I 112th CONGRESS 1st Session H. R. 767 IN THE HOUSE OF REPRESENTATIVES February 17, 2011 Mr. DeFazio introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To permit individuals to choose to opt out of the requirement to maintain health insurance minimum essential coverage if such individuals also opt out of specified insurance reform protections.

1.

Short title

This Act may be cited as the Personal Responsibility in Health Care Insurance Act.

2.

Opt out of requirement for individuals to maintain health insurance minimum essential coverage and certain health insurance protections

(a)

Ability To opt out of minimum essential coverage requirement

(1)

IRC

Section 5000A(d) of the Internal Revenue Code of 1986 is amended— (A)by striking or (4) and inserting (4), or (5); and (B)by adding at the end the following new paragraph: (5)

Individuals who have chosen to opt out

Such term shall not include any individual, or a dependent of such individual, for any month during a taxable year if such individual, or dependent, has in effect an exemption under section 1311(d)(4)(H) of the Patient Protection and Affordable Care Act which certifies that there is in effect for such month, with respect to such individual, or such dependent, an affidavit of personal responsibility described in section 1411(j) of such Act. . (2)

PPACA

Section 1411 of the Patient Protection and Affordable Care Act is amended by adding at the end the following new subsection: (j)

Exclusion based on opt out selection

(1)

In general

For purposes of section 5000A(d)(5) of the Internal Revenue Code of 1986, section 1311, and this section, an affidavit of personal responsibility described in this subsection, with respect to an individual or any dependent of such individual, is a statement, that indicates each of the following: (A)Such individual chooses for such individual or such dependent, respectively, to opt out of the application of subsections (a) and (b)(1) of section 5000A of the Internal Revenue Code of 1986 for the period described in paragraph (2). (B)Such individual acknowledges that such choice results in such individual or dependent, respectively, waiving each of the following during such period: (i)Eligibility to enroll in a qualified health plan through an Exchange established pursuant to section 1311. (ii)The application of section 2704 of the Public Health Service Act (relating to prohibition of preexisting condition exclusions or other discrimination based on health status), including as applied under section 1255(2) of the Patient Protection and Affordable Care Act (relating to individuals who are under 19 years of age). (C)Such individual acknowledges that any health care related debts assumed by the individual or dependent, respectively, while the individual or dependent, respectively, has in effect such affidavit, will not be discharged under chapter 7 of title 11 of the United States Code. (2)

Opt out selection period

(A)

In general

An affidavit of personal responsibility described in paragraph (1), with respect to an individual or, if applicable, a dependent of such individual, shall be in effect for each month during the 3-year period beginning with the first month after the applicable certification under section 1311(d)(4)(H) has been made. (B)

Renewability

An individual may file an affidavit of personal responsibility, with respect to the individual or any dependent of the individual, under this subsection, and be certified under section 1311(d)(4)(H) with respect to such affidavit, for more than one period described in subparagraph (A). (3)

Eligibility

(A)

In general

An individual may file an affidavit of personal responsibility under this section, with respect to such individual, only if, as of the date of submission of such affidavit, the individual— (i)is not eligible for any exemption described in such subsection other than by application of this subsection; and (ii)is not enrolled in any program described in section 5000A(f) of the Internal Revenue Code of 1986. (B)

Treatment of dependents

An individual may specify a dependent of such individual within the affidavit of personal responsibility of such individual (or may file a separate affidavit of personal responsibility on behalf of such a dependent) for purposes of this subsection, but only if such dependent meets the criteria specified in clauses (i) and (ii) of subparagraph (A). . (3)

Conforming amendments

(A)Section 1311(d)(4) of the Patient Protection and Affordable Care Act is amended— (i)in subparagraph (H)(ii), by inserting before the period at the end the following: , including with respect to an affidavit of personal responsibility described in section 1411(j); (ii)in subparagraph (J), by striking at the end and; (iii)in subparagraph (K), by striking the period and inserting ; and; and (iv)by adding at the end the following new subparagraph: (L)in the case of an individual (or dependent of an individual) with respect to whom there is filed an affidavit of personal responsibility described in section 1411(j) and who is eligible for any program described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986, provide notification to such individual of such eligibility, including information necessary for the individual (or dependent) to enroll in such program. . (B)Section 1411(b)(5) of such Act is amended by adding at the end the following new subparagraph: (C)In the case of an individual (or dependent of such individual) seeking exemption based on the individual (or dependent) having in effect an affidavit of personal responsibility described in subsection (j), such information as the Secretary, in consultation with the Secretary of the Treasury, shall prescribe, which shall include sufficient information to verify the individual (or dependent) meets the criteria specified in clauses (i) and (ii) of subsection (j)(3)(A). . (b)

Individuals opting out of minimum essential coverage requirement excluded from certain health-Related programs

(1)

Eligibility to participate in Exchanges

Section 1312(f)(1)(A) of the Patient Protection and Affordable Care Act is amended— (A)in clause (i), by striking at the end and; (B)in clause (ii), by striking at the end the period and inserting ; and; and (C)by adding at the end the following new clause: (iii)is not an individual (or dependent of such individual) who has in effect an exemption under section 1311(d)(4)(H) which certifies that there is in effect, with respect to such individual (or dependent), an affidavit of personal responsibility described in section 1411(j). . (2)

Preexisting condition exclusion

Section 2704 of the Public Health Service Act, as inserted by section 1201 of the Patient Protection and Affordable Care Act, is amended by inserting before the period at the end the following: , except that this section shall not apply to an individual (or dependent of such individual) with respect to whom there is in effect an exemption under section 1311(d)(4)(H) of the Patient Protection and Affordable Care Act which certifies that there is in effect, with respect to such individual (or dependent), an affidavit of personal responsibility described in section 1411(j) of such Act. (3)

Health related debts nondischargeable under chapter 7 in cases of individuals who opt out of minimum essential coverage requirement

Notwithstanding any provision of title 11 of the United States Code, a discharge in a case under chapter 7 of such title does not discharge an individual (or dependent of such individual) from a health care related debt if such debt was assumed while such individual (or dependent) has in effect an exemption under section 1311(d)(4)(H) of the Patient Protection and Affordable Care Act which certifies that there is in effect, with respect to such individual (or dependent), an affidavit of personal responsibility described in section 1411(j) of such Act.