Sovereignthink

Upholding Individual, State then National Sovereignty against the Enforcement of Global Governence and Tyranny

Patient Protection and Affordable Care Act

with one comment


Taxing America to Prison

Section 9006 of the Patient Protection and Affordable Care Act (If you sold $600 worth of gold you must register as a business doing person)

TITLE IX—REVENUE PROVISIONS (Tax section)

Subtitle A—Revenue Offset Provisions

SEC. 9001. EXCISE TAX ON HIGH COST EMPLOYER-SPONSORED HEALTH

COVERAGE.

(a) IN GENERAL.—Chapter 43 of the Internal Revenue Code

of 1986, as amended by section 1513, is amended by adding at

the end the following:

H. R. 3590—730

‘‘SEC. 4980I. EXCISE TAX ON HIGH COST EMPLOYER-SPONSORED

HEALTH COVERAGE.

‘‘(a) IMPOSITION OF TAX.—If—

‘‘(1) an employee is covered under any applicable employersponsored

coverage of an employer at any time during a taxable

period, and

‘‘(2) there is any excess benefit with respect to the coverage,

there is hereby imposed a tax equal to 40 percent of the excess

benefit.

‘‘(b) EXCESS BENEFIT.—For purposes of this section—

‘‘(1) IN GENERAL.—The term ‘excess benefit’ means, with

respect to any applicable employer-sponsored coverage made

available by an employer to an employee during any taxable

period, the sum of the excess amounts determined under paragraph

(2) for months during the taxable period.

‘‘(2) MONTHLY EXCESS AMOUNT.—The excess amount determined

under this paragraph for any month is the excess (if

any) of—

‘‘(A) the aggregate cost of the applicable employersponsored

coverage of the employee for the month, over

‘‘(B) an amount equal to 1⁄12 of the annual limitation

under paragraph (3) for the calendar year in which the

month occurs.

‘‘(3) ANNUAL LIMITATION.—For purposes of this subsection—

‘‘(A) IN GENERAL.—The annual limitation under this

paragraph for any calendar year is the dollar limit determined

under subparagraph (C) for the calendar year.

‘‘(B) APPLICABLE ANNUAL LIMITATION.—The annual

limitation which applies for any month shall be determined

on the basis of the type of coverage (as determined under

subsection (f)(1)) provided to the employee by the employer

as of the beginning of the month.

‘‘(C) APPLICABLE DOLLAR LIMIT.—Except as provided

in subparagraph (D)—

‘‘(i) 2013.—In the case of 2013, the dollar limit

under this subparagraph is—

‘‘(I) in the case of an employee with self-only

coverage, $8,500, and

‘‘(II) in the case of an employee with coverage

other than self-only coverage, $23,000.

‘‘(ii) EXCEPTION FOR CERTAIN INDIVIDUALS.—In the

case of an individual who is a qualified retiree or

who participates in a plan sponsored by an employer

the majority of whose employees are engaged in a

high-risk profession or employed to repair or install

electrical or telecommunications lines—

‘‘(I) the dollar amount in clause (i)(I) (determined

after the application of subparagraph (D))

shall be increased by $1,350, and

‘‘(II) the dollar amount in clause (i)(II) (determined

after the application of subparagraph (D))

shall be increased by $3,000.

‘‘(iii) SUBSEQUENT YEARS.—In the case of any calendar

year after 2013, each of the dollar amounts

under clauses (i) and (ii) shall be increased to the

amount equal to such amount as in effect for the

H. R. 3590—731

calendar year preceding such year, increased by an

amount equal to the product of—

‘‘(I) such amount as so in effect, multiplied

by

‘‘(II) the cost-of-living adjustment determined

under section 1(f)(3) for such year (determined by

substituting the calendar year that is 2 years

before such year for ‘1992’ in subparagraph (B)

thereof), increased by 1 percentage point.

If any amount determined under this clause is not

a multiple of $50, such amount shall be rounded to

the nearest multiple of $50.

‘‘(D) TRANSITION RULE FOR STATES WITH HIGHEST COVERAGE

COSTS.—

‘‘(i) IN GENERAL.—If an employee is a resident

of a high cost State on the first day of any month

beginning in 2013, 2014, or 2015, the annual limitation

under this paragraph for such month with respect

to such employee shall be an amount equal to the

applicable percentage of the annual limitation (determined

without regard to this subparagraph or subparagraph

(C)(ii)).

‘‘(ii) APPLICABLE PERCENTAGE.—The applicable

percentage is 120 percent for 2013, 110 percent for

2014, and 105 percent for 2015.

‘‘(iii) HIGH COST STATE.—The term ‘high cost State’

means each of the 17 States which the Secretary of

Health and Human Services, in consultation with the

Secretary, estimates had the highest average cost

during 2012 for employer-sponsored coverage under

health plans. The Secretary’s estimate shall be made

on the basis of aggregate premiums paid in the State

for such health plans, determined using the most

recent data available as of August 31, 2012.

‘‘(c) LIABILITY TO PAY TAX.—

‘‘(1) IN GENERAL.—Each coverage provider shall pay the

tax imposed by subsection (a) on its applicable share of the

excess benefit with respect to an employee for any taxable

period.

‘‘(2) COVERAGE PROVIDER.—For purposes of this subsection,

the term ‘coverage provider’ means each of the following:

‘‘(A) HEALTH INSURANCE COVERAGE.—If the applicable

employer-sponsored coverage consists of coverage under a

group health plan which provides health insurance coverage,

the health insurance issuer.

‘‘(B) HSA AND MSA CONTRIBUTIONS.—If the applicable

employer-sponsored coverage consists of coverage under an

arrangement under which the employer makes contributions

described in subsection (b) or (d) of section 106, the

employer.

‘‘(C) OTHER COVERAGE.—In the case of any other

applicable employer-sponsored coverage, the person that

administers the plan benefits.

‘‘(3) APPLICABLE SHARE.—For purposes of this subsection,

a coverage provider’s applicable share of an excess benefit for

any taxable period is the amount which bears the same ratio

to the amount of such excess benefit as—

H. R. 3590—732

‘‘(A) the cost of the applicable employer-sponsored coverage

provided by the provider to the employee during

such period, bears to

‘‘(B) the aggregate cost of all applicable employer-sponsored

coverage provided to the employee by all coverage

providers during such period.

‘‘(4) RESPONSIBILITY TO CALCULATE TAX AND APPLICABLE

SHARES.—

‘‘(A) IN GENERAL.—Each employer shall—

‘‘(i) calculate for each taxable period the amount

of the excess benefit subject to the tax imposed by

subsection (a) and the applicable share of such excess

benefit for each coverage provider, and

‘‘(ii) notify, at such time and in such manner as

the Secretary may prescribe, the Secretary and each

coverage provider of the amount so determined for

the provider.

‘‘(B) SPECIAL RULE FOR MULTIEMPLOYER PLANS.—In the

case of applicable employer-sponsored coverage made available

to employees through a multiemployer plan (as defined

in section 414(f)), the plan sponsor shall make the calculations,

and provide the notice, required under subparagraph

(A).

‘‘(d) APPLICABLE EMPLOYER-SPONSORED COVERAGE; COST.—For

purposes of this section—

‘‘(1) APPLICABLE EMPLOYER-SPONSORED COVERAGE.—

‘‘(A) IN GENERAL.—The term ‘applicable employer-sponsored

coverage’ means, with respect to any employee, coverage

under any group health plan made available to the

employee by an employer which is excludable from the

employee’s gross income under section 106, or would be

so excludable if it were employer-provided coverage (within

the meaning of such section 106).

‘‘(B) EXCEPTIONS.—The term ‘applicable employer-sponsored

coverage’ shall not include—

‘‘(i) any coverage (whether through insurance or

otherwise) described in section 9832(c)(1)(A) or for longterm

care, or

‘‘(ii) any coverage described in section 9832(c)(3)

the payment for which is not excludable from gross

income and for which a deduction under section 162(l)

is not allowable.

‘‘(C) COVERAGE INCLUDES EMPLOYEE PAID PORTION.—

Coverage shall be treated as applicable employer-sponsored

coverage without regard to whether the employer or

employee pays for the coverage.

‘‘(D) SELF-EMPLOYED INDIVIDUAL.—In the case of an

individual who is an employee within the meaning of section

401(c)(1), coverage under any group health plan providing

health insurance coverage shall be treated as

applicable employer-sponsored coverage if a deduction is

allowable under section 162(l) with respect to all or any

portion of the cost of the coverage.

‘‘(E) GOVERNMENTAL PLANS INCLUDED.—Applicable

employer-sponsored coverage shall include coverage under

any group health plan established and maintained primarily

for its civilian employees by the Government of

H. R. 3590—733

the United States, by the government of any State or

political subdivision thereof, or by any agency or instrumentality

of any such government.

‘‘(2) DETERMINATION OF COST.—

‘‘(A) IN GENERAL.—The cost of applicable employersponsored

coverage shall be determined under rules similar

to the rules of section 4980B(f)(4), except that in determining

such cost, any portion of the cost of such coverage

which is attributable to the tax imposed under this section

shall not be taken into account and the amount of such

cost shall be calculated separately for self-only coverage

and other coverage. In the case of applicable employersponsored

coverage which provides coverage to retired

employees, the plan may elect to treat a retired employee

who has not attained the age of 65 and a retired employee

who has attained the age of 65 as similarly situated beneficiaries.

‘‘(B) HEALTH FSAS.—In the case of applicable employersponsored

coverage consisting of coverage under a flexible

spending arrangement (as defined in section 106(c)(2)), the

cost of the coverage shall be equal to the sum of—

‘‘(i) the amount of employer contributions under

any salary reduction election under the arrangement,

plus

‘‘(ii) the amount determined under subparagraph

(A) with respect to any reimbursement under the

arrangement in excess of the contributions described

in clause (i).

‘‘(C) ARCHER MSAS AND HSAS.—In the case of applicable

employer-sponsored coverage consisting of coverage under

an arrangement under which the employer makes contributions

described in subsection (b) or (d) of section 106, the

cost of the coverage shall be equal to the amount of

employer contributions under the arrangement.

‘‘(D) ALLOCATION ON A MONTHLY BASIS.—If cost is determined

on other than a monthly basis, the cost shall be

allocated to months in a taxable period on such basis

as the Secretary may prescribe.

‘‘(e) PENALTY FOR FAILURE TO PROPERLY CALCULATE EXCESS

BENEFIT.—

‘‘(1) IN GENERAL.—If, for any taxable period, the tax

imposed by subsection (a) exceeds the tax determined under

such subsection with respect to the total excess benefit calculated

by the employer or plan sponsor under subsection

(c)(4)—

‘‘(A) each coverage provider shall pay the tax on its

applicable share (determined in the same manner as under

subsection (c)(4)) of the excess, but no penalty shall be

imposed on the provider with respect to such amount,

and

‘‘(B) the employer or plan sponsor shall, in addition

to any tax imposed by subsection (a), pay a penalty in

an amount equal to such excess, plus interest at the underpayment

rate determined under section 6621 for the period

beginning on the due date for the payment of tax imposed

by subsection (a) to which the excess relates and ending

on the date of payment of the penalty.

H. R. 3590—734

‘‘(2) LIMITATIONS ON PENALTY.—

‘‘(A) PENALTY NOT TO APPLY WHERE FAILURE NOT

DISCOVERED EXERCISING REASONABLE DILIGENCE.—No penalty

shall be imposed by paragraph (1)(B) on any failure

to properly calculate the excess benefit during any period

for which it is established to the satisfaction of the Secretary

that the employer or plan sponsor neither knew,

nor exercising reasonable diligence would have known, that

such failure existed.

‘‘(B) PENALTY NOT TO APPLY TO FAILURES CORRECTED

WITHIN 30 DAYS.—No penalty shall be imposed by paragraph

(1)(B) on any such failure if—

‘‘(i) such failure was due to reasonable cause and

not to willful neglect, and

‘‘(ii) such failure is corrected during the 30-day

period beginning on the 1st date that the employer

knew, or exercising reasonable diligence would have

known, that such failure existed.

‘‘(C) WAIVER BY SECRETARY.—In the case of any such

failure which is due to reasonable cause and not to willful

neglect, the Secretary may waive part or all of the penalty

imposed by paragraph (1), to the extent that the payment

of such penalty would be excessive or otherwise inequitable

relative to the failure involved.

‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.—For purposes

of this section—

‘‘(1) COVERAGE DETERMINATIONS.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph

(B), an employee shall be treated as having self-only coverage

with respect to any applicable employer-sponsored

coverage of an employer.

‘‘(B) MINIMUM ESSENTIAL COVERAGE.—An employee

shall be treated as having coverage other than self-only

coverage only if the employee is enrolled in coverage other

than self-only coverage in a group health plan which provides

minimum essential coverage (as defined in section

5000A(f)) to the employee and at least one other beneficiary,

and the benefits provided under such minimum essential

coverage do not vary based on whether any individual

covered under such coverage is the employee or another

beneficiary.

‘‘(2) QUALIFIED RETIREE.—The term ‘qualified retiree’

means any individual who—

‘‘(A) is receiving coverage by reason of being a retiree,

‘‘(B) has attained age 55, and

‘‘(C) is not entitled to benefits or eligible for enrollment

under the Medicare program under title XVIII of the Social

Security Act.

‘‘(3) EMPLOYEES ENGAGED IN HIGH-RISK PROFESSION.—The

term ‘employees engaged in a high-risk profession’ means law

enforcement officers (as such term is defined in section 1204

of the Omnibus Crime Control and Safe Streets Act of 1968),

employees in fire protection activities (as such term is defined

in section 3(y) of the Fair Labor Standards Act of 1938), individuals

who provide out-of-hospital emergency medical care

(including emergency medical technicians, paramedics, and

first-responders), and individuals engaged in the construction,

H. R. 3590—735

mining, agriculture (not including food processing), forestry,

and fishing industries. Such term includes an employee who

is retired from a high-risk profession described in the preceding

sentence, if such employee satisfied the requirements of such

sentence for a period of not less than 20 years during the

employee’s employment.

‘‘(4) GROUP HEALTH PLAN.—The term ‘group health plan’

has the meaning given such term by section 5000(b)(1).

‘‘(5) HEALTH INSURANCE COVERAGE; HEALTH INSURANCE

ISSUER.—

‘‘(A) HEALTH INSURANCE COVERAGE.—The term ‘health

insurance coverage’ has the meaning given such term by

section 9832(b)(1) (applied without regard to subparagraph

(B) thereof, except as provided by the Secretary in regulations).

‘‘(B) HEALTH INSURANCE ISSUER.—The term ‘health

insurance issuer’ has the meaning given such term by

section 9832(b)(2).

‘‘(6) PERSON THAT ADMINISTERS THE PLAN BENEFITS.—The

term ‘person that administers the plan benefits’ shall include

the plan sponsor if the plan sponsor administers benefits under

the plan.

‘‘(7) PLAN SPONSOR.—The term ‘plan sponsor’ has the

meaning given such term in section 3(16)(B) of the Employee

Retirement Income Security Act of 1974.

‘‘(8) TAXABLE PERIOD.—The term ‘taxable period’ means

the calendar year or such shorter period as the Secretary may

prescribe. The Secretary may have different taxable periods

for employers of varying sizes.

‘‘(9) AGGREGATION RULES.—All employers treated as a

single employer under subsection (b), (c), (m), or (o) of section

414 shall be treated as a single employer.

‘‘(10) DENIAL OF DEDUCTION.—For denial of a deduction

for the tax imposed by this section, see section 275(a)(6).

‘‘(g) REGULATIONS.—The Secretary shall prescribe such regulations

as may be necessary to carry out this section.’’.

(b) CLERICAL AMENDMENT.—The table of sections for chapter

43 of such Code, as amended by section 1513, is amended by

adding at the end the following new item:

‘‘Sec. 4980I. Excise tax on high cost employer-sponsored health coverage.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to taxable years beginning after December 31, 2012.

SEC. 9002. INCLUSION OF COST OF EMPLOYER-SPONSORED HEALTH

COVERAGE ON W–2.

(a) IN GENERAL.—Section 6051(a) of the Internal Revenue Code

of 1986 (relating to receipts for employees) is amended by striking

‘‘and’’ at the end of paragraph (12), by striking the period at the

end of paragraph (13) and inserting ‘‘, and’’, and by adding after

paragraph (13) the following new paragraph:

‘‘(14) the aggregate cost (determined under rules similar

to the rules of section 4980B(f)(4)) of applicable employer-sponsored

coverage (as defined in section 4980I(d)(1)), except that

this paragraph shall not apply to—

‘‘(A) coverage to which paragraphs (11) and (12) apply,

or

H. R. 3590—736

‘‘(B) the amount of any salary reduction contributions

to a flexible spending arrangement (within the meaning

of section 125).’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall apply to taxable years beginning after December 31, 2010.

SEC. 9003. DISTRIBUTIONS FOR MEDICINE QUALIFIED ONLY IF FOR

PRESCRIBED DRUG OR INSULIN.

(a) HSAS.—Subparagraph (A) of section 223(d)(2) of the Internal

Revenue Code of 1986 is amended by adding at the end the following:

‘‘Such term shall include an amount paid for medicine

or a drug only if such medicine or drug is a prescribed drug

(determined without regard to whether such drug is available without

a prescription) or is insulin.’’.

(b) ARCHER MSAS.—Subparagraph (A) of section 220(d)(2) of

the Internal Revenue Code of 1986 is amended by adding at the

end the following: ‘‘Such term shall include an amount paid for

medicine or a drug only if such medicine or drug is a prescribed

drug (determined without regard to whether such drug is available

without a prescription) or is insulin.’’.

(c) HEALTH FLEXIBLE SPENDING ARRANGEMENTS AND HEALTH

REIMBURSEMENT ARRANGEMENTS.—Section 106 of the Internal Revenue

Code of 1986 is amended by adding at the end the following

new subsection:

‘‘(f) REIMBURSEMENTS FOR MEDICINE RESTRICTED TO PRESCRIBED

DRUGS AND INSULIN.—For purposes of this section and

section 105, reimbursement for expenses incurred for a medicine

or a drug shall be treated as a reimbursement for medical expenses

only if such medicine or drug is a prescribed drug (determined

without regard to whether such drug is available without a prescription)

or is insulin.’’.

(d) EFFECTIVE DATES.—

(1) DISTRIBUTIONS FROM SAVINGS ACCOUNTS.—The amendments

made by subsections (a) and (b) shall apply to amounts

paid with respect to taxable years beginning after December

31, 2010.

(2) REIMBURSEMENTS.—The amendment made by subsection

(c) shall apply to expenses incurred with respect to

taxable years beginning after December 31, 2010.

SEC. 9004. INCREASE IN ADDITIONAL TAX ON DISTRIBUTIONS FROM

HSAS AND ARCHER MSAS NOT USED FOR QUALIFIED

MEDICAL EXPENSES.

(a) HSAS.—Section 223(f)(4)(A) of the Internal Revenue Code

of 1986 is amended by striking ‘‘10 percent’’ and inserting ‘‘20

percent’’.

(b) ARCHER MSAS.—Section 220(f)(4)(A) of the Internal Revenue

Code of 1986 is amended by striking ‘‘15 percent’’ and inserting

‘‘20 percent’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to distributions made after December 31, 2010.

SEC. 9005. LIMITATION ON HEALTH FLEXIBLE SPENDING ARRANGEMENTS

UNDER CAFETERIA PLANS.

(a) IN GENERAL.—Section 125 of the Internal Revenue Code

of 1986 is amended—

(1) by redesignating subsections (i) and (j) as subsections

(j) and (k), respectively, and

H. R. 3590—737

(2) by inserting after subsection (h) the following new subsection:

‘‘(i) LIMITATION ON HEALTH FLEXIBLE SPENDING ARRANGEMENTS.—

For purposes of this section, if a benefit is provided under

a cafeteria plan through employer contributions to a health flexible

spending arrangement, such benefit shall not be treated as a qualified

benefit unless the cafeteria plan provides that an employee

may not elect for any taxable year to have salary reduction contributions

in excess of $2,500 made to such arrangement.’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall apply to taxable years beginning after December 31, 2010.

SEC. 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS.

(a) IN GENERAL.—Section 6041 of the Internal Revenue Code

of 1986 is amended by adding at the end the following new subsections:

‘‘(h) APPLICATION TO CORPORATIONS.—Notwithstanding any

regulation prescribed by the Secretary before the date of the enactment

of this subsection, for purposes of this section the term ‘person’

includes any corporation that is not an organization exempt from

tax under section 501(a).

‘‘(i) REGULATIONS.—The Secretary may prescribe such regulations

and other guidance as may be appropriate or necessary to

carry out the purposes of this section, including rules to prevent

duplicative reporting of transactions.’’.

(b) PAYMENTS FOR PROPERTY AND OTHER GROSS PROCEEDS.—

Subsection (a) of section 6041 of the Internal Revenue Code of

1986 is amended—

(1) by inserting ‘‘amounts in consideration for property,’’

after ‘‘wages,’’,

(2) by inserting ‘‘gross proceeds,’’ after ‘‘emoluments, or

other’’, and

(3) by inserting ‘‘gross proceeds,’’ after ‘‘setting forth the

amount of such’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to payments made after December 31, 2011.

SEC. 9007. ADDITIONAL REQUIREMENTS FOR CHARITABLE HOSPITALS.

(a) REQUIREMENTS TO QUALIFY AS SECTION 501(C)(3) CHARITABLE

HOSPITAL ORGANIZATION.—Section 501 of the Internal Revenue

Code of 1986 (relating to exemption from tax on corporations,

certain trusts, etc.) is amended by redesignating subsection (r)

as subsection (s) and by inserting after subsection (q) the following

new subsection:

‘‘(r) ADDITIONAL REQUIREMENTS FOR CERTAIN HOSPITALS.—

‘‘(1) IN GENERAL.—A hospital organization to which this

subsection applies shall not be treated as described in subsection

(c)(3) unless the organization—

‘‘(A) meets the community health needs assessment

requirements described in paragraph (3),

‘‘(B) meets the financial assistance policy requirements

described in paragraph (4),

‘‘(C) meets the requirements on charges described in

paragraph (5), and

‘‘(D) meets the billing and collection requirement

described in paragraph (6).

‘‘(2) HOSPITAL ORGANIZATIONS TO WHICH SUBSECTION

APPLIES.—

H. R. 3590—738

‘‘(A) IN GENERAL.—This subsection shall apply to—

‘‘(i) an organization which operates a facility which

is required by a State to be licensed, registered, or

similarly recognized as a hospital, and

‘‘(ii) any other organization which the Secretary

determines has the provision of hospital care as its

principal function or purpose constituting the basis

for its exemption under subsection (c)(3) (determined

without regard to this subsection).

‘‘(B) ORGANIZATIONS WITH MORE THAN 1 HOSPITAL

FACILITY.—If a hospital organization operates more than

1 hospital facility—

‘‘(i) the organization shall meet the requirements

of this subsection separately with respect to each such

facility, and

‘‘(ii) the organization shall not be treated as

described in subsection (c)(3) with respect to any such

facility for which such requirements are not separately

met.

‘‘(3) COMMUNITY HEALTH NEEDS ASSESSMENTS.—

‘‘(A) IN GENERAL.—An organization meets the requirements

of this paragraph with respect to any taxable year

only if the organization—

‘‘(i) has conducted a community health needs

assessment which meets the requirements of subparagraph

(B) in such taxable year or in either of the

2 taxable years immediately preceding such taxable

year, and

‘‘(ii) has adopted an implementation strategy to

meet the community health needs identified through

such assessment.

‘‘(B) COMMUNITY HEALTH NEEDS ASSESSMENT.—A

community health needs assessment meets the requirements

of this paragraph if such community health needs

assessment—

‘‘(i) takes into account input from persons who

represent the broad interests of the community served

by the hospital facility, including those with special

knowledge of or expertise in public health, and

‘‘(ii) is made widely available to the public.

‘‘(4) FINANCIAL ASSISTANCE POLICY.—An organization meets

the requirements of this paragraph if the organization establishes

the following policies:

‘‘(A) FINANCIAL ASSISTANCE POLICY.—A written financial

assistance policy which includes—

‘‘(i) eligibility criteria for financial assistance, and

whether such assistance includes free or discounted

care,

‘‘(ii) the basis for calculating amounts charged to

patients,

‘‘(iii) the method for applying for financial assistance,

‘‘(iv) in the case of an organization which does

not have a separate billing and collections policy, the

actions the organization may take in the event of nonpayment,

including collections action and reporting to

credit agencies, and

H. R. 3590—739

‘‘(v) measures to widely publicize the policy within

the community to be served by the organization.

‘‘(B) POLICY RELATING TO EMERGENCY MEDICAL CARE.—

A written policy requiring the organization to provide, without

discrimination, care for emergency medical conditions

(within the meaning of section 1867 of the Social Security

Act (42 U.S.C. 1395dd)) to individuals regardless of their

eligibility under the financial assistance policy described

in subparagraph (A).

‘‘(5) LIMITATION ON CHARGES.—An organization meets the

requirements of this paragraph if the organization—

‘‘(A) limits amounts charged for emergency or other

medically necessary care provided to individuals eligible

for assistance under the financial assistance policy

described in paragraph (4)(A) to not more than the lowest

amounts charged to individuals who have insurance covering

such care, and

‘‘(B) prohibits the use of gross charges.

‘‘(6) BILLING AND COLLECTION REQUIREMENTS.—An

organization meets the requirement of this paragraph only

if the organization does not engage in extraordinary collection

actions before the organization has made reasonable efforts

to determine whether the individual is eligible for assistance

under the financial assistance policy described in paragraph

(4)(A).

‘‘(7) REGULATORY AUTHORITY.—The Secretary shall issue

such regulations and guidance as may be necessary to carry

out the provisions of this subsection, including guidance relating

to what constitutes reasonable efforts to determine the eligibility

of a patient under a financial assistance policy for purposes

of paragraph (6).’’.

(b) EXCISE TAX FOR FAILURES TO MEET HOSPITAL EXEMPTION

REQUIREMENTS.—

(1) IN GENERAL.—Subchapter D of chapter 42 of the

Internal Revenue Code of 1986 (relating to failure by certain

charitable organizations to meet certain qualification requirements)

is amended by adding at the end the following new

section:

‘‘SEC. 4959. TAXES ON FAILURES BY HOSPITAL ORGANIZATIONS.

‘‘If a hospital organization to which section 501(r) applies fails

to meet the requirement of section 501(r)(3) for any taxable year,

there is imposed on the organization a tax equal to $50,000.’’.

(2) CONFORMING AMENDMENT.—The table of sections for

subchapter D of chapter 42 of such Code is amended by adding

at the end the following new item:

‘‘Sec. 4959. Taxes on failures by hospital organizations.’’.

(c) MANDATORY REVIEW OF TAX EXEMPTION FOR HOSPITALS.—

The Secretary of the Treasury or the Secretary’s delegate shall

review at least once every 3 years the community benefit activities

of each hospital organization to which section 501(r) of the Internal

Revenue Code of 1986 (as added by this section) applies.

(d) ADDITIONAL REPORTING REQUIREMENTS.—

(1) COMMUNITY HEALTH NEEDS ASSESSMENTS AND AUDITED

FINANCIAL STATEMENTS.—Section 6033(b) of the Internal Revenue

Code of 1986 (relating to certain organizations described

in section 501(c)(3)) is amended by striking ‘‘and’’ at the end

H. R. 3590—740

of paragraph (14), by redesignating paragraph (15) as paragraph

(16), and by inserting after paragraph (14) the following

new paragraph:

‘‘(15) in the case of an organization to which the requirements

of section 501(r) apply for the taxable year—

‘‘(A) a description of how the organization is addressing

the needs identified in each community health needs

assessment conducted under section 501(r)(3) and a description

of any such needs that are not being addressed

together with the reasons why such needs are not being

addressed, and

‘‘(B) the audited financial statements of such organization

(or, in the case of an organization the financial statements

of which are included in a consolidated financial

statement with other organizations, such consolidated

financial statement).’’.

(2) TAXES.—Section 6033(b)(10) of such Code is amended

by striking ‘‘and’’ at the end of subparagraph (B), by inserting

‘‘and’’ at the end of subparagraph (C), and by adding at the

end the following new subparagraph:

‘‘(D) section 4959 (relating to taxes on failures by hospital

organizations),’’.

(e) REPORTS.—

(1) REPORT ON LEVELS OF CHARITY CARE.—The Secretary

of the Treasury, in consultation with the Secretary of Health

and Human Services, shall submit to the Committees on Ways

and Means, Education and Labor, and Energy and Commerce

of the House of Representatives and to the Committees on

Finance and Health, Education, Labor, and Pensions of the

Senate an annual report on the following:

(A) Information with respect to private tax-exempt,

taxable, and government-owned hospitals regarding—

(i) levels of charity care provided,

(ii) bad debt expenses,

(iii) unreimbursed costs for services provided with

respect to means-tested government programs, and

(iv) unreimbursed costs for services provided with

respect to non-means tested government programs.

(B) Information with respect to private tax-exempt hospitals

regarding costs incurred for community benefit activities.

(2) REPORT ON TRENDS.—

(A) STUDY.—The Secretary of the Treasury, in consultation

with the Secretary of Health and Human Services,

shall conduct a study on trends in the information required

to be reported under paragraph (1).

(B) REPORT.—Not later than 5 years after the date

of the enactment of this Act, the Secretary of the Treasury,

in consultation with the Secretary of Health and Human

Services, shall submit a report on the study conducted

under subparagraph (A) to the Committees on Ways and

Means, Education and Labor, and Energy and Commerce

of the House of Representatives and to the Committees

on Finance and Health, Education, Labor, and Pensions

of the Senate.

(f) EFFECTIVE DATES.—

H. R. 3590—741

(1) IN GENERAL.—Except as provided in paragraphs (2)

and (3), the amendments made by this section shall apply

to taxable years beginning after the date of the enactment

of this Act.

(2) COMMUNITY HEALTH NEEDS ASSESSMENT.—The requirements

of section 501(r)(3) of the Internal Revenue Code of

1986, as added by subsection (a), shall apply to taxable years

beginning after the date which is 2 years after the date of

the enactment of this Act.

(3) EXCISE TAX.—The amendments made by subsection (b)

shall apply to failures occurring after the date of the enactment

of this Act.

SEC. 9008. IMPOSITION OF ANNUAL FEE ON BRANDED PRESCRIPTION

PHARMACEUTICAL MANUFACTURERS AND IMPORTERS.

(a) IMPOSITION OF FEE.—

(1) IN GENERAL.—Each covered entity engaged in the business

of manufacturing or importing branded prescription drugs

shall pay to the Secretary of the Treasury not later than the

annual payment date of each calendar year beginning after

2009 a fee in an amount determined under subsection (b).

(2) ANNUAL PAYMENT DATE.—For purposes of this section,

the term ‘‘annual payment date’’ means with respect to any

calendar year the date determined by the Secretary, but in

no event later than September 30 of such calendar year.

(b) DETERMINATION OF FEE AMOUNT.—

(1) IN GENERAL.—With respect to each covered entity, the

fee under this section for any calendar year shall be equal

to an amount that bears the same ratio to $2,300,000,000

as—

(A) the covered entity’s branded prescription drug sales

taken into account during the preceding calendar year,

bear to

(B) the aggregate branded prescription drug sales of

all covered entities taken into account during such preceding

calendar year.

(2) SALES TAKEN INTO ACCOUNT.—For purposes of paragraph

(1), the branded prescription drug sales taken into

account during any calendar year with respect to any covered

entity shall be determined in accordance with the following

table:

With respect to a covered entity’s aggregate

branded prescription drug sales during the

calendar year that are:

The percentage of

such sales taken

into account is:

Not more than $5,000,000 ………………….. 0 percent

More than $5,000,000 but not more than

$125,000,000.

10 percent

More than $125,000,000 but not more

than $225,000,000.

40 percent

More than $225,000,000 but not more

than $400,000,000.

75 percent

More than $400,000,000 ……………………… 100 percent.

H. R. 3590—742

(3) SECRETARIAL DETERMINATION.—The Secretary of the

Treasury shall calculate the amount of each covered entity’s

fee for any calendar year under paragraph (1). In calculating

such amount, the Secretary of the Treasury shall determine

such covered entity’s branded prescription drug sales on the

basis of reports submitted under subsection (g) and through

the use of any other source of information available to the

Secretary of the Treasury.

(c) TRANSFER OF FEES TO MEDICARE PART B TRUST FUND.—

There is hereby appropriated to the Federal Supplementary Medical

Insurance Trust Fund established under section 1841 of the Social

Security Act an amount equal to the fees received by the Secretary

of the Treasury under subsection (a).

(d) COVERED ENTITY.—

(1) IN GENERAL.—For purposes of this section, the term

‘‘covered entity’’ means any manufacturer or importer with

gross receipts from branded prescription drug sales.

(2) CONTROLLED GROUPS.—

(A) IN GENERAL.—For purposes of this subsection, all

persons treated as a single employer under subsection (a)

or (b) of section 52 of the Internal Revenue Code of 1986

or subsection (m) or (o) of section 414 of such Code shall

be treated as a single covered entity.

(B) INCLUSION OF FOREIGN CORPORATIONS.—For purposes

of subparagraph (A), in applying subsections (a) and

(b) of section 52 of such Code to this section, section 1563

of such Code shall be applied without regard to subsection

(b)(2)(C) thereof.

(e) BRANDED PRESCRIPTION DRUG SALES.—For purposes of this

section—

(1) IN GENERAL.—The term ‘‘branded prescription drug

sales’’ means sales of branded prescription drugs to any specified

government program or pursuant to coverage under any

such program.

(2) BRANDED PRESCRIPTION DRUGS.—

(A) IN GENERAL.—The term ‘‘branded prescription

drug’’ means—

(i) any prescription drug the application for which

was submitted under section 505(b) of the Federal

Food, Drug, and Cosmetic Act (21 U.S.C. 355(b)), or

(ii) any biological product the license for which

was submitted under section 351(a) of the Public

Health Service Act (42 U.S.C. 262(a)).

(B) PRESCRIPTION DRUG.—For purposes of subparagraph

(A)(i), the term ‘‘prescription drug’’ means any drug

which is subject to section 503(b) of the Federal Food,

Drug, and Cosmetic Act (21 U.S.C. 353(b)).

(3) EXCLUSION OF ORPHAN DRUG SALES.—The term ‘‘branded

prescription drug sales’’ shall not include sales of any drug

or biological product with respect to which a credit was allowed

for any taxable year under section 45C of the Internal Revenue

Code of 1986. The preceding sentence shall not apply with

respect to any such drug or biological product after the date

on which such drug or biological product is approved by the

Food and Drug Administration for marketing for any indication

other than the treatment of the rare disease or condition with

respect to which such credit was allowed.

H. R. 3590—743

(4) SPECIFIED GOVERNMENT PROGRAM.—The term ‘‘specified

government program’’ means—

(A) the Medicare Part D program under part D of

title XVIII of the Social Security Act,

(B) the Medicare Part B program under part B of

title XVIII of the Social Security Act,

(C) the Medicaid program under title XIX of the Social

Security Act,

(D) any program under which branded prescription

drugs are procured by the Department of Veterans Affairs,

(E) any program under which branded prescription

drugs are procured by the Department of Defense, or

(F) the TRICARE retail pharmacy program under section

1074g of title 10, United States Code.

(f) TAX TREATMENT OF FEES.—The fees imposed by this section—

(1) for purposes of subtitle F of the Internal Revenue Code

of 1986, shall be treated as excise taxes with respect to which

only civil actions for refund under procedures of such subtitle

shall apply, and

(2) for purposes of section 275 of such Code, shall be considered

to be a tax described in section 275(a)(6).

(g) REPORTING REQUIREMENT.—Not later than the date determined

by the Secretary of the Treasury following the end of any

calendar year, the Secretary of Health and Human Services, the

Secretary of Veterans Affairs, and the Secretary of Defense shall

report to the Secretary of the Treasury, in such manner as the

Secretary of the Treasury prescribes, the total branded prescription

drug sales for each covered entity with respect to each specified

government program under such Secretary’s jurisdiction using the

following methodology:

(1) MEDICARE PART D PROGRAM.—The Secretary of Health

and Human Services shall report, for each covered entity and

for each branded prescription drug of the covered entity covered

by the Medicare Part D program, the product of—

(A) the per-unit ingredient cost, as reported to the

Secretary of Health and Human Services by prescription

drug plans and Medicare Advantage prescription drug

plans, minus any per-unit rebate, discount, or other price

concession provided by the covered entity, as reported to

the Secretary of Health and Human Services by the

prescription drug plans and Medicare Advantage prescription

drug plans, and

(B) the number of units of the branded prescription

drug paid for under the Medicare Part D program.

(2) MEDICARE PART B PROGRAM.—The Secretary of Health

and Human Services shall report, for each covered entity and

for each branded prescription drug of the covered entity covered

by the Medicare Part B program under section 1862(a) of the

Social Security Act, the product of—

(A) the per-unit average sales price (as defined in

section 1847A(c) of the Social Security Act) or the perunit

Part B payment rate for a separately paid branded

prescription drug without a reported average sales price,

and

(B) the number of units of the branded prescription

drug paid for under the Medicare Part B program.

H. R. 3590—744

The Centers for Medicare and Medicaid Services shall establish

a process for determining the units and the allocated price

for purposes of this section for those branded prescription drugs

that are not separately payable or for which National Drug

Codes are not reported.

(3) MEDICAID PROGRAM.—The Secretary of Health and

Human Services shall report, for each covered entity and for

each branded prescription drug of the covered entity covered

under the Medicaid program, the product of—

(A) the per-unit ingredient cost paid to pharmacies

by States for the branded prescription drug dispensed to

Medicaid beneficiaries, minus any per-unit rebate paid by

the covered entity under section 1927 of the Social Security

Act and any State supplemental rebate, and

(B) the number of units of the branded prescription

drug paid for under the Medicaid program.

(4) DEPARTMENT OF VETERANS AFFAIRS PROGRAMS.—The

Secretary of Veterans Affairs shall report, for each covered

entity and for each branded prescription drug of the covered

entity the total amount paid for each such branded prescription

drug procured by the Department of Veterans Affairs for its

beneficiaries.

(5) DEPARTMENT OF DEFENSE PROGRAMS AND TRICARE.—

The Secretary of Defense shall report, for each covered entity

and for each branded prescription drug of the covered entity,

the sum of—

(A) the total amount paid for each such branded

prescription drug procured by the Department of Defense

for its beneficiaries, and

(B) for each such branded prescription drug dispensed

under the TRICARE retail pharmacy program, the product

of—

(i) the per-unit ingredient cost, minus any perunit

rebate paid by the covered entity, and

(ii) the number of units of the branded prescription

drug dispensed under such program.

(h) SECRETARY.—For purposes of this section, the term ‘‘Secretary’’

includes the Secretary’s delegate.

(i) GUIDANCE.—The Secretary of the Treasury shall publish

guidance necessary to carry out the purposes of this section.

(j) APPLICATION OF SECTION.—This section shall apply to any

branded prescription drug sales after December 31, 2008.

(k) CONFORMING AMENDMENT.—Section 1841(a) of the Social

Security Act is amended by inserting ‘‘or section 9008(c) of the

Patient Protection and Affordable Care Act of 2009’’ after ‘‘this

part’’.

SEC. 9009. IMPOSITION OF ANNUAL FEE ON MEDICAL DEVICE MANUFACTURERS

AND IMPORTERS.

(a) IMPOSITION OF FEE.—

(1) IN GENERAL.—Each covered entity engaged in the business

of manufacturing or importing medical devices shall pay

to the Secretary not later than the annual payment date of

each calendar year beginning after 2009 a fee in an amount

determined under subsection (b).

(2) ANNUAL PAYMENT DATE.—For purposes of this section,

the term ‘‘annual payment date’’ means with respect to any

H. R. 3590—745

calendar year the date determined by the Secretary, but in

no event later than September 30 of such calendar year.

(b) DETERMINATION OF FEE AMOUNT.—

(1) IN GENERAL.—With respect to each covered entity, the

fee under this section for any calendar year shall be equal

to an amount that bears the same ratio to $2,000,000,000

as—

(A) the covered entity’s gross receipts from medical

device sales taken into account during the preceding calendar

year, bear to

(B) the aggregate gross receipts of all covered entities

from medical device sales taken into account during such

preceding calendar year.

(2) GROSS RECEIPTS FROM SALES TAKEN INTO ACCOUNT.—

For purposes of paragraph (1), the gross receipts from medical

device sales taken into account during any calendar year with

respect to any covered entity shall be determined in accordance

with the following table:

With respect to a covered entity’s aggregate

gross receipts from medical device sales during

the calendar year that are:

The percentage of

gross receipts taken

into account is:

Not more than $5,000,000 ………………….. 0 percent

More than $5,000,000 but not more than

$25,000,000.

50 percent

More than $25,000,000 ……………………….. 100 percent.

(3) SECRETARIAL DETERMINATION.—The Secretary shall calculate

the amount of each covered entity’s fee for any calendar

year under paragraph (1). In calculating such amount, the

Secretary shall determine such covered entity’s gross receipts

from medical device sales on the basis of reports submitted

by the covered entity under subsection (f) and through the

use of any other source of information available to the Secretary.

(c) COVERED ENTITY.—

(1) IN GENERAL.—For purposes of this section, the term

‘‘covered entity’’ means any manufacturer or importer with

gross receipts from medical device sales.

(2) CONTROLLED GROUPS.—

(A) IN GENERAL.—For purposes of this subsection, all

persons treated as a single employer under subsection (a)

or (b) of section 52 of the Internal Revenue Code of 1986

or subsection (m) or (o) of section 414 of such Code shall

be treated as a single covered entity.

(B) INCLUSION OF FOREIGN CORPORATIONS.—For purposes

of subparagraph (A), in applying subsections (a) and

(b) of section 52 of such Code to this section, section 1563

of such Code shall be applied without regard to subsection

(b)(2)(C) thereof.

(d) MEDICAL DEVICE SALES.—For purposes of this section—

(1) IN GENERAL.—The term ‘‘medical device sales’’ means

sales for use in the United States of any medical device, other

than the sales of a medical device that—

(A) has been classified in class II under section 513

of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.

H. R. 3590—746

360c) and is primarily sold to consumers at retail for not

more than $100 per unit, or

(B) has been classified in class I under such section.

(2) UNITED STATES.—For purposes of paragraph (1), the

term ‘‘United States’’ means the several States, the District

of Columbia, the Commonwealth of Puerto Rico, and the possessions

of the United States.

(3) MEDICAL DEVICE.—For purposes of paragraph (1), the

term ‘‘medical device’’ means any device (as defined in section

201(h) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.

321(h))) intended for humans.

(e) TAX TREATMENT OF FEES.—The fees imposed by this section—

(1) for purposes of subtitle F of the Internal Revenue Code

of 1986, shall be treated as excise taxes with respect to which

only civil actions for refund under procedures of such subtitle

shall apply, and

(2) for purposes of section 275 of such Code, shall be considered

to be a tax described in section 275(a)(6).

(f) REPORTING REQUIREMENT.—

(1) IN GENERAL.—Not later than the date determined by

the Secretary following the end of any calendar year, each

covered entity shall report to the Secretary, in such manner

as the Secretary prescribes, the gross receipts from medical

device sales of such covered entity during such calendar year.

(2) PENALTY FOR FAILURE TO REPORT.—

(A) IN GENERAL.—In the case of any failure to make

a report containing the information required by paragraph

(1) on the date prescribed therefor (determined with regard

to any extension of time for filing), unless it is shown

that such failure is due to reasonable cause, there shall

be paid by the covered entity failing to file such report,

an amount equal to—

(i) $10,000, plus

(ii) the lesser of—

(I) an amount equal to $1,000, multiplied by

the number of days during which such failure continues,

or

(II) the amount of the fee imposed by this

section for which such report was required.

(B) TREATMENT OF PENALTY.—The penalty imposed

under subparagraph (A)—

(i) shall be treated as a penalty for purposes of

subtitle F of the Internal Revenue Code of 1986,

(ii) shall be paid on notice and demand by the

Secretary and in the same manner as tax under such

Code, and

(iii) with respect to which only civil actions for

refund under procedures of such subtitle F shall apply.

(g) SECRETARY.—For purposes of this section, the term ‘‘Secretary’’

means the Secretary of the Treasury or the Secretary’s

delegate.

(h) GUIDANCE.—The Secretary shall publish guidance necessary

to carry out the purposes of this section, including identification

of medical devices described in subsection (d)(1)(A) and with respect

to the treatment of gross receipts from sales of medical devices

H. R. 3590—747

to another covered entity or to another entity by reason of the

application of subsection (c)(2).

(i) APPLICATION OF SECTION.—This section shall apply to any

medical device sales after December 31, 2008.

SEC. 9010. IMPOSITION OF ANNUAL FEE ON HEALTH INSURANCE PROVIDERS.

(a) IMPOSITION OF FEE.—

(1) IN GENERAL.—Each covered entity engaged in the business

of providing health insurance shall pay to the Secretary

not later than the annual payment date of each calendar year

beginning after 2009 a fee in an amount determined under

subsection (b).

(2) ANNUAL PAYMENT DATE.—For purposes of this section,

the term ‘‘annual payment date’’ means with respect to any

calendar year the date determined by the Secretary, but in

no event later than September 30 of such calendar year.

(b) DETERMINATION OF FEE AMOUNT.—

(1) IN GENERAL.—With respect to each covered entity, the

fee under this section for any calendar year shall be equal

to an amount that bears the same ratio to $6,700,000,000

as—

(A) the sum of—

(i) the covered entity’s net premiums written with

respect to health insurance for any United States

health risk that are taken into account during the

preceding calendar year, plus

(ii) 200 percent of the covered entity’s third party

administration agreement fees that are taken into

account during the preceding calendar year, bears to

(B) the sum of—

(i) the aggregate net premiums written with

respect to such health insurance of all covered entities

that are taken into account during such preceding calendar

year, plus

(ii) 200 percent of the aggregate third party

administration agreement fees of all covered entities

that are taken into account during such preceding calendar

year.

(2) AMOUNTS TAKEN INTO ACCOUNT.—For purposes of paragraph

(1)—

(A) NET PREMIUMS WRITTEN.—The net premiums written

with respect to health insurance for any United States

health risk that are taken into account during any calendar

year with respect to any covered entity shall be determined

in accordance with the following table:

With respect to a covered entity’s net premiums

written during the calendar year that

are:

The percentage of

net premiums written

that are taken

into account is:

Not more than $25,000,000 ………………… 0 percent

More than $25,000,000 but not more

than $50,000,000.

50 percent

More than $50,000,000 ……………………….. 100 percent.

H. R. 3590—748

(B) THIRD PARTY ADMINISTRATION AGREEMENT FEES.—

The third party administration agreement fees that are

taken into account during any calendar year with respect

to any covered entity shall be determined in accordance

with the following table:

With respect to a covered entity’s third party

administration agreement fees during the

calendar year that are:

The percentage of

third party administration

agreement

fees that are taken

into account is:

Not more than $5,000,000 ………………….. 0 percent

More than $5,000,000 but not more than

$10,000,000.

50 percent

More than $10,000,000 ……………………….. 100 percent.

(3) SECRETARIAL DETERMINATION.—The Secretary shall calculate

the amount of each covered entity’s fee for any calendar

year under paragraph (1). In calculating such amount, the

Secretary shall determine such covered entity’s net premiums

written with respect to any United States health risk and

third party administration agreement fees on the basis of

reports submitted by the covered entity under subsection (g)

and through the use of any other source of information available

to the Secretary.

(c) COVERED ENTITY.—

(1) IN GENERAL.—For purposes of this section, the term

‘‘covered entity’’ means any entity which provides health insurance

for any United States health risk.

(2) EXCLUSION.—Such term does not include—

(A) any employer to the extent that such employer

self-insures its employees’ health risks, or

(B) any governmental entity (except to the extent such

an entity provides health insurance coverage through the

community health insurance option under section 1323).

(3) CONTROLLED GROUPS.—

(A) IN GENERAL.—For purposes of this subsection, all

persons treated as a single employer under subsection (a)

or (b) of section 52 of the Internal Revenue Code of 1986

or subsection (m) or (o) of section 414 of such Code shall

be treated as a single covered entity (or employer for purposes

of paragraph (2)).

(B) INCLUSION OF FOREIGN CORPORATIONS.—For purposes

of subparagraph (A), in applying subsections (a) and

(b) of section 52 of such Code to this section, section 1563

of such Code shall be applied without regard to subsection

(b)(2)(C) thereof.

(d) UNITED STATES HEALTH RISK.—For purposes of this section,

the term ‘‘United States health risk’’ means the health risk of

any individual who is—

(1) a United States citizen,

(2) a resident of the United States (within the meaning

of section 7701(b)(1)(A) of the Internal Revenue Code of 1986),

or

(3) located in the United States, with respect to the period

such individual is so located.

H. R. 3590—749

(e) THIRD PARTY ADMINISTRATION AGREEMENT FEES.—For purposes

of this section, the term ‘‘third party administration agreement

fees’’ means, with respect to any covered entity, amounts

received from an employer which are in excess of payments made

by such covered entity for health benefits under an arrangement

under which such employer self-insures the United States health

risk of its employees.

(f) TAX TREATMENT OF FEES.—The fees imposed by this section—

(1) for purposes of subtitle F of the Internal Revenue Code

of 1986, shall be treated as excise taxes with respect to which

only civil actions for refund under procedures of such subtitle

shall apply, and

(2) for purposes of section 275 of such Code shall be considered

to be a tax described in section 275(a)(6).

(g) REPORTING REQUIREMENT.—

(1) IN GENERAL.—Not later than the date determined by

the Secretary following the end of any calendar year, each

covered entity shall report to the Secretary, in such manner

as the Secretary prescribes, the covered entity’s net premiums

written with respect to health insurance for any United States

health risk and third party administration agreement fees for

such calendar year.

(2) PENALTY FOR FAILURE TO REPORT.—

(A) IN GENERAL.—In the case of any failure to make

a report containing the information required by paragraph

(1) on the date prescribed therefor (determined with regard

to any extension of time for filing), unless it is shown

that such failure is due to reasonable cause, there shall

be paid by the covered entity failing to file such report,

an amount equal to—

(i) $10,000, plus

(ii) the lesser of—

(I) an amount equal to $1,000, multiplied by

the number of days during which such failure continues,

or

(II) the amount of the fee imposed by this

section for which such report was required.

(B) TREATMENT OF PENALTY.—The penalty imposed

under subparagraph (A)—

(i) shall be treated as a penalty for purposes of

subtitle F of the Internal Revenue Code of 1986,

(ii) shall be paid on notice and demand by the

Secretary and in the same manner as tax under such

Code, and

(iii) with respect to which only civil actions for

refund under procedures of such subtitle F shall apply.

(h) ADDITIONAL DEFINITIONS.—For purposes of this section—

(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of the Treasury or the Secretary’s delegate.

(2) UNITED STATES.—The term ‘‘United States’’ means the

several States, the District of Columbia, the Commonwealth

of Puerto Rico, and the possessions of the United States.

(3) HEALTH INSURANCE.—The term ‘‘health insurance’’ shall

not include insurance for long-term care or disability.

(i) GUIDANCE.—The Secretary shall publish guidance necessary

to carry out the purposes of this section.

H. R. 3590—750

(j) APPLICATION OF SECTION.—This section shall apply to any

net premiums written after December 31, 2008, with respect to

health insurance for any United States health risk, and any third

party administration agreement fees received after such date.

SEC. 9011. STUDY AND REPORT OF EFFECT ON VETERANS HEALTH

CARE.

(a) IN GENERAL.—The Secretary of Veterans Affairs shall conduct

a study on the effect (if any) of the provisions of sections

9008, 9009, and 9010 on—

(1) the cost of medical care provided to veterans, and

(2) veterans’ access to medical devices and branded

prescription drugs.

(b) REPORT.—The Secretary of Veterans Affairs shall report

the results of the study under subsection (a) to the Committee

on Ways and Means of the House of Representatives and to the

Committee on Finance of the Senate not later than December

31, 2012.

———————–

Written by sovereignthink

2010/07/22 at 6:44 pm

One Response

Subscribe to comments with RSS.

  1. […] SEC. 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS. […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: