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Title IV — Health Coverage Tax Credit

S. 2964 · 113th Congress · Nov 20, 2014 · Lineage

IV Health Coverage Tax Credit

Sec. 401 Extension and modification of Health Coverage Tax Credit

(a)
Extension— Subparagraph (B) of section 35(b)(1) of the Internal Revenue Code of 1986 is amended by striking “before January 1, 2014” and inserting “before January 1, 2021”.
(b)
Increase— Subsection (a) of section 35 of the Internal Revenue Code of 1986 is amended by striking “72.5 percent” and inserting “80 percent”.
(c)
Coordination with PPACA credit for coverage under a qualified health plan—
(1)
In general— Subsection (a) of section 35 of the Internal Revenue Code of 1986 is amended by striking “In the case of an individual,” and inserting “In the case of an individual who elects the application of this section for the taxable year,”.
(2)
Coordination rule— Subsection (g) of section 35 of such Code is amended—
(A)
by striking “(10) Regulations” and inserting “(12) Regulations”, and
(B)
by inserting after paragraph (10) (relating to continued qualification of family members after certain events) the following new paragraph:

“(11) Coordination with premium tax credit

“(A) In general—In the case of a taxpayer who elects the application of this section for any taxable year, no credit shall be allowed under section 36B with respect to such taxpayer for such taxable year.

“(B) Election—Any election for this section to apply for a taxable year, once made, shall be irrevocable.”

(3)
Advance payment— Section 7527 of such Code is amended by adding at the end the following new subsection:

“(f) Coordination with advance payment of premium tax credit—No payment shall be made under this section on behalf of any individual with respect to whom any advance payment is made under section 1412 of the Patient Protection and Affordable Care Act for the taxable year.”

(4)
Procedures— The Secretary of the Treasury shall issue such procedures and guidance as may be necessary or appropriate to coordinate, and facilitate taxpayer choices between, advance payments under section 7527 of the Internal Revenue Code of 1986 and section 1412 of the Patient Protection and Affordable Care Act.
(d)
Health plans offered through exchange treated as qualified health insurance— Paragraph (1) of section 35(e) of such Code is amended by adding at the end the following new subparagraph:

“(L) Coverage under a qualified health plan which was enrolled in through an Exchange established under section 1311 of the Patient Protection and Affordable Care Act.”

(e)
Effective date—
(1)
In general— The amendments made by this section shall apply to coverage months beginning after December 31, 2013.
(2)
Advance payment provisions— The amendment made by subsection (c)(3) shall apply to certificates issued after the date of the enactment of this Act.

Sec. 402 TAA pre-certification rule for purposes of determining whether there is a 63-day lapse in creditable coverage

(a)
In general— The following provisions are each amended by striking “January 1, 2014” and inserting “January 1, 2021”:
(1)
Section 9801(c)(2)(D).
(2)
Section 701(c)(2)(C) of the Employee Retirement Income Security Act of 1974.
(3)
Section 2701(c)(2)(C) of the Public Health Service Act (as in effect for plan years beginning before January 1, 2014).
(4)
Section 2704(c)(2)(C) of the Public Health Service Act (as in effect for plan years beginning on or after January 1, 2014).
(b)
Effective date—
(1)
In general— The amendments made by this section shall apply to plan years beginning after December 31, 2013.
(2)
Transitional rules—
(A)
Benefit determinations— Notwithstanding the amendments made by this section (and the provisions of law amended thereby), a plan shall not be required to modify benefit determinations for the period beginning on January 1, 2014, and ending 30 days after the date of the enactment of this Act, but a plan shall not fail to be qualified health insurance within the meaning of section 35(e) of the Internal Revenue Code of 1986 during this period merely due to such failure to modify benefit determinations.
(B)
Guidance concerning periods before 30 days after enactment— Except as provided in subparagraph (A), the Secretary of the Treasury (or his designee), in consultation with the Secretary of Health and Human Services and the Secretary of Labor, may issue regulations or other guidance regarding the scope of the application of the amendments made by this section to periods before the date which is 30 days after the date of the enactment of this Act.
(C)
Special rule relating to certain loss of coverage— In the case of a TAA-related loss of coverage (as defined in section 4980B(f)(5)(C)(iv) of the Internal Revenue Code of 1986) that occurs during the period beginning on January 1, 2014, and ending 30 days after the date of the enactment of this Act, the 7-day period described in section 9801(c)(2)(D) of the Internal Revenue Code of 1986, section 701(c)(2)(C) of the Employee Retirement Income Security Act of 1974, and section 2701(c)(2)(C) of the Public Health Service Act shall be extended until 30 days after such date of enactment.

Sec. 403 Extension of COBRA benefits for certain TAA-eligible individuals and PBGC recipients

(a)
In general— The following provisions are each amended by striking “January 1, 2014” and inserting “January 1, 2021”:
(1)
Section 4980B(f)(2)(B)(i)(V).
(2)
Section 4980B(f)(2)(B)(i)(VI).
(3)
Section 602(2)(A)(v) of the Employee Retirement Income Security Act of 1974.
(4)
Section 602(2)(A)(vi) of such Act.
(5)
Section 2202(2)(A)(iv) of the Public Health Service Act.
(b)
Effective date— The amendments made by this section shall apply to periods of coverage which would (without regard to the amendments made by this section) end on or after the date which is 30 days after the date of the enactment of this Act.