Section 1 Short title
This Act may be cited as the “Primary Care Enhancement Act of 2016”.
Primary Care Enhancement Act of 2016
A BILL
To amend the Internal Revenue Code of 1986 to provide for the treatment of certain direct primary care service arrangements and periodic provider fees.
Sec. 2 Treatment of direct primary care service arrangements
In general— Section 223(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(6) Treatment of direct primary care service arrangements—An arrangement under which an individual is provided coverage restricted to primary care services in exchange for a fixed periodic fee or payment for such services—
“(A) shall not be treated as a health plan for purposes of paragraph (1)(A)(ii), and
“(B) shall not be treated as insurance for purposes of subsection (d)(2)(B).”
Effective date— The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Sec. 3 Certain provider fees to be treated as medical care
In general— Section 213(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(12) Periodic provider fees—The term medical care shall include—
“(A) periodic fees paid to a primary care physician for a defined set of medical services or the right to receive medical services on an as-needed basis, and
“(B) pre-paid primary care services designed to screen for, diagnose, cure, mitigate, treat, or prevent disease and promote wellness.”
Effective date— The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.