[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 462 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 462

 To amend the Internal Revenue Code of 1986 to impose an excise tax on 
         the termination of retiree prescription drug coverage.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 2005

  Mr. Engel 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 impose an excise tax on 
         the termination of retiree prescription drug coverage.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare Corporate Accountability 
Act of 2004''.

SEC. 2. EXCISE TAX ON TERMINATION OF RETIREE PRESCRIPTION DRUG 
              COVERAGE.

    (a) In General.--Chapter 47 of the Internal Revenue Code of 1986 
(relating to certain group health plans) is amended by adding at the 
end the following new section:

``SEC. 5000A. TERMINATION OF RETIREE PRESCRIPTION DRUG COVERAGE.

    ``(a) In General.--There is hereby imposed on any employer or 
employee organization that contributes to a group health plan (as 
defined in section 5000(b)) a tax on the termination of the provision 
of prescription drug benefits to any qualified retiree under the plan.
    ``(b) Rate of Tax.--The rate of tax imposed under the section is--
            ``(1) $750 in the case of a qualified retiree with self-
        only prescription drug coverage under the plan (determined at 
        the time of the termination of benefits), and
            ``(2) $1,500 in the case of any other qualified retiree.
    ``(c) Qualified Retiree.--For purposes of this section, the term 
`qualified retiree' means any former employee of the employer--
            ``(1) who attained age 65 before the termination of 
        benefits referred to in subsection (a), and
            ``(2) whose employment with the employer terminated before 
        the date of the enactment of this section.
    ``(d) Regulations.--The Secretary may issue regulations to carry 
out the purposes of this section, including regulations with respect to 
the meaning of the terms `termination' and `prescription drug 
benefits'.
    ``(e) Transfers to Medicare Prescription Drug Account.--The 
Secretary shall from time to time transfer from the general fund of the 
Treasury to the Medicare Prescription Drug Account in the Federal 
Supplementary Medical Insurance Trust Fund amounts equal to the taxes 
imposed under this section.''.
    (b) Clerical Amendment.--The table of sections for such chapter is 
amended by adding at the end the following new item:

``Sec. 5000A. Termination of retiree prescription drug coverage.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to terminations of benefits which take effect on or after the 
date of the enactment of this Act.
                                 <all>