HR 636 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 636CommentsClose CommentsPermalink

To repeal PPACA and the health care-related provisions in the Health Care and Education Reconciliation Act of 2010, and to amend the Internal Revenue Code of 1986 to allow individuals a refundable credit against income tax for the purchase of private health insurance, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

February 10, 2011CommentsClose CommentsPermalink

Ms. GRANGER introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and the Workforce, House Administration, Appropriations, Natural Resources, the Judiciary, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To repeal PPACA and the health care-related provisions in the Health Care and Education Reconciliation Act of 2010, and to amend the Internal Revenue Code of 1986 to allow individuals a refundable credit against income tax for the purchase of private health insurance, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Affordable Health Care Expansion Act of 2011’.CommentsClose CommentsPermalink

SEC. 2. REPEAL OF PPACA AND HEALTH CARE-RELATED PROVISIONS IN THE HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010.

(a) PPACA- Effective as of the enactment of Public Law 111-148, such Act is repealed, and the provisions of law amended or repealed by such Act are restored or revived as if such Act had not been enacted.CommentsClose CommentsPermalink





(b) Health Care-Related Provisions in the Health Care and Education Reconciliation Act of 2010- Effective as of the enactment of the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), title I and subtitle B of title II of such Act are repealed, and the provisions of law amended or repealed by such title or subtitle, respectively, are restored or revived as if such title and subtitle had not been enacted.CommentsClose CommentsPermalink

SEC. 3. REFUNDABLE CREDIT FOR HEALTH INSURANCE COVERAGE.

(a) In General- Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as restored and revived under section 2 of this Act, is amended by inserting after section 36A the following new section:CommentsClose CommentsPermalink

‘SEC. 36B. HEALTH INSURANCE COSTS.

‘(a) In General- In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to the amount paid during the taxable year for qualified health insurance for the taxpayer, his spouse, and dependents.CommentsClose CommentsPermalink





‘(b) Limitations-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The amount allowed as a credit under subsection (a) to the taxpayer for the taxable year shall not exceed the sum of the monthly limitations for coverage months during such taxable year for each individual referred to in subsection (a) for whom the taxpayer paid during the taxable year any amount for coverage under qualified health insurance.CommentsClose CommentsPermalink





‘(2) PHASEOUT OF AMOUNT-CommentsClose CommentsPermalink





‘(A) REDUCTION BASED ON ADJUSTED GROSS INCOME- The amount determined under paragraph (1) for any taxable year shall be reduced (but not below zero) by the amount determined under subparagraph (B).CommentsClose CommentsPermalink





‘(B) AMOUNT OF REDUCTION- The amount determined under this subparagraph with respect to any amount determined under paragraph (1) shall be the amount which bears the same ratio to such amount determined under paragraph (1) as--CommentsClose CommentsPermalink





‘(i) the excess of--CommentsClose CommentsPermalink





‘(I) the taxpayer’s adjusted gross income for such taxable year, overCommentsClose CommentsPermalink





‘(II) the applicable dollar amount, bears toCommentsClose CommentsPermalink





‘(ii) $10,000.CommentsClose CommentsPermalink





The rules of subparagraphs (B) and (C) of section 219(g)(2) shall apply to any reduction under this subparagraph.CommentsClose CommentsPermalink





‘(C) DEFINITIONS- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) adjusted gross income shall be determined in the same manner as under section 408A(c)(3)(C)(i), andCommentsClose CommentsPermalink





‘(ii) the applicable dollar amount is--CommentsClose CommentsPermalink





‘(I) in the case of a taxpayer filing a joint return, $105,000,CommentsClose CommentsPermalink





‘(II) in the case of any other taxpayer (other than a married individual filing a separate return), $65,000, andCommentsClose CommentsPermalink





‘(III) in the case of a married individual filing a separate return, zero.CommentsClose CommentsPermalink





‘(3) MONTHLY LIMITATION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The monthly limitation for an individual for each coverage month of such individual during the taxable year is the amount equal to 1/12 th of--CommentsClose CommentsPermalink





‘(i) the base amount, plusCommentsClose CommentsPermalink





‘(ii) 50 percent of the amount paid in excess of the base amount.CommentsClose CommentsPermalink





‘(B) BASE AMOUNT- For purposes of this paragraph, the base amount is--CommentsClose CommentsPermalink





‘(i) $1,000 if such individual is the taxpayer,CommentsClose CommentsPermalink





‘(ii) $1,000 if--CommentsClose CommentsPermalink





‘(I) such individual is the spouse of the taxpayer,CommentsClose CommentsPermalink





‘(II) the taxpayer and such spouse are married as of the first day of such month, andCommentsClose CommentsPermalink





‘(III) the taxpayer files a joint return for the taxable year, andCommentsClose CommentsPermalink





‘(iii) $500 if such individual is an individual for whom a deduction under section 151(c) is allowable to the taxpayer for such taxable year.CommentsClose CommentsPermalink





‘(4) HEALTH INSURANCE COVERAGE REQUIRED FOR ALL FAMILY MEMBERS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The coverage month limitation for a month shall be zero unless, on the first day of the such month, the taxpayer, the spouse of the taxpayer, and each qualifying child of the taxpayer as of such day is covered by qualified health insurance.CommentsClose CommentsPermalink





‘(B) QUALIFYING CHILD- For purposes of subparagraph (A), the term ‘qualifying child’, with respect to the taxpayer, has the meaning given such term by section 152(c), determined without regard to section 152(e), but not if such child--CommentsClose CommentsPermalink





‘(i) is married at the close of the taxpayer’s taxable year, andCommentsClose CommentsPermalink





‘(ii) is not a dependent of such individual by reason of section 152(b)(2) or 152(b)(3), or both.CommentsClose CommentsPermalink





‘(5) COVERAGE MONTH- For purposes of this subsection--CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘coverage month’ means, with respect to an individual, any month if--CommentsClose CommentsPermalink





‘(i) as of the first day of such month such individual is covered by qualified health insurance, andCommentsClose CommentsPermalink





‘(ii) the premium for coverage under such insurance for such month is paid by the taxpayer.CommentsClose CommentsPermalink





‘(B) EMPLOYER-SUBSIDIZED COVERAGE-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Such term shall not include any month for which such individual participates in any subsidized health plan (within the meaning of section 162(l)(2)) maintained by any employer of the taxpayer or of the spouse of the taxpayer.CommentsClose CommentsPermalink





‘(ii) PREMIUMS TO NONSUBSIDIZED PLANS- If an employer of the taxpayer or the spouse of the taxpayer maintains a health plan which is not a subsidized health plan (as so defined) and which constitutes qualified health insurance, employee contributions to the plan shall be treated as amounts paid for qualified health insurance.CommentsClose CommentsPermalink





‘(C) CAFETERIA PLAN AND FLEXIBLE SPENDING ACCOUNT BENEFICIARIES- Such term shall not include any month during a taxable year if any amount is not includible in the gross income of the taxpayer for such year under section 106 with respect to--CommentsClose CommentsPermalink





‘(i) a benefit chosen under a cafeteria plan (as defined in section 125(d)), orCommentsClose CommentsPermalink





‘(ii) a benefit provided under a flexible spending or similar arrangement.CommentsClose CommentsPermalink





‘(D) MEDICARE AND MEDICAID- Such term shall not include any month with respect to an individual if, as of the first day of such month, such individual--CommentsClose CommentsPermalink





‘(i) is entitled to any benefits under title XVIII of the Social Security Act, orCommentsClose CommentsPermalink





‘(ii) is a participant in the program under title XIX or XXI of such Act.CommentsClose CommentsPermalink





‘(E) CERTAIN OTHER COVERAGE- Such term shall not include any month during a taxable year with respect to an individual if, at any time during such year, any benefit is provided to such individual under--CommentsClose CommentsPermalink





‘(i) chapter 89 of title 5, United States Code,CommentsClose CommentsPermalink





‘(ii) chapter 55 of title 10, United States Code,CommentsClose CommentsPermalink





‘(iii) chapter 17 of title 38, United States Code, orCommentsClose CommentsPermalink





‘(iv) any medical care program under the Indian Health Care Improvement Act.CommentsClose CommentsPermalink





‘(F) PRISONERS- Such term shall not include any month with respect to an individual if, as of the first day of such month, such individual is imprisoned under Federal, State, or local authority.CommentsClose CommentsPermalink





‘(G) INSUFFICIENT PRESENCE IN UNITED STATES- Such term shall not include any month during a taxable year with respect to an individual if such individual is present in the United States on fewer than 183 days during such year (determined in accordance with section 7701(b)(7)).CommentsClose CommentsPermalink





‘(6) COORDINATION WITH DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-EMPLOYED INDIVIDUALS- In the case of a taxpayer who is eligible to deduct any amount under section 162(l) for the taxable year, this section shall apply only if the taxpayer elects not to claim any amount as a deduction under such section for such year.CommentsClose CommentsPermalink





‘(c) Reduced Credit for Participants in Health Plans of Employers- In the case of any individual who participates in a subsidized health plan (within the meaning of section 162(l)(2)) maintained by any employer of the taxpayer or of the spouse of the taxpayer (not including a cafeteria plan (as defined in section 125(d))), there shall be allowed to the taxpayer one-quarter of the credit that would be allowed to the taxpayer under subsection (a) (determined without regard to the participation in the health plan) if the monthly limitation were determined without the addition of the amount described in subsection (b)(3)(A)(ii).CommentsClose CommentsPermalink





‘(d) Qualified Health Insurance- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘qualified health insurance’ means insurance which constitutes medical care as defined in section 213(d) without regard to--CommentsClose CommentsPermalink





‘(A) paragraph (1)(C) thereof, andCommentsClose CommentsPermalink





‘(B) so much of paragraph (1)(D) thereof as relates to qualified long-term care insurance contracts.CommentsClose CommentsPermalink





‘(2) EXCLUSION OF CERTAIN OTHER CONTRACTS- Such term shall not include insurance if a substantial portion of its benefits are excepted benefits (as defined in section 9832(c)).CommentsClose CommentsPermalink





‘(e) Medical and Health Savings Account Contributions-CommentsClose CommentsPermalink





‘(1) IN GENERAL- If a deduction would (but for paragraph (2)) be allowed under section 220 or 223 to the taxpayer for a payment for the taxable year to the medical or health savings account of an individual, subsection (a) shall be applied by treating such payment as a payment for qualified health insurance for such individual.CommentsClose CommentsPermalink





‘(2) DENIAL OF DOUBLE BENEFIT- No deduction shall be allowed under section 220 or 223 for that portion of the payments otherwise allowable as a deduction under section 220 or 223 (as the case may be) for the taxable year which is equal to the amount of credit allowed for such taxable year by reason of this subsection.CommentsClose CommentsPermalink





‘(f) Special Rules-CommentsClose CommentsPermalink





‘(1) COORDINATION WITH MEDICAL EXPENSE DEDUCTION- The amount which would (but for this paragraph) be taken into account by the taxpayer under section 213 for the taxable year shall be reduced by the credit (if any) allowed by this section to the taxpayer for such year.CommentsClose CommentsPermalink





‘(2) DENIAL OF CREDIT TO DEPENDENTS- No credit shall be allowed under this section to any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins.CommentsClose CommentsPermalink





‘(3) DENIAL OF DOUBLE BENEFIT- No credit shall be allowed under subsection (a) if the credit under section 35 is allowed and no credit shall be allowed under 35 if a credit is allowed under this section.CommentsClose CommentsPermalink





‘(4) ELECTION NOT TO CLAIM CREDIT- This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year.CommentsClose CommentsPermalink





‘(5) INFLATION ADJUSTMENT- In the case of any taxable year beginning in a calendar year after 2011, each dollar amount contained in subsection (b)(3)(B) shall be increased by an amount equal to--CommentsClose CommentsPermalink





‘(A) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2010’ for ‘calendar year 1992’ in subparagraph (B) thereof.CommentsClose CommentsPermalink





Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50 ($25 in the case of the dollar amount in subsection (b)(3)(B)(iii)).’.CommentsClose CommentsPermalink





(b) Information Reporting-CommentsClose CommentsPermalink





(1) IN GENERAL- Subpart B of part III of subchapter A of chapter 61 of such Code is amended by inserting after section 6050W the following new section:CommentsClose CommentsPermalink

‘SEC. 6050X. RETURNS RELATING TO PAYMENTS FOR QUALIFIED HEALTH INSURANCE.

‘(a) In General- Any person who, in connection with a trade or business conducted by such person, receives payments during any calendar year from any individual for coverage of such individual or any other individual under creditable health insurance, shall make the return described in subsection (b) (at such time as the Secretary may by regulations prescribe) with respect to each individual from whom such payments were received.CommentsClose CommentsPermalink





‘(b) Form and Manner of Returns- A return is described in this subsection if such return--CommentsClose CommentsPermalink





‘(1) is in such form as the Secretary may prescribe, andCommentsClose CommentsPermalink





‘(2) contains--CommentsClose CommentsPermalink





‘(A) the name, address, and TIN of the individual from whom payments described in subsection (a) were received,CommentsClose CommentsPermalink





‘(B) the name, address, and TIN of each individual who was provided by such person with coverage under creditable health insurance by reason of such payments and the period of such coverage, andCommentsClose CommentsPermalink





‘(C) such other information as the Secretary may reasonably prescribe.CommentsClose CommentsPermalink





‘(c) Creditable Health Insurance- For purposes of this section, the term ‘creditable health insurance’ means qualified health insurance (as defined in section 36B(d)) other than--CommentsClose CommentsPermalink





‘(1) insurance under a subsidized group health plan maintained by an employer, orCommentsClose CommentsPermalink





‘(2) to the extent provided in regulations prescribed by the Secretary, any other insurance covering an individual if no credit is allowable under section 36B with respect to such coverage.CommentsClose CommentsPermalink





‘(d) Statements To Be Furnished to Individuals With Respect to Whom Information Is Required- Every person required to make a return under subsection (a) shall furnish to each individual whose name is required under subsection (b)(2)(A) to be set forth in such return a written statement showing--CommentsClose CommentsPermalink





‘(1) the aggregate amount of payments described in subsection (a) received by the person required to make such return from the individual to whom the statement is required to be furnished, andCommentsClose CommentsPermalink





‘(2) the information required under subsection (b)(2)(B) with respect to such payments.CommentsClose CommentsPermalink





The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) is required to be made.CommentsClose CommentsPermalink





‘(e) Returns Which Would Be Required To Be Made by 2 or More Persons- Except to the extent provided in regulations prescribed by the Secretary, in the case of any amount received by any person on behalf of another person, only the person first receiving such amount shall be required to make the return under subsection (a).’.CommentsClose CommentsPermalink





(2) ASSESSABLE PENALTIES-CommentsClose CommentsPermalink





(A) Subparagraph (B) of section 6724(d)(1) of such Code, as restored and revived under section 2 of this Act, is amended by striking ‘or’ at the end of clause (xxii), by striking ‘and’ at the end of clause (xxiii) and inserting ‘or’, and by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(xxiv) section 6050X (relating to returns relating to payments for qualified health insurance), and’.CommentsClose CommentsPermalink





(B) Paragraph (2) of section 6724(d) of such Code, as restored and revived under section 2 of this Act, is amended by striking ‘or’ at the end of subparagraph (EE), by striking the period at the end of subparagraph (FF) and inserting ‘, or’, and by inserting after subparagraph (FF) the following new subparagraph:CommentsClose CommentsPermalink





‘(GG) section 6050X(d) (relating to returns relating to payments for qualified health insurance).’.CommentsClose CommentsPermalink





(3) CLERICAL AMENDMENT- The table of sections for subpart B of part III of subchapter A of chapter 61 of such Code is amended by inserting after the item relating to section 6050W the following new item:CommentsClose CommentsPermalink





‘Sec. 6050X. Returns relating to payments for qualified health insurance.’.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) Paragraph (2) of section 1324(b) of title 31, United States Code, as restored and revived under section 2 of this Act, is amended by inserting ‘36B,’ after ‘36A,’.CommentsClose CommentsPermalink





(2) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code, as restored and revived under section 2 of this Act, is amended by inserting after the item relating to section 36A the following new item:CommentsClose CommentsPermalink





‘Sec. 36B. Health insurance costs.’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2010.CommentsClose CommentsPermalink

SEC. 4. ADVANCE PAYMENT OF CREDIT FOR PURCHASERS OF QUALIFIED HEALTH INSURANCE.

(a) In General- Chapter 77 of the Internal Revenue Code of 1986 (relating to miscellaneous provisions) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 7529. ADVANCE PAYMENT OF HEALTH INSURANCE CREDIT FOR PURCHASERS OF QUALIFIED HEALTH INSURANCE.

‘(a) General Rule- In the case of an eligible individual, the Secretary shall make payments to the provider of such individual’s qualified health insurance equal to such individual’s qualified health insurance credit advance amount with respect to such provider.CommentsClose CommentsPermalink





‘(b) Eligible Individual- For purposes of this section, the term ‘eligible individual’ means any individual--CommentsClose CommentsPermalink





‘(1) who purchases qualified health insurance (as defined in section 36B(d)), andCommentsClose CommentsPermalink





‘(2) for whom a qualified health insurance credit eligibility certificate is in effect.CommentsClose CommentsPermalink





‘(c) Qualified Health Insurance Credit Eligibility Certificate- For purposes of this section, a qualified health insurance credit eligibility certificate is a statement furnished by an individual to the Secretary which--CommentsClose CommentsPermalink





‘(1) certifies that the individual will be eligible to receive the credit provided by section 36B for the taxable year,CommentsClose CommentsPermalink





‘(2) estimates the amount of such credit for such taxable year, andCommentsClose CommentsPermalink





‘(3) provides such other information as the Secretary may require for purposes of this section.CommentsClose CommentsPermalink





‘(d) Qualified Health Insurance Credit Advance Amount- For purposes of this section, the term ‘qualified health insurance credit advance amount’ means, with respect to any provider of qualified health insurance, the Secretary’s estimate of the amount of credit allowable under section 36B to the individual for the taxable year which is attributable to the insurance provided to the individual by such provider.CommentsClose CommentsPermalink





‘(e) Regulations- The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.’.CommentsClose CommentsPermalink





(b) Clerical Amendment- The table of sections for chapter 77 of such Code is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 7529. Advance payment of health insurance credit for purchasers of qualified health insurance.’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink