described in subparagraph (A) or (B) of
16 section 911(d)(1), whichever is applicable.
17 ‘‘(4) INDIVIDUALS RESIDING IN POSSESSIONS
18 OF THE UNITED STATES.—Any individual who is a
19 bona fide resident of any possession of the United
20 States (as determined under section 937(a)) for any
21 taxable year (and any qualifying child residing with
22 such individual) shall be treated for purposes of this
23 section as covered by acceptable coverage during
24 such taxable year.
25 ‘‘(5) RELIGIOUS CONSCIENCE EXEMPTION.—
1227
1 ‘‘(A) IN GENERAL.—Subsection (a) shall
2 not apply to any individual (and any qualifying
3 child residing with such individual) for any pe
4 riod if such individual has in effect an exemp
5 tion which certifies that such individual is a
6 member of a recognized religious sect or divi
7 sion thereof described in section 1402(g)(1) and
8 an adherent of established tenets or teachings
9 of such sect or division as described in such sec
10 tion.
11 ‘‘(B) EXEMPTION.—An application for the
12 exemption described in subparagraph (A) shall
13 be filed with the Secretary at such time and in
14 such form and manner as the Secretary may
15 prescribe. Any such exemption granted by the
16 Secretary shall be effective for such period as
17 the Secretary determines appropriate.
18 ‘‘(d) ACCEPTABLE COVERAGE REQUIREMENT.—
19 ‘‘(1) IN GENERAL.—The requirements of this
20 subsection are met with respect to any individual for
21 any period if such individual (and each qualifying
22 child of such individual) is covered by acceptable
23 coverage at all times during such period.
1228
1 ‘‘(2) ACCEPTABLE COVERAGE.—For purposes
2 of this section, the term ‘acceptable coverage’ means
3 any of the following:
4 ‘‘(A) QUALIFIED HEALTH BENEFITS PLAN
5 COVERAGE.—Coverage under a qualified health
6 benefits plan (as defined in section 100(c) of
7 the America’s Affordable Health Choices Act of
8 2009).
9 ‘‘(B) GRANDFATHERED HEALTH INSUR
10 ANCE COVERAGE; COVERAGE UNDER GRAND
11 FATHERED EMPLOYMENT-BASED HEALTH
12 PLAN.—Coverage under a grandfathered health
13 insurance coverage (as defined in subsection (a)
14 of section 102 of the America’s Affordable
15 Health Choices Act of 2009) or under a current
16 employment-based health plan (within the
17 meaning of subsection (b) of such section).
18 ‘‘(C) MEDICARE.—Coverage under part A
19 of title XVIII of the Social Security Act.
20 ‘‘(D) MEDICAID.—Coverage for medical as
21 sistance under title XIX of the Social Security
22 Act.
23 ‘‘(E) MEMBERS OF THE ARMED FORCES
24 AND DEPENDENTS (INCLUDING TRICARE).—
25 Coverage under chapter 55 of title 10, United
1229
1 States Code, including similar coverage fur
2 nished under section 1781 of title 38 of such
3 Code.
4 ‘‘(F) VA.—Coverage under the veteran’s
5 health care program under chapter 17 of title
6 38, United States Code, but only if the cov
7 erage for the individual involved is determined
8 by the Secretary in coordination with the
9 Health Choices Commissioner to be not less
10 than the level specified by the Secretary of the
11 Treasury, in coordination with the Secretary of
12 Veteran’s Affairs and the Health Choices Com
13 missioner, based on the individual’s priority for
14 services as provided under section 1705(a) of
15 such title.
16 ‘‘(G) OTHER COVERAGE.—Such other
17 health benefits coverage as the Secretary, in co
18 ordination with the Health Choices Commis
19 sioner, recognizes for purposes of this sub
20 section.
21 ‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.—
22 ‘‘(1) QUALIFYING CHILD.—For purposes of this
23 section, the term ‘qualifying child’ has the meaning
24 given such term by section 152(c).
1230
1 ‘‘(2) BASIC PLAN.—For purposes of this sec
2 tion, the term ‘basic plan’ has the meaning given
3 such term under section 100(c) of the America’s Af
4 fordable Health Choices Act of 2009.
5 ‘‘(3) HEALTH INSURANCE EXCHANGE.—For
6 purposes of this section, the term ‘Health Insurance
7 Exchange’ has the meaning given such term under
8 section 100(c) of the America’s Affordable Health
9 Choices Act of 2009, including any State-based
10 health insurance exchange approved for operation
11 under section 208 of such Act.
12 ‘‘(4) FAMILY COVERAGE.—For purposes of this
13 section, the term ‘family coverage’ means any cov
14 erage other than self-only coverage.
15 ‘‘(5) MODIFIED ADJUSTED GROSS INCOME.—
16 For purposes of this section, the term ‘modified ad
17 justed gross income’ means adjusted gross income—
18 ‘‘(A) determined without regard to section
19 911, and
20 ‘‘(B) increased by the amount of interest
21 received or accrued by the taxpayer during the
22 taxable year which is exempt from tax.
23 ‘‘(6) NOT TREATED AS TAX IMPOSED BY THIS
24 CHAPTER FOR CERTAIN PURPOSES.—The tax im
25 posed under this section shall not be treated as tax
1231
1 imposed by this chapter for purposes of determining
2 the amount of any credit under this chapter or for
3 purposes of section 55.
4 ‘‘(f) REGULATIONS.—The Secretary shall prescribe
5 such regulations or other guidance as may be necessary
6 or appropriate to carry out the purposes of this section,
7 including regulations or other guidance (developed in co8
ordination with the Health Choices Commissioner) which
9 provide—
10 ‘‘(1) exemption from the tax imposed under
11 subsection (a) in cases of de minimis lapses of ac12
ceptable coverage, and
13 ‘‘(2) a process for applying for a waiver of the
14 application of subsection (a) in cases of hardship.’’.
15 (b) INFORMATION REPORTING.—
16 (1) IN GENERAL.—Subpart B of part III of
17 subchapter A of chapter 61 of such Code is amended
18 by inserting after section 6050W the following new
19 section:
20 ‘‘SEC. 6050X. RETURNS RELATING TO HEALTH INSURANCE
21 COVERAGE.
22 ‘‘(a) REQUIREMENT OF REPORTING.—Every person
23 who provides acceptable coverage (as defined in section
24 59B(d)) to any individual during any calendar year shall,
25 at such time as the Secretary may prescribe, make the
1232
1 return described in subsection (b) with respect to such in
2 dividual.
3 ‘‘(b) FORM AND MANNER OF RETURNS.—A return
4 is described in this subsection if such return—
5 ‘‘(1) is in such form as the Secretary may pre
6 scribe, and
7 ‘‘(2) contains—
8 ‘‘(A) the name, address, and TIN of the
9 primary insured and the name of each other in
10 dividual obtaining coverage under the policy,
11 ‘‘(B) the period for which each such indi
12 vidual was provided with the coverage referred
13 to in subsection (a), and
14 ‘‘(C) such other information as the Sec
15 retary may require.
16 ‘‘(c) STATEMENTS TO BE FURNISHED TO INDIVID
17 UALS WITH RESPECT TO WHOM INFORMATION IS RE
18 QUIRED.—Every person required to make a return under
19 subsection (a) shall furnish to each primary insured whose
20 name is required to be set forth in such return a written
21 statement showing—
22 ‘‘(1) the name and address of the person re
23 quired to make such return and the phone number
24 of the information contact for such person, and
1233
1 ‘‘(2) the information required to be shown on
2 the return with respect to such individual.
3 The written statement required under the preceding sen
4 tence shall be furnished on or before January 31 of the
5 year following the calendar year for which the return
6 under subsection (a) is required to be made.
7 ‘‘(d) COVERAGE PROVIDED BY GOVERNMENTAL
8 UNITS.—In the case of coverage provided by any govern
9 mental unit or any agency or instrumentality thereof, the
10 officer or employee who enters into the agreement to pro
11 vide such coverage (or the person appropriately designated
12 for purposes of this section) shall make the returns and
13 statements required by this section.’’.
14 (2) PENALTY FOR FAILURE TO FILE.—
15 (A) RETURN.—Subparagraph (B) of sec
16 tion 6724(d)(1) of such Code is amended by
17 striking ‘‘or’’ at the end of clause (xxii), by
18 striking ‘‘and’’ at the end of clause (xxiii) and
19 inserting ‘‘or’’, and by adding at the end the
20 following new clause:
21 ‘‘(xxiv) section 6050X (relating to re
22 turns relating to health insurance cov
23 erage), and’’.
24 (B) STATEMENT.—Paragraph (2) of sec
25 tion 6724(d) of such Code is amended by strik
1234
1 ing ‘‘or’’ at the end of subparagraph (EE), by
2 striking the period at the end of subparagraph
3 (FF) and inserting ‘‘, or’’, and by inserting
4 after subparagraph (FF) the following new sub
5 paragraph:
6 ‘‘(GG) section 6050X (relating to returns
7 relating to health insurance coverage).’’.
8 (c) RETURN REQUIREMENT.—Subsection (a) of sec
9 tion 6012 of such Code is amended by inserting after
10 paragraph (9) the following new paragraph:
11 ‘‘(10) Every individual to whom section 59B(a)
12 applies and who fails to meet the requirements of
13 section 59B(d) with respect to such individual or
14 any qualifying child (as defined in section 152(c)) of
15 such individual.’’.
16 (d) CLERICAL AMENDMENTS.—
17 (1) The table of parts for subchapter A of chap
18 ter 1 of the Internal Revenue Code of 1986 is
19 amended by adding at the end the following new
20 item:
‘‘PART VIII. HEALTH CARE RELATED TAXES.’’.
21 (2) The table of sections for subpart B of part
22 III of subchapter A of chapter 61 is amended by
23 adding at the end the following new item:
‘‘Sec. 6050X.Returns relating to health insurance coverage.’’.
1235
1 (e) SECTION 15 NOT TO APPLY.—The amendment
2 made by subsection (a) shall not be treated as a change
3 in a rate of tax for purposes of section 15 of the Internal
4 Revenue Code of 1986.
5 (f) EFFECTIVE DATE.—
6 (1) IN GENERAL.—The amendments made by
7 this section shall apply to taxable years beginning
8 after December 31, 2012.
9 (2) RETURNS.—The amendments made by sub
10 section (b) shall apply to calendar years beginning
11 after December 31, 2012.
1253
13 Subtitle D—Other Revenue
14 Provisions
15 PART 1—GENERAL PROVISIONS
16 SEC. 441. SURCHARGE ON HIGH INCOME INDIVIDUALS.
17 (a) IN GENERAL.—Part VIII of subchapter A of
18 chapter 1 of the Internal Revenue Code of 1986, as added
19 by this title, is amended by adding at the end the following
20 new subpart:
21 ‘‘Subpart B—Surcharge on High Income Individuals
‘‘Sec. 59C.Surcharge on high income individuals.
22 ‘‘SEC. 59C. SURCHARGE ON HIGH INCOME INDIVIDUALS.
23 ‘‘(a) GENERAL RULE.—In the case of a taxpayer
24 other than a corporation, there is hereby imposed (in addi
1254
1 tion to any other tax imposed by this subtitle) a tax equal
2 to—
3 ‘‘(1) 1 percent of so much of the modified ad
4 justed gross income of the taxpayer as exceeds
5 $350,000 but does not exceed $500,000,
6 ‘‘(2) 1.5 percent of so much of the modified ad
7 justed gross income of the taxpayer as exceeds
8 $500,000 but does not exceed $1,000,000, and
9 ‘‘(3) 5.4 percent of so much of the modified ad
10 justed gross income of the taxpayer as exceeds
11 $1,000,000.
12 ‘‘(b) TAXPAYERS NOT MAKING A JOINT RETURN.—
13 In the case of any taxpayer other than a taxpayer making
14 a joint return under section 6013 or a surviving spouse
15 (as defined in section 2(a)), subsection (a) shall be applied
16 by substituting for each of the dollar amounts therein
17 (after any increase determined under subsection (e)) a dol
18 lar amount equal to—
19 ‘‘(1) 50 percent of the dollar amount so in ef
20 fect in the case of a married individual filing a sepa
21 rate return, and
22 ‘‘(2) 80 percent of the dollar amount so in ef
23 fect in any other case.
24 ‘‘(c) ADJUSTMENTS
Page 1223
11 TITLE IV—AMENDMENTS TO IN
12 TERNAL REVENUE CODE OF
13 1986
14 Subtitle A—Shared Responsibility
15 PART 1—INDIVIDUAL RESPONSIBILITY
16 SEC. 401. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE
17 HEALTH CARE COVERAGE.
18 (a) IN GENERAL.—Subchapter A of chapter 1 of the
19 Internal Revenue Code of 1986 is amended by adding at
20 the end the following new part:
21 ‘‘PART VIII—HEALTH CARE RELATED TAXES
‘‘SUBPART A. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE.
22 ‘‘Subpart A—Tax on Individuals Without Acceptable
23 Health Care Coverage
‘‘Sec. 59B. Tax on individuals without acceptable health care coverage.
1224
1 ‘‘SEC. 59B. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE
2 HEALTH CARE COVERAGE.
3 ‘‘(a) TAX IMPOSED.—In the case of any individual
4 who does not meet the requirements of subsection (d) at
5 any time during the taxable year, there is hereby imposed
6 a tax equal to 2.5 percent of the excess of—
7 ‘‘(1) the taxpayer’s modified adjusted gross in
8 come for the taxable year, over
9 ‘‘(2) the amount of gross income specified in
10 section 6012(a)(1) with respect to the taxpayer.
11 ‘‘(b) LIMITATIONS.—
12 ‘‘(1) TAX LIMITED TO AVERAGE PREMIUM.—
13 ‘‘(A) IN GENERAL.—The tax imposed
14 under subsection (a) with respect to any tax
15 payer for any taxable year shall not exceed the
16 applicable national average premium for such
17 taxable year.
18 ‘‘(B) APPLICABLE NATIONAL AVERAGE
19 PREMIUM.—
20 ‘‘(i) IN GENERAL.—For purposes of
21 subparagraph (A), the ‘applicable national
22 average premium’ means, with respect to
23 any taxable year, the average premium (as
24 determined by the Secretary, in coordina
25 tion with the Health Choices Commis
26 sioner) for self-only coverage under a basic
1225
1 plan which is offered in a Health Insur
2 ance Exchange for the calendar year in
3 which such taxable year begins.
4 ‘‘(ii) FAILURE TO PROVIDE COVERAGE
5 FOR MORE THAN ONE INDIVIDUAL.—In the
6 case of any taxpayer who fails to meet the
7 requirements of subsection (e) with respect
8 to more than one individual during the tax
9 able year, clause (i) shall be applied by
10 substituting ‘family coverage’ for ‘self-only
11 coverage’.
12 ‘‘(2) PRORATION FOR PART YEAR FAILURES.—
13 The tax imposed under subsection (a) with respect
14 to any taxpayer for any taxable year shall not exceed
15 the amount which bears the same ratio to the
16 amount of tax so imposed (determined without re
17 gard to this paragraph and after application of para
18 graph (1)) as—
19 ‘‘(A) the aggregate periods during such
20 taxable year for which such individual failed to
21 meet the requirements of subsection (d), bears
22 to
23 ‘‘(B) the entire taxable year.
24 ‘‘(c) EXCEPTIONS.—
1226
1 ‘‘(1) DEPENDENTS.—Subsection (a) shall not
2 apply to any individual for any taxable year if a de
3 duction is allowable under section 151 with respect
4 to such individual to another taxpayer for any tax
5 able year beginning in the same calendar year as
6 such taxable year.
7 ‘‘(2) NONRESIDENT ALIENS.—Subsection (a)
8 shall not apply to any individual who is a non
9 resident alien.
10 ‘‘(3) INDIVIDUALS RESIDING OUTSIDE UNITED
11 STATES.—Any qualified individual (as defined in
12 section 911(d)) (and any qualifying child residing
13 with such individual) shall be treated for purposes of
14 this section as covered by acceptable coverage during
15 the period described in subparagraph (A) or (B) of
16 section 911(d)(1), whichever is applicable.
17 ‘‘(4) INDIVIDUALS RESIDING IN POSSESSIONS
18 OF THE UNITED STATES.—Any individual who is a
19 bona fide resident of any possession of the United
20 States (as determined under section 937(a)) for any
21 taxable year (and any qualifying child residing with
22 such individual) shall be treated for purposes of this
23 section as covered by acceptable coverage during
24 such taxable year.
25 ‘‘(5) RELIGIOUS CONSCIENCE EXEMPTION.—
1227
1 ‘‘(A) IN GENERAL.—Subsection (a) shall
2 not apply to any individual (and any qualifying
3 child residing with such individual) for any pe
4 riod if such individual has in effect an exemp
5 tion which certifies that such individual is a
6 member of a recognized religious sect or divi
7 sion thereof described in section 1402(g)(1) and
8 an adherent of established tenets or teachings
9 of such sect or division as described in such sec
10 tion.
11 ‘‘(B) EXEMPTION.—An application for the
12 exemption described in subparagraph (A) shall
13 be filed with the Secretary at such time and in
14 such form and manner as the Secretary may
15 prescribe. Any such exemption granted by the
16 Secretary shall be effective for such period as
17 the Secretary determines appropriate.
18 ‘‘(d) ACCEPTABLE COVERAGE REQUIREMENT.—
19 ‘‘(1) IN GENERAL.—The requirements of this
20 subsection are met with respect to any individual for
21 any period if such individual (and each qualifying
22 child of such individual) is covered by acceptable
23 coverage at all times during such period.
1228
1 ‘‘(2) ACCEPTABLE COVERAGE.—For purposes
2 of this section, the term ‘acceptable coverage’ means
3 any of the following:
4 ‘‘(A) QUALIFIED HEALTH BENEFITS PLAN
5 COVERAGE.—Coverage under a qualified health
6 benefits plan (as defined in section 100(c) of
7 the America’s Affordable Health Choices Act of
8 2009).
9 ‘‘(B) GRANDFATHERED HEALTH INSUR
10 ANCE COVERAGE; COVERAGE UNDER GRAND
11 FATHERED EMPLOYMENT-BASED HEALTH
12 PLAN.—Coverage under a grandfathered health
13 insurance coverage (as defined in subsection (a)
14 of section 102 of the America’s Affordable
15 Health Choices Act of 2009) or under a current
16 employment-based health plan (within the
17 meaning of subsection (b) of such section).
18 ‘‘(C) MEDICARE.—Coverage under part A
19 of title XVIII of the Social Security Act.
20 ‘‘(D) MEDICAID.—Coverage for medical as
21 sistance under title XIX of the Social Security
22 Act.
23 ‘‘(E) MEMBERS OF THE ARMED FORCES
24 AND DEPENDENTS (INCLUDING TRICARE).—
25 Coverage under chapter 55 of title 10, United
1229
1 States Code, including similar coverage fur
2 nished under section 1781 of title 38 of such
3 Code.
4 ‘‘(F) VA.—Coverage under the veteran’s
5 health care program under chapter 17 of title
6 38, United States Code, but only if the cov
7 erage for the individual involved is determined
8 by the Secretary in coordination with the
9 Health Choices Commissioner to be not less
10 than the level specified by the Secretary of the
11 Treasury, in coordination with the Secretary of
12 Veteran’s Affairs and the Health Choices Com
13 missioner, based on the individual’s priority for
14 services as provided under section 1705(a) of
15 such title.
16 ‘‘(G) OTHER COVERAGE.—Such other
17 health benefits coverage as the Secretary, in co
18 ordination with the Health Choices Commis
19 sioner, recognizes for purposes of this sub
20 section.
21 ‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.—
22 ‘‘(1) QUALIFYING CHILD.—For purposes of this
23 section, the term ‘qualifying child’ has the meaning
24 given such term by section 152(c).
1230
1 ‘‘(2) BASIC PLAN.—For purposes of this sec
2 tion, the term ‘basic plan’ has the meaning given
3 such term under section 100(c) of the America’s Af
4 fordable Health Choices Act of 2009.
5 ‘‘(3) HEALTH INSURANCE EXCHANGE.—For
6 purposes of this section, the term ‘Health Insurance
7 Exchange’ has the meaning given such term under
8 section 100(c) of the America’s Affordable Health
9 Choices Act of 2009, including any State-based
10 health insurance exchange approved for operation
11 under section 208 of such Act.
12 ‘‘(4) FAMILY COVERAGE.—For purposes of this
13 section, the term ‘family coverage’ means any cov
14 erage other than self-only coverage.
15 ‘‘(5) MODIFIED ADJUSTED GROSS INCOME.—
16 For purposes of this section, the term ‘modified ad
17 justed gross income’ means adjusted gross income—
18 ‘‘(A) determined without regard to section
19 911, and
20 ‘‘(B) increased by the amount of interest
21 received or accrued by the taxpayer during the
22 taxable year which is exempt from tax.
23 ‘‘(6) NOT TREATED AS TAX IMPOSED BY THIS
24 CHAPTER FOR CERTAIN PURPOSES.—The tax im
25 posed under this section shall not be treated as tax
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1 imposed by this chapter for purposes of determining
2 the amount of any credit under this chapter or for
3 purposes of section 55.
4 ‘‘(f) REGULATIONS.—The Secretary shall prescribe
5 such regulations or other guidance as may be necessary
6 or appropriate to carry out the purposes of this section,
7 including regulations or other guidance (developed in co8
ordination with the Health Choices Commissioner) which
9 provide—
10 ‘‘(1) exemption from the tax imposed under
11 subsection (a) in cases of de minimis lapses of ac12
ceptable coverage, and
13 ‘‘(2) a process for applying for a waiver of the
14 application of subsection (a) in cases of hardship.’’.
15 (b) INFORMATION REPORTING.—
16 (1) IN GENERAL.—Subpart B of part III of
17 subchapter A of chapter 61 of such Code is amended
18 by inserting after section 6050W the following new
19 section:
20 ‘‘SEC. 6050X. RETURNS RELATING TO HEALTH INSURANCE
21 COVERAGE.
22 ‘‘(a) REQUIREMENT OF REPORTING.—Every person
23 who provides acceptable coverage (as defined in section
24 59B(d)) to any individual during any calendar year shall,
25 at such time as the Secretary may prescribe, make the
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1 return described in subsection (b) with respect to such in
2 dividual.
3 ‘‘(b) FORM AND MANNER OF RETURNS.—A return
4 is described in this subsection if such return—
5 ‘‘(1) is in such form as the Secretary may pre
6 scribe, and
7 ‘‘(2) contains—
8 ‘‘(A) the name, address, and TIN of the
9 primary insured and the name of each other in
10 dividual obtaining coverage under the policy,
11 ‘‘(B) the period for which each such indi
12 vidual was provided with the coverage referred
13 to in subsection (a), and
14 ‘‘(C) such other information as the Sec
15 retary may require.
16 ‘‘(c) STATEMENTS TO BE FURNISHED TO INDIVID
17 UALS WITH RESPECT TO WHOM INFORMATION IS RE
18 QUIRED.—Every person required to make a return under
19 subsection (a) shall furnish to each primary insured whose
20 name is required to be set forth in such return a written
21 statement showing—
22 ‘‘(1) the name and address of the person re
23 quired to make such return and the phone number
24 of the information contact for such person, and
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1 ‘‘(2) the information required to be shown on
2 the return with respect to such individual.
3 The written statement required under the preceding sen
4 tence shall be furnished on or before January 31 of the
5 year following the calendar year for which the return
6 under subsection (a) is required to be made.
7 ‘‘(d) COVERAGE PROVIDED BY GOVERNMENTAL
8 UNITS.—In the case of coverage provided by any govern
9 mental unit or any agency or instrumentality thereof, the
10 officer or employee who enters into the agreement to pro
11 vide such coverage (or the person appropriately designated
12 for purposes of this section) shall make the returns and
13 statements required by this section.’’.
14 (2) PENALTY FOR FAILURE TO FILE.—
15 (A) RETURN.—Subparagraph (B) of sec
16 tion 6724(d)(1) of such Code is amended by
17 striking ‘‘or’’ at the end of clause (xxii), by
18 striking ‘‘and’’ at the end of clause (xxiii) and
19 inserting ‘‘or’’, and by adding at the end the
20 following new clause:
21 ‘‘(xxiv) section 6050X (relating to re
22 turns relating to health insurance cov
23 erage), and’’.
24 (B) STATEMENT.—Paragraph (2) of sec
25 tion 6724(d) of such Code is amended by strik
1234
1 ing ‘‘or’’ at the end of subparagraph (EE), by
2 striking the period at the end of subparagraph
3 (FF) and inserting ‘‘, or’’, and by inserting
4 after subparagraph (FF) the following new sub
5 paragraph:
6 ‘‘(GG) section 6050X (relating to returns
7 relating to health insurance coverage).’’.
8 (c) RETURN REQUIREMENT.—Subsection (a) of sec
9 tion 6012 of such Code is amended by inserting after
10 paragraph (9) the following new paragraph:
11 ‘‘(10) Every individual to whom section 59B(a)
12 applies and who fails to meet the requirements of
13 section 59B(d) with respect to such individual or
14 any qualifying child (as defined in section 152(c)) of
15 such individual.’’.
16 (d) CLERICAL AMENDMENTS.—
17 (1) The table of parts for subchapter A of chap
18 ter 1 of the Internal Revenue Code of 1986 is
19 amended by adding at the end the following new
20 item:
‘‘PART VIII. HEALTH CARE RELATED TAXES.’’.
21 (2) The table of sections for subpart B of part
22 III of subchapter A of chapter 61 is amended by
23 adding at the end the following new item:
‘‘Sec. 6050X.Returns relating to health insurance coverage.’’.
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1 (e) SECTION 15 NOT TO APPLY.—The amendment
2 made by subsection (a) shall not be treated as a change
3 in a rate of tax for purposes of section 15 of the Internal
4 Revenue Code of 1986.
5 (f) EFFECTIVE DATE.—
6 (1) IN GENERAL.—The amendments made by
7 this section shall apply to taxable years beginning
8 after December 31, 2012.
9 (2) RETURNS.—The amendments made by sub
10 section (b) shall apply to calendar years beginning
11 after December 31, 2012.