H.R. 3200/Division B/Title VIII

TITLE VIII — Revenue-Related Provisions

Sec. 1801. Disclosures to Facilitate Identification of Individuals Likely to be Ineligible for the Low-income Assistance Under the Medicare Prescription Drug Program to Assist Social Security Administration’s Outreach to Eligible Individuals.

(a) In General.—

Paragraph (19) of section 6103(l) of the Internal Revenue Code of 1986 is amended to read as follows:

``(19) Disclosures to Facilitate Identification of Individuals Likely to be Ineligible for the Low-income Assistance Under the Medicare Prescription Drug Program to Assist Social Security Administration’s Outreach to Eligible Individuals.—

``(A) In general.—Upon written request from the Commissioner of Social Security, the following return information (including such information disclosed to the Social Security Administration under paragraph (1) or (5)) shall be disclosed to officers and employees of the Social Security Administration, with respect to any taxpayer identified by the Commissioner of Social Security—

``(i) return information for the applicable year from returns with respect to wages (as defined in section 3121(a) or 3401(a)) and payments of retirement income (as described in paragraph (1) of this subsection),

``(ii) unearned income information and income information of the taxpayer from partnerships, trusts, estates, and subchapter S corporations for the applicable year,

``(iii) if the individual filed an income tax return for the applicable year, the filing status, number of dependents, income from farming, and income from self-employment, on such return,

``(iv) if the individual is a married individual filing a separate return for the applicable year, the social security number (if reasonably available) of the spouse on such return,

``(v) if the individual files a joint return for the applicable year, the social security number, unearned income information, and income information from partnerships, trusts, estates, and subchapter S corporations of the individual’s spouse on such return, and

``(vi) such other return information relating to the individual (or the individual’s spouse in the case of a joint return) as is prescribed by the Secretary by regulation as might indicate that the individual is likely to be ineligible for a low-income prescription drug subsidy under section 1860D–14 of the Social Security Act.

``(B) Applicable year.—For the purposes of this paragraph, the term ‘applicable year’ means the most recent taxable year for which information is available in the Internal Revenue Service’s taxpayer information records.

``(C) Restriction on individuals for whom disclosure may be requested.—The Commissioner of Social Security shall request information under this paragraph only with respect to—

``(i) individuals the Social Security Administration has identified, using all other reasonably available information, as likely to be eligible for a low-income prescription drug subsidy under section 1860D–14 of the Social Security Act and who have not applied for such subsidy, and

``(ii) any individual the Social Security Administration has identified as a spouse of an individual described in clause (i).

``(D) Restriction on use of disclosed information.—Return information disclosed under this paragraph may be used only by officers and employees of the Social Security Administration solely for purposes of identifying individuals likely to be ineligible for a low-income prescription drug subsidy under section 1860D–14 of the Social Security Act for use in outreach efforts under section 1144 of the Social Security Act.´´.

(b) Safeguards.—

Paragraph (4) of section 6103(p) of such Code is amended—

(1) by striking ``(l)(19)´´ each place it appears, and

(2) by striking ``or (17)´´ each place it appears and inserting ``(17), or (19)´´.

(c) Conforming Amendment.—

Paragraph (3) of section 6103(a) of such Code is amended by striking ``(19),´´.

(d) Effective Date.—

The amendments made by this section shall apply to disclosures made after the date which is 12 months after the date of the enactment of this Act.

Sec. 1802. Comparative Effectiveness Research Trust Fund; financing for Trust Fund.

(a) Establishment of Trust Fund.—

(1) In General.—

Subchapter A of chapter 98 of the Internal Revenue Code of 1986 (relating to trust fund code) is amended by adding at the end the following new section:

``SEC. 9511. Health Care Comparative Effectiveness Research Trust Fund.

``(a) Creation of Trust Fund.—There is established in the Treasury of the United States a trust fund to be known as the ‘Health Care Comparative Effectiveness Research Trust Fund’ (hereinafter in this section referred to as the ‘CERTF’), consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section and section 9602(b).

``(b) Transfers to Fund.—There are hereby appropriated to the Trust Fund the following:

``(1) For fiscal year 2010, $90,000,000.

``(2) For fiscal year 2011, $100,000,000.

``(3) For fiscal year 2012, $110,000,000.

``(4) For each fiscal year beginning with fiscal year 2013—

``(A) an amount equivalent to the net revenues received in the Treasury from the fees imposed under subchapter B of chapter 34 (relating to fees on health insurance and self-insured plans) for such fiscal year; and

``(B) subject to subsection (c)(2), amounts determined by the Secretary of Health and Human Services to be equivalent to the fair share per capita amount computed under subsection (c)(1) for the fiscal year multiplied by the average number of individuals entitled to benefits under part A, or enrolled under part B, of title XVIII of the Social Security Act during such fiscal year.

``The amounts appropriated under paragraphs (1), (2), (3), and (4)(B) shall be transferred from the Federal Hospital Insurance Trust Fund and from the Federal Supplementary Medical Insurance Trust Fund (established under section 1841 of such Act), and from the Medicare Prescription Drug Account within such Trust Fund, in proportion (as estimated by the Secretary) to the total expenditures during such fiscal year that are made under title XVIII of such Act from the respective trust fund or account.

``(c) Fair share per capita amount.—

``(1) Computation.—

``(A) In general.—Subject to subparagraph (B), the fair share per capita amount under this paragraph for a fiscal year (beginning with fiscal year 2013) is an amount computed by the Secretary of Health and Human Services for such fiscal year that, when applied under this section and subchapter B of chapter 34 of the Internal Revenue Code of 1986, will result in revenues to the CERTF of $375,000,000 for the fiscal year.

``(B) Alternative computation.—

``(i) In general.—If the Secretary is unable to compute the fair share per capita amount under subparagraph (A) for a fiscal year, the fair share per capita amount under this paragraph for the fiscal year shall be the default amount determined under clause (ii) for the fiscal year.

``(ii) Default amount.—The default amount under this clause for—

``(I) fiscal year 2013 is equal to $2; or

``(II) a subsequent year is equal to the default amount under this clause for the preceding fiscal year increased by the annual percentage increase in the medical care component of the consumer price index (United States city average) for the 12-month period ending with April of the preceding fiscal year.

``Any amount determined under subclause (II) shall be rounded to the nearest penny.

``(2) Limitation on Medicare funding.—In no case shall the amount transferred under subsection (b)(4)(B) for any fiscal year exceed $90,000,000.

``(d) Expenditures From Fund.—

``(1) In general.—Subject to paragraph (2), amounts in the CERTF are available, without the need for further appropriations and without fiscal year limitation, to the Secretary of Health and Human Services for carrying out section 1181 of the Social Security Act.

``(2) Allocation for Commission.—Not less than the following amounts in the CERTF for a fiscal year shall be available to carry out the activities of the Comparative Effectiveness Research Commission established under section 1181(b) of the Social Security Act for such fiscal year:

``(A) For fiscal year 2010, $7,000,000.

``(B) For fiscal year 2011, $9,000,000.

``(C) For each fiscal year beginning with 2012, $10,000,000.

``Nothing in this paragraph shall be construed as preventing additional amounts in the CERTF from being made available to the Comparative Effectiveness Research Commission for such activities.

``(e) Net Revenues.—For purposes of this section, the term ‘net revenues’ means the amount estimated by the Secretary based on the excess of—

``(1) the fees received in the Treasury under subchapter B of chapter 34, over

``(2) the decrease in the tax imposed by chapter 1 resulting from the fees imposed by such subchapter.´´.

(2) Clerical Amendment.—

The table of sections for such subchapter A is amended by adding at the end thereof the following new item:

``Sec. 9511. Health Care Comparative Effectiveness Research Trust Fund.´´.

(b) Financing for Fund from fees on insured and Self-Insured health plans.—

(1) General Rule.—

Chapter 34 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter:

``subchapter B—Insured and Self-Insured Health Plans

``Sec. 4375. Health Insurance.

``Sec. 4376. Self-insured Health Plans.

``Sec. 4377. Definitions and Special Rules.

``SEC. 4375. Health insurance.

``(a) Imposition of Fee.—There is hereby imposed on each specified health insurance policy for each policy year a fee equal to the fair share per capita amount determined under section 9511(c)(1) multiplied by the average number of lives covered under the policy.

``(b) Liability for Fee.—The fee imposed by subsection (a) shall be paid by the issuer of the policy.

``(c) Specified Health Insurance Policy.—For purposes of this section:

``(1) In general.—Except as otherwise provided in this section, the term ‘specified health insurance policy’ means any accident or health insurance policy issued with respect to individuals residing in the United States.

``(2) Exemption for certain policies.—The term ‘specified health insurance policy’ does not include any insurance if substantially all of its coverage is of excepted benefits described in section 9832(c).

``(3) Treatment of prepaid health coverage arrangements.—

``(A) In general.—In the case of any arrangement described in subparagraph (B)—

``(i) such arrangement shall be treated as a specified health insurance policy, and

``(ii) the person referred to in such subparagraph shall be treated as the issuer.

``(B) Description of arrangements.—An arrangement is described in this subparagraph if under such arrangement fixed payments or premiums are received as consideration for any person’s agreement to provide or arrange for the provision of accident or health coverage to residents of the United States, regardless of how such coverage is provided or arranged to be provided.

``SEC. 4376. Self-Insured health plans.

``(a) Imposition of Fee.—In the case of any applicable self-insured health plan for each plan year, there is hereby imposed a fee equal to the fair share per capita amount determined under section 9511(c)(1) multiplied by the average number of lives covered under the plan.

``(b) Liability for Fee.—

``(1) In general.—The fee imposed by subsection (a) shall be paid by the plan sponsor.

``(2) Plan sponsor.—For purposes of paragraph (1) the term ‘plan sponsor’ means—

``(A) the employer in the case of a plan established or maintained by a single employer,

``(B) the employee organization in the case of a plan established or maintained by an employee organization,

``(C) in the case of—

``(i) a plan established or maintained by 2 or more employers or jointly by 1 or more employers and 1 or more employee organizations,

``(ii) a multiple employer welfare arrangement, or

``(iii) a voluntary employees’ beneficiary association described in section 501(c)(9),

``the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the plan, or

``(D) the cooperative or association described in subsection (c)(2)(F) in the case of a plan established or maintained by such a cooperative or association.

``(c) Applicable Self-Insured Health Plan.—For purposes of this section, the term ‘applicable self-insured health plan’ means any plan for providing accident or health coverage if—

``(1) any portion of such coverage is provided other than through an insurance policy, and

``(2) such plan is established or maintained—

``(A) by one or more employers for the benefit of their employees or former employees,

``(B) by one or more employee organizations for the benefit of their members or former members,

``(C) jointly by 1 or more employers and 1 or more employee organizations for the benefit of employees or former employees,

``(D) by a voluntary employees’ beneficiary association described in section 501(c)(9),

``(E) by any organization described in section 501(c)(6), or

``(F) in the case of a plan not described in the preceding subparagraphs, by a multiple employer welfare arrangement (as defined in section 3(40) of Employee Retirement Income Security Act of 1974), a rural electric cooperative (as defined in section 3(40)(B)(iv) of such Act), or a rural telephone cooperative association (as defined in section 3(40)(B)(v) of such Act).

``SEC. 4377. Definitions and special rules.

``(a) Definitions.—For purposes of this subchapter—

``(1) Accident and health coverage.—The term ‘accident and health coverage’ means any coverage which, if provided by an insurance policy, would cause such policy to be a specified health insurance policy (as defined in section 4375(c)).

``(2) Insurance policy.—The term ‘insurance policy’ means any policy or other instrument whereby a contract of insurance is issued, renewed, or extended.

``(3) United States.—The term ‘United States’ includes any possession of the United States.

``(b) Treatment of Governmental Entities.—

``(1) In general.—For purposes of this subchapter—

``(A) the term ‘person’ includes any governmental entity, and

``(B) notwithstanding any other law or rule of law, governmental entities shall not be exempt from the fees imposed by this subchapter except as provided in paragraph (2).

``(2) Treatment of exempt governmental programs.—In the case of an exempt governmental program, no fee shall be imposed under section 4375 or section 4376 on any covered life under such program.

``(3) Exempt governmental program defined.—For purposes of this subchapter, the term ‘exempt governmental program’ means—

``(A) any insurance program established under title XVIII of the Social Security Act,

``(B) the medical assistance program established by title XIX or XXI of the Social Security Act,

``(C) any program established by Federal law for providing medical care (other than through insurance policies) to individuals (or the spouses and dependents thereof) by reason of such individuals being—

``(i) members of the Armed Forces of the United States, or

``(ii) veterans, and

``(D) any program established by Federal law for providing medical care (other than through insurance policies) to members of Indian tribes (as defined in section 4(d) of the Indian Health Care Improvement Act).

``(c) Treatment as Tax.—For purposes of subtitle F, the fees imposed by this subchapter shall be treated as if they were taxes.

``(d) No Cover Over to Possessions.—Notwithstanding any other provision of law, no amount collected under this subchapter shall be covered over to any possession of the United States.´´.

(2) Clerical Amendments.—

(A) Chapter 34 of such Code is amended by striking the chapter heading and inserting the following:

``CHAPTER 34—TAXES ON CERTAIN INSURANCE POLICIES

``Subchapter A. Policies Issued By Foreign Insurers
``Subchapter B. Insured and Self-Insured Health Plans

``Subchapter A—Policies Issued By Foreign Insurers´´.

(B) The table of chapters for subtitle D of such Code is amended by striking the item relating to chapter 34 and inserting the following new item:

``CHAPTER 34—TAXES ON CERTAIN INSURANCE POLICIES´´.

(3) Effective Date.—

The amendments made by this subsection shall apply with respect to policies and plans for portions of policy or plan years beginning on or after October 1, 2012.