[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6101 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6101

 To amend the Internal Revenue Code of 1986 to improve the ability of 
medical professionals to practice medicine and provide quality care to 
      patients by providing a tax deduction for patient bad debt.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 2008

Mr. Thornberry 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 improve the ability of 
medical professionals to practice medicine and provide quality care to 
      patients by providing a tax deduction for patient bad debt.

    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 ``Patient Fairness and Indigent Care 
Promotion Act of 2008''.

SEC. 2. BAD DEBT DEDUCTION FOR CASH BASIS HEALTH CARE PROVIDERS FOR 
              UNPAID SERVICES PROVIDED TO LOW-INCOME INDIVIDUALS.

    (a) In General.--Section 166 of the Internal Revenue Code of 1986 
(relating to bad debts) is amended by redesignating subsection (f) as 
subsection (g) and by inserting after subsection (e) the following new 
subsection:
    ``(f) Unpaid Medical Care Provided to Low-Income Individuals.--
            ``(1) In general.--In the case of a taxpayer to whom this 
        subsection applies, the deduction under subsection (a) for 
        worthless qualified medical care debt shall not be less than 75 
        percent of the taxpayer's charge for such care.
            ``(2) Taxpayer to whom subsection applies.--This subsection 
        shall apply to any taxpayer who is engaged in the trade or 
        business of providing medical care other than as an employee 
        and who used the cash receipts and disbursements method of 
        accounting.
            ``(3) Qualified medical care debt.--For purposes of this 
        subsection, the term `qualified medical care debt' means any 
        debt for medical care provided by the taxpayer to a low-income 
        individual.
            ``(4) Determination of charge.--The amount of the 
        taxpayer's charge which may be taken into account--
                    ``(A) shall not exceed the amount of the charge 
                that would be recognized for purposes of title XVIII of 
                the Social Security Act, and
                    ``(B) shall not include any amount for which the 
                taxpayer is not entitled to reimbursement from the low-
                income individual.
            ``(5) Low-income individual.--For purposes of this 
        subsection, the term `low-income individual' means an 
        individual who, at the time the medical care attributable to 
        the debt is provided, has an annual household income below 135 
        percent of the poverty line (as defined in section 673 of the 
        Community Services Block Grant Act (42 U.S.C. 9902)) applicable 
        to the size of the family involved.
            ``(6) Medical care.--For purposes of this subsection, the 
        term `medical care' has the meaning given to such term by 
        section 213(d).
            ``(7) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary or appropriate to carry out 
        this section, including regulations providing for methods of 
        establishing that an individual is a low-income individual for 
        purposes of this section.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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