I 111th CONGRESS 1st Session H. R. 3608 IN THE HOUSE OF REPRESENTATIVES September 21, 2009 Mr. Becerra (for himself, Mr. Nunes, Mr. Rahall, Mr. Baca, Ms. Berkley, Mrs. Bono Mack, Mr. Boren, Mr. Cole, Mr. Herger, Mr. Kildee, Mr. Kline of Minnesota, Mr. Lewis of California, Mr. Luján, Mr. McCarthy of California, Ms. McCollum, Mr. Pallone, Mr. Pomeroy, Mr. Radanovich, and Mr. Shuler) 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 codify the exclusion from gross income of medical care provided for Indians, and for other purposes.

1.

Short title

This Act may be cited as the Tribal Health Benefits Clarification Act of 2009.

2.

Exclusion from gross income for medical care provided for Indians

(a)

In general

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting after section 139C the following new section:

139D.

Medical care provided for Indians

(a)

In general

Gross income does not include— (1)health services or benefits provided or purchased by the Indian Health Service, either directly or indirectly, through a grant to or a contract or compact with an Indian tribe or tribal organization or through programs of third parties funded by the Indian Health Service, (2)medical care provided by an Indian tribe or tribal organization to a member of an Indian tribe (including for this purpose, to the member’s spouse or dependents) through any one of the following: provided or purchased medical care services; accident or health insurance (or an arrangement having the effect of accident or health insurance); or amounts paid, directly or indirectly, to reimburse the member for expenses incurred for medical care, (3)the value of accident or health plan coverage provided by an Indian tribe or tribal organization for medical care to a member of an Indian tribe (including for this purpose, coverage that extends to such member's spouse or dependents) under an accident or health plan (or through an arrangement having the effect of accident or health insurance), and (4)any other medical care provided by an Indian tribe that supplements, replaces, or substitutes for the programs and services provided by the Federal Government to Indian tribes or Indians. (b)

Definitions

For purposes of this section— (1)

In general

The terms accident or health insurance and accident or health plan have the same meaning as when used in sections 104 and 106. (2)

Medical care

The term medical care has the meaning given such term in section 213. (3)

Dependent

The term dependent has the meaning given such term in section 152, determined without regard to subsections (b)(1), (b)(2) and (d)(1)(B). (4)

Indian tribe

The term Indian tribe means any Indian tribe, band, nation, pueblo, or other organized group or community, including any Alaska Native village, or regional or village corporation, as defined in, or established pursuant to, the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. (5)

Tribal organization

The term tribal organization has the meaning given such term in section 4(l) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(l)).

. (b)

Clerical amendment

The table of sections for such part III is amended by inserting after the item relating to section 139C the following new item: Sec. 139D. Medical care provided for Indians.. (c)

Effective date

The amendments made by this section shall apply to health benefits and coverage provided after the date of enactment of this Act. (d)

No inference

Nothing in the amendments made by this section shall be construed to create an inference with respect to the exclusion from gross income of— (1)benefits provided by Indian tribes that are not within the scope of this section, and (2)health benefits or coverage provided by Indian tribes prior to the effective date of this section.