[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4263 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 4263
To amend the Internal Revenue Code of 1986 to allow a tax credit for
charitable contributions to private, nonprofit charities providing
health insurance premium assistance and drug co-payment assistance,
thereby transitioning uninsured Americans into private insurance and
transitioning Medicaid patients into private insurance, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 4, 2007
Mr. Melancon (for himself and Mr. Gerlach) 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 allow a tax credit for
charitable contributions to private, nonprofit charities providing
health insurance premium assistance and drug co-payment assistance,
thereby transitioning uninsured Americans into private insurance and
transitioning Medicaid patients into private insurance, and for other
purposes.
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 ``Health Insurance Tax Credit
Assistance Act of 2007''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Health care spending in the United States has grown
rapidly to a rate of approximately 10 percent a year.
(2) According to the Congressional Budget Office, with the
cost of health care rising rapidly, spending for Medicare and
Medicaid is projected to grow even faster--in the range of 7
percent to 8 percent annually.
(3) More and more Americans with health insurance coverage
are experiencing increases in out-of-pocket expenses for health
care.
(4) The rising costs of healthcare is driving more citizens
to be uninsured or underinsured. According to the Bureau of the
Census, Department of Commerce, the number of Americans without
health insurance in 2005 increased by 800,000 to 46,600,000
from 45,800,000 in 2004.
(5) Many of these uninsured, nonelderly adults face chronic
conditions.
(6) The rising costs of healthcare are compounded for
Americans who suffer from a chronic disease that requires
expensive treatments. Some of these uninsured adults with
chronic conditions forgo needed medical care or prescription
drugs, due to the prohibitive costs.
(7) Many families who have a loved one with an expensive
chronic condition often face a difficult dilemma: if they
receive public assistance through State Medicaid programs, they
must meet and maintain a certain income threshold and if they
leave public assistance for private insurance, they must then
be able to meet higher premiums, co-payments and drug costs.
(8) Currently, nonprofit charitable organizations have
recognized a need to develop financial assistance programs for
patients with expensive chronic illnesses to access treatment
and therapies to lead productive and healthy lives.
(9) These patient assistance organizations (PAOs) prevent
patients with expensive chronic illnesses and conditions from
depleting financial resources to qualify for public assistance
programs by subsidizing health insurance premiums; pharmacy and
treatment co-payments; and expense associated with Medicare.
(10) The Federal Government should be looking for ways to
reduce the costs to public programs like Medicaid at the same
time transitioning beneficiaries into the private health
market. One way to do this is to create incentives for
beneficiaries and their families to enter the workforce, earn a
better living and ultimately, participate in the private health
insurance market.
(11) A targeted tax credit is one way the Federal
Government could encourage citizens to donate to qualified
PAOs.
(12) The benefits of a tax credit provides the Federal
Government with a greater savings than the cost of the tax
credits themselves by transitioning patients off public
programs such as Medicaid, lifting them out of poverty, and
enabling them to access health insurance coverage.
(13) This tax credit also contributes to PAOs that can
cover the ``TrOOP'' or ``doughnut hole'' expenses that Medicare
part D does not cover for disabled and senior citizens.
(14) This tax credit in the end fosters a tax policy that
addresses three major areas of public policy concern--
(A) uninsured and underinsured citizens;
(B) treatment for Medicare beneficiaries
(``doughnut hole''); and
(C) cost savings for Medicaid.
SEC. 3. CREDIT FOR CHARITABLE CONTRIBUTIONS TO CERTAIN PRIVATE
CHARITIES PROVIDING HEALTH INSURANCE PREMIUM ASSISTANCE
AND DRUG COPAYMENT ASSISTANCE TO THE UNINSURED AND
UNDERINSURED.
(a) In General.--Subpart A of part IV of chapter 1 of the Internal
Revenue Code of 1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25D the following new section:
``SEC. 25E. CREDIT FOR CONTRIBUTIONS TO THE CHRONICALLY ILL UNINSURED
AND UNDERINSURED.
``(a) In General.--In the case of an individual, there shall be
allowed as a credit against the tax imposed by this chapter for the
taxable year an amount equal to the qualified charitable contributions
made by the taxpayer.
``(b) Limitation.--The amount allowed as a credit to the taxpayer
under subsection (a) shall not exceed $1,000 ($2,000 in the case of a
joint return).
``(c) Qualified Charitable Contribution.--For the purposes of this
section, the term `qualified charitable contribution' means a
charitable contribution (as defined in section 170(c)) made in cash to
a qualified charity.
``(d) Qualified Charity.--For purposes of this section--
``(1) In general.--The term `qualified charity' means an
organization described in section 501(c)(3) and exempt from tax
under section 501(a)--
``(A) which is certified by the Office of Inspector
General of the Department of Health and Human Services
as meeting the requirements of paragraph (2), and
``(B) which is organized under the laws of a State
at the time the contribution is made and is exempt from
income taxation (if any) by such State.
``(2) Charity must work to assist chronically ill patients
with health insurance premium assistance and copayment
assistance.--An organization meets the requirements of this
paragraph only if the predominant activity of such organization
is the subsidizing of health insurance premiums and pharmacy
co-payments of individuals who are uninsured or cannot
otherwise afford health insurance or drug treatments.
``(e) Denial of Double Benefit.--No deduction shall be allowed
under any other provision of this chapter for any contribution for
which a deduction or credit is allowed under subsection (a).
``(f) Election to Not Take Credit.--No credit shall be allowed
under subsection (a) for any contribution if the taxpayer elects to not
have this section apply to such contribution.''.
(b) Clerical Amendments.--The table of sections of such subpart is
amended by inserting after the item relating to section 25D the
following new item:
``Sec. 25E. Credit for contributions to the chronically ill uninsured
and underinsured.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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