109 HR 3599 IH: To amend the Internal Revenue Code of 1986 to clarify the calculation of the reserve allowance for medical benefits of plans sponsored by bona fide associations. U.S. House of Representatives 2005-07-28 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 1st Session H. R. 3599 IN THE HOUSE OF REPRESENTATIVES July 28, 2005 Mr. Ryan of Wisconsin introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to clarify the calculation of the reserve allowance for medical benefits of plans sponsored by bona fide associations.

1.

Allowance of reserve for medical benefits of plans sponsored by bona fide associations

(a)

In general

Section 419A(c) of the Internal Revenue Code of 1986 (relating to account limit) is amended by adding at the end the following new paragraph: (6)

Additional reserve for medical benefits of bona fide association plans

(A)

In general

An applicable account limit for any taxable year may include a reserve in an amount not to exceed 35 percent of the sum of— (i)the qualified direct costs, and (ii)the change in claims incurred, but unpaid, for such taxable year with respect to medical benefits (other than post-retirement medical benefits). (B)

Applicable account limit

For purposes of this subsection, the term applicable account limit means an account limit for a qualified asset account with respect to medical benefits provided through a plan maintained by a bona fide association (as defined in section 2791(d)(3) of the Public Health Service Act (42 U.S.C. 300gg–91(d)(3)).. (b)

Effective date

The amendment made by this section shall apply to taxable years ending after December 31, 2004.