Section 1 Short title
This Act may be cited as the “Fair Access to Health Care Act of 2017”.
Fair Access to Health Care Act of 2017
A BILL
To amend the Internal Revenue Code of 1986 to adjust the phaseout of the health insurance tax credit for geographic variations in the cost-of-living.
Sec. 2 Phaseout of health insurance tax credit adjusted to take into account geographic variation in the cost-of-living
In general— Section 36B(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(4) Geographic adjustment for cost-of-living
“(A) In general—In the case of a taxpayer whose principal place of residence for any taxable year is located in a high cost area, there shall be substituted “the specified percentage” for “400 percent” in paragraph (3)(A)(i) and in subsections (c)(1)(A) and (f)(2)(B).
“(B) High cost area—For purposes of this paragraph, the term high cost area means any metropolitan statistical area or non-metropolitan area the SPM for which exceeds the national average SPM.
“(C) Specified percentage—For purposes of this paragraph, the term specified percentage means, with respect to a taxpayer whose principal place of residence for any taxable year is located in a high cost area, the product of 400 percent and the SPM adjustment for such area.
“(D) SPM—For purposes of this paragraph—
“(i) In general—The term SPM means, with respect to each calendar year, the Supplemental Poverty Measure as determined by the Bureau of the Census.
“(ii) National average SPM—The national average SPM shall be determined without regard to Alaska and Hawaii.
“(iii) Determination for taxable year based on preceding calendar year—SPM with respect to any taxable year shall be determined on the basis of the calendar year preceding the calendar year in which the taxable year begins.
“(E) SPM adjustment—For purposes of this paragraph, the term SPM adjustment means, with respect to a high cost area for a calendar year, the SPM adjustment as determined by the Bureau of the Census.
“(F) Alternative measure of cost-of-living—If the Secretary determines that another measure of cost-of-living is more appropriate than the SPM for purposes of this paragraph, the Secretary shall use such measure in lieu of the SPM.”
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2016.