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<dc:title>118 HR 3129 IH: Health Care Fairness for All Act</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2023-05-09</dc:date>
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<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<form>
<distribution-code display="yes">I</distribution-code> 
<congress display="yes">118th CONGRESS</congress><session display="yes">1st Session</session> 
<legis-num display="yes">H. R. 3129</legis-num> 
<current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber> 
<action display="yes"> 
<action-date date="20230509">May 9, 2023</action-date> 
<action-desc><sponsor name-id="S000250">Mr. Sessions</sponsor> introduced the following bill; which was referred to the <committee-name committee-id="HIF00">Committee on Energy and Commerce</committee-name>, and in addition to the Committees on <committee-name committee-id="HWM00">Ways and Means</committee-name>, and <committee-name committee-id="HED00">Education and the Workforce</committee-name>, 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</action-desc> 
</action> 
<legis-type>A BILL</legis-type> 
<official-title display="yes">To ensure health care fairness and affordability for all Americans through universal access to equitable health insurance tax credits, reformed health savings accounts, and strengthened consumer protections, and for other purposes.</official-title> 
</form> 
<legis-body id="H5E7E6D4F783B448DB14D8E7ABE15967D" style="OLC"> 
<section id="H6A90C48FA5C3451A95456F9BF60359F1" section-type="section-one"><enum>1.</enum><header>Short title; purposes; table of contents</header> 
<subsection id="HBD6B0993DC854BA9A0C6076D6C8C508F"><enum>(a)</enum><header>Short title</header><text display-inline="yes-display-inline">This Act may be cited as the <quote><short-title>Health Care Fairness for All Act</short-title></quote>.</text></subsection> <subsection id="H8E1624ECD8F84E1CB38C86C0BF79B410"><enum>(b)</enum><header>Purposes</header><text>The purposes of this Act are as follows:</text> 
<paragraph id="H0932B4F624F14C7BB91FCC3159E4A5C3"><enum>(1)</enum><header>Elimination of individual and employer mandates</header><text display-inline="yes-display-inline">To eliminate mandates on individuals and employers, and other tax requirements, imposed under <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>.</text></paragraph> <paragraph id="H19E51C2185CA41968EB2FC9BAC3D4C92"><enum>(2)</enum><header>Providing States with alternative, affordable coverage options</header><text>To provide greater flexibility in providing States with options in making affordable health insurance coverage available by eliminating certain mandates under <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>, while retaining essential consumer protections, by promoting health savings accounts to pay for such coverage and long-term care coverage, while permitting States to continue coverage as provided under such public law.</text></paragraph></subsection> 
<subsection id="H3C8CC79A4C09454FABDD42D7868D57B3"><enum>(c)</enum><header>Table of contents</header><text display-inline="yes-display-inline">The table of contents of this Act is as follows:</text> <toc container-level="legis-body-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="H6A90C48FA5C3451A95456F9BF60359F1" level="section">Sec. 1. Short title; purposes; table of contents.</toc-entry> <toc-entry idref="HC1285C849DD84C2AA5D2758480F9A923" level="section">Sec. 2. Definitions.</toc-entry> <toc-entry idref="HB879B9B61F544FECA8A441648F7263EB" level="title">Title I—Revision of Federal Health Law</toc-entry> <toc-entry idref="H97B1ADFDCCBE495CB3D893223F7A9FD5" level="subtitle">Subtitle A—Elimination of Employer and Individual Mandates</toc-entry> <toc-entry idref="H8210252ECF1C426EB2DC104BE25E089D" level="section">Sec. 101. Repeal of individual health insurance mandate.</toc-entry> <toc-entry idref="HD2A4E45A0DEC4AF7AF3B8E9ACA4C9A78" level="section">Sec. 102. Repeal of employer health insurance mandate.</toc-entry> <toc-entry idref="H313BFC15322C4CF6B115BC5F3DA3701F" level="section">Sec. 103. Clarifying employer’s ability to reimburse employee premiums for purchase of individual health insurance coverage.</toc-entry> <toc-entry idref="H4D29AE06CE0B40C5AD9D7ED74A88148A" level="subtitle">Subtitle B—Limitation on Application of Federal Health Plan Requirements</toc-entry> <toc-entry idref="HAE846848DD2442C3848F3AF931E3776A" level="section">Sec. 121. Limiting application of requirements to consumer protections.</toc-entry> <toc-entry idref="H7879BB847FE443BEB040E75408584966" level="section">Sec. 122. Offering of basic health insurance; protection of assets from liability or attachment or seizure.</toc-entry> <toc-entry idref="HD00BA8E8C8BA42DB9FD57CB9FEED1DD6" level="section">Sec. 123. Ensuring access to short-term limited duration insurance.</toc-entry> <toc-entry idref="HDCBF7C4BDA4749C18F141666F8C861B2" level="section">Sec. 124. Making telehealth flexibilities permanent.</toc-entry> <toc-entry idref="H3017E6AA3B7A425FB85E1EC553FE08CE" level="subtitle">Subtitle C—Health Insurance Tax Benefit</toc-entry> <toc-entry idref="H8192F7A5343A42D6BAB523948E379DFE" level="section">Sec. 131. Health insurance tax benefit.</toc-entry> <toc-entry idref="H63925FF61FFE443C888951418CA1D459" level="section">Sec. 132. Application of portion of unused tax credits by States for indigent health care.</toc-entry> <toc-entry idref="HDE5A9B02250044609373108978367A65" level="section">Sec. 133. Medicaid option of enrollment under private plan and contribution to an HSA.</toc-entry> <toc-entry idref="H9D3A205D71884F75AE4E8F1B46A20329" level="section">Sec. 134. Repeal of reporting requirements relating to employee health insurance premiums and health plan benefits.</toc-entry> <toc-entry idref="H82D695A219CE4EE1BEDA07766AEE2BEA" level="section">Sec. 135. Report.</toc-entry> <toc-entry idref="H62556085B05449E69CA075C74739B5B7" level="subtitle">Subtitle D—Medicare reforms</toc-entry> <toc-entry idref="H961E2E240E84404C8067CB2DCC104D55" level="section">Sec. 141. Physician-owned hospitals.</toc-entry> <toc-entry idref="H2AFBE4A3E0944EDEAF5F2841137B0614" level="section">Sec. 142. Prohibiting the use of an inpatient-only list in designating hospital outpatient services under the Medicare program.</toc-entry> <toc-entry idref="HA55256192E6744929F8590B94E53F3B0" level="section">Sec. 143. Promoting Medicare site-neutral payments.</toc-entry> <toc-entry idref="HF098818DDFC24883A9310CD2585CD047" level="section">Sec. 144. Medicare Advantage contributions to Roth HSAs for chronically ill enrollees.</toc-entry> <toc-entry idref="H2F88FA94E07B46DF9D9920AE8AF8757C" level="section">Sec. 145. Extending acute hospital care at home waiver flexibilities.</toc-entry> <toc-entry idref="H5D666634C5E445498A1284324164ABE3" level="title">Title II—Improving Health Savings Accounts to Promote Accountability</toc-entry> <toc-entry idref="H67BAD602D48741B7B1681E9677442B32" level="section">Sec. 201. Transition to non-deductible HSAs.</toc-entry> <toc-entry idref="H857E02AE183D49C88919201B71FE8038" level="section">Sec. 202. Elimination of medical expense deduction.</toc-entry> <toc-entry idref="HC090D48FCDBE4B2D856117D8B58F2CBB" level="section">Sec. 203. Treatment of HSA after death of account beneficiary.</toc-entry> <toc-entry idref="HF77CD74AD007494D83EAA6F0101D6ED5" level="section">Sec. 204. Treatment of direct patient care arrangements.</toc-entry> <toc-entry idref="HE34A701C5C7146688D61DDF4B344EBEC" level="title">Title III—State flexibility in regulation of health insurance coverage</toc-entry> <toc-entry idref="H584CC673449B4A9B8BE84B9D34D8FA12" level="section">Sec. 301. State flexibility in regulation of health insurance coverage.</toc-entry> <toc-entry idref="H44FA063304FF4D14A9C92D1A49182162" level="title">Title IV—Medicaid Payment Reform</toc-entry> <toc-entry idref="H006EA8734BD2469DA022A859DD71BB8E" level="section">Sec. 401. Medicaid payment reform to ensure equitable access to care.</toc-entry> <toc-entry idref="H5D723F29B734490FAD21CD0F7CF7F279" level="title">Title V—Price Transparency</toc-entry> <toc-entry idref="HB5BD74E32E9D4D2EA11C178EE2F1C9D5" level="section">Sec. 501. Promoting transparent hospital prices for consumers.</toc-entry></toc></subsection></section> <section display-inline="no-display-inline" id="HC1285C849DD84C2AA5D2758480F9A923"><enum>2.</enum><header>Definitions</header><text display-inline="no-display-inline">Except as otherwise provided, in this Act:</text> 
<paragraph id="H4A4345BE38A645CC958BF66CEF30E529"><enum>(1)</enum><header>Basic health insurance</header><text>The term <term>basic health insurance</term> is defined in section 122(a).</text></paragraph> <paragraph id="H74C4E9836B054C199AA88D328DD6B093"><enum>(2)</enum><header>Default health insurance coverage</header><text>The term <term>default health insurance coverage</term> is defined in section 121(b)(4)(B).</text></paragraph> 
<paragraph commented="no" id="H70E609E069DE41C8AFCFC3B10E54D4DB"><enum>(3)</enum><header>Exchange</header><text display-inline="yes-display-inline">The term <term>Exchange</term> means an Exchange established under title I of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>.</text></paragraph> <paragraph id="H162D23AAFED141B7B0C8A5B19D4C1A4C"><enum>(4)</enum><header>Health insurance coverage; group health plan, etc</header><text>The terms defined in section 2791 of the Public Health Service Act, including <quote>health insurance coverage</quote>, <quote>group health plan</quote><quote>individual market</quote>, shall apply.</text></paragraph> 
<paragraph id="HA18CBC5158EB4664ABB33FD0DBFEE674"><enum>(5)</enum><header>Limited benefit insurance</header><text>The term <term>limited benefit insurance</term> is defined in section 122(b).</text></paragraph> <paragraph id="HFDB0012C28CA40B9BE47599DF738EAC7"><enum>(6)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Health and Human Services.</text></paragraph> 
<paragraph id="H827EAE2594C74A4BAF6A22433EA88778"><enum>(7)</enum><header>State</header><text display-inline="yes-display-inline">The term <term>State</term> includes the District of Columbia, Puerto Rico, the United States Virgin Islands, American Samoa, Guam, and the Northern Mariana Islands.</text></paragraph></section> <title id="HB879B9B61F544FECA8A441648F7263EB"><enum>I</enum><header>Revision of Federal Health Law</header> <subtitle id="H97B1ADFDCCBE495CB3D893223F7A9FD5"><enum>A</enum><header>Elimination of Employer and Individual Mandates</header> <section id="H8210252ECF1C426EB2DC104BE25E089D"><enum>101.</enum><header>Repeal of individual health insurance mandate</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/5000A">Section 5000A</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> 
<quoted-block style="OLC" display-inline="no-display-inline" id="H45D13A13A1734EE791491368209D2ECA"> 
<subsection id="H686E6BF60E2F4C5794E77E468E81B64F"><enum>(h)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to months beginning after December 31, 2022.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HD2A4E45A0DEC4AF7AF3B8E9ACA4C9A78"><enum>102.</enum><header>Repeal of employer health insurance mandate</header> <subsection id="H4AFCBE4B28544C84A7DD831DFA7157F9"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/43">Chapter 43</external-xref> of the Internal Revenue Code of 1986 is amended—</text> 
<paragraph id="HB8E317CA8CDE4EFBB88B849B6DA24585"><enum>(1)</enum><text>by striking section 4980H, and</text></paragraph> <paragraph id="H73E304B3254F48198D99D319FB696DC9"><enum>(2)</enum><text>by striking the item relating to section 4980H from the table of sections for such chapter.</text></paragraph></subsection> 
<subsection id="HFFA1405BA16A49EB8FC95F018DDD3D30"><enum>(b)</enum><header>Repeal of related reporting requirements</header><text display-inline="yes-display-inline">Subpart D of part III of subchapter A of chapter 61 of such Code is amended by striking section 6056 and by striking the item relating to section 6056 in the table of sections for such subpart.</text></subsection> <subsection id="HF0D62D2787824F4F895B5FB940AFAF43"><enum>(c)</enum><header>Conforming amendments</header> <paragraph id="H46749BFF6FF74BB5B0E242E268AED9DC"><enum>(1)</enum><text>Section 6724(d)(1)(B) of such Code is amended by striking clause (xxv).</text></paragraph> 
<paragraph id="H754ADB9FBEB44D09B8DA9F970754BC61"><enum>(2)</enum><text>Section 6724(d)(2) of such Code is amended by striking subparagraph (HH).</text></paragraph> <paragraph id="H5E07DD2E888749BA9F16CC6E8FCA286B"><enum>(3)</enum><text display-inline="yes-display-inline">Section 1513 of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref> is amended by striking subsection (c).</text></paragraph></subsection> 
<subsection id="H725AA0D320D149D299C0E7ECC27E78B8"><enum>(d)</enum><header>Effective dates</header> 
<paragraph id="H66E605EE5FC14BBCA38DF6229581CCA9"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to months and other periods beginning more than 30 days after the date of the enactment of this Act.</text></paragraph> <paragraph id="H04A83D98F6DD4B47ABFB3CA31D2DC739"><enum>(2)</enum><header>Repeal of study and report</header><text>The amendment made by subsection (c)(3) shall take effect on the date of the enactment of this Act.</text></paragraph></subsection></section> 
<section id="H313BFC15322C4CF6B115BC5F3DA3701F"><enum>103.</enum><header>Clarifying employer’s ability to reimburse employee premiums for purchase of individual health insurance coverage</header><text display-inline="no-display-inline">An employer health care arrangement, such as a health or medical reimbursement arrangement (HRA) or other employment plans, under which an employer reimburses an employee for the premiums for the purchase of individual health insurance coverage does not constitute a group health plan for any purposes, including for purposes of applying any of the following:</text> <paragraph id="H08496F06A75C4F259E1A3000FD06957A"><enum>(1)</enum><text>The Public Health Service Act (including sections 2711 and 2714 of such Act, <external-xref legal-doc="usc" parsable-cite="usc/42/300gg-11">42 U.S.C. 300gg–11</external-xref>, 300gg–14).</text></paragraph> 
<paragraph id="H5F2F3000A5C144DDA12A5FCAADC36FC7"><enum>(2)</enum><text display-inline="yes-display-inline">Public Law 111–148.</text></paragraph> <paragraph id="H0E439B844DE54EE2A9F8AD5507999A6A"><enum>(3)</enum><text display-inline="yes-display-inline">The Internal Revenue Code of 1986 (other than for purposes of section 36B of such Code).</text></paragraph> 
<paragraph id="H082ABAA133BF4654B229D3CE1B4281CD"><enum>(4)</enum><text>The Employee Retirement Income Security Act of 1974.</text></paragraph> <paragraph id="H56460D7E21BC49A59C2B46173D6EA3AB"><enum>(5)</enum><text>The HIPAA privacy regulations (as defined in section 1180(b)(3) of the Social Security Act, <external-xref legal-doc="usc" parsable-cite="usc/42/1320d-9">42 U.S.C. 1320d–9(b)(3)</external-xref>).</text></paragraph> 
<paragraph id="HBC5F2D0CEE9E42FB9E82676037EFE7DE"><enum>(6)</enum><text>The Health Insurance Portability and Accountability Act of 1996.</text></paragraph> <paragraph id="H780AE5DFA3A44BBEA801D5D7ACCFB80C"><enum>(7)</enum><text>COBRA continuation coverage under title XXII of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300bb-1">42 U.S.C. 300bb–1 et seq.</external-xref>), <external-xref legal-doc="usc" parsable-cite="usc/26/4980B">section 4980B</external-xref> of the Internal Revenue Code of 1986, or title VI of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1161">29 U.S.C. 1161 et seq.</external-xref>).</text></paragraph></section></subtitle> 
<subtitle id="H4D29AE06CE0B40C5AD9D7ED74A88148A"><enum>B</enum><header>Limitation on Application of Federal Health Plan Requirements</header> 
<section id="HAE846848DD2442C3848F3AF931E3776A"><enum>121.</enum><header>Limiting application of requirements to consumer protections</header> 
<subsection id="H04AC59E832C2456E823737F11D5ED8D6"><enum>(a)</enum><header>Removal of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref> plan requirements, other than certain consumer protections</header> 
<paragraph id="HF03F45C2491E4161A4627D2D21409087"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, with respect to group health plans and health insurance coverage whether or not offered through an Exchange, except as provided in paragraphs (2) and (3), the provisions of title XXVII of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg">42 U.S.C. 300gg et seq.</external-xref>) as in effect on the day before the date of the enactment of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref> shall apply instead of the provisions of such title as in effect after such date.</text></paragraph> <paragraph id="HB18238DD29D04C04A4F415716A22B68B"><enum>(2)</enum><header>Public Law 111–148 consumer protections continuing to be applied</header><text display-inline="yes-display-inline">The following sections of the Public Health Service Act, that were added or amended by subtitles A and C of title I of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>, shall continue to apply to group health plans and to health insurance coverage offered in the individual and group market:</text> 
<subparagraph id="H6D0FCBDA866B4DA9BD107FB9A2C6FA14"><enum>(A)</enum><header>No lifetime or annual limits</header><text>Section 2711 (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-11">42 U.S.C. 300gg–11</external-xref>; relating to no lifetime or annual limits), except in the case of limited benefit insurance (as defined in section 122(b)).</text></subparagraph> <subparagraph id="H027F933DFD1141349E1E345F5E1CF0DF"><enum>(B)</enum><header>Dependent coverage through age 26</header><text>Section 2714 (<external-xref legal-doc="usc" parsable-cite="usc/42/300bb-14">42 U.S.C. 300bb–14</external-xref>; relating to extension of dependent coverage).</text></subparagraph> 
<subparagraph id="H66F457D975684CC0990B34DC98D03102"><enum>(C)</enum><header>Modified guaranteed availability</header><text>Section 2702 (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-1">42 U.S.C. 300gg–1</external-xref>; relating to guaranteed availability of coverage), subject to paragraph (3) and subsection (c).</text></subparagraph> <subparagraph id="H6FB14D20204847D1A951D68EC715A542"><enum>(D)</enum><header>Guaranteed renewability</header><text>Section 2703 (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-2">42 U.S.C. 300gg–2</external-xref>; relating to guaranteed renewability of coverage).</text></subparagraph> 
<subparagraph id="H71FA76AE4FD34D0C8B40D69F8517340F"><enum>(E)</enum><header>Prohibiting pre-existing condition exclusions</header><text>Section 2704 (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-3">42 U.S.C. 300gg–3</external-xref>; relating to prohibition on preexisting conditions).</text></subparagraph> <subparagraph id="H73D20DD706BD455FBC8D81784A6D5C95"><enum>(F)</enum><header>Prohibiting discrimination based on health status</header><text>Section 2705 (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-4">42 U.S.C. 300gg–4</external-xref>; relating to prohibiting discrimination against individual participants and beneficiaries based on health status), subject to subsection (c).</text></subparagraph> 
<subparagraph id="HE0575F5A0A014C82834094365F50E936"><enum>(G)</enum><header>Non-discrimination in health care</header><text>Section 2706 (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-5">42 U.S.C. 300gg–5</external-xref>; relating to non-discrimination in health care).</text></subparagraph></paragraph> <paragraph commented="no" id="H85571221B06545D88DF826E1642DA3FD"><enum>(3)</enum><header>Application of a late enrollment penalty for those without continuous coverage</header> <subparagraph commented="no" id="H3DFA9D48948444899EAAD5BFC5D3E259"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an individual who seeks to enroll in health insurance coverage and who, as of the effective date of such enrollment, does not have a continuous period of at least 12 months of creditable coverage, there shall be imposed a late enrollment penalty in the form of an increase in the monthly premiums for coverage of under the plan of 20 percent of the monthly premium otherwise determined for each consecutive full 12-month period (ending before such effective date) in which the individual was not enrolled in creditable coverage. Such increase shall apply during a period, to be specified under regulations of the Secretary but in no case longer than 3 times the length of the most recent period in which the individual did not have continuous coverage.</text></subparagraph> 
<subparagraph commented="no" id="HCFA8EABA489346BEA24EBB23D943B1A7"><enum>(B)</enum><header>State waiver</header><text display-inline="yes-display-inline">A State may apply to the Secretary for a waiver of the provisions of subparagraph (A) and the application of alternative provisions providing incentives for State residents to enroll in creditable coverage and maintain continuous creditable coverage. The Secretary shall approve such waiver if the Secretary determines that the alternative provisions provide similar or greater incentives for such enrollment than the incentives otherwise applicable.</text></subparagraph></paragraph> <paragraph id="H9404F73BEF634F9EB9EADD71BA1B5E2F"><enum>(4)</enum><header>Coordinating implementation of pre-<external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref> PHSA provisions with <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref> consumer protections</header> <subparagraph id="HD29378D6741345C99874F395C9F264E8"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In applying this subsection, the provisions described in paragraph (2) shall be treated as if they were included in title XXVII of the Public Health Service Act, as in effect before the date of enactment of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>, and, with respect to group health plans and health insurance coverage offered in connection with such plans, in part 7 of subtitle B of title I of the Employee Retirement and Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1181">29 U.S.C. 1181 et seq.</external-xref>), and, with respect to group health plans, in <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/100">chapter 100</external-xref> of the Internal Revenue Code of 1986 as follows:</text> 
<clause id="H75673EADFCBD4E5A8A844F213D49DB5A"><enum>(i)</enum><header>Lifetime limits; dependent coverage</header><text>The provisions described in paragraphs (2)(A) and (2)(B) shall be treated as included—</text> <subclause id="H16DE25D82A07476CBBE4936564AA8648"><enum>(I)</enum><text>with respect to group health plans (and health insurance coverage offered with respect to such plans), under subpart 2 of part A of title XXVII of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-11">42 U.S.C. 300gg–11 et seq.</external-xref>) and subpart B of part 7 of subtitle B of title I of the Employee Retirement and Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1181">29 U.S.C. 1181 et seq.</external-xref>);</text></subclause> 
<subclause id="H2C2CCFF73AE449BFAA5107A90EC52ECD"><enum>(II)</enum><text>also with respect to group health plans, under subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/100">chapter 100</external-xref> of the Internal Revenue Code of 1986; and</text></subclause> <subclause id="HF58EED1C88CF492381571D0508ACB098"><enum>(III)</enum><text>with respect to individual health insurance coverage, under subpart 2 of part B of title XXVII of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-15">42 U.S.C. 300gg–15 et seq.</external-xref>).</text></subclause></clause> 
<clause id="HAD64EEF34CA548C7B90C1EAFBFCE8FD2"><enum>(ii)</enum><header>Remaining provisions</header><text>The provision described in paragraph (2) (other than in subparagraph (A) or (B) of such paragraph) shall be treated as included—</text> <subclause id="HBCF9042B9EF94B1F847DC8CC80E06073"><enum>(I)</enum><text>with respect to group health plans (and health insurance coverage offered with respect to such plans), under subpart 1 of part A of title XXVII of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg">42 U.S.C. 300gg et seq.</external-xref>) and subpart A of part 7 of subtitle B of title I of the Employee Retirement and Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1181">29 U.S.C. 1181 et seq.</external-xref>);</text></subclause> 
<subclause id="H6294C7C30B154B0A834FC8B1B630CA4F"><enum>(II)</enum><text>also with respect to group health plans, under subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/100">chapter 100</external-xref> of the Internal Revenue Code of 1986; and</text></subclause> <subclause id="HD8577AFCE21441698BCCCEB569640457"><enum>(III)</enum><text>with respect to individual health insurance coverage, under subpart 1 of part B of title XXVII of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-41">42 U.S.C. 300gg–41 et seq.</external-xref>).</text></subclause></clause></subparagraph> 
<subparagraph id="H386183A745A14BB884FE4E57335EA617"><enum>(B)</enum><header>Conflicting provisions</header><text>In the case described in paragraph (1) where there is a conflict between a provision described in paragraph (2) and a provision of law described in paragraph (1), the provision described in paragraph (2) shall control and the Secretary, in consultation with the Secretary of the Treasury and the Secretary of Labor, shall establish such rules as may be necessary to carry out this subparagraph.</text></subparagraph></paragraph> <paragraph id="H6758F55EFC634835AC0AF7E84D4AF51C"><enum>(5)</enum><header>Conforming amendments</header> <subparagraph id="HE05A3AE2E2FB46CF85875041E5E06353"><enum>(A)</enum><header>ERISA</header><text>Section 715 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1185d">29 U.S.C. 1185d</external-xref>) is amended—</text> 
<clause id="H2936F76A4EEB46BC9800DF3522757C02"><enum>(i)</enum><text>in subsection (a), by striking <quote>subsection (b)</quote> and inserting <quote>subsections (b) and (c)</quote>; and</text></clause> <clause id="H8953F377B5D249C088E4553FAB91FDD3"><enum>(ii)</enum><text>by adding at the end the following new subsection:</text> 
<quoted-block display-inline="no-display-inline" id="HA578FC6068BB46059288D1CAEA55C19C" style="OLC"> 
<subsection id="H52F7F864617C474C829D46DA5B2EFDBB"><enum>(c)</enum><header>Additional exception</header><text display-inline="yes-display-inline">Pursuant to section 121 of the <short-title>Health Care Fairness for All Act</short-title>, the provisions of part A of title XXVII of the Public Health Service Act referred to in subsection (a), other than those provisions specified in section 121(a)(2) of the <short-title>Health Care Fairness for All Act</short-title>, shall not apply to plans and coverage described in subsection (a), whether or not the plans or coverage are offered through an Exchange established by <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="HA0259804A8FA4CA1A1C324391446AB66"><enum>(B)</enum><header>IRC</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/9815">Section 9815</external-xref> of the Internal Revenue Code of 1986 is amended—</text> 
<clause id="H756B87F628C64517AA6AC8609EEEA0AF"><enum>(i)</enum><text>in subsection (a), by striking <quote>subsection (b)</quote> and inserting <quote>subsections (b) and (c)</quote>; and</text></clause> <clause id="H0F452F02447943A09B6D42AFC21EC468"><enum>(ii)</enum><text>by adding at the end the following new subsection:</text> 
<quoted-block display-inline="no-display-inline" id="H84559FD5C5F540DFBCCFFD5D3A2FC627" style="OLC"> 
<subsection id="H000A32F7F90B41C6BB24434C909F4862"><enum>(c)</enum><header>Additional exception</header><text display-inline="yes-display-inline">Pursuant to section 121 of the <short-title>Health Care Fairness for All Act</short-title>, the provisions of part A of title XXVII of the Public Health Service Act referred to in subsection (a), other than those provisions specified in section 121(a)(2) of the <short-title>Health Care Fairness for All Act</short-title>, shall not apply to plans described in subsection (a).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph></subsection> <subsection id="H8A3C5520909D4722BFD5451ADE457AF6"><enum>(b)</enum><header>State flexibility in ensuring orderly health insurance market outside of an Exchange</header> <paragraph id="HBB99B8158A314D31A31D1DB418744685"><enum>(1)</enum><header>In general</header><text>With respect to health insurance coverage offered in a State, the State may, in consultation with the Secretary, take such steps, such as limiting the availability of general open enrollment periods, imposing delays in the effectiveness for coverage, permitting differentials in premiums based on age and other factors, as the State determines necessary in order to ensure an orderly market for health insurance coverage in the State that is not offered through an Exchange. Such steps may include the establishment of such initial open enrollment period during which qualified residents may enroll in health insurance coverage without the imposition of any underwriting as the State determines to be appropriate in ensuring initial access to such coverage.</text></paragraph> 
<paragraph id="H788FE747321746DF8FE5AF5C7CCD5567"><enum>(2)</enum><header>Flexibility in imposing additional requirements</header><text>Subject to paragraph (5), nothing in this section shall be construed as preventing a State from continuing to apply, to health insurance coverage issued in the State, requirements under the provisions of title XXVII of the Public Health Service Act (as amended by subtitles A and C of title I of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>) that are not continued under subsection (a).</text></paragraph> <paragraph id="HDAA90C110BFE4EE88F95DB2FD4C7C638"><enum>(3)</enum><header>State flexibility with respect to Exchanges</header><text>A State may waive such provisions of part II of subtitle D of title I of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/18031">42 U.S.C. 18031 et seq.</external-xref>), in relation to the establishment of an Exchange in such State, as the State determines appropriate in order for the State to implement and administer a market-based system for the availability of health insurance coverage throughout the State.</text></paragraph> 
<paragraph id="HCE1B24C040EB4C5B8246404B976FA396"><enum>(4)</enum><header>State default enrollment option</header> 
<subparagraph id="H5382883EA70146C5A0A6475FB165DFC0"><enum>(A)</enum><header>Enrollment, subject to individual opt-Out</header><text>Subject to subparagraph (D), a State may elect to provide for the enrollment of residents of the State who are uninsured in default health insurance coverage (as defined in subparagraph (B)) and establishing a Roth HSA for such residents who do not have a Roth HSA unless the resident has affirmatively elected not to be so enrolled and not to have such an account, respectively. If a State makes such an election, the State shall permit eligible residents to enroll in such coverage on a continuous basis.</text></subparagraph> <subparagraph id="HAC1F4B5005654A93A5C0850D632CCC6C"><enum>(B)</enum><header>Default health insurance coverage defined</header><text>In this paragraph, the term <term>default health insurance coverage</term> means, with respect to a State, health insurance coverage that—</text> 
<clause id="H4595D15BEA744ED092996D93499F32A2"><enum>(i)</enum><text>is a high deductible health plan (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/223">section 223(c)(2)</external-xref> of the Internal Revenue Code of 1986) with prescription drug coverage limited to generic drugs for a limited number of chronic conditions (commonly referred to as tier I pharmacy benefit);</text></clause> <clause id="H698AFCC66E4540CE825A532F84D2DE8B"><enum>(ii)</enum><text>meets such requirements as may apply to qualify for the payment of plan premiums from a health savings account under section 223 of such Code (such as age-related premiums and limitation on imposition of preexisting condition exclusions);</text></clause> 
<clause id="HF3E54E195D914FF497DD3AE93984E24E"><enum>(iii)</enum><text>has a provider network for covered benefits that is adequate (as determined consistent with guidelines issued by the Secretary) to ensure access to health benefits under such plan;</text></clause> <clause id="HD32B75B7E9D54E919092EB9EA5C55366"><enum>(iv)</enum><text display-inline="yes-display-inline">provides for coverage of childhood immunizations without cost sharing requirements to the extent such immunizations have in effect a recommendation from the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention with respect to the individual involved; and</text></clause> 
<clause id="HF2BA6D7BF0DC426495BABB07C7CEEE0E"><enum>(v)</enum><text>meets such other requirements as the State may specify.</text></clause></subparagraph> <subparagraph id="HC92C079E6BB54F66A25E379426478691"><enum>(C)</enum><header>Roth HSA</header><text>In this paragraph, the term <term>Roth HSA</term> shall have the meaning given such term by <external-xref legal-doc="usc" parsable-cite="usc/26/530A">section 530A(c)</external-xref> of the Internal Revenue Code of 1986, as added by section 201(a) of this Act.</text></subparagraph> 
<subparagraph id="H5DC76C5A5AF4493BB70C0F2CF3430B62"><enum>(D)</enum><header>Simple process for individuals to opt out</header><text display-inline="yes-display-inline">As a condition of a State providing for the enrollment function described in subparagraph (A), the State must establish an easy-to-use and transparent means by which individuals may elect not to be enrolled in default health insurance coverage or to have a Roth HSA established on the individual’s behalf, or both.</text></subparagraph></paragraph> <paragraph id="H7D4855EC4BEB4692AE39BD2D1AC557C6"><enum>(5)</enum><header>Minimum age variation permitted for premium rates</header><text display-inline="yes-display-inline">With respect to the premium rate charged by a health insurance issuer for health insurance coverage offered in the individual or small group market, a State may not limit the variation by age in such rate with respect to a particular plan or coverage involved by less than a factor of 5 to 1 for adults. The previous sentence shall be treated as if it were included in subpart I of part A of title XXVII of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg">42 U.S.C. 300gg et seq.</external-xref>).</text></paragraph></subsection> 
<subsection id="HF07B3C7212034CAF9309D307F0DE2952"><enum>(c)</enum><header>Inapplicability of required essential health benefits</header> 
<paragraph id="H98E4B6C287B745898BA0508A0FC1A5D5"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of law, no health benefits plan shall be required by reason of Federal law to comply with the requirements of sections 1301(a)(1)(B) and 1302 of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/18021">42 U.S.C. 18021(a)(1)(B)</external-xref>, 18022).</text></paragraph> <paragraph id="HD7EE91AD05914EAA8F690BD15BD20AD0"><enum>(2)</enum><header>State flexibility</header><text>Nothing in this subsection shall be construed as preventing a State from applying, at its option with respect to health insurance coverage offered through an Exchange or otherwise in the State, the requirements referred to in paragraph (1).</text></paragraph></subsection> 
<subsection id="H7970783A880141CD90DD93C9C0F098D1"><enum>(d)</enum><header>Effective date; transition</header> 
<paragraph id="HE9BB38710BDA4586881C90DC00BAF1F0"><enum>(1)</enum><header>In general</header><text>Subsection (a), (b), and (c) shall apply to plan years beginning after the date of the enactment of this Act.</text></paragraph> <paragraph id="HF8328E78B08B4CA58C7AD3E9C86FD2CF"><enum>(2)</enum><header>Sunsetting required contribution for ACA reinsurance program</header><text display-inline="yes-display-inline">No contribution shall be required under section 1341 of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/18061">42 U.S.C. 18061</external-xref>) from any group health plan or health insurance issuer for portions of plans years occurring in months beginning more than 30 days after the date of the enactment of this Act.</text></paragraph></subsection> 
<subsection id="HAA2DDC9EA4F741B3BA444920A8769A5E"><enum>(e)</enum><header>Secretarial guidance</header><text>The Secretary of Health and Human Services, in coordination with the Secretary of Labor and the Secretary of the Treasury, shall provide such guidance as may be necessary for the coordinated implementation of this section on a timely basis.</text></subsection> <subsection id="H7C4B2B3679874D0F9D4CC1FBB9B1AB20"><enum>(f)</enum><header>Transferring health plan records upon changing plans</header> <paragraph id="HA76604E7B14D4B3CACD10C84B75CC722"><enum>(1)</enum><header>In general</header><text>In the case of an individual who is covered under health insurance coverage or as a beneficiary or participant in a group health plan (as such terms are defined in section 2791 of the Public Health Service Act, <external-xref legal-doc="usc" parsable-cite="usc/42/300gg-91">42 U.S.C. 300gg–91</external-xref>), if such coverage is ended and the individual obtains other health insurance coverage, group health plan coverage, or other creditable coverage (as defined for purposes of title XXVII of such Act), the issuer of the prior coverage or administrator of the prior plan shall forward information respecting such prior coverage to the issuer of the new coverage or administrator of the new plan or coverage, as the case may be, subject to such rules as the Secretary establishes regarding the right of the beneficiary or participant to object to such forwarding of information.</text></paragraph> 
<paragraph id="H7AA140A142174A99AD8FC6BA172510CB"><enum>(2)</enum><header>Treatment as plan requirement under PHSA, ERISA, IRC</header><text>The requirement of paragraph (1) shall apply as if it were a section under part A of title XXVII of the Public Health Service Act, including for purposes of applying section 715 of the Employee Retirement Income Security Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/29/1185d">29 U.S.C. 1185d</external-xref>) and <external-xref legal-doc="usc" parsable-cite="usc/26/9815">section 9815</external-xref> of the Internal Revenue Code of 1986.</text></paragraph></subsection> <subsection id="H9CC82AB9729A4F30AB66923AA8E88CC8"><enum>(g)</enum><header>Application of risk adjustment</header> <paragraph id="H14BCC1B37E334EF28D50086C103EB963"><enum>(1)</enum><header>In general</header><text>Any issuer that offers health insurance coverage in the individual market in any of the 50 States or the District of Columbia shall participate in a risk adjustment mechanism under this subsection with respect to any health insurance coverage it so offers in such market, whether or not such coverage is offered through an Exchange.</text></paragraph> 
<paragraph id="H2ABC8257B63144B2A2C516070616AE2F"><enum>(2)</enum><header>Form and design of risk adjustment mechanism</header><text>The Secretary shall, in consultation with the National Association of Insurance Commissioners and other interested parties, develop a mechanism to permit the adjustment of risk among health insurance coverage offered in the individual market throughout the 50 States and the District of Columbia. Such mechanism shall be designed to effect the same type of risk adjustment among such coverage that is applicable to risk adjustment of payments among Medicare Advantage organizations under part C of title XVIII of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-21">42 U.S.C. 1395w–21 et seq.</external-xref>).</text></paragraph> <paragraph id="H40BC654C3F24406995E0F6C6B974EFC2"><enum>(3)</enum><header>Transition for new coverage</header><text>The mechanism developed under paragraph (2) shall provide for transitional protection, over a 3-year period, in the case of health insurance coverage that has not been previously marketed.</text></paragraph> 
<paragraph id="HB1702AC937374E84A29CB0E3843B3ADD"><enum>(4)</enum><header>Development of further risk adjustment mechanism</header><text>The Secretary shall request the National Association of Insurance Commissioners to develop a permanent model for adjustment of risk among health insurance issuers with respect to health insurance coverage offered in the individual market, with the intention that such a model would substitute for the mechanism developed under paragraph (2).</text></paragraph> <paragraph id="HE8154B5E11C6419A9E7BA3B19A21A9E1"><enum>(5)</enum><header>Treatment as plan requirement under PHSA, ERISA, IRC</header><text display-inline="yes-display-inline">The requirement of paragraph (1) shall apply as if it were a section under part A of title XXVII of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg">42 U.S.C. 300gg et seq.</external-xref>), including for purposes of applying section 715 of the Employee Retirement Income Security Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/29/1185d">29 U.S.C. 1185d</external-xref>) and <external-xref legal-doc="usc" parsable-cite="usc/26/9815">section 9815</external-xref> of the Internal Revenue Code of 1986.</text></paragraph></subsection></section> 
<section id="H7879BB847FE443BEB040E75408584966"><enum>122.</enum><header>Offering of basic health insurance; protection of assets from liability or attachment or seizure</header> 
<subsection commented="no" id="H01F2401CD199482CA0A94F09210E1A9F"><enum>(a)</enum><header>Requirement for Exchanges</header> 
<paragraph id="H1458B850347C40548ADA100664C95C64"><enum>(1)</enum><header>In general</header><text>No tax credit shall be allowable under section 36B or 36C of the Internal Revenue Code of 1986 for residents of a State unless any Exchange established in the State provides for the offering of basic health insurance in all areas of the State.</text></paragraph> <paragraph id="H70FA267A45B44BCCB5C3EAC0A44336B7"><enum>(2)</enum><header>Basic health insurance defined</header><text>In this subsection, the term <term>basic health insurance</term> means, with respect to a State, such health insurance coverage as the State may specify and includes limited benefit insurance (as defined in subsection (b)).</text></paragraph></subsection> 
<subsection id="HCF95B15E036A451DB1D984102221B205"><enum>(b)</enum><header>Limited benefit insurance defined</header> 
<paragraph id="H660AA867F7A3438896AF0AE597F2158C"><enum>(1)</enum><header>In general</header><text>In this title, the term <term>limited benefit insurance</term> means individual health insurance coverage that, with respect to a plan year, imposes (consistent with paragraph (2)) an annual limit on the amounts that may be payable under the coverage with respect to expenses incurred for items and services furnished in that plan year.</text></paragraph> <paragraph id="HCD720DDA5ECE4DB0A8D00E3DD019E074"><enum>(2)</enum><header>Specification of annual limit; variation in limit for individual and family coverage</header><text>The Secretary shall specify, from year to year, the annual limit (or range of annual limits) that may be applied under paragraph (1). Such a limit may distinguish between coverage that is only provided for an individual and coverage that is provided also for family members of the individual.</text></paragraph></subsection> 
<subsection id="H4AD68CAF6FA84114AF5090B23CE50166"><enum>(c)</enum><header>Protection of certain assets in case of individuals covered under limited benefit insurance</header> 
<paragraph id="HE6BBEA34A75444269D8E906E66A4E99A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, if an individual is covered under limited benefit insurance for a plan year and benefits under such insurance have reached the annual limit under such insurance for items and services furnished in the plan year, the individual is not liable for debt incurred and arising from the provision of subsequently furnished items and services during the plan year, regardless of whether benefits are otherwise covered for such items and services under such policy, insofar as the liability attributable to such items and services exceeds—</text> <subparagraph id="H1FCECD36F88C434FA9B8FA22A62AB25D"><enum>(A)</enum><text>the bankruptcy valuation of the individual’s property at the time the debt is incurred; reduced by</text></subparagraph> 
<subparagraph id="H90438834D37D4662A8399860FBA1FC3E"><enum>(B)</enum><text display-inline="yes-display-inline">such annual limit of benefits under the limited benefit insurance for the plan year.</text></subparagraph><continuation-text continuation-text-level="paragraph">Property in the amount so protected from liability shall be exempt and immune from attachment or seizure with respect to any judgment related to such debt.</continuation-text></paragraph> <paragraph id="H38B23CC2CF8542B98C9A4F2177E53D73"><enum>(2)</enum><header>Bankruptcy valuation defined</header><text>In this subsection, the term <term>bankruptcy valuation</term> means, with respect to property of an individual as of a date, the value of the property as of such date as determined as if the individual were a debtor in a bankruptcy case that could have been filed under title 11 of the United States Code and the property could not be exempt under section 522 of such title.</text></paragraph> 
<paragraph id="H0157219D84D2465DB00DCC6B89D9F515"><enum>(3)</enum><header>No requirement for providers to furnish subsequent services without ensuring payment</header><text display-inline="yes-display-inline">Except as may be explicitly provided in other law (such as under section 1867 of the Social Security Act, <external-xref legal-doc="usc" parsable-cite="usc/42/1395dd">42 U.S.C. 1395dd</external-xref>; popularly known as EMTALA), a health care provider is not required to furnish any items or services to an individual who has exhausted benefits under limited benefit insurance for a plan year without the individual (or another person on the individual’s behalf) providing for such advance or guarantee of payment for such items and services as may be arranged between the health care provider and the individual.</text></paragraph></subsection></section> <section id="HD00BA8E8C8BA42DB9FD57CB9FEED1DD6"><enum>123.</enum><header>Ensuring access to short-term limited duration insurance</header><text display-inline="no-display-inline">Section 2791(b)(5) of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg-91">42 U.S.C. 300gg–91(b)(5)</external-xref>) is amended by inserting <quote>(as defined in the rule entitled <quote>Short-Term, Limited Duration Insurance</quote> (83 Fed. Reg. 38212 (August 3, 2018)))</quote> after <quote>short-term limited duration insurance</quote>.</text></section> 
<section id="HDCBF7C4BDA4749C18F141666F8C861B2"><enum>124.</enum><header>Making telehealth flexibilities permanent</header><text display-inline="no-display-inline">Notwithstanding any other provision of law, in the case of any provision of section 1834(m) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395m">42 U.S.C. 1395m(m)</external-xref>) that would, absent this section, end on the last day of the emergency period described in section 1135(g)(1)(B) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1320b-5">42 U.S.C. 1320b–5(a)(1)(B)</external-xref>) or December 1, 2024, such provision shall be deemed to continue to apply on or after such last day or such date (as applicable).</text></section></subtitle> <subtitle id="H3017E6AA3B7A425FB85E1EC553FE08CE"><enum>C</enum><header>Health Insurance Tax Benefit</header> <section id="H8192F7A5343A42D6BAB523948E379DFE" section-type="subsequent-section"><enum>131.</enum><header>Health insurance tax benefit</header> <subsection id="H6711EFC2D6E54BC1B834EB74F2642D20"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart C of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section:</text> 
<quoted-block display-inline="no-display-inline" id="HD7C8DDC3B51C4EEC959197B5FF8BEAB9" style="OLC"> 
<section id="HDB0E7073A7DB43F896395DFFF1F07B87"><enum>36C.</enum><header>Health insurance tax credit</header> 
<subsection id="H95EECC36B27042C2839E4F31530E7E4F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an individual who is a qualified resident, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the health credit amount of the taxpayer for the taxable year.</text></subsection> <subsection id="H24C2EA4A44734068B91818BEDC5F5EC3"><enum>(b)</enum><header>Health credit amount</header><text>For purposes of this section—</text> 
<paragraph id="H98E6C05CBBFF4251A94ADA303BDE6440"><enum>(1)</enum><header>In general</header><text>The term <term>health credit amount</term> means the sum of the amounts determined under paragraph (2) with respect to all months of the taxpayer for the taxable year.</text></paragraph> <paragraph id="H5B5A444429204BCA8854FB1D5F38DCA2"><enum>(2)</enum><header>Monthly credit amount</header> <subparagraph id="H026B2408E94346E8B797AA77BB422F35"><enum>(A)</enum><header>In general</header><text>Subject to paragraph (4), the amount determined under this paragraph with respect to any month shall be an amount equal to the sum of—</text> 
<clause id="H33E9B38F6EB6422DAA1865D715D6E18C"><enum>(i)</enum><text><fraction>1/12</fraction> of $4,000 in the case of any month the first day of which the taxpayer is a qualified resident and is covered by creditable coverage (twice such amount in the case of a joint return if both spouses are so covered by creditable coverage and are qualified residents), plus</text></clause> <clause id="HE64FA168659841CD9887236AF20FAFD2"><enum>(ii)</enum><text><fraction>1/12</fraction> of an amount equal to $2,000 multiplied by the number of qualifying children (within the meaning of section 152) who are qualified residents and—</text> 
<subclause id="H57D5FE27101A4234A3C4B25570F1BC4C"><enum>(I)</enum><text>for whom the taxpayer is allowed a deduction under section 151 for the taxable year in which such month ends, and</text></subclause> <subclause id="H168BC8C3F2D54537BE433F1FFE671157"><enum>(II)</enum><text>who are covered by creditable coverage on the first day of such month.</text></subclause></clause></subparagraph> 
<subparagraph id="H6642531C37704A87BD9CCC486906F820"><enum>(B)</enum><header>Carryforward of monthly credit amount in case credit amount exceeds HSA contributions and premium payments</header><text>In the case of any month for which the credit amount determined with respect to the taxpayer under subparagraph (A) exceeds the limitation amount determined with respect to the taxpayer for such month under paragraph (3), such excess may be carried forward to any subsequent month during the taxable year for purposes of determining the credit amount for such month under this paragraph.</text></subparagraph></paragraph> <paragraph id="H213D3E994CC04BCAAA5CF5E63ABB980D"><enum>(3)</enum><header>Monthly limitation</header> <subparagraph id="HA87A1FBBEF1E4186A38C44CEB3F9923D"><enum>(A)</enum><header>In general</header><text>The amount determined under paragraph (2) for any month of the taxpayer shall not exceed the sum of—</text> 
<clause id="HEAAF9028312C4E84BDE8B1C79D9EE0B1"><enum>(i)</enum><text>the amounts contributed to a health savings account of the taxpayer for such month, plus</text></clause> <clause id="HBE9C2AA1A6F7480EB6EC1DA13B89E99C"><enum>(ii)</enum><text>the premiums paid by the taxpayer for creditable coverage.</text></clause></subparagraph> 
<subparagraph id="H2492D0BD30B842CF962E4D8E7B769E86"><enum>(B)</enum><header>Carryforward of monthly limitation in case HSA contributions and premium payments exceed monthly credit amount</header><text>In the case of any month for which the amount determined with respect to the taxpayer under subparagraph (A) exceeds the credit amount determined with respect to the taxpayer for such month under paragraph (2), such excess may be carried forward to any subsequent month during the taxable year for purposes of determining the limitation under subparagraph (A).</text></subparagraph></paragraph> <paragraph id="H0ADCD7EA2B334AC59091E15EB78F571F"><enum>(4)</enum><header>Adjustment for limited benefit insurance</header><text>In the case of a taxpayer whose only health insurance coverage for a month is limited benefit insurance (as defined in section 123(b) of the <short-title>Health Care Fairness for All Act</short-title>), the amount determined under paragraph (2) shall be decreased by such proportion as the Secretary, in consultation with the Secretary of Health and Human Services, determines appropriate, taking into account the ratio of the actuarial value of such limited benefit insurance to the average actuarial value of health insurance coverage that is not limited benefit insurance.</text></paragraph></subsection> 
<subsection id="HDC480E44A7EE4466873AAD1108805C85"><enum>(c)</enum><header>Coordination with employer-Provided health insurance tax subsidy</header> 
<paragraph id="H26AD8B0D7EEB4446B1E39F27470491EC"><enum>(1)</enum><header>Credit limited by employer-provided health insurance tax subsidy</header><text>The credit allowed under this section for any taxable year shall not exceed an amount equal to the excess (if any) of—</text> <subparagraph id="HB4B01E4F92BE44E394B110BB35D7AE57"><enum>(A)</enum><text>the maximum credit which would be allowed for all months of the taxpayer during the taxable year (determined under subsection (b)(2) and without regard to this subsection, the limitation under subsection (b)(3), and any reduction under subsection (d)(1)), over</text></subparagraph> 
<subparagraph id="H996F9946C1EE4C11A07D7028FD246331"><enum>(B)</enum><text>the taxpayer’s employer-provided health insurance tax subsidy for the taxable year.</text></subparagraph></paragraph> <paragraph id="H8B8A0855DE314A8C80F033FCC0C20B0C"><enum>(2)</enum><header>Excess employer-provided health insurance tax subsidy included in gross income</header><text>In the case of a taxpayer for whom subparagraph (B) of paragraph (1) exceeds subparagraph (A) of such paragraph for the taxable year, the tax imposed by this chapter shall be increased for such taxable year by the amount of such excess.</text></paragraph> 
<paragraph id="HE8BFC33C31854FCF8FB172459550451F"><enum>(3)</enum><header>Employer-provided health insurance tax subsidy</header><text>For purposes of this subsection—</text> <subparagraph id="H0511F535C1CE4DF49A6ADA14E606DCA4"><enum>(A)</enum><header>In general</header><text>The term <term>employer-provided health insurance tax subsidy</term> means, with respect to any taxpayer for a taxable year, the sum of—</text> 
<clause id="HAF44CDB69D764E978BE9A1883FA5D794"><enum>(i)</enum><text>the Federal income tax subsidy of the taxpayer for the taxable year, plus</text></clause> <clause id="H9849674EEF8A4C2E992D12A254E4E70C"><enum>(ii)</enum><text>the Federal payroll tax subsidy of the taxpayer for the taxable year.</text></clause></subparagraph> 
<subparagraph id="HE023B93C9C054EBFAAD1225CD9D3AE5B"><enum>(B)</enum><header>Federal income tax subsidy</header><text>The term <term>Federal income tax subsidy</term> means, with respect to any taxpayer for the taxable year, the excess (if any) of—</text> <clause id="H735EF4CD91D84AFE9B9FFB4AAA77E2EE"><enum>(i)</enum><text>the amount of tax that would have been imposed by this chapter for the taxable year had such tax been determined without regard to this section and by including amounts otherwise excluded from gross income which were paid by or on behalf of the taxpayer for employer-provided insurance that constitutes medical care, over</text></clause> 
<clause id="HF107F374C7B44D57BDA00BC7289B1872"><enum>(ii)</enum><text>the amount of tax imposed by this chapter for the taxable year (determined without regard to this section).</text></clause></subparagraph> <subparagraph id="H5BA225CF39544D4EADB6174578B0FBB0"><enum>(C)</enum><header>Federal payroll tax subsidy</header><text>The term <term>Federal payroll tax subsidy</term> means, with respect to any taxpayer for the taxable year, the excess (if any) of—</text> 
<clause id="H7AA1D79F61FE49539B6F0528103B2ED6"><enum>(i)</enum><text>the sum of—</text> <subclause id="HF4EC8B94FB9E473B9DAB7E551E0A2025"><enum>(I)</enum><text>the amount of tax that would have been imposed by chapter 21 with respect to any wages of the taxpayer paid during the taxable year had such tax been determined by including amounts otherwise excluded from wages which were paid by or on behalf of the taxpayer during the taxable year for employer-provided insurance that constitutes medical care, plus</text></subclause> 
<subclause id="H34FCA711F69A457B86676AA538472A6F"><enum>(II)</enum><text display-inline="yes-display-inline">the amount of tax that would have been imposed by chapter 2 on any self-employment income of the taxpayer for such taxable year had self-employment income been determined without regard to any deduction from gross income for amounts paid for insurance which constitutes medical care for the taxpayer, the taxpayer’s spouse, and any qualifying children (within the meaning of section 152) for whom the taxpayer is allowed a deduction under section 151 for the taxable year, over</text></subclause></clause> <clause id="HFE26BA8EFD6F410FB37385492763F74E"><enum>(ii)</enum><text>the amount of tax imposed with respect to the taxpayer during such taxable year under chapter 21 and for such taxable year under chapter 2.</text></clause></subparagraph></paragraph></subsection> 
<subsection id="HB52A16AB5A744013BC49C4622F7A9B46"><enum>(d)</enum><header>Reconciliation of credit and advance credit</header> 
<paragraph id="HA7EDD85C8A4E4C73B379D1CC5842CC61"><enum>(1)</enum><header>In general</header><text>The amount of the credit allowed under this section for any taxable year (after the application of subsections (b) and (c)) shall be reduced (but not below zero) by the amount of any advance payment of such credit under subsection (e)(1).</text></paragraph> <paragraph id="H82BD80D9E78C40D09C16650A890FFE39"><enum>(2)</enum><header>Excess advance payments</header> <subparagraph id="HE2FF7F85F10346D68BE95916686F1E86"><enum>(A)</enum><header>In general</header><text>If the advance payments to a taxpayer under subsection (e)(1) for a taxable year exceed the credit allowed by this section (determined without regard to paragraph (1)), the tax imposed by this chapter for the taxable year shall be increased by the amount of such excess.</text></subparagraph> 
<subparagraph commented="no" id="H79F57278A55A480096A7DFD8FFE98CF6"><enum>(B)</enum><header>Limitation on increase</header><text display-inline="yes-display-inline">In the case of a taxpayer whose household income is less than 400 percent of the poverty line for the size of the family involved for the taxable year, the amount of the increase under subparagraph (A) shall in no event exceed an amount equal to the applicable percentage of the amount of the credit allowed under this section for the taxable year, determined in accordance with the following table (one-half of such amount so determined in the case of a taxpayer whose tax is determined under section 1(c) for the taxable year):</text> <table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 1 text, 1 num" table-type=""> <tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt" colname="column1" colwidth="297.56pt" min-data-value="200" rowsep="0"/><colspec coldef="fig" colname="column2" colwidth="203.07pt" min-data-value="18" rowsep="0"/><thead> <row><entry align="left" colname="column1" morerows="0" namest="column1"><bold>If the household income<linebreak/> (expressed as a percent<linebreak/> of poverty line) is:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2"><bold>The applicable<linebreak/> percentage<linebreak/> is:</bold></entry></row></thead> <tbody> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Less than 200%</entry><entry align="right" colname="column2" rowsep="0">30% </entry></row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 200% but less than 300%</entry><entry align="right" colname="column2" rowsep="0">50% </entry></row> <row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">At least 300% but less than 400%</entry><entry align="right" colname="column2" rowsep="0">80% </entry></row></tbody></tgroup></table></subparagraph></paragraph></subsection> <subsection id="H04E332351C7340F3846EA922B284FA9F"><enum>(e)</enum><header>Special rules</header><text>For purpose of this section—</text> 
<paragraph commented="no" display-inline="no-display-inline" id="H03C93A95AE9C4DDCBB54066371421E7E"><enum>(1)</enum><header>Advance payment program</header> 
<subparagraph commented="no" id="HC27B30221891499CBDC359939FE0F86C"><enum>(A)</enum><header>In general</header><text>The Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, shall establish a program—</text> <clause commented="no" id="HD75EDD9517EE4353804B766E9DE14627"><enum>(i)</enum><text>to make advance determinations with respect to the eligibility of individuals for the credit allowed under this section, and</text></clause> 
<clause commented="no" id="HB14BF6B52F4740028C3881404A7BBED4"><enum>(ii)</enum><text display-inline="yes-display-inline">to make advance payments of the credit allowed under this section, at the election of any such individual so eligible, directly to the health savings account of any such individual, or, as a subsidy to the cost of health insurance coverage provided to any such individual, to the health insurance issuer providing such coverage or the person that administers the plan benefits with respect to such coverage.</text></clause></subparagraph> <subparagraph commented="no" id="H7061A890739D49FCAC8A64A8AF685F5D"><enum>(B)</enum><header>Program requirements</header><text display-inline="yes-display-inline">Such program shall be established under rules similar to the rules of section 1412 of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>, as in effect on the day before the date of the enactment of this section, except that advance determinations and advance payments shall be made on request of the individual with respect to whom the determination is to be made.</text></subparagraph></paragraph> 
<paragraph id="H4A3D105254734A4DB82131128FCCF3FE"><enum>(2)</enum><header>Information requirements</header> 
<subparagraph id="HA3D7337A64334A50B23A43CECB65D61D"><enum>(A)</enum><header>In general</header><text>Each person providing health insurance coverage which constitutes medical care, and each trustee of a health savings account, shall provide the following information to the Secretary and to the taxpayer with respect to such coverage or such account:</text> <clause id="HE62F010E721E424C9B0D0487C1A22422"><enum>(i)</enum><text>The total premium for the coverage without regard to the credit under this section.</text></clause> 
<clause id="H7582242567404DD584CED7858D5788F1"><enum>(ii)</enum><text>The aggregate amount of any advance payment of such credit made with respect to such coverage or to such account.</text></clause> <clause id="H83AB6CA7ADAB4F748FD97B1CDBE5D721"><enum>(iii)</enum><text>The name, address, age, and TIN of the primary insured or account holder (as the case may be) and the name, age, and TIN of each other individual obtaining coverage under such policy of insurance.</text></clause> 
<clause id="H19FBE1C899E04FBF8666E35812BC354B"><enum>(iv)</enum><text display-inline="yes-display-inline">Any information provided to such person necessary to determine eligibility for, and the amount of, such credit.</text></clause> <clause id="H4998077A04494747B6720E4DEFA57584"><enum>(v)</enum><text display-inline="yes-display-inline">Information necessary to determine whether a taxpayer has received excess advance payments.</text></clause></subparagraph> 
<subparagraph id="HF3BC798B131644F5BF4703FD6C0A333B"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to any coverage with respect to which reporting under section 6051 is required.</text></subparagraph></paragraph> <paragraph id="H3121BC96040C4CC9A7A26EC66BDB37C8"><enum>(3)</enum><header>Indexing</header> <subparagraph id="H6D0561268078480CA8F4A9A9B59BA0F6"><enum>(A)</enum><header>In general</header><text>In the case of any calendar year beginning after 2024, each of the dollar amounts in subsection (b)(2) and in the table contained under subsection (d)(2)(B) shall be equal to such dollar amount multiplied by the ratio of—</text> 
<clause id="H2B3C1FA506AD4D698750849645ED9AA8"><enum>(i)</enum><text>the current dollar gross domestic product (as determined based on the third estimate of the Bureau of Economic Analysis of the Department of Commerce for the second quarter of the previous year), to</text></clause> <clause id="H9C937A476A294DB49B3C0975AD8CC09B"><enum>(ii)</enum><text>the current dollar gross domestic product (as so determined) for the second quarter of 2023.</text></clause></subparagraph> 
<subparagraph id="H1EF458AC62334275A7EB020EE581C1B4"><enum>(B)</enum><header>Rounding</header><text>If the amount of any change under subparagraph (A) is not a multiple of $50, such change shall be rounded to the next lowest multiple of $50.</text></subparagraph></paragraph></subsection> <subsection id="H16BC56FA54C9498D80033A0F1214E5C9"><enum>(f)</enum><header>Definitions</header><text>For purposes of this section—</text> 
<paragraph id="H8D9DDC5F0D5F43118D5B5B6D507050BD"><enum>(1)</enum><header>Creditable coverage</header> 
<subparagraph id="H7DEDEA36C2FE4AB4B2C61C03E1B9938F"><enum>(A)</enum><header>In general</header><text>The term <term>creditable coverage</term> has the meaning given such term for purposes of title XXVII of the Public Health Service Act. Such term shall not include coverage under any health plan that includes coverage for abortions (other than any abortion described in subparagraph (B)).</text></subparagraph> <subparagraph id="HF9306981D0C945BEBED35C6EC46A0C43"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">The second sentence of subparagraph (A) shall not apply to an abortion—</text> 
<clause id="HF11AD7E45A12408EACF21280F947A91A"><enum>(i)</enum><text>if the pregnancy is the result of an act of rape or incest, or</text></clause> <clause id="HB041A0236D454093BDA1BA887518D507"><enum>(ii)</enum><text>in the case where a woman suffers from a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the woman in danger of death unless an abortion is performed, including a life-endangering physical condition caused by or arising from the pregnancy itself.</text></clause></subparagraph> 
<subparagraph id="HCE320F15E9E0404FA40E011F81D85DFF"><enum>(C)</enum><header>Separate abortion coverage or plan allowed</header> 
<clause id="H38AFA1C09E10438DA407DC8D4C11C778"><enum>(i)</enum><header>Option to purchase separate coverage or plan</header><text>Nothing in subparagraph (A) shall be construed as prohibiting any individual from purchasing separate coverage for abortions described in such subparagraph, or a health plan that includes such abortions, so long as no credit is allowed under this section with respect to the premiums for such coverage or plan.</text></clause> <clause id="HF45C4EA7EF934426AB857898BA9A70B7"><enum>(ii)</enum><header>Option to offer coverage or plan</header><text>Nothing in subparagraph (A) shall restrict any non-Federal health insurance issuer offering a health plan from offering separate coverage for abortions described in such subparagraph, or a plan that includes such abortions, so long as premiums for such separate coverage or plan are not paid for with any amount attributable to the credit allowed under this section (or the amount of any advance payment of the credit).</text></clause></subparagraph></paragraph> 
<paragraph id="H6F0A27EED9D54C8BB8EDE1DE10FE2E04"><enum>(2)</enum><header>Qualified resident</header><text>The term <term>qualified resident</term> means an individual who is a citizen or national of the United States or otherwise lawfully residing in the United States under color of law.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HD6020B96C667464ABCE460DBCECE8A19"><enum>(b)</enum><header>Disqualification from Exchange plan subsidies for individual once they elect tax benefits</header><text>Section 36B(c)(1) of such Code is amended by adding at the end the following new subparagraph:</text> 
<quoted-block display-inline="no-display-inline" id="HC8CEA43FBA444D19A01797AAFF7D7E91" style="OLC"> 
<subparagraph id="H71F01A94A6CE4A378CF7B7F706F60F82"><enum>(F)</enum><header>Denial of credit for those electing universal credit</header><text display-inline="yes-display-inline">In the case of an individual who is allowed a credit under section 36C for any taxable year, no credit shall be allowed under this section to such individual for such taxable year or any subsequent taxable year.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6C822FC25D0841AAA310B191F1E11A48"><enum>(c)</enum><header>Guidance</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall issue such guidance as is necessary—</text> 
<paragraph id="HA425F38944554A35876E94FC423C68E2"><enum>(1)</enum><text>to assist employees and employers in adjusting Federal income tax withholding to take into account the health insurance tax credit under <external-xref legal-doc="usc" parsable-cite="usc/26/36C">section 36C</external-xref> of the Internal Revenue Code of 1986 (and any advance payment thereof), and</text></paragraph> <paragraph id="H25DFD3A4D0CF4FFAAB1D995568D48B0D"><enum>(2)</enum><text>to require employers to report to each employee with respect to periods not longer than quarterly the employer-provided health insurance tax subsidy (as defined in section 36C(c)(2) of such Code) with respect to such employee for such period.</text></paragraph></subsection> 
<subsection id="HD75D5318A99D4427A1EBE18F562FCCBC" commented="no"><enum>(d)</enum><header>Transfers to Federal Old-Age and Survivors Insurance Trust Fund</header><text>With respect to each individual for whom tax is increased under section 36C(c)(2), there are hereby appropriated to the Federal Old Age and Survivors Trust Fund and the Disability Insurance Trust Fund established under section 201 of the Social Security Act amounts equal to the amount which bears the same ratio to the amount of such increase as—</text> <paragraph id="H0FDC4B55469243B2AA6BBABAFFA64DEE" commented="no"><enum>(1)</enum><text>the Federal payroll tax subsidy (as defined in section 36C(c)(3)) of such individual for the taxable year, bears to</text></paragraph> 
<paragraph id="HE1AF438385ED41FB99389BD2B694AB7E" commented="no"><enum>(2)</enum><text>the employer-provided health insurance tax subsidy (as defined in such section) of the individual for the taxable year.</text></paragraph></subsection> <subsection id="H1097D0EE87F9461381D0E723E2BCBA14"><enum>(e)</enum><header>Clerical amendment</header><text>The table of sections for subpart C of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item:</text> 
<quoted-block display-inline="no-display-inline" id="H4385DB1592A74A3FAF94C08D1471713A" style="OLC"> 
<toc regeneration="no-regeneration"> 
<toc-entry level="section">Sec. 36C. Health insurance tax credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="H2F327D66D5104BD5AEC616BA527D9764"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2023.</text></subsection></section> <section id="H63925FF61FFE443C888951418CA1D459"><enum>132.</enum><header>Application of portion of unused tax credits by States for indigent health care</header> <subsection id="HC3B05042F1764DF1AE37CB9342448670"><enum>(a)</enum><header>Computation of unused credits</header><text display-inline="yes-display-inline">The Secretary, in consultation with the Secretary of the Treasury, shall calculate for each State for each year, beginning with 2024, using the most recent data available —</text> 
<paragraph id="H04CFE065AF604CE0A1783C9AD64CE867"><enum>(1)</enum><text>the maximum aggregate amount of credits under <external-xref legal-doc="usc" parsable-cite="usc/26/36C">section 36C</external-xref> of the Internal Revenue Code of 1986 that would have been allowed for the year for qualified residents of the State for taxable years ending in the year if all eligible qualified residents had qualified for such credits;</text></paragraph> <paragraph id="H34AA96EA8BD94E03BF917C629527A10D"><enum>(2)</enum><text>the aggregate amount of credits under such section that were allowed for taxable years ending in the year by qualified residents of such State; and</text></paragraph> 
<paragraph id="H456E6B753271416FA51210C05E0BA11A"><enum>(3)</enum><text>25 percent of the amount by which—</text> <subparagraph id="H832403CA90164BDC99132CD7AEB0C4EC"><enum>(A)</enum><text>the amount determined under paragraph (1) with respect to qualified residents of the State for such year; exceeds</text></subparagraph> 
<subparagraph id="H4070E9F5B709460281EBC174AE250E15"><enum>(B)</enum><text>the amount determined under paragraph (2) for such State for that year.</text></subparagraph></paragraph></subsection> <subsection id="H01CBE7D25E4D4AFB918FCC3CFCC7D398"><enum>(b)</enum><header>Appropriation</header><text>For the purpose of making grants to States under this section, there is hereby appropriated to the Secretary, out of any funds in the Treasury not otherwise appropriated, for each year (beginning with 2023) an amount equivalent to the amount determined under subsection (a)(3) for all States under subsection (a) for the year in which such fiscal year ends, subject to adjustment under subsection (d)(2).</text></subsection> 
<subsection id="HB84FE9DEF21B405B8BEC41B504C57FB8"><enum>(c)</enum><header>Grants to States for indigent assistance</header> 
<paragraph id="H951E27035AB04E4EB0DF30F4E893915E"><enum>(1)</enum><header>Application</header><text>A State may file with the Secretary (in a form and manner specified by the Secretary) an application to provide assistance in furnishing health services to indigent individuals residing in the State. Such application shall demonstrate the manner in which such assistance is furnished in an equitable manner to individuals residing in all parts of the State.</text></paragraph> <paragraph id="H1B54CFFEE80E4C0182C87C49EF6A88DF"><enum>(2)</enum><header>Amount of funds</header><text display-inline="yes-display-inline">From the funds appropriated under subsection (b) for a year, the amount of funds paid to any State in any year under this section with an application filed in accordance with paragraph (1) is equal to an amount specified in the application, but not to exceed the amount computed under subsection (a)(3) for the State and the year.</text></paragraph> 
<paragraph id="HCCBF604FBFE646F19E83D7B7620D30D0"><enum>(3)</enum><header>Use of funds</header><text>Funds paid to a State under this subsection may be used only to assist in the furnishing of health services to uninsured individuals residing in the State or for purposes of increasing the payment adjustments made under sections 1886(d)(5)(F) and 1923 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(d)(5)(F)</external-xref>, 1396r–4) to hospitals that serve a disproportionate share of such individuals in the State.</text></paragraph></subsection> <subsection id="H5D32320659EC4E7781E0C2550EE88890"><enum>(d)</enum><header>Initial estimate; final calculation and reconciliation</header> <paragraph id="H4D291B51EA5047F3896CC783171A1DFA"><enum>(1)</enum><header>Use of estimates</header><text display-inline="yes-display-inline">The calculations under subsection (a) for a year shall initially be estimated before the beginning of the year. Payments under this section to a State for a year shall be made, subject to reconciliation under paragraph (2), based on the amount so estimated.</text></paragraph> 
<paragraph id="HB9D645A6011E42F3929C59A748FFEA49"><enum>(2)</enum><header>Reconciliation based on final calculation</header><text>The calculations under subsection (a) for a year shall also be made after the end of the year. Insofar as the amount calculated under this paragraph for subsection (a)(3) for a State for a year exceeds (or is less than) by a material amount from the amount for subsection (a)(3) estimated and applied for the State and year under paragraph (1), the amount calculated under subsection (a)(3) for the State for the 2nd year beginning after such year, shall be reduced or increased, respectively by the amount of such excess or deficit.</text></paragraph></subsection></section> <section id="HDE5A9B02250044609373108978367A65"><enum>133.</enum><header>Medicaid option of enrollment under private plan and contribution to an HSA</header> <subsection id="HCE9ACD7AD4B645BFBA281BD505B26E3A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, a State plan under title XIX of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396">42 U.S.C. 1396 et seq.</external-xref>) may make available to an individual, who is entitled to medical assistance for a full range of acute care items and services under such title and at the individual’s option, instead of the medical assistance otherwise provided, medical assistance consisting of coverage under a health plan that qualifies for a tax credit under <external-xref legal-doc="usc" parsable-cite="usc/26/36C">section 36C</external-xref> of the Internal Revenue Code of 1986, but only if the State provides for the individual medical assistance, in the form of a deposit into a health savings account for the individual, an amount equivalent to the amount by which the amount of tax credit for the individual under such section exceeds the cost of coverage of the individual under the plan.</text></subsection> 
<subsection id="HC687411883C440E39D3030B79B6E1504"><enum>(b)</enum><header>FFP treatment</header><text>The payments by a State described in subsection (a) for coverage under a health plan and for deposit into a health savings account shall be treated as medical assistance for purposes of section 1903 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b</external-xref>) and subject to Federal financial participating, including the application of State matching payments, in the same manner as other medical assistance furnished under title XIX of such Act, except that such amount shall be reduced by the amount of any health insurance credits provided under <external-xref legal-doc="usc" parsable-cite="usc/26/36C">section 36C</external-xref> of the Internal Revenue Code of 1986 with respect to such coverage or deposit.</text></subsection></section> <section id="H9D3A205D71884F75AE4E8F1B46A20329"><enum>134.</enum><header>Repeal of reporting requirements relating to employee health insurance premiums and health plan benefits</header> <subsection id="H9FE394F3131C4E69B0E4D1747428AA1B"><enum>(a)</enum><header>Reporting requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6051">Section 6051(a)</external-xref> of the Internal Revenue Code of 1986 is amended by striking paragraph (14) and by redesignating paragraphs (15), (16), and (17) as paragraphs (14), (15), and (16), respectively.</text></subsection> 
<subsection id="H8E7401351C7049109583E17F8330F705"><enum>(b)</enum><header>Effective dates</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to calendar years beginning after December 31, 2018.</text></subsection></section> <section id="H82D695A219CE4EE1BEDA07766AEE2BEA" commented="no"><enum>135.</enum><header>Report</header><text display-inline="no-display-inline">For each year beginning on or after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to Congress a report on the extent to which health insurance tax credits allowed under <external-xref legal-doc="usc" parsable-cite="usc/26/36C">section 36C</external-xref> of the Internal Revenue Code of 1986, as added by this Act, are sufficient to cover the cost of health insurance coverage for individuals electing to purchase such coverage.</text></section></subtitle> 
<subtitle id="H62556085B05449E69CA075C74739B5B7"><enum>D</enum><header>Medicare reforms</header> 
<section id="H961E2E240E84404C8067CB2DCC104D55"><enum>141.</enum><header>Physician-owned hospitals</header><text display-inline="no-display-inline">The amendments made by section 6001 of <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref> are repealed and the provisions amended by such section are restored as if such amendments had never occurred.</text></section> <section id="H2AFBE4A3E0944EDEAF5F2841137B0614"><enum>142.</enum><header>Prohibiting the use of an inpatient-only list in designating hospital outpatient services under the Medicare program</header><text display-inline="no-display-inline">Section 1833(t)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(t)(1)</external-xref>) is amended by adding at the end the following new subparagraph: </text> 
<quoted-block style="OLC" id="H7667EED07EBE4E589DBCC6EDB095B05A" display-inline="no-display-inline"> 
<subparagraph id="H83A0B26269B546A28E1686135877595D"><enum>(C)</enum><header>Prohibition on use of an inpatient-only list</header><text display-inline="yes-display-inline">In designating outpatient hospital services pursuant to subparagraph (B)(i), the Secretary may not refuse to so designate such a service based solely on the Secretary’s determination that such service may only be safely furnished in an inpatient setting.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HA55256192E6744929F8590B94E53F3B0"><enum>143.</enum><header>Promoting Medicare site-neutral payments</header> <subsection id="HD72914D014EE44B48A23A88226AAEAFC"><enum>(a)</enum><header>Removing certain exceptions to the definition of an off-Campus outpatient department of a provider</header> <paragraph id="H279D7ACA972C42C4A9360E3AD2D56659"><enum>(1)</enum><header>In general</header><text>Section 1833(t)(21)(B) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(t)(21)(B)</external-xref>) is amended to read as follows:</text> 
<quoted-block style="OLC" id="H9BECAE26B73E4548BFF474DC2451902B" display-inline="no-display-inline"> 
<subparagraph id="H94BA28F626C54DD0A1B04542B683916F"><enum>(B)</enum><header>Off-campus outpatient department of a provider</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(B)(v) and this paragraph, the term <term>off-campus outpatient department of a provider</term> means a department of a provider (as defined in section 413.65(a)(2) of title 42 of the Code of Federal Regulations, as in effect as of the date of the enactment of the Bipartisan Budget Act of 2015) that is not located—</text> <clause id="HA562D74DC6594FE9983A1B8883E396F6"><enum>(i)</enum><text display-inline="yes-display-inline">on the campus (as defined in such section 413.65(a)(2)) of such provider; or</text></clause> 
<clause id="HD80C6394A8DC41EE90BAF880F67A4FA1"><enum>(ii)</enum><text display-inline="yes-display-inline">within the distance (described in such definition of campus) from a remote location of a hospital facility (as defined in such section 413.65(a)(2)).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H4C5D5AB8E94A4314B2D1379EE6B67A40"><enum>(2)</enum><header>Effective date</header><text>The amendment made by paragraph (1) shall apply with respect to items and services furnished on or after January 1, 2024.</text></paragraph> 
<paragraph id="H21532E75975844D4B83B4D7345CB0EB1"><enum>(3)</enum><header>Removing site-neutral exception for off-campus emergency departments</header><text>Section 1833(t)(21)(A) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(t)(21)(A)</external-xref>) is amended by inserting <quote>before January 1, 2024</quote> after <quote>furnished</quote>.</text></paragraph> <paragraph id="H143B869E59AF4EB093471A6735641B57"><enum>(4)</enum><header>Clarifying Secretarial authority to promote site-neutral payments</header><text>Section 1833(t)(2)(F) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(t)(2)(F)</external-xref>) is amended by adding at the end the following new sentence: <quote>Such method may include actions determined appropriate by the Secretary to promote site-neutral payment policies to reduce expenditures attributable to items and services furnished under this part, such as actions to prevent hospitals from billing for items and services furnished at an off-campus outpatient department of a provider as if such items and services were furnished at such hospital.</quote>.</text></paragraph></subsection> 
<subsection id="H25568E3CBFAA4E7780500405A53F7037"><enum>(b)</enum><header>Ensuring separate NPIs for off-Campus outpatient departments of a provider</header> 
<paragraph id="H71CA7C9F57E34214B80CE17FE8B5919D"><enum>(1)</enum><header>In general</header><text>Section 1173(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1320d-2">42 U.S.C. 1320d–2(b)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" id="H642981C7EABA49C98DFD594E26837AD5" display-inline="no-display-inline"> <paragraph id="H5A2125673D06485F8C9EA3C09168FEC1"><enum>(3)</enum><header>Ensuring separate NPIs for off-campus outpatient departments of a provider</header><text display-inline="yes-display-inline">The standards specified under paragraph (1) shall ensure that, not later than January 1, 2024, each off-campus outpatient department of a provider (as defined in section 1833(t)(21)(B)) is assigned a separate unique health identifier from such provider. </text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> 
<paragraph id="HE517B9F0C6114445AB19EF41816D58EA"><enum>(2)</enum><header>Treatment of certain departments as subparts of a hospital</header><text display-inline="yes-display-inline">Not later than January 1, 2024, the Secretary of Health and Human Services shall revise sections 162.408 and 162.410 of title 45, Code of Federal Regulations, to ensure that each off-campus outpatient department of a provider (as defined in section 1833(t)(21)(B) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(t)(21)(B)</external-xref>)) is treated as a subpart (as described in such sections) of such provider and assigned a unique health identifier pursuant to section 1173(b)(3) of such Act (as added by paragraph (1)). </text></paragraph></subsection></section> <section id="HF098818DDFC24883A9310CD2585CD047"><enum>144.</enum><header>Medicare Advantage contributions to Roth HSAs for chronically ill enrollees</header><text display-inline="no-display-inline">Section 1852(a)(3)(D) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-22">42 U.S.C. 1395w–22(a)(3)(D)</external-xref>) is amended—</text> 
<paragraph id="H23C5FC96DC8049FAB13C7B4AA2DDC9E4"><enum>(1)</enum><text>by striking <quote>are supplemental benefits</quote> and inserting the following: </text> <quoted-block style="OLC" id="H8ADCC73FE96544169702AA016949337D" display-inline="yes-display-inline"><text>are</text> 
<item id="HA502DB7C83B644AFBD2100B3DCD880F6"><enum>(aa)</enum><text display-inline="yes-display-inline">supplemental benefits</text></item><after-quoted-block>; </after-quoted-block></quoted-block></paragraph> <paragraph id="H9F0E409642184D4BB5A1C946F58B001C"><enum>(2)</enum><text>by striking the period at the end of item (aa), as inserted by paragraph (1), and inserting <quote>; and</quote>; and</text></paragraph> 
<paragraph id="HD9288BD9ABEA4023A535514BE6A7AF75"><enum>(3)</enum><text>by adding at the end the following new item:</text> <quoted-block style="OLC" id="H00A5D2B233DA4378905320F71B435765" display-inline="no-display-inline"> <item id="HADAF1F7433084FF7A9ED7A13A3FB769B"><enum>(bb)</enum><text display-inline="yes-display-inline">deposits made to a Roth HSA (as described in <external-xref legal-doc="usc" parsable-cite="usc/26/530A">section 530A</external-xref> of the Internal Revenue Code of 1986) of a chronically ill enrollee.</text></item><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> 
<section id="H2F88FA94E07B46DF9D9920AE8AF8757C" display-inline="no-display-inline" section-type="subsequent-section"><enum>145.</enum><header>Extending acute hospital care at home waiver flexibilities</header><text display-inline="no-display-inline">Section 1812 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395d">42 U.S.C. 1395d</external-xref>) is amended—</text> <paragraph id="H8AE8216AB4554A97AC313F09BA0F17AA"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsection (g) as subsection (h); and</text></paragraph> 
<paragraph id="H6838FC3F78FD4DF0874BA69530256D8F"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subsection (f) the following new subsection:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H3B86F5DDB702492D87F7C135E5E49FB4"> <subsection commented="no" id="H522AF6A6EB464E239E34D9FC7826B9CA"><enum>(g)</enum> <paragraph commented="no" display-inline="yes-display-inline" id="H9F46E05150BB44569EAEEFB40E2BABD3"><enum>(1)</enum><text>Beginning on the date of the enactment of this subsection, inpatient hospital services or inpatient critical access hospital services described in subsection (a)(1) shall include services (including telehealth services as defined in section 1834(m)) furnished to an individual by an Acute Hospital Care at Home Program (as defined by the Secretary).</text></paragraph> 
<paragraph id="HBC3FD07F87034B5C9C606DE189815908" indent="up1"><enum>(2)</enum><text>With respect to telehealth services furnished by an Acute Hospital Care at Home Program described in paragraph (1), the requirements described in section 1834(m)(4)(C)(i) shall not apply and the sites described in section 1834(m)(4)(C)(ii) shall include the home or temporary residence of the individual.</text></paragraph> <paragraph id="H9304C6E10D44478B94B806DD659729DF" indent="up1"><enum>(3)</enum><text>With respect to services furnished in the home or temporary residence of the individual through an Acute Hospital Care at Home Program, the requirement for providing 24-hour nursing services and immediate availability of nursing services as conditions of participation shall also be satisfied by providing virtual access to nurses, advanced practice providers, or physicians 24 hours per day.</text></paragraph> 
<paragraph id="H868DCBF86DD44DFAAD2E96CE17306E86" indent="up1"><enum>(4)</enum><text>With respect to services furnished in the home or temporary residence of the individual through an Acute Hospital Care at Home Program, life safety code requirements shall be deemed satisfied for homes or temporary residences determined to be safe and appropriate for this care by the Acute Hospital Care at Home Program.</text></paragraph> <paragraph id="H19EB339B51C7404DAA0DEE670BEEB46A" indent="up1"><enum>(5)</enum><text>Not later than 12 months after the date of the enactment of this subsection, the Secretary shall issue regulations establishing health and safety requirements for Acute Hospital Care at Home Programs.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></subtitle></title> 
<title id="H5D666634C5E445498A1284324164ABE3"><enum>II</enum><header>Improving Health Savings Accounts to Promote Accountability</header> 
<section id="H67BAD602D48741B7B1681E9677442B32"><enum>201.</enum><header>Transition to non-deductible HSAs</header> 
<subsection id="H4C199A166338468F9882343B49FB6232"><enum>(a)</enum><header>Non-Deductible HSAs</header><text>Subchapter F of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:</text> <quoted-block display-inline="no-display-inline" id="HD7EE28722ED84BC797C36E5F3A21C45E" style="OLC"> <part id="HFFDC44034488435CA962696ADEABACC9"><enum>IX</enum><header>Roth health savings accounts</header> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 530A. Roth HSAs.</toc-entry></toc> <section id="HEDFE5297AD1A4764AE3949D7FABE741B"><enum>530A.</enum><header>Roth HSAs</header> <subsection id="H55516818B4824CED8D74B7CCD3905CD5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">A Roth HSA shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, the Roth HSA shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations). No deduction shall be allowed for any contribution to a Roth HSA.</text></subsection> 
<subsection id="HEDDA619BEA6A4148A828A6218FFEC083"><enum>(b)</enum><header>Dollar limitation</header> 
<paragraph id="HFBA12245CE9044A8989FB04BB2D4B47C"><enum>(1)</enum><header>In general</header><text>The aggregate amount of contributions for any taxable year to all Roth HSAs maintained for the benefit of an individual shall not exceed the sum of the monthly limitations for any month during such taxable year that the individual is an eligible individual.</text></paragraph> <paragraph id="HF5750D1D805C4659ADECFE38C78A0259"><enum>(2)</enum><header>Monthly limitation</header><text>The monthly limitation for any month is <fraction>1/12</fraction> of—</text> 
<subparagraph id="HAB2EE5687DCE409EAD2DD7036D0ECB42"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of an eligible individual who has self-only creditable coverage as of the first day of such month, $5,000, and</text></subparagraph> <subparagraph id="H8A8CA99A26804E39AA4C375E379DE554"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of an eligible individual who has family creditable coverage as of the first day of such month, the amount in effect under subparagraph (A) for the taxable year multiplied by the number of individuals (including the eligible individual) covered under such family creditable coverage as of such day.</text></subparagraph></paragraph> 
<paragraph id="HA017B3BD37B7498897E61EE120D08244"><enum>(3)</enum><header>Additional contributions for individuals 55 or older</header><text display-inline="yes-display-inline">In the case of an individual who has attained age 55 before the close of the taxable year, the applicable limitation under subparagraphs (A) and (B) of paragraph (2) shall be increased by $1,000.</text></paragraph> <paragraph id="H8D3C43C80BE243EB95AA2E7A6AE5F76C"><enum>(4)</enum><header>Coordination with other contributions</header><text display-inline="yes-display-inline">The limitation which would (but for this paragraph) apply under this subsection to an individual for any taxable year shall be reduced (but not below zero) by the sum of—</text> 
<subparagraph id="HC4DB57CFD7DF449AA7DC151ACEE63899"><enum>(A)</enum><text display-inline="yes-display-inline">the aggregate amount paid for such taxable year to Archer MSAs of such individual,</text></subparagraph> <subparagraph id="H6359198B8B0E41BF94B2534BC5B04068"><enum>(B)</enum><text display-inline="yes-display-inline">the aggregate amount contributed to Roth HSAs of such individual which is excludable from the taxpayer's gross income for such taxable year under section 106(d) (and such amount shall not be allowed as a deduction under subsection (a)), and</text></subparagraph> 
<subparagraph id="HD94462E31A6B4F448FF14F623F921F45"><enum>(C)</enum><text display-inline="yes-display-inline">the aggregate amount contributed to Roth HSAs of such individual for such taxable year under section 408(d)(9) (and such amount shall not be allowed as a deduction under subsection (a)).</text></subparagraph><continuation-text continuation-text-level="paragraph">Subparagraph (A) shall not apply with respect to any individual to whom paragraph (5) applies.</continuation-text></paragraph> <paragraph id="HDDD949BD5FD14D67BFC1021DA8B28C45"><enum>(5)</enum><header>Special rule for married individuals</header><text display-inline="yes-display-inline">In the case of individuals who are married to each other, if either spouse has family coverage—</text> 
<subparagraph id="H3211D6D8D6234356B5D997DB7F65E5CF"><enum>(A)</enum><text display-inline="yes-display-inline">both spouses shall be treated as having only such family coverage (and if such spouses each have family coverage under different plans, as having the family coverage with the lowest annual deductible), and</text></subparagraph> <subparagraph id="HFE1B2E923AE9487786201881F23758BB"><enum>(B)</enum><text display-inline="yes-display-inline">the limitation under paragraph (1) (after the application of subparagraph (A) and without regard to any additional contribution amount under paragraph (3))—</text> 
<clause id="H4FF7DF75D1384F20994B37F3D4EA4FCD"><enum>(i)</enum><text display-inline="yes-display-inline">shall be reduced by the aggregate amount paid to Archer MSAs of such spouses for the taxable year, and</text></clause> <clause id="HB7598E8DF3FB4AF0B07A2A863BE19170"><enum>(ii)</enum><text display-inline="yes-display-inline">after such reduction, shall be divided equally between them unless they agree on a different division.</text></clause></subparagraph></paragraph> 
<paragraph id="HC915E098450B4AEE9DD124D0C5D7B06D"><enum>(6)</enum><header>Denial of deduction to dependents</header><text display-inline="yes-display-inline">No contribution may be made to a Roth HSA under this section by any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins.</text></paragraph> <paragraph id="H2CE0229FEA8642B6A6AD42346F345ECD"><enum>(7)</enum><header>Increase in limit for individuals becoming eligible individuals after the beginning of the year</header> <subparagraph id="HEF80CC2B83B44917BA62968A6DC55195"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of computing the limitation under paragraph (1) for any taxable year, an individual who is an eligible individual during the last month of such taxable year shall be treated—</text> 
<clause id="H9A7C8D7F822D4EB0A29A632B98C64312"><enum>(i)</enum><text display-inline="yes-display-inline">as having been an eligible individual during each of the months in such taxable year, and</text></clause> <clause id="H4D554977234B4E749E01FE1AABAA04E9"><enum>(ii)</enum><text display-inline="yes-display-inline">as having been enrolled, during each of the months such individual is treated as an eligible individual solely by reason of clause (i), in the same high deductible health plan in which the individual was enrolled for the last month of such taxable year.</text></clause></subparagraph> 
<subparagraph id="H75E61247872E48B2A4426681CEE82AA1"><enum>(B)</enum><header>Failure to maintain creditable coverage</header> 
<clause id="HBBB8107A772645958EA598C4312B2258"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">If, at any time during the testing period, the individual is not an eligible individual, then—</text> <subclause id="HB09BA78EE0384E718B12E80050D62BE3"><enum>(I)</enum><text display-inline="yes-display-inline">gross income of the individual for the taxable year in which occurs the first month in the testing period for which such individual is not an eligible individual is increased by the aggregate amount of all contributions to the Roth HSA of the individual which could not have been made but for subparagraph (A), and</text></subclause> 
<subclause id="H39E37697BF9544BCAADC6CA78E94D383"><enum>(II)</enum><text display-inline="yes-display-inline">the tax imposed by this chapter for any taxable year on the individual shall be increased by 10 percent of the amount of such increase.</text></subclause></clause> <clause id="H7F0794D1D712492F925734C008F9E82B"><enum>(ii)</enum><header>Exception for disability or death</header><text display-inline="yes-display-inline">Subclauses (I) and (II) of clause (i) shall not apply if the individual ceased to be an eligible individual by reason of the death of the individual or the individual becoming disabled (within the meaning of section 72(m)(7)).</text></clause> 
<clause id="HB1C345A5495A40FD9ACC2B7B63C26BE8"><enum>(iii)</enum><header>Testing period</header><text display-inline="yes-display-inline">The term <term>testing period</term> means the period beginning with the last month of the taxable year referred to in subparagraph (A) and ending on the last day of the 12th month following such month.</text></clause></subparagraph></paragraph></subsection> <subsection id="HA6BB8EE73E2E4F58B25DCC0FBCE82F03"><enum>(c)</enum><header>Roth HSA</header><text>For purposes of this section—</text> 
<paragraph id="H9B0B0E05F6B7489F92917691DA79B305"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>Roth HSA</term> means a trust created or organized in the United States as a Roth HSA exclusively for the purpose of paying the qualified medical expenses of the account beneficiary, but only if the written governing instrument creating the trust meets the following requirements:</text> <subparagraph id="H4E76FECA600C4058B46F9A33881423D9"><enum>(A)</enum><text display-inline="yes-display-inline">Except in the case of a rollover contribution described in subsection (f)(5) or section 220(f)(5), no contribution will be accepted—</text> 
<clause id="H66C29FA7CA714DB4AAFC4CB7B6C2DB21"><enum>(i)</enum><text display-inline="yes-display-inline">unless it is in cash, or</text></clause> <clause id="HBD446988F727446A939F4AFAFCCDF1BE"><enum>(ii)</enum><text display-inline="yes-display-inline">to the extent such contribution, when added to previous contributions to the trust for the calendar year, exceeds the sum of—</text> 
<subclause id="HD5E216815791457CB6E361F1F3645AAF"><enum>(I)</enum><text display-inline="yes-display-inline">the dollar amount in effect under subsection (b)(2)(B), and</text></subclause> <subclause id="H0EC64FDA3BA24DAAB9ED7DD0A3329C89"><enum>(II)</enum><text display-inline="yes-display-inline">the dollar amount in effect under subsection (b)(3).</text></subclause></clause></subparagraph> 
<subparagraph id="HC8BC96C1DB914187B688EE1D98FB3F47"><enum>(B)</enum><text display-inline="yes-display-inline">The trustee is a bank (as defined in section 408(n)), an insurance company (as defined in section 816), or another person who demonstrates to the satisfaction of the Secretary that the manner in which such person will administer the trust will be consistent with the requirements of this section.</text></subparagraph> <subparagraph id="HCAF8C11396AC47E492F055471A8DA96D"><enum>(C)</enum><text display-inline="yes-display-inline">No part of the trust assets will be invested in life insurance contracts.</text></subparagraph> 
<subparagraph id="H4653085739694A9AB01DD1465BCC00E5"><enum>(D)</enum><text display-inline="yes-display-inline">The assets of the trust will not be commingled with other property except in a common trust fund or common investment fund.</text></subparagraph> <subparagraph id="H20CE4BB5BA8F44F78FF8CCC0C17C7219"><enum>(E)</enum><text display-inline="yes-display-inline">The interest of an individual in the balance in his account is nonforfeitable.</text></subparagraph></paragraph> 
<paragraph id="H7F52D34627944F6B8F715D35F25D62C9"><enum>(2)</enum><header>Qualified medical expenses</header><text>For purposes of this section—</text> <subparagraph id="H8A70672FC4FA4252A28844634355C98C"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified medical expenses</term> means, with respect to an account beneficiary, amounts paid by such beneficiary for medical care (as defined in section 213(d)) for such individual, the spouse of such individual, and any dependent (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of such individual, but only to the extent such amounts are not compensated for by insurance or otherwise.</text></subparagraph> 
<subparagraph id="H70927533D9294C749483A910D6AE6F31"><enum>(B)</enum><header>Limitation on health insurance purchased from account</header><text>Such term shall not include any payment for health benefits coverage that is not creditable coverage (as defined in section 36C).</text></subparagraph> <subparagraph id="HEFCC2CA13BA34CE18E1891D46F94094E"><enum>(C)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Subparagraph (B) shall not apply to any expense for coverage under—</text> 
<clause id="HB4F984FBFC354D0497540B5027045ECC"><enum>(i)</enum><text display-inline="yes-display-inline">a health plan during any period of continuation coverage required under any Federal law,</text></clause> <clause id="H56332BEE6E2F45FFB6E2CE8ED6A8E73D"><enum>(ii)</enum><text display-inline="yes-display-inline">a qualified long-term care insurance contract (as defined in section 7702B(b)),</text></clause> 
<clause id="H7286BC88D9A743CCAFF54CFA78C15BC8"><enum>(iii)</enum><text display-inline="yes-display-inline">a health plan during a period in which the individual is receiving unemployment compensation under any Federal or State law, or</text></clause> <clause id="HEC8E9DBF9F0E4B59B0A8A07059580FDF"><enum>(iv)</enum><text display-inline="yes-display-inline">in the case of an account beneficiary who has attained the age specified in section 1811 of the Social Security Act, any health insurance other than a medicare supplemental policy (as defined in section 1882 of the Social Security Act).</text></clause></subparagraph></paragraph> 
<paragraph id="HC9549D738020444EA6BBB6F5D71EE42B"><enum>(3)</enum><header>Account beneficiary</header><text display-inline="yes-display-inline">The term <term>account beneficiary</term> means the individual on whose behalf the Roth HSA was established.</text></paragraph> <paragraph id="HA992B761A085412F8E4B8D106E012988"><enum>(4)</enum><header>Certain rules to apply</header><text>Rules similar to the following rules shall apply for purposes of this section:</text> 
<subparagraph id="HA69F72295DD94B4CBC9602DE1BA76644"><enum>(A)</enum><text display-inline="yes-display-inline">Section 219(f)(3) (relating to time when contributions deemed made).</text></subparagraph> <subparagraph id="HD4B199A1424A461BB4C8AEC7C45D08A7"><enum>(B)</enum><text display-inline="yes-display-inline">Except as provided in section 106(d), section 219(f)(5) (relating to employer payments).</text></subparagraph> 
<subparagraph id="H0304781E01834A48910583E47657452F"><enum>(C)</enum><text display-inline="yes-display-inline">Section 408(g) (relating to community property laws).</text></subparagraph> <subparagraph id="H458B8AE8996646708285481009F18352"><enum>(D)</enum><text display-inline="yes-display-inline">Section 408(h) (relating to custodial accounts).</text></subparagraph></paragraph></subsection> 
<subsection id="HBFA35A7BAA684DC59632AF6C8D909DF4"><enum>(d)</enum><header>Eligible individual; creditable coverage</header><text>For purposes of this section—</text> <paragraph id="H39B5BD3241224996A15662DE17CB5A42"><enum>(1)</enum><header>Eligible individual</header> <subparagraph id="H3F785A57055648838E176211B3D535DB"><enum>(A)</enum><header>In general</header><text>The term <term>eligible individual</term> means, with respect to any month, any individual if such individual is covered under creditable coverage as of the first day of such month.</text></subparagraph> 
<subparagraph id="HAC8883EF420044CFA22B245D1676D48F"><enum>(B)</enum><header>Exception</header><text>An individual shall not be treated as an eligible individual for any month for which a credit is determined with respect to the individual under section 36B.</text></subparagraph></paragraph> <paragraph id="H635A2E5DE1604728844B30A86952D205"><enum>(2)</enum><header>Creditable coverage</header><text>The term <term>creditable coverage</term> shall have the meaning given such term in section 36C(f).</text></paragraph></subsection> 
<subsection id="H69A135DD66CD43D2B4AE3CBD1108506C"><enum>(e)</enum><header>Tax treatment of distributions</header> 
<paragraph id="H5969CB28262C4F6E90709C3C87A878D8"><enum>(1)</enum><header>Amounts used for qualified medical expenses</header><text display-inline="yes-display-inline">Any amount paid or distributed out of a Roth HSA which is used exclusively to pay qualified medical expenses of any account beneficiary shall not be includible in gross income.</text></paragraph> <paragraph id="H05E832B0553E41568BBBD3AEC0052075"><enum>(2)</enum><header>Inclusion of amounts not used for qualified medical expenses</header><text display-inline="yes-display-inline">Any amount paid or distributed out of a Roth HSA which is not used exclusively to pay the qualified medical expenses of the account beneficiary shall be included in the gross income of such beneficiary.</text></paragraph> 
<paragraph id="H46101C6C806741CD8A41A3C37E81E82D"><enum>(3)</enum><header>Excess contributions returned before due date of return</header> 
<subparagraph id="H5451F1563CA0456295C3E31655C4A5FC"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">If any excess contribution is contributed for a taxable year to any Roth HSA of an individual, paragraph (2) shall not apply to distributions from the Roth HSAs of such individual (to the extent such distributions do not exceed the aggregate excess contributions to all such accounts of such individual for such year) if—</text> <clause id="HA9924C21231C4E9BB8175483630F0E06"><enum>(i)</enum><text>such distribution is received by the individual on or before the last day prescribed by law (including extensions of time) for filing such individual’s return for such taxable year, and</text></clause> 
<clause id="H3EE6AB90F374441DA63C9C9F557B40E4"><enum>(ii)</enum><text>such distribution is accompanied by the amount of net income attributable to such excess contribution.</text></clause><continuation-text continuation-text-level="subparagraph">Any net income described in clause (ii) shall be included in the gross income of the individual for the taxable year in which it is received.</continuation-text></subparagraph> <subparagraph id="H41A5584EF087408EBBB88506C8C900B9"><enum>(B)</enum><header>Excess contribution</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <term>excess contribution</term> means any contribution (other than a rollover contribution described in paragraph (5) or section 220(f)(5)) which exceeds the contribution limitation with respect to the individual for the taxable year.</text></subparagraph></paragraph> 
<paragraph id="H4B0377981E564A79A13BDEC877D9CEB4"><enum>(4)</enum><header>Additional tax on distributions not used for qualified medical expenses</header> 
<subparagraph id="HE184439804FF4AEC835F1A761C883F5A"><enum>(A)</enum><header>In general</header><text>The tax imposed by this chapter on the account beneficiary for any taxable year in which there is a payment or distribution from a Roth HSA of such beneficiary which is includible in gross income under paragraph (2) shall be increased by 10 percent of the amount which is so includible.</text></subparagraph> <subparagraph id="H99A3F1A7C07F49A891DAAC0BF1140B5A"><enum>(B)</enum><header>Exception for disability or death</header><text>Subparagraph (A) shall not apply if the payment or distribution is made after the account beneficiary becomes disabled within the meaning of section 72(m)(7) or dies.</text></subparagraph> 
<subparagraph id="H1C927C2667A24E69874DF668EC0C2125"><enum>(C)</enum><header>Exception for distributions after medicare eligibility</header><text>Subparagraph (A) shall not apply to any payment or distribution after the date on which the account beneficiary attains the age specified in section 1811 of the Social Security Act.</text></subparagraph></paragraph> <paragraph id="H788F9293DCB449C79DB4893F811D076A"><enum>(5)</enum><header>Rollover contribution</header><text display-inline="yes-display-inline">An amount is described in this paragraph as a rollover contribution if it meets the requirements of subparagraphs (A) and (B).</text> 
<subparagraph id="H48A5B7A6C69C4DF081A8E63A096285C0"><enum>(A)</enum><header>In general</header><text>Paragraph (2) shall not apply to any amount paid or distributed from a health savings account (as defined in section 223) or a Roth HSA to the account beneficiary to the extent the amount received is paid into a Roth HSA for the benefit of such beneficiary not later than the 60th day after the day on which the beneficiary receives the payment or distribution.</text></subparagraph> <subparagraph id="H2683B0522DBE4DD8B540DA919F38FCE5"><enum>(B)</enum><header>Limitation</header><text>This paragraph shall not apply to any amount described in subparagraph (A) received by an individual from a health savings account or a Roth HSA if, at any time during the 1-year period ending on the day of such receipt, such individual received any other amount described in subparagraph (A) from a health savings account or Roth HSA which was not includible in the individual’s gross income because of the application of this paragraph.</text></subparagraph></paragraph> 
<paragraph id="H05897BFCB8914B61B5B0F4E6E22B2665"><enum>(6)</enum><header>Transfer of account incident to divorce</header><text display-inline="yes-display-inline">The transfer of an individual’s interest in a Roth HSA to an individual’s spouse or former spouse under a divorce or separation instrument described in subparagraph (A) of section 71(b)(2) shall not be considered a taxable transfer made by such individual notwithstanding any other provision of this subtitle, and such interest shall, after such transfer, be treated as a Roth HSA with respect to which such spouse is the account beneficiary.</text></paragraph> <paragraph id="HF260507962434026B62C19B9FBDF0A5E"><enum>(7)</enum><header>Treatment after death of account beneficiary</header><text display-inline="yes-display-inline">If an individual acquires an account beneficiary’s interest in a health savings account by reason of the death of the account beneficiary, such health savings account shall be treated as if the individual were the account beneficiary.</text></paragraph></subsection> 
<subsection id="HBE5DCFD7D5C443B1A933C96769E8A55C"><enum>(f)</enum><header>Cost-of-Living adjustment</header> 
<paragraph id="HBE34E1E469E84835ADDDE7F38F44AA63"><enum>(1)</enum><header>In general</header><text>In the case of any calendar year beginning after 2024, the $5,000 dollar amount in subsection (b)(2) shall be increased by an amount equal to—</text> <subparagraph id="H705C8F76C8274ED890566724736B9020"><enum>(A)</enum><text display-inline="yes-display-inline">such dollar amount, multiplied by</text></subparagraph> 
<subparagraph id="H0A227E1F08D745D0A04531640C7049BA"><enum>(B)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined—</text> <clause id="H623AD7432EAC4229AA1076737BBD5694"><enum>(i)</enum><text>by substituting <quote>calendar year 2023</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof, and</text></clause> 
<clause id="H9AA6BCD5FB114327A1A64407F47F8606"><enum>(ii)</enum><text>by substituting <quote>CPI medical care component</quote> for <quote>CPI</quote>.</text></clause></subparagraph></paragraph> <paragraph id="HBF77A715DBAB421D8D20876B04EF8158"><enum>(2)</enum><header>CPI medical care component</header><text>For purposes of this paragraph, the term <term>CPI medical care component</term> means the medical care component for the Consumer Price Index for All Urban Consumers published by the Department of Labor.</text></paragraph> 
<paragraph id="H2B329D7335D840BE85CC2DB4FDE9DB4A"><enum>(3)</enum><header>Rounding</header><text>If the amount of any increase under the preceding sentence is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.</text></paragraph></subsection> <subsection id="H122A707FA1894E4595E360AF884487EE"><enum>(g)</enum><header>Reports</header><text display-inline="yes-display-inline">The Secretary may require—</text> 
<paragraph id="H5685CF14C237499AA8507BC7D878FD21"><enum>(1)</enum><text>the trustee of a Roth HSA to make such reports regarding such account to the Secretary and to the account beneficiary with respect to contributions, distributions, the return of excess contributions, and such other matters as the Secretary determines appropriate, and</text></paragraph> <paragraph commented="no" id="H31EF7C6994094F879107EB6B4C7E2527"><enum>(2)</enum><text>any person who provides an individual with creditable coverage to make such reports to the Secretary and to the account beneficiary with respect to such plan as the Secretary determines appropriate.</text></paragraph><continuation-text continuation-text-level="subsection">The reports required by this subsection shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required by the Secretary.</continuation-text></subsection> 
<subsection id="H07964942785A4AF4AB8D3F8A085FF1EA"><enum>(h)</enum><header>Cross-Reference</header><text display-inline="yes-display-inline">For contributions from Medicare Advantage plans of chronically ill enrollees, see section 1852(a)(3)(D)(ii)(I) of the Social Security Act.</text></subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HA009A696980D49B6A1D15331ED4A6074"><enum>(b)</enum><header>Limit on contributions to deductible health savings accounts</header><text>Section 223 of such Code is amended by adding at the end the following new subsection:</text> 
<quoted-block display-inline="no-display-inline" id="H540422EDEC274CDD942750FF0153BF7F" style="OLC"> 
<subsection id="H38BA0E2CB9F84893A65C509F3BF1138D"><enum>(i)</enum><header>Limited contributions after <enum-in-header>2023</enum-in-header></header> 
<paragraph id="H8BA91E2F6DC44945B6FC91F209E3A6BF"><enum>(1)</enum><header>In general</header><text>No contribution may be accepted by a health savings account after December 31, 2023.</text></paragraph> <paragraph id="H433925AD06F04EE9929961C72188679A"><enum>(2)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply—</text> 
<subparagraph id="HD868F6A3CC0A4D05A85370DF55B87B43"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a rollover contribution described in subsection (f)(5) or section 220(f)(5), or</text></subparagraph> <subparagraph id="H81C152AFD7634A63A8BC531B2163212A"><enum>(B)</enum><text>in the case of a month for which an individual is covered by insurance that constitutes medical care and that is provided by an employer with respect to which an election is in effect for such month under section 131(b) of the <short-title>Health Care Fairness for All Act</short-title>.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="HA6E2FCEC28F9419FAE1819FC0E341730"><enum>(c)</enum><header>Clerical amendment</header><text>The table of parts for subchapter F of chapter 1 of such Code is amended by adding at the end the following new item:</text> <quoted-block display-inline="no-display-inline" id="HBDBC2A698B384EC3893678BE0556DC12" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="part">Part IX. Roth health savings accounts</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HABA56D5CCB9748C9B17AE1E7D4148DA1"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2023.</text></subsection></section> 
<section commented="no" id="H857E02AE183D49C88919201B71FE8038"><enum>202.</enum><header>Elimination of medical expense deduction</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/213">Section 213</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H8F9A3AD38B054C8CB9A96E7578D898B4" style="OLC"> <subsection commented="no" id="H99E8E1DEBE53447DB42A662E91B4A594"><enum>(f)</enum><header>Termination</header><text display-inline="yes-display-inline">Except in the case of long-term care premiums (as defined in subsection (d)(10)), subsection (a) shall not apply to any amounts paid during any taxable year beginning after December 31, 2023.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> 
<section id="HC090D48FCDBE4B2D856117D8B58F2CBB"><enum>203.</enum><header>Treatment of HSA after death of account beneficiary</header> 
<subsection id="H516E0C2823C6449A9659EDE1FCC0B021"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/223">Section 223(f)(8)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H79E6EB6457AA404C8BCF9E0EBF97F9E5" style="OLC"> <paragraph id="HB435C32E8A274F1CA4A150632A92AE58"><enum>(8)</enum><header>Treatment after death of account beneficiary</header><text display-inline="yes-display-inline">If an individual acquires an account beneficiary’s interest in a health savings account by reason of the death of the account beneficiary, such health savings account shall be treated as if the individual were the account beneficiary.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> 
<subsection id="H9749E98E841E41B7ACAA9CCF161C289C"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply with respect to interests acquired after the date of the enactment of this Act.</text></subsection></section> <section id="HF77CD74AD007494D83EAA6F0101D6ED5"><enum>204.</enum><header>Treatment of direct patient care arrangements</header> <subsection id="H5954652BC8414553B7D20110FD37DFE4"><enum>(a)</enum><header>HSAs</header> <paragraph id="HDD1B30B510AA4BFFAD2373BFB331F31C"><enum>(1)</enum><header>Roth HSA</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/530A">Section 530A(c)(2)(A)</external-xref> of the Internal Revenue Code of 1986, as added by section 201 of this Act, is amended by adding at the end the following: <quote>Such term shall include the payment of a monthly or other prepaid amount for the furnishing (or access to the furnishing) by a physician or group of physicians of physician professional services (and ancillary services).</quote>.</text></paragraph> 
<paragraph id="H6389545DFA48414C9C60BEE75F4AE1DD"><enum>(2)</enum><header>HSA</header><text display-inline="yes-display-inline">Section 223(d)(2)(A) of such Code is amended by adding at the end the following: <quote>The term <term>qualified medical expenses</term> shall include the payment of a monthly or other prepaid amount for the furnishing (or access to the furnishing) by a physician or group of physicians of physician professional services (and ancillary services).</quote>.</text></paragraph></subsection> <subsection id="HDC9E8A66B8C340439F4F7734754A4991"><enum>(b)</enum><header>Not treated as health insurance coverage</header> <paragraph id="HD07FBCDF26504CC89019BCB20F66684A"><enum>(1)</enum><header>In general</header><text>For purposes of title XXVII of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300gg">42 U.S.C. 300gg</external-xref>), subtitle B of title I of the Employee Retirement and Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1021">29 U.S.C. 1021 et seq.</external-xref>), <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>, and this Act, the offering of direct patient care arrangements shall not be treated as the offering of health insurance coverage and shall not be subject to regulations as such coverage under such Acts.</text></paragraph> 
<paragraph id="HECEA5A979ED14D3E921FA3CBD5C67F3B"><enum>(2)</enum><header>Direct patient care arrangement defined</header><text>In this subsection, the term <term>direct patient care arrangement</term> means the furnishing (or access to the furnishing) by a physician or group of physicians of physician professional services (and ancillary services) in return for payment of a monthly or other prepaid amount.</text></paragraph></subsection></section></title> <title id="HE34A701C5C7146688D61DDF4B344EBEC"><enum>III</enum><header>State flexibility in regulation of health insurance coverage</header> <section id="H584CC673449B4A9B8BE84B9D34D8FA12"><enum>301.</enum><header>State flexibility in regulation of health insurance coverage</header> <subsection id="H34BE4816790347D589E017A72A3ACF08"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">States are given the flexibility under section 122(b) to revise their regulations of the health insurance marketplace, without regard to many of the requirements imposed under <external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>, in order to promote freedom of choice of affordable health insurance coverage options offered outside of an Exchange.</text></subsection> 
<subsection id="H9DB6E4BA8ECB4669A44B9A0C28286651"><enum>(b)</enum><header>Construction</header><text>Nothing in the Employee Retirement and Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1001">29 U.S.C. 1001 et seq.</external-xref>) or of any amendments made by the Health Insurance Portability and Accountability Act of 1996 (<external-xref legal-doc="public-law" parsable-cite="pl/104/191">Public Law 104–191</external-xref>) shall be interpreted as preventing an employer from offering, or making an employer contribution towards, individual health insurance coverage for employees and dependent family members.</text></subsection> <subsection id="H3D7EE30267ED4880BC2315F76B36F748"><enum>(c)</enum><header>Association health plans</header><text>Nothing in this Act shall be construed as prohibiting the formation of association health plans (as defined under State law).</text></subsection> 
<subsection id="HD3796003157C447FBA70C77F4005094A"><enum>(d)</enum><header>High-Risk pools</header><text>Nothing in this Act shall be construed as prohibiting States from establishing pooling arrangements for high-risk individuals.</text></subsection></section></title> <title id="H44FA063304FF4D14A9C92D1A49182162"><enum>IV</enum><header>Medicaid Payment Reform</header> <section id="H006EA8734BD2469DA022A859DD71BB8E"><enum>401.</enum><header>Medicaid payment reform to ensure equitable access to care</header> <subsection id="H63F3691E93514E30BFC90433BF0B4C06"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Title XIX of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396">42 U.S.C. 1396 et seq.</external-xref>) is amended by inserting after section 1903 the following section:</text> 
<quoted-block display-inline="no-display-inline" id="H1EDD17416B794DA39796138221F0A870" style="OLC"> 
<section id="H72E4C3FB4EA5451794072896A3654743"><enum>1903A.</enum><header>Reformed payment to States</header> 
<subsection id="HB7330675BB8C46F5A4E1CC65A2B706CF"><enum>(a)</enum><header>Reformed payment system</header> 
<paragraph id="HE24B357F7AC14FD3A2E66B427C26A338"><enum>(1)</enum><header>In general</header><text>For quarters beginning on or after the implementation date (as defined in subsection (k)(1)), in lieu of amounts otherwise payable to a State under this title (including any payments attributable to section 1923), except as otherwise provided in this section, the amount payable to such State shall be equal to the sum of the following:</text> <subparagraph id="HC92656DFF54D4C84865F901FC9E3A50F"><enum>(A)</enum><header>Adjusted aggregate beneficiary-based amount</header><text>The aggregate beneficiary-based amount specified in <internal-xref idref="H5BD4B8D27C774C7A8CC57402B74240F7" legis-path="1903A.(b)">subsection (b)</internal-xref> for the quarter and the State, adjusted under <internal-xref idref="H7BB1E61E8CCB441ABEFF34B7A2DAEE2B" legis-path="1903A.(e)">subsection (e)</internal-xref>.</text></subparagraph> 
<subparagraph id="H2FA67D7F71194237987E4C5533D9E59F"><enum>(B)</enum><header>Chronic care quality bonus</header><text display-inline="yes-display-inline">The amount (if any) of the chronic care quality bonus payment specified in <internal-xref idref="HD35C0323BE664D108C29ADFA7BC5754E" legis-path="1903A.(f)">subsection (f)</internal-xref> for the quarter for the State.</text></subparagraph></paragraph> <paragraph id="H45FAF1CFB83445319C2C980BA46079E4"><enum>(2)</enum><header>Requirement of State share</header> <subparagraph id="H5CB689F49C3B43B08062CA7CC2F3D86A"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">A State shall make, from non-Federal funds, expenditures in an amount equal to its State share (as determined under subparagraph (B)) for a quarter for items, services, and other costs for which, but for <internal-xref idref="HE24B357F7AC14FD3A2E66B427C26A338" legis-path="1903A.(a)(1)">paragraph (1)</internal-xref>, Federal funds would have been payable under this title.</text></subparagraph> 
<subparagraph id="H67CDF30B171140418413F3F45C14AC4B"><enum>(B)</enum><header>State share</header><text>The State share for a State for a quarter in a fiscal year is equal to the product of—</text> <clause id="HDA0D782C511941ABB3B0BF0D1280D8DD"><enum>(i)</enum><text>the aggregate beneficiary-based amount specified in <internal-xref idref="H5BD4B8D27C774C7A8CC57402B74240F7" legis-path="1903A.(b)">subsection (b)</internal-xref> for the quarter and the State; and</text></clause> 
<clause id="HC74719F10295442E98BD82A25F0DA8B6"><enum>(ii)</enum><text>the ratio of—</text> <subclause id="HCFFFEAF826394052875FC70845E59A82"><enum>(I)</enum><text>the State percentage described in subparagraph (D)(ii) for such State and fiscal year; to</text></subclause> 
<subclause id="H08DB8F211CD5427C818512EB1E3848F4"><enum>(II)</enum><text display-inline="yes-display-inline">the Federal percentage described in subparagraph (D)(i) for such State and fiscal year.</text></subclause></clause></subparagraph> <subparagraph id="H3447BD30E1314FA5B1685F5E1EA23359"><enum>(C)</enum><header>Nonpayment for failure to pay state share</header> <clause id="HB265ACAB3646404DAB52636E5ADCD739"><enum>(i)</enum><header>In general</header><text>If a State fails to expend the amount required under <internal-xref idref="H5CB689F49C3B43B08062CA7CC2F3D86A" legis-path="1903A.(a)(2)(A)">subparagraph (A)</internal-xref> for a quarter in a fiscal year, the amount payable to the State under <internal-xref idref="HE24B357F7AC14FD3A2E66B427C26A338" legis-path="1903A.(a)(1)">paragraph (1)</internal-xref> shall be reduced by the product of the amount by which the State payment is less than the State share and the ratio of—</text> 
<subclause id="HEE524F28C1D74E7EAEBAE30EA9ACE035"><enum>(I)</enum><text display-inline="yes-display-inline">the Federal percentage described in subparagraph (D)(i) for such State and fiscal year; to</text></subclause> <subclause id="H85664F8F68124CC4B5BDD85E34EA84AD"><enum>(II)</enum><text>the State percentage described in subparagraph (D)(ii) for such State and fiscal year.</text></subclause></clause> 
<clause id="H9ED94BE9F9B649528C5DC2843765744B"><enum>(ii)</enum><header>Grace period</header><text display-inline="yes-display-inline">A State shall not be considered to have failed to provide payment of its required State share for a quarter under <internal-xref idref="H5CB689F49C3B43B08062CA7CC2F3D86A" legis-path="1903A.(a)(2)(A)">subparagraph (A)</internal-xref> if the aggregate State payment towards the State’s required State share for the 4-quarter period beginning with such quarter exceeds the required State share amount for such 4-quarter period.</text></clause></subparagraph> <subparagraph id="H28F69D3653F04DE5B8668888F385FA51"><enum>(D)</enum><header>Federal and State percentages</header><text>In this paragraph, with respect to a State and a fiscal year:</text> 
<clause commented="no" id="H38FEA64688BD4EC792995B85B5A10921"><enum>(i)</enum><header>Federal percentage</header><text>The Federal percentage described in this clause is 75 percent or, if higher, the Federal medical assistance percentage for such State for such fiscal year.</text></clause> <clause id="HC22BFC32561E43A683C7276B7B81C40E"><enum>(ii)</enum><header>State percentage</header><text display-inline="yes-display-inline">The State percentage described in this clause is 100 percent minus the Federal percentage described in <internal-xref idref="H38FEA64688BD4EC792995B85B5A10921" legis-path="1903A.(a)(2)(D)(i)">clause (i)</internal-xref>.</text></clause></subparagraph> 
<subparagraph id="H10683786D0D54B6E9134961F7D068ACB"><enum>(E)</enum><header>Rules for crediting toward State share</header> 
<clause id="HFF8B2E82160040419F3D790678A06320"><enum>(i)</enum><header>General limitation to matchable expenditures</header><text>A payment for expenditures shall not be counted toward the State share under <internal-xref idref="H5CB689F49C3B43B08062CA7CC2F3D86A" legis-path="1903A.(a)(2)(A)">subparagraph (A)</internal-xref> unless Federal payments may be used for such expenditures consistent with paragraph (3)(B).</text></clause> <clause id="H62461DD2707E45AE8C0C5580BCA408A1"><enum>(ii)</enum><header>Further limitations on allowable expenditures</header><text>A payment for expenditures shall not be counted towards the State share under <internal-xref idref="H5CB689F49C3B43B08062CA7CC2F3D86A" legis-path="1903A.(a)(2)(A)">subparagraph (A)</internal-xref> if the expenditure is for any of the following:</text> 
<subclause id="H86221EAA58B640EEA861AAFDABE19AEA"><enum>(I)</enum><header>Abortion</header><text>Expenditures for an abortion.</text></subclause> <subclause id="H5BEFFD48E8534967BFFC2CBA278EBBBB"><enum>(II)</enum><header>Intergovernmental transfers</header><text>An expenditure that is attributable to an intergovernmental transfer.</text></subclause> 
<subclause id="H58668436C11E4D929D3E4F92C7FCCD25"><enum>(III)</enum><header>Certified public expenditures</header><text>An expenditure that is attributable to certified public expenditures.</text></subclause></clause> <clause id="H29D82425BF5E4F9196DFEE9B2EDD3F29"><enum>(iii)</enum><header>Crediting fraud and abuse recoveries</header><text display-inline="yes-display-inline">Amounts recovered by a State through the operation of its Medicaid fraud and abuse control unit described in section 1903(q) shall be fully counted toward the State share under <internal-xref idref="H5CB689F49C3B43B08062CA7CC2F3D86A" legis-path="1903A.(a)(2)(A)">subparagraph (A)</internal-xref>.</text></clause></subparagraph> 
<subparagraph id="HCEED92CF2FDB4B2A807BD155E65EFA85"><enum>(F)</enum><header>Construction</header><text display-inline="yes-display-inline">Nothing in the paragraph shall be construed as preventing a State from expending, from non-Federal funds, an amount under this title in excess of the amount of the State share.</text></subparagraph> <subparagraph id="HD5C03883CAAE4CFE95FC8905E25D750A"><enum>(G)</enum><header>Determination based upon submitted claims</header><text>In applying this paragraph with respect to expenditures of a State for a quarter, the determination of the expenditures for such State for such quarter shall be made after the end of the period (which, as of the date of the enactment of this section, is 2 years) for which the Secretary accepts claims for payment under this title with respect to such quarter.</text></subparagraph></paragraph> 
<paragraph id="H0E5B964DF3EE4F869B9BEFD19DE9961F"><enum>(3)</enum><header>Use of Federal payments</header> 
<subparagraph id="HDBFE43A01BC145D6A47821C65C1E8B3D"><enum>(A)</enum><header>Application of Medicaid limitations</header><text>A State may only use Federal payments received under <internal-xref idref="HB7330675BB8C46F5A4E1CC65A2B706CF" legis-path="1903A.(a)">subsection (a)</internal-xref> for expenditures for which Federal funds would have been payable under this title but for this section.</text></subparagraph> <subparagraph id="H7C83C0FE1EDF466580A7E7AF9B07D288"><enum>(B)</enum><header>Limitation for certain eligibles</header> <clause id="HE3582D129DDB4051BA412E94ED6BAA83"><enum>(i)</enum><header>Application of 100 percent federal poverty line limit on eligibility</header><text>Subject to clause (iii), a State may not use such Federal payments to provide medical assistance for an individual who has an income (as determined under clause (ii)) that exceeds 100 percent of the poverty line (as defined in section 2110(c)(5)) applicable to a family of the size involved.</text></clause> 
<clause id="HCB41D62753B640729A18B3386428E5AC"><enum>(ii)</enum><header>Determination of income using modified adjusted gross income without any 5 percent increase</header><text display-inline="yes-display-inline">In determining income for purposes of clause (i) under section 1902(e)(14) (relating to modified adjusted gross income), the following rules shall apply:</text> <subclause id="H49A9E21B8654430798E16E85E9C80771"><enum>(I)</enum><header>Application of spend down</header><text display-inline="yes-display-inline">The State shall take into account the costs incurred for medical care or for any other type of remedial care recognized under State law in the same manner and to the same extent that such State takes such costs into account for purposes of section 1902(a)(17).<italic></italic></text></subclause> 
<subclause id="HB8C6287937F245FD83C353554EDDED07"><enum>(II)</enum><header>Disregard of 5 percent increase</header><text>Subparagraph (I) of section 1902(e)(14) (relating to a 5 percent reduction) shall not apply.</text></subclause></clause> <clause id="H711EFA3D133D45C790320B8953F4EDE0"><enum>(iii)</enum><header>Exception</header><text>Clause (i) shall not apply to an individual who is—</text> 
<subclause id="HA8C87F5026884461AB448756FA70C897"><enum>(I)</enum><text>a woman described in clause (i) of section 1903(v)(4)(A);</text></subclause> <subclause id="H01342CEE44AA4AF18B6AABC25204E015"><enum>(II)</enum><text>a child who is an individual described in clause (i) of section 1905(a);</text></subclause> 
<subclause id="H47D453D02D8E456692D90B1830E49B1C"><enum>(III)</enum><text>enrolled in a State plan under this title as of the date of the enactment of this section for the period of continuous enrollment; or</text></subclause> <subclause id="H64D63678CCF64B57973105B73A7A092B"><enum>(IV)</enum><text display-inline="yes-display-inline">described in section 1902(e)(14)(D) (relating to modified adjusted gross income).</text></subclause></clause> 
<clause id="HE047B7890E0141ED821505B43E9711A6"><enum>(iv)</enum><header>Clarification related to community spouse</header><text>Nothing in this subparagraph shall supersede the application of section 1924 (related to community spouse income and assets).</text></clause></subparagraph></paragraph> <paragraph id="H5B38F2746648490682AF796F9C68942F"><enum>(4)</enum><header>Exceptions for pass-through payments</header> <subparagraph id="H895BAD739B224EDABF987D9751097249"><enum>(A)</enum><header>In general</header><text><internal-xref idref="HE24B357F7AC14FD3A2E66B427C26A338" legis-path="1903A.(a)(1)">Paragraph (1)</internal-xref> shall not apply, and amounts shall continue to be payable under this title (and not under <internal-xref idref="HB7330675BB8C46F5A4E1CC65A2B706CF" legis-path="1903A.(a)">subsection (a)</internal-xref>), in the case of the following payments (and related administrative costs and expenditures):</text> 
<clause id="HF92B179CCC5149349D9736551F41B387"><enum>(i)</enum><header>Payments to territories</header><text>Payments to a State other than the 50 States and the District of Columbia.</text></clause> <clause id="H099CB465094943A9AA7C78400EEDD8E0"><enum>(ii)</enum><header>Medicare cost sharing</header><text>Payments attributable to Medicare cost sharing under section 1905(p).</text></clause> 
<clause id="H8F65A23314854B258777AEE255431ECC"><enum>(iii)</enum><header>Pediatric vaccines</header><text>Payments attributable to section 1928.</text></clause> <clause commented="no" id="HD94BCA4353CD4BA8862700EF144F4029"><enum>(iv)</enum><header>Emergency services for certain individuals</header><text>Payments for treatment of emergency medical conditions attributable to the application of section 1903(v)(2).</text></clause> 
<clause id="HC6CFC00BCE4A4EBDAF408390DF826147"><enum>(v)</enum><header>Indian health care facilities</header><text>Payments for medical assistance described in the third sentence of section 1905(b).</text></clause> <clause id="H848CD7A349864B82946BB59925CEE814"><enum>(vi)</enum><header>Employer-sponsored insurance (ESI)</header><text>Payments for medical assistance attributable to payments to employers for employer-sponsored health benefits coverage.</text></clause> 
<clause commented="no" id="H204B718ED2F74459BA56C57210BB92B6"><enum>(vii)</enum><header>Other populations with limited benefit coverage</header><text>Other payments that are determined by the Secretary to be related to a specified population for which the medical assistance under this title is limited and does not include any inpatient, nursing facility, or long-term care services.</text></clause></subparagraph> <subparagraph id="HCA8C3397E88F43499A080037C189938F"><enum>(B)</enum><header>Certain expenses</header><text><internal-xref idref="HE24B357F7AC14FD3A2E66B427C26A338" legis-path="1903A.(a)(1)">Paragraph (1)</internal-xref> shall not apply, and amounts shall continue to be payable under this title (and not under <internal-xref idref="HB7330675BB8C46F5A4E1CC65A2B706CF" legis-path="1903A.(a)">subsection (a)</internal-xref>), in the case of the following:</text> 
<clause id="H5CAD3F59C7B5493AB285E4EA1437BA04"><enum>(i)</enum><header>Administration of medicare prescription drug benefit</header><text>Expenditures described in section 1935(b) (relating to administration of the Medicare prescription drug benefit).</text></clause> <clause id="H378A03F631674229816D4AD0A99B8DA8"><enum>(ii)</enum><header>Payments for HIT bonuses</header><text display-inline="yes-display-inline">Payments under section 1903(a)(3)(F) (relating to payments to encourage the adoption and use of certified EHR technology).</text></clause> 
<clause id="HBBB1B01767AB4BC29E49736130A00CD7"><enum>(iii)</enum><header>Payments for design, development, and installation of MMIS and eligibility systems</header><text display-inline="yes-display-inline">Payments under subparagraphs (A)(i) and (H)(i) of section 1903(a)(3) for expenditures for design, development, and installation of the Medicaid management information systems and mechanized verification and information retrieval systems (related to eligibility).</text></clause></subparagraph></paragraph> <paragraph id="HA17E014ACA2844FC909333E17E1FEACC"><enum>(5)</enum><header>Payment of amounts</header> <subparagraph id="H173AC7774C8644F3B51F1D6A4E7D7B46"><enum>(A)</enum><header>In general</header><text>Except as the Secretary may otherwise provide, amounts shall be payable to a State under subsection (a) in the same manner as amounts are payable under subsection (d) of section 1903 to a State under subsection (a) of such section.</text></subparagraph> 
<subparagraph id="H8B816ABE6C454BC1B34061A6EDC30C5D"><enum>(B)</enum><header>Information and forms</header> 
<clause id="H2B57016405B940EFB95D0BC1A6279B1C"><enum>(i)</enum><header>Submission</header><text>As a condition of receiving payment under <internal-xref idref="HB7330675BB8C46F5A4E1CC65A2B706CF" legis-path="1903A.(a)">subsection (a)</internal-xref>, a State shall submit such information, in such form, and manner, as the Secretary shall specify, including information necessary to make the computations under subsections (c)(2)(C) and (e).</text></clause> <clause id="HC9F1A92C74614E1D82FD57BDC8887CEF"><enum>(ii)</enum><header>Uniform reporting</header><text>The Secretary shall develop such forms as may be needed to assure a system of uniform reporting of such information across States.</text></clause></subparagraph> 
<subparagraph id="H0951EDDC162E4A2ABCC4646CA96A392A"><enum>(C)</enum><header>Required reporting of information on medical loss ratios for managed care</header><text>The information required to be reported under subparagraph (B)(i) shall include information on the medical loss ratio with respect to coverage provided under each Medicaid managed care plan with a contract with the State under section 1903(m) or 1932.</text></subparagraph></paragraph></subsection> <subsection id="H5BD4B8D27C774C7A8CC57402B74240F7"><enum>(b)</enum><header>Aggregate beneficiary-Based amount</header> <paragraph id="HA4AF65178A424F0DA7AFD68EED36786E"><enum>(1)</enum><header>In general</header><text>The aggregate beneficiary-based amount specified in this subsection for a State for a quarter is equal to the sum of the products, for each of the categories of Medicaid beneficiaries specified in <internal-xref idref="H005E97E9F6EC4EBAA4B5CBA8A911128C" legis-path="1903A.(b)(2)">paragraph (2)</internal-xref>, of the following:</text> 
<subparagraph id="HC6C0B899405B4374932BE0E318E45DD9"><enum>(A)</enum><header>Beneficiary-based quarterly amount</header><text>The beneficiary-based quarterly amount for such category computed under <internal-xref idref="HAB20D9862BFD4941A8827E1C853DF2C2" legis-path="1903A.(c)">subsection (c)</internal-xref> for such State for such quarter.</text></subparagraph> <subparagraph id="H3D483ECB498847FBB2E9CE869D12B645"><enum>(B)</enum><header>Number of individuals in category</header><text>Subject to <internal-xref idref="HB4CD4F2065B54102A88AADDAB8ABC572" legis-path="1903A.(d)">subsection (d)</internal-xref>, the average number of Medicaid beneficiaries enrolled in such category in the State in such quarter.</text></subparagraph></paragraph> 
<paragraph id="H005E97E9F6EC4EBAA4B5CBA8A911128C"><enum>(2)</enum><header>Categories</header><text display-inline="yes-display-inline">The categories specified in this paragraph are the following:</text> <subparagraph id="HA9FBA3C60344448B94A4C7EB6BAA42AE"><enum>(A)</enum><header>Elderly</header><text display-inline="yes-display-inline">A category of Medicaid beneficiaries who are 65 years of age or older.</text></subparagraph> 
<subparagraph id="HE93D995AE548474D9763253239FE3037"><enum>(B)</enum><header>Blind or disabled</header><text display-inline="yes-display-inline">A category of Medicaid beneficiaries not described in <internal-xref idref="HA9FBA3C60344448B94A4C7EB6BAA42AE" legis-path="1903A.(b)(2)(A)">subparagraph (A) </internal-xref>who are described in section 1937(a)(2)(B)(ii).</text></subparagraph> <subparagraph id="HF18146AD448542B9B419C98E7A564D8D"><enum>(C)</enum><header>Children</header><text display-inline="yes-display-inline">A category of Medicaid beneficiaries not described in subparagraph (B) who are under 21 years of age.</text></subparagraph> 
<subparagraph id="HCA5F7793054F4B8DB98800FEB613A5CE"><enum>(D)</enum><header>Other adults</header><text display-inline="yes-display-inline">A category of any Medicaid beneficiaries who are not described in a previous subparagraph of this paragraph.</text></subparagraph></paragraph></subsection> <subsection id="HAB20D9862BFD4941A8827E1C853DF2C2"><enum>(c)</enum><header>Computation of per beneficiary, per category quarterly amount</header> <paragraph id="H5D29FADA4607461C91087DB4D8546496"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For a State, for each category of beneficiary for a quarter—</text> 
<subparagraph id="H6F4E5547FDD14D838B44F24589788B05"><enum>(A)</enum><header>First reform year</header><text>For quarters in the first reform year (as defined in subsection (k)(2)), the beneficiary-based quarterly amount is equal to <fraction>1/4</fraction> of the base average per beneficiary Federal payments for such State for such category determined under <internal-xref idref="HEC4C6FA82C1F47F284D421DB85796B3B" legis-path="1903A.(c)(2)">paragraph (2)</internal-xref>, increased by a factor that reflects the sum of the following:</text> <clause id="H8C52AB6713054BF8B74B89684CF3A1E3"><enum>(i)</enum><header>Historical medical care component of CPI through previous reform year</header><text>The percentage increase in the historical medical care component of the Consumer Price Index for all urban consumers (U.S. city average) from the midpoint of the base fiscal year (as defined in <internal-xref idref="HD208C1F4DB51447DB4F6A5EE1906E867" legis-path="1903A.(c)(6)">paragraph (6)</internal-xref>) to the midpoint of the fiscal year preceding the first reform year.</text></clause> 
<clause id="H2A4AEF67E4014938912D665B55A2CE78"><enum>(ii)</enum><header>Projected medical care component of CPI for the first reform year</header><text display-inline="yes-display-inline">The percentage increase in the projected medical care component of the Consumer Price Index for all urban consumers (U.S. city average) from the midpoint of the previous fiscal year referred to in clause (i) to the midpoint of the first reform year.</text></clause></subparagraph> <subparagraph id="HE00B8F92A606450597DFDA1478294D6D"><enum>(B)</enum><header>Second and third reform years</header><text display-inline="yes-display-inline">The beneficiary-based quarterly amount for a State for a category for quarters in the second reform year or the third reform year is equal to the beneficiary-based quarterly amount under this paragraph for such State and category for the previous reform year increased by the per beneficiary percentage increase (as defined in <internal-xref idref="HA4A5407D7FEC4B5596430731D3EA5F2C" legis-path="1903A.(c)(1)(E)">subparagraph (E))</internal-xref> for such category and reform year.</text></subparagraph> 
<subparagraph id="HFA09A4EDD7EF49489728BEF38A09B893"><enum>(C)</enum><header>Fourth through tenth reform years</header><text display-inline="yes-display-inline">The beneficiary-based quarterly amount for a State for a category for quarters in a reform year beginning with the fourth reform year and ending with the tenth reform year is—</text> <clause id="H7C6FB8E19C2A4F9FBF082C9554816E6F"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a State that is a high per beneficiary State or a low per beneficiary State (as defined in paragraph (4)(B)(iii)) for the category, the amount determined under clause (i) or (ii) of paragraph (4)(B) for such State, category, and reform year; or</text></clause> 
<clause id="HE8679DB637FF46AC96684224BCF8B591"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any other State, the beneficiary-based quarterly amount under this paragraph for such State and category for the previous reform year increased by the per beneficiary percentage increase for such category and reform year.</text></clause></subparagraph> <subparagraph id="HF4CA8FFE68B94F1385D237B3B73AE5D0"><enum>(D)</enum><header>Eleventh reform year and subsequent reform years</header><text display-inline="yes-display-inline">The beneficiary-based quarterly amount for a State for a category for quarters in a reform year beginning with the eleventh reform year is equal to the beneficiary-based quarterly amount under this paragraph for such State and category for the previous reform year increased by the per beneficiary percentage increase for such category and reform year.</text></subparagraph> 
<subparagraph id="HA4A5407D7FEC4B5596430731D3EA5F2C"><enum>(E)</enum><header>Annual percentage increase beginning with second reform year</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>per beneficiary percentage increase</term> means, for a reform year, the sum of—</text> <clause id="HCD903EFEF1874FBE8DEE5B38BE926B9E"><enum>(i)</enum><text>the projected percentage change in nominal gross domestic product from the midpoint of the previous reform year to the midpoint of the reform year for which the percentage increase is being applied; and</text></clause> 
<clause id="HBC6D031892C0420FA98565586EADECE9"><enum>(ii)</enum><text>one percentage point.</text></clause></subparagraph></paragraph> <paragraph id="HEC4C6FA82C1F47F284D421DB85796B3B"><enum>(2)</enum><header>Base per beneficiary, per category amount for each State</header> <subparagraph id="H60A66170B8A44488A32A98C8C05DD86B"><enum>(A)</enum><header>Average per category</header> <clause id="H7B5D87639EB54E3FB535489BC774FCD5"><enum>(i)</enum><header>In general</header><text>The Secretary shall determine, consistent with this paragraph and <internal-xref idref="H8CFDD47FBDC740D6958ED82F964D8E5A" legis-path="1903A.(c)(3)">paragraph (3)</internal-xref>, a base per beneficiary, per category amount for each of the 50 States and the District of Columbia equal to the average amount, per Medicaid beneficiary, of Federal payments under this title, including payments attributable to disproportionate share hospital payments under section 1923, for each of the categories of beneficiaries under <internal-xref idref="H005E97E9F6EC4EBAA4B5CBA8A911128C" legis-path="1903A.(b)(2)">subsection (b)(2)</internal-xref> for the base fiscal year for each of the 50 States and the District of Columbia.</text></clause> 
<clause commented="no" id="HD9670B00BF9B4FE4AF27FC63C6A777B2"><enum>(ii)</enum><header>Best available data</header><text>The determination under <internal-xref idref="H7B5D87639EB54E3FB535489BC774FCD5" legis-path="1903A.(c)(2)(A)(i)">clause (i)</internal-xref> shall initially be estimated by the Secretary, based upon the best available data at the time the determination is made.</text></clause> <clause id="HEFFE38388C15409FB47A9090A63F55C5"><enum>(iii)</enum><header>Updates</header><text>The determination under <internal-xref idref="H7B5D87639EB54E3FB535489BC774FCD5" legis-path="1903A.(c)(2)(A)(i)">clause (i)</internal-xref> shall be updated by the Secretary on an annual basis based upon improved data. The Secretary shall adjust the amounts under <internal-xref idref="HC92656DFF54D4C84865F901FC9E3A50F" legis-path="1903A.(a)(1)(A)">subsection (a)(1)(A)</internal-xref> to reflect changes in the amounts so determined based on such updates.</text></clause></subparagraph> 
<subparagraph id="HA45D42F617214BCFB607E6AA8B2CF831"><enum>(B)</enum><header>Exclusion of pass-through payments</header><text>In computing base per beneficiary, per category amounts under <internal-xref idref="H7B5D87639EB54E3FB535489BC774FCD5" legis-path="1903A.(c)(2)(A)(i)">subparagraph (A)(i)</internal-xref> the Secretary shall exclude payments described in <internal-xref idref="H5B38F2746648490682AF796F9C68942F" legis-path="1903A.(a)(4)">subsection (a)(4)</internal-xref>.</text></subparagraph> <subparagraph id="H55A389DDD68F41E59EEE600F38F4D9D6"><enum>(C)</enum><header>Standardization</header> <clause id="H6B27A71DF440462CBF46DA1AF2D81EBA"><enum>(i)</enum><header>In general</header><text>In computing each such amount, the Secretary shall standardize the amount in order to remove the variation attributable to the following:</text> 
<subclause id="H80EDCEBECCBF41F5ADB4D7E97AF7CF3B"><enum>(I)</enum><header>Risk factors</header><text display-inline="yes-display-inline">Such risk factors as age, health and disability status (including high cost medical conditions), gender, institutional status, and such other factors as the Secretary determines to be appropriate, so as to ensure actuarial equivalence.</text></subclause> <subclause id="H550A2C5F0AC94D209CBE4FB2396C6075"><enum>(II)</enum><header>Geographic</header><text display-inline="yes-display-inline">Variations in costs on a county-by-county basis.</text></subclause></clause> 
<clause id="HA36392DC46AE4A11BC8B2F3E78C99201"><enum>(ii)</enum><header>Method of standardization</header> 
<subclause id="H5BA04568FD27414C9A20B5131445B59A"><enum>(I)</enum><header>Consultation in development of risk standardization</header><text display-inline="yes-display-inline">In developing the methodology for risk standardization for purposes of clause (i)(I), the Secretary shall consult with the Medicaid and CHIP Payment and Access Commission, the Medicare Payment Advisory Commission, and the National Association of Medicaid Directors.</text></subclause> <subclause id="H60ACB8431C1246B4B78623E7C14266DC"><enum>(II)</enum><header>Method for risk standardization</header><text display-inline="yes-display-inline">In carrying out <internal-xref idref="H80EDCEBECCBF41F5ADB4D7E97AF7CF3B" legis-path="1903A.(c)(2)(C)(i)(I)">clause (i)(I)</internal-xref>, the Secretary may apply the hierarchal condition category methodology under section 1853(a)(1)(C). If the Secretary uses such methodology, the Secretary shall adjust the application of such methodology to take into account the differences in services provided under this title compared to title XVIII, such as the coverage of long term care, pregnancy, and pediatric services.</text></subclause> 
<subclause id="H80647A50EC794EBDAA49CCA819000E11"><enum>(III)</enum><header>Method for geographic standardization</header><text>The Secretary shall apply the standardization under <internal-xref idref="H550A2C5F0AC94D209CBE4FB2396C6075" legis-path="1903A.(c)(2)(C)(i)(II)">clause (i)(II)</internal-xref> in a manner similar to that applied under section 1853(c)(4)(A)(iii).</text></subclause></clause> <clause id="HD526D8EAE7554CC592BFB39296224C04"><enum>(iii)</enum><header>Application on a national, budget neutral basis</header><text>The standardization under <internal-xref idref="H6B27A71DF440462CBF46DA1AF2D81EBA" legis-path="1903A.(c)(2)(C)(i)">clause (i)</internal-xref> shall be designed and implemented on a uniform national basis and shall be budget neutral so as to not result in any aggregate change in payments under <internal-xref idref="HB7330675BB8C46F5A4E1CC65A2B706CF" legis-path="1903A.(a)">subsection (a)</internal-xref>.</text></clause> 
<clause id="H31B6BEB556DF44CB9A15A8095D3A996F"><enum>(iv)</enum><header>Response to new risk</header><text>Subject to <internal-xref idref="HD526D8EAE7554CC592BFB39296224C04" legis-path="1903A.(c)(2)(C)(iii)">clause (iii)</internal-xref>, the Secretary may adjust the standardization under <internal-xref idref="H6B27A71DF440462CBF46DA1AF2D81EBA" legis-path="1903A.(c)(2)(C)(i)">clause (i)</internal-xref> to respond promptly to new instances of communicable diseases and other public health hazards.</text></clause> <clause id="H105137A7412A418FA344AC7845920FF0"><enum>(v)</enum><header>Reference to application of risk adjustment</header><text>For rules related to the application of risk adjustment to amounts under subsection (a)(1)(A), see subsection (e).</text></clause></subparagraph> 
<subparagraph id="HBD9F455767A640C2BFF83A9F39F81EE5"><enum>(D)</enum><header>Adjustment for temporary FMAP increases</header><text display-inline="yes-display-inline">In computing each base per beneficiary, per category amounts under <internal-xref idref="H7B5D87639EB54E3FB535489BC774FCD5" legis-path="1903A.(c)(2)(A)(i)">subparagraph (A)(i)</internal-xref> the Secretary shall disregard portions of payments that are attributable to a temporary increase in the Federal matching rates, including those attributable to the following:</text> <clause id="H60969C55FA1548BCBE2CC1BDC71740F5"><enum>(i)</enum><header>Public Law 111–148 disaster FMAP</header><text>Section 1905(aa).</text></clause> 
<clause id="HA4850BADD55F48318C97796C613D22C0"><enum>(ii)</enum><header>ARRA</header><text>Section 5001 of the American Recovery and Reinvestment Act of 2009 (<external-xref legal-doc="usc" parsable-cite="usc/42/1396d">42 U.S.C. 1396d</external-xref> note).</text></clause> <clause commented="no" id="H6023EFD404CE4719BEA512E56C692FC4"><enum>(iii)</enum><header>Extraordinary employer pension contribution</header><text display-inline="yes-display-inline">Section 614 of the Children's Health Insurance Program Reauthorization Act of 2009 (<external-xref legal-doc="usc" parsable-cite="usc/42/1396d">42 U.S.C. 1396d</external-xref> note).</text></clause></subparagraph></paragraph> 
<paragraph id="H8CFDD47FBDC740D6958ED82F964D8E5A"><enum>(3)</enum><header>Allocation of nonmedical assistance payments</header><text display-inline="yes-display-inline">The Secretary shall establish rules for the allocation of payments under this title (other than those payments described in paragraph (1) or (5) of section 1903(a) and including such payments attributable to section 1923)—</text> <subparagraph id="H98A4FEA902714DBAAF185444992E4E39"><enum>(A)</enum><text>among different categories of beneficiaries; and</text></subparagraph> 
<subparagraph id="H2279C45760984EDCB7E2F1987D350510"><enum>(B)</enum><text>between payments included under <internal-xref idref="HE24B357F7AC14FD3A2E66B427C26A338" legis-path="1903A.(a)(1)">subsection (a)(1)</internal-xref> and payments described in <internal-xref idref="H5B38F2746648490682AF796F9C68942F" legis-path="1903A.(a)(4)">subsection (a)(4).</internal-xref></text></subparagraph></paragraph> <paragraph commented="no" id="HF56AD7FFE7F44ED4AF740B00310C9B80"><enum>(4)</enum><header>Transition to a corridor around the national average</header> <subparagraph commented="no" id="HA6245C19C1C5480AA3146E6577A7D900"><enum>(A)</enum><header>Determination of national average base per beneficiary, per category amount</header><text display-inline="yes-display-inline">Subject to subparagraph (C), the Secretary shall determine a national average base per beneficiary, per category amount equal to the average of the base per beneficiary, per category amounts for each of the 50 States and the District of Columbia determined under <internal-xref idref="HEC4C6FA82C1F47F284D421DB85796B3B" legis-path="1903A.(c)(2)">paragraph (2)</internal-xref>, weighted by the average number of beneficiaries in each such category and State as determined by the Secretary consistent with <internal-xref idref="HB4CD4F2065B54102A88AADDAB8ABC572" legis-path="1903A.(d)">subsection (d)</internal-xref> for the base fiscal year.</text></subparagraph> 
<subparagraph commented="no" id="HC0A0A69F6B6B44C19807AB1F50ECE1A9"><enum>(B)</enum><header>Transition adjustment</header> 
<clause id="H96DBBD8585FB49C89FCADEE7E2830259"><enum>(i)</enum><header>High per beneficiary states</header><text display-inline="yes-display-inline">In the case of a high per beneficiary State (as defined in <internal-xref idref="H5C7983F161CA4DD6B8F8F1FF186BFA71" legis-path="1903A.(c)(4)(B)(iii)(I)">clause (iii)(I)</internal-xref>) for a category, the beneficiary-based quarterly amount for such State and category for a quarter in a reform year (beginning with the fourth reform year and ending with the tenth reform year) is equal to the sum of—</text> <subclause id="H269CF06F0C724C64AF5F0C6CC210A4FB"><enum>(I)</enum><text display-inline="yes-display-inline">the product of the State-specific factor for such reform year (as defined in <internal-xref idref="HB627E3F1E0654103BFE2938B9564E2F5" legis-path="1903A.(c)(4)(B)(iv)">clause (iv)</internal-xref>) and the beneficiary-based quarterly amount that would otherwise be determined under paragraph (1) for such State and category if the State were a State described in clause (ii) of paragraph (1)(C), instead of a State described in clause (i) of such paragraph; and</text></subclause> 
<subclause id="HAE2AC753CCE24C5D8BB56DBB58702CE9"><enum>(II)</enum><text>the product of 1 minus the State-specific factor for such reform year and the beneficiary-based quarterly amount that would otherwise be determined under paragraph (1) for a State and category if the base per beneficiary, per category amount determined under paragraph (2) for the State and category were equal to 110 percent of the national average base per beneficiary, per category amount determined under subparagraph (A) for such category.</text></subclause></clause> <clause display-inline="no-display-inline" id="HC8423799DFA54399A598ABD10E675501"><enum>(ii)</enum><header>Low per beneficiary states</header><text display-inline="yes-display-inline">In the case of a low per beneficiary State (as defined in <internal-xref idref="HD43735312C3A4F59976F9D62F5C11C63" legis-path="1903A.(c)(4)(B)(iii)(II)">clause (iii)(II)</internal-xref>) for a category, the beneficiary-based quarterly amount for such State and category for a quarter in a reform year (beginning with the fourth reform year and ending with the tenth reform year) is equal to the sum of—</text> 
<subclause id="H876591B4DF2140EC806D715E7E41B48D"><enum>(I)</enum><text display-inline="yes-display-inline">the product of the State-specific factor for such reform year and the beneficiary-based quarterly amount that would otherwise be determined under paragraph (1) for such State and category if the State were a State described in clause (ii) of paragraph (1)(C), instead of a State described in clause (i) of such paragraph; and</text></subclause> <subclause id="H53C3C713CED34BCFA5EDD05AB5FD5C23"><enum>(II)</enum><text display-inline="yes-display-inline">the product of 1 minus the State-specific factor for such reform year and the beneficiary-based quarterly amount that would otherwise be determined under paragraph (1) for a State and category if the base per beneficiary, per category amount determined under paragraph (2) for the State and category were equal to 90 percent of the national average base per beneficiary, per category amount determined under subparagraph (A) for such category.</text></subclause></clause> 
<clause id="H4F8DC6383948472788A3DDC2921EE823"><enum>(iii)</enum><header>High and low per beneficiary States defined</header><text>In this subparagraph:</text> <subclause id="H5C7983F161CA4DD6B8F8F1FF186BFA71"><enum>(I)</enum><header>High per beneficiary State</header><text>The term <term>high per beneficiary State</term> means, with respect to a category, a State for which the base per beneficiary, per category amount determined under paragraph (2) for such category is greater than 110 percent of the national average base per beneficiary, per category amount determined under subparagraph (A) for such category.</text></subclause> 
<subclause id="HD43735312C3A4F59976F9D62F5C11C63"><enum>(II)</enum><header>Low per beneficiary State</header><text display-inline="yes-display-inline">The term <term>low per beneficiary State</term> means, with respect to a category, a State for which the base per beneficiary, per category amount determined under paragraph (2) for such category is less than 90 percent of the national average base per beneficiary, per category amount determined under subparagraph (A) for such category.</text></subclause></clause> <clause id="HB627E3F1E0654103BFE2938B9564E2F5"><enum>(iv)</enum><header>State-specific factor</header><text>In this subparagraph, the term <term>State-specific factor</term> means—</text> 
<subclause id="HBF81CDD9EDB348CD92650E7DA72FFC6C"><enum>(I)</enum><text>for the fourth reform year, <fraction>7/8</fraction>; and</text></subclause> <subclause id="H03EA97448E4445499512DF37D7AA24E4"><enum>(II)</enum><text>for a subsequent reform year, the State-specific factor under this clause for the previous reform year minus <fraction>1/8.</fraction></text></subclause></clause></subparagraph> 
<subparagraph commented="no" id="HAB4A76931C264393A50F0391F7E6F5A9"><enum>(C)</enum><header>No additional expenditures</header> 
<clause id="H8E5B9893300F41E89CD9CEDCF2AC2C2C"><enum>(i)</enum><header>Determination of increase in Federal expenditures</header><text display-inline="yes-display-inline">For each category for each reform year (beginning with the fourth reform year and ending with the tenth reform year), the Secretary shall determine whether the application of this paragraph—</text> <subclause id="H01F9A7BA20EA431E892CCC8169DAEB98"><enum>(I)</enum><text>to the category for the reform year will result in an aggregate increase in the aggregate Federal expenditures under <internal-xref idref="HB7330675BB8C46F5A4E1CC65A2B706CF" legis-path="1903A.(a)">subsection (a)</internal-xref>; and</text></subclause> 
<subclause id="H3D8A6D58060C40839FFF272DA7493F4B"><enum>(II)</enum><text display-inline="yes-display-inline">to all the categories for the reform year will result in a net aggregate increase in the aggregate Federal expenditures under <internal-xref idref="HB7330675BB8C46F5A4E1CC65A2B706CF" legis-path="1903A.(a)">subsection (a)</internal-xref>.</text></subclause></clause> <clause id="H8856CB64422E4E879623BD9A1301157C"><enum>(ii)</enum><header>Adjustment</header><text>If the Secretary determines under <internal-xref idref="H3D8A6D58060C40839FFF272DA7493F4B" legis-path="1903A.(c)(4)(C)(i)(II)">clause (i)(II)</internal-xref> that the application of this paragraph to all the categories for a reform year will result in a net aggregate increase in the aggregate Federal expenditures under subsection (a), the Secretary shall reduce the national average base per beneficiary, per category amount computed under <internal-xref idref="HA6245C19C1C5480AA3146E6577A7D900" legis-path="1903A.(c)(4)(A)">subparagraph (A)</internal-xref> for each of the categories determined under <internal-xref idref="H01F9A7BA20EA431E892CCC8169DAEB98" legis-path="1903A.(c)(4)(C)(i)(I)">clause (i)(I)</internal-xref> for which there will be an aggregate increase in the aggregate Federal expenditures under subsection (a) by such uniform percentage as will ensure that there is no net aggregate Federal expenditure increase described in <internal-xref idref="H3D8A6D58060C40839FFF272DA7493F4B" legis-path="1903A.(c)(4)(C)(i)(II)">clause (i)(II)</internal-xref> for the reform year.</text></clause></subparagraph></paragraph> 
<paragraph id="H56030292F97A4EE3BA834BD613678B56"><enum>(5)</enum><header>Reports on per beneficiary rates; appeals</header> 
<subparagraph id="HB25F88B5370141EB94C400BCDD8C8C5D"><enum>(A)</enum><header>Report to states</header><text display-inline="yes-display-inline">Not later than 8 months after the date of the enactment of this section, the Secretary shall submit to each State the Secretary’s initial determination of—</text> <clause id="HB375F0DDDAE946959B37978E50473FAA"><enum>(i)</enum><text>the base per beneficiary, per category amounts under paragraph (2) for such State; and</text></clause> 
<clause id="H053CA35B1FCF4B1F849E8774E9E0CE52"><enum>(ii)</enum><text>the national average base per beneficiary, per category amounts under <internal-xref idref="HA6245C19C1C5480AA3146E6577A7D900" legis-path="1903A.(c)(4)(A)">paragraph (4)(A)</internal-xref>.</text></clause></subparagraph> <subparagraph id="H15D364D07AC142EEA856A382B194EB52"><enum>(B)</enum><header>Opportunity to appeal</header><text>Not later than 3 months after the date a State receives notice of the Secretary’s initial determination of such base per beneficiary, per category amounts for such State under <internal-xref idref="HB375F0DDDAE946959B37978E50473FAA" legis-path="1903A.(c)(5)(A)(i)">subparagraph (A)(i)</internal-xref>, the State may file with the Secretary, in a form and manner specified by the Secretary, an appeal of such determination.</text></subparagraph> 
<subparagraph id="H8712991D4F3E4F7FB9BD522D0D82AC73"><enum>(C)</enum><header>Determination on appeal</header><text>Not later than 3 months after receiving such an appeal, the Secretary shall make a final determination on such amounts for such State. If no such appeal is received for a State, the Secretary’s initial determination under <internal-xref idref="HB375F0DDDAE946959B37978E50473FAA" legis-path="1903A.(c)(5)(A)(i)">subparagraph (A)(i)</internal-xref> shall become final.</text></subparagraph></paragraph> <paragraph id="HD208C1F4DB51447DB4F6A5EE1906E867"><enum>(6)</enum><header>Base fiscal year defined</header><text>In this section, the term <term>base fiscal year</term> means the latest fiscal year, ending before the date of the enactment of this section, for which the Secretary determines that adequate data are available to make the computations required under this subsection.</text></paragraph></subsection> 
<subsection id="HB4CD4F2065B54102A88AADDAB8ABC572"><enum>(d)</enum><header>Not counting individuals To account for excluded payments</header><text display-inline="yes-display-inline">Under rules specified by the Secretary, individuals shall not be counted as Medicaid beneficiaries for purposes of <internal-xref idref="H3D483ECB498847FBB2E9CE869D12B645" legis-path="1903A.(b)(1)(B)">subsection (b)(1)(B)</internal-xref> and <internal-xref idref="H60A66170B8A44488A32A98C8C05DD86B" legis-path="1903A.(c)(2)(A)">subsection (c)(2)(A)</internal-xref> in proportion to the extent that such individuals are receiving medical assistance for which payments described under <internal-xref idref="H895BAD739B224EDABF987D9751097249" legis-path="1903A.(a)(4)(A)">subsection (a)(4)(A)</internal-xref> are made.</text></subsection> <subsection id="H7BB1E61E8CCB441ABEFF34B7A2DAEE2B"><enum>(e)</enum><header>Risk Adjustment</header> <paragraph id="HB34E4E8A506140468835BC7D814310D0"><enum>(1)</enum><header>In general</header><text>The amount under <internal-xref idref="HC92656DFF54D4C84865F901FC9E3A50F" legis-path="1903A.(a)(1)(A)">subsection (a)(1)(A)</internal-xref> shall be adjusted under this subsection in an appropriate manner, specified by the Secretary and consistent with <internal-xref idref="H117F741BEBBA47868FDE9B22186B9964" legis-path="1903A.(e)(2)">paragraph (2)</internal-xref>, to take into account—</text> 
<subparagraph id="H1E542F56DA984193ADA9C7E5B27CF7A7"><enum>(A)</enum><text>the factors described in subsection (c)(2)(C)(i)(I) within a category of beneficiaries; and</text></subparagraph> <subparagraph id="HDBDCB803F47C49C8B09B40E64A5FD2C8"><enum>(B)</enum><text>variations in costs on a county-by-county basis for medical assistance and administrative expenses.</text></subparagraph></paragraph> 
<paragraph id="H117F741BEBBA47868FDE9B22186B9964"><enum>(2)</enum><header>Method of adjustment</header> 
<subparagraph id="HC57B8E4377CA4DC8B6848749BF0D850F"><enum>(A)</enum><header>In general</header><text>The adjustments under <internal-xref idref="HB34E4E8A506140468835BC7D814310D0" legis-path="1903A.(e)(1)">paragraph (1)</internal-xref> shall be made in a manner similar to the manner in which similar adjustments are made under <internal-xref idref="H55A389DDD68F41E59EEE600F38F4D9D6" legis-path="1903A.(c)(2)(C)">subsection (c)(2)(C)</internal-xref> and consistent with the requirements of clause (iii) of such subsection and subparagraph (B).</text></subparagraph> <subparagraph id="H4459450DA25744CAB8D8CFB2BA8E7858"><enum>(B)</enum><header>Biannual update of risk adjustment methodology</header><text>In applying clause (i)(I) of subsection (c)(2)(C) for purposes of subparagraph (A), the Secretary shall, in consultation with the entities described in clause (ii)(I) of such subsection, update the risk adjustment methodology applied as appropriate not less often than every 2 years.</text></subparagraph></paragraph></subsection> 
<subsection id="HD35C0323BE664D108C29ADFA7BC5754E"><enum>(f)</enum><header>Chronic care quality bonus payments</header> 
<paragraph id="H77F05A65A3B0480FBC6CB7BE6CBDE1DF"><enum>(1)</enum><header>Determination of bonus payments</header><text display-inline="yes-display-inline">If the Secretary determines that, based on the reports under <internal-xref idref="H3CCE40BA6E6948BDB95C0DB753DF0F3F" legis-path="1903A.(f)(5)">paragraph (5)</internal-xref>, with respect to categories of chronic disease for which chronic care performance targets had been established under <internal-xref idref="HA3E1C950C3154E7E81B6920CFB7BD886" legis-path="1903A.(f)(3)">paragraph (3)</internal-xref> for each category of Medicaid beneficiaries specified under <internal-xref idref="H005E97E9F6EC4EBAA4B5CBA8A911128C" legis-path="1903A.(b)(2)">subsection (b)(2)</internal-xref> such targets have been met by a State for a reform year, the Secretary shall make an additional payment to such State in the amount specified in <internal-xref idref="H61AF7E87774341CBA63CCE5C0DBB3B2D" legis-path="1903A.(f)(6)">paragraph (6)</internal-xref> for each quarter in the succeeding reform year. Such payments shall be made in a manner specified by the Secretary and may only be used consistent with <internal-xref idref="H0E5B964DF3EE4F869B9BEFD19DE9961F" legis-path="1903A.(a)(3)">subsection (a)(3)</internal-xref>.</text></paragraph> <paragraph id="H0F3D2AA58B1A4ADDAFF79B4FDD842FBF"><enum>(2)</enum><header>Identification of categories of chronic disease</header><text>The Secretary shall determine the categories of chronic disease for which bonus payments may be available under this subsection for each category of Medicaid beneficiaries.</text></paragraph> 
<paragraph id="HA3E1C950C3154E7E81B6920CFB7BD886"><enum>(3)</enum><header>Adoption of quality measurement system and identification of performance targets</header> 
<subparagraph id="H6145565025EA4E8C9FFCBEE0A27D7470"><enum>(A)</enum><header>System and data</header><text>With respect to the categories of chronic disease under <internal-xref idref="H0F3D2AA58B1A4ADDAFF79B4FDD842FBF" legis-path="1903A.(f)(2)">paragraph (2)</internal-xref>, the Secretary shall adopt a quality measurement system that uses data described in <internal-xref idref="HBF0F5A638BF94D84978D43307FBF1C5F" legis-path="1903A.(f)(4)">paragraph (4)</internal-xref> and is similar to the Five-Star Quality Rating System used to indicate the performance of Medicare Advantage plans under part C of title XVIII.</text></subparagraph> <subparagraph id="H89FA8DC5DCED4868A71E8D8C176D778D"><enum>(B)</enum><header>Targets</header><text>Using such system and data, the Secretary shall establish for each reform year the chronic care performance targets for purposes of the payments under <internal-xref idref="H77F05A65A3B0480FBC6CB7BE6CBDE1DF" legis-path="1903A.(f)(1)">paragraph (1)</internal-xref>. Such performance targets shall be established in consultation with States, associations representing individuals with chronic illnesses, entities providing treatment to such individuals for such chronic illnesses, and other stakeholders, including the National Association of Medicaid Directors and the National Governors Association.</text></subparagraph></paragraph> 
<paragraph id="HBF0F5A638BF94D84978D43307FBF1C5F"><enum>(4)</enum><header>Data to be used</header><text>The data to be used under <internal-xref idref="HA3E1C950C3154E7E81B6920CFB7BD886" legis-path="1903A.(f)(3)">paragraph (3)</internal-xref> shall include—</text> <subparagraph id="H18F5C30953034D2C8E47979E940A716A"><enum>(A)</enum><text>data collected through methods such as—</text> 
<clause id="H1779D7AA3A1748ADBABF0C7E6517D32B"><enum>(i)</enum><text display-inline="yes-display-inline">the <quote>Healthcare Effectiveness Data and Information Set</quote> (also known as <quote>HEDIS</quote>) (or an appropriate successor performance measurement tool);</text></clause> <clause id="HF7222BE900244C158141FD51D4A6A0C5"><enum>(ii)</enum><text display-inline="yes-display-inline">the <quote>Consumer Assessment of Healthcare Providers and Systems</quote> (also known as <quote>CAHPS</quote>) (or an appropriate successor performance measurement tool); and</text></clause> 
<clause id="HCDC7E9892B72406093EACD7139065DFC"><enum>(iii)</enum><text display-inline="yes-display-inline">the <quote>Health Outcomes Survey</quote> (also known as <quote>HOS</quote>) (or an appropriate successor performance measurement tool); and</text></clause></subparagraph> <subparagraph id="H376D05EA57EC4B9E9E18AA49783F07E3"><enum>(B)</enum><text>other data collected by the State.</text></subparagraph></paragraph> 
<paragraph id="H3CCE40BA6E6948BDB95C0DB753DF0F3F"><enum>(5)</enum><header>Reports</header> 
<subparagraph id="HFAA9D40338E84A0A983A7249357E0487"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Each State shall collect, analyze, and report to the Secretary, at a frequency and in a manner to be established by the Secretary, data described in <internal-xref idref="HBF0F5A638BF94D84978D43307FBF1C5F" legis-path="1903A.(f)(4)">paragraph (4)</internal-xref> that permit the Secretary to monitor the State’s performance relative to the chronic care performance targets established under <internal-xref idref="HA3E1C950C3154E7E81B6920CFB7BD886" legis-path="1903A.(f)(3)">paragraph (3)</internal-xref>.</text></subparagraph> <subparagraph id="H0CE2471192CB46DBB06DA082E0351B3D"><enum>(B)</enum><header>Review and verification</header><text>The Secretary may review the data collected by the State under <internal-xref idref="HFAA9D40338E84A0A983A7249357E0487" legis-path="1903A.(f)(5)(A)">subparagraph (A)</internal-xref> to verify the State’s analysis of such data with respect to the performance targets under <internal-xref idref="HA3E1C950C3154E7E81B6920CFB7BD886" legis-path="1903A.(f)(3)">paragraph (3)</internal-xref>.</text></subparagraph></paragraph> 
<paragraph commented="no" id="H61AF7E87774341CBA63CCE5C0DBB3B2D"><enum>(6)</enum><header>Amount of bonus payments</header> 
<subparagraph id="H35B52614E9FA451B94EAEB4EE21136FB"><enum>(A)</enum><header>In general</header><text>Subject to subparagraphs (B) and (C), with respect to each category of Medicaid beneficiaries, in the case of a State that the Secretary determines, based on the chronic care performance targets set under <internal-xref idref="HA3E1C950C3154E7E81B6920CFB7BD886" legis-path="1903A.(f)(3)">paragraph (3)</internal-xref> for a reform year for such category, performs—</text> <clause id="HF05232388CDB444882AB2BB8EC3EC931"><enum>(i)</enum><text>in the top five States in such category, subject to subparagraph (C)(ii), the amount of the bonus for each quarter in the succeeding reform year shall be 10 percent of the payment amount otherwise paid to the State under subsection (a) for individuals enrolled under the plan within such category;</text></clause> 
<clause id="H3A4B5D896FE646EC9E19182636277871"><enum>(ii)</enum><text display-inline="yes-display-inline">in the next five States in such category, subject to subparagraph (C)(ii), the amount of the bonus for each such quarter shall be 5 percent of the payment amount otherwise paid to the State under subsection (a) for individuals enrolled under the plan within such category;</text></clause> <clause id="H165319A0DF5F46F69D3514D537F24E22"><enum>(iii)</enum><text display-inline="yes-display-inline">in the next five States in such category, subject to clauses (i) and (iii) of subparagraph (C), the amount of the bonus for each such quarter shall be 3 percent of the payment amount otherwise paid to the State under subsection (a) for individuals enrolled under the plan within such category;</text></clause> 
<clause id="H04AD6BCF344B4550B05AA42929BE8D92"><enum>(iv)</enum><text display-inline="yes-display-inline">in the next five States in such category, subject to clauses (i) and (iii) of subparagraph (C), the amount of the bonus for each such quarter shall be 2 percent of the payment amount otherwise paid to the State under subsection (a) for individuals enrolled under the plan within such category; and</text></clause> <clause id="H097C148521C546BBA299B243E4858827"><enum>(v)</enum><text display-inline="yes-display-inline">in the next five States in such category, subject to clauses (i) and (iii) of subparagraph (C), the amount of the bonus for each such quarter shall be 1 percent of the payment amount otherwise paid to the State under subsection (a) for individuals enrolled under the plan within such category.</text></clause></subparagraph> 
<subparagraph id="H74C2A5C43D3440CE8E1088895C479817"><enum>(B)</enum><header>Aggregate annual limit for each category of Medicaid beneficiaries</header> 
<clause id="H544061EA9D0648F6A7653434F6B96311"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In no case may the aggregate amount of bonuses under this subsection for quarters in a reform year for a category of Medicaid beneficiaries exceed the limit specified in clause (ii) for the reform year.</text></clause> <clause id="H0DB3057DDE794AB396C80743550995BA"><enum>(ii)</enum><header>Limit</header><text>The limit specified in this clause—</text> 
<subclause id="HBEA3E568BFF143DD8453D7D5BAE137F6"><enum>(I)</enum><text>for the second reform year is equal to $250,000,000; or</text></subclause> <subclause id="H5777CA484A7A4E64B2232C78304572F6"><enum>(II)</enum><text display-inline="yes-display-inline">for a subsequent reform year is equal to the limit specified in this clause for the previous reform year increased by the per beneficiary percentage increase determined under paragraph (1)(E) of subsection (c).</text></subclause></clause></subparagraph> 
<subparagraph id="H4BA05A6FB5FD4B2AAE29576FA0CE87E5"><enum>(C)</enum><header>Limitation and proration of bonuses based on application of aggregate limit</header> 
<clause id="HAB9FA718E5B14CFBAE4E87DD9CF58E6E"><enum>(i)</enum><header>No bonus for third or subsequent tiers unless aggregate limit not reached on first two tiers</header><text display-inline="yes-display-inline">No bonus shall be payable under clause (iii), (iv), or (v) of subparagraph (A) for a category of Medicaid beneficiaries for a quarter in a reform year unless the aggregate amount of bonuses under clauses (i) and (ii) of such subparagraph for such category and reform year is less than the limit specified in subparagraph (B)(ii) for the reform year.</text></clause> <clause id="H296BD0C337354B388C63D18154E3424C"><enum>(ii)</enum><header>Proration for first two tiers</header><text>If the aggregate amount of bonuses under clauses (i) and (ii) of subparagraph (A) for a category of Medicaid beneficiaries for quarters in a reform year exceeds the limit specified in subparagraph (B)(ii) for the reform year, the amount of each such bonus shall be prorated in a manner so the aggregate amount of such bonuses is equal to such limit.</text></clause> 
<clause id="HE41B6BFDFEC64379B4FD0C091E63F8E9"><enum>(iii)</enum><header>Proration for next three tiers</header><text display-inline="yes-display-inline">If the aggregate amount of bonuses under clauses (i) and (ii) of subparagraph (A) for a category of Medicaid beneficiaries for quarters in a reform year is less than the limit specified in subparagraph (B)(ii) for the reform year, but the aggregate amount of bonuses under clauses (i) through (v) of subparagraph (A) for the category and such quarters in the reform year exceeds the limit specified in subparagraph (B)(ii) for the reform year, the amount of each bonus in clauses (iii), (iv), and (v) of subparagraph (A) shall be prorated in a manner so the aggregate amount of all the bonuses under subparagraph (A) is equal to such limit.</text></clause></subparagraph></paragraph></subsection> <subsection id="H5E077DD4575448EEAE15012080048010"><enum>(g)</enum><header>State option for receiving Medicare payments for full-Benefit dual eligible individuals</header> <paragraph id="HB3D4DA1D21354B5E81E8C96B641B7E14"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Under this subsection a State may elect for quarters beginning on or after the implementation date in a reform year to receive payment from the Secretary under <internal-xref idref="HA7697017672F451384FE31CFC8309713" legis-path="1903A.(g)(3)">paragraph (3)</internal-xref>. As a condition of receiving such payment, the State shall agree to provide to full-benefit dual eligible individuals eligible for medical assistance under the State plan—</text> 
<subparagraph id="H0863004FF64C43A2A625F1A18135981E"><enum>(A)</enum><text>the medical assistance to which such eligible individuals would otherwise be entitled under this title; and</text></subparagraph> <subparagraph id="H5C3B41B2B08142F78F1B2A08BF25C596"><enum>(B)</enum><text>any items and services which such eligible individuals would otherwise receive under title XVIII.</text></subparagraph></paragraph> 
<paragraph id="H3CA1968572514C5A868CCBE3C680D2B0"><enum>(2)</enum><header>Provider payment requirement</header> 
<subparagraph commented="no" id="H032A5393BF8E409B819C2D05347508CD"><enum>(A)</enum><header>In general</header><text>A State electing the option under this subsection shall provide payment to health care providers for the items and services described under <internal-xref idref="H5C3B41B2B08142F78F1B2A08BF25C596" legis-path="1903A.(g)(1)(B)">paragraph (1)(B)</internal-xref> at a rate that is not less than the rate at which payments would be made to such providers for such items and services under title XVIII.</text></subparagraph> <subparagraph id="H48D81209D7A449F9960650FE23CDADA4"><enum>(B)</enum><header>Flexibility in payment methods</header><text>Nothing in <internal-xref idref="H032A5393BF8E409B819C2D05347508CD" legis-path="1903A.(g)(2)(A)">subparagraph (A)</internal-xref> shall be construed as preventing a State from using alternative payment methodologies (such as bundled payments or the use of accountable care organizations (as such term is used in section 1899)) for purposes of making payments to health care providers for items and services provided to dual eligible individuals in the State under the option under this subsection.</text></subparagraph></paragraph> 
<paragraph id="HA7697017672F451384FE31CFC8309713"><enum>(3)</enum><header>Payments to States in lieu of Medicare payments</header><text>With respect to a full-benefit dual eligible individual, in the case of a State that elects the option under <internal-xref idref="HB3D4DA1D21354B5E81E8C96B641B7E14" legis-path="1903A.(g)(1)">paragraph (1)</internal-xref> for quarters in a reform year—</text> <subparagraph id="H4B6E2EC3F97A423CB12E25DFCBD2519A"><enum>(A)</enum><text>the Secretary shall not make any payment under title XVIII for items and services furnished to such individual for such quarters; and</text></subparagraph> 
<subparagraph id="H31915D149BC74AD3884C0DEF21571EE0"><enum>(B)</enum><text>the Secretary shall pay to the State, in addition to the amounts paid to such State under <internal-xref idref="HB7330675BB8C46F5A4E1CC65A2B706CF" legis-path="1903A.(a)">subsection (a)</internal-xref>, the amount that the Secretary would, but for this subsection, otherwise pay under title XVIII for items and services furnished to such an individual in such State for such quarters.</text></subparagraph></paragraph> <paragraph id="HE9F8BA5B71914E47A3C6A899E73C4B32"><enum>(4)</enum><header>Full-benefit dual eligible individual defined</header><text display-inline="yes-display-inline">In this subsection, the term <term>full-benefit dual eligible individual</term> means an individual who meets the requirements of section 1935(c)(6)(A)(ii).</text></paragraph></subsection> 
<subsection id="HA1A96545B1B54CE193D1FEDC0A976ED3"><enum>(h)</enum><header>Audits</header><text>The Secretary shall conduct such audits on the number and classification of Medicaid beneficiaries under such subsections and expenditures under this section as may be necessary to ensure appropriate payments under this section.</text></subsection> <subsection id="H8EC40EE6B01147E0B51B3DB4D3CE471E"><enum>(i)</enum><header>Treatment of waivers</header> <paragraph id="H44BDD133E97041399B9AC76FDD2CCE4B"><enum>(1)</enum><header>No impact on current waivers</header><text display-inline="yes-display-inline">In the case of a waiver of requirements of this title pursuant to section 1115 or other law that is in effect as of the date of the enactment of this section, nothing in this section shall be construed to affect such waiver for the period of the waiver as approved as of such date.</text></paragraph> 
<paragraph id="H95F0190F7E9D4358AAE71248DAB4A415"><enum>(2)</enum><header>Application of budget neutrality to subsequent waivers and renewals taking section into account</header><text display-inline="yes-display-inline">In the case of a waiver of requirements of this title pursuant to section 1115 or other law that is approved or renewed after the date of the enactment of this section, to the extent that such approval or renewal is conditioned upon a demonstration of budget neutrality, budget neutrality shall be determined taking into account the application of this section.</text></paragraph></subsection> <subsection id="HF4B8E7491B4A4FA8B69FEE01DB012325"><enum>(j)</enum><header>Report to Congress</header><text>Not later than January 1 of the second reform year, the Secretary shall submit to Congress a report on the implementation of this section.</text></subsection> 
<subsection id="HB3E670A889054F0E80FB249FD3C5095E"><enum>(k)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HB5E2964F9EE5429FAEB48A04765A2781" commented="no"><enum>(1)</enum><header>Implementation date</header><text display-inline="yes-display-inline">The term <term>implementation date</term> means—<italic></italic></text> 
<subparagraph id="H085F84264C444453B7DD71A3D19AB566" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">July 1, 2022, if this section is enacted on or before July 1, 2021; or</text></subparagraph> <subparagraph id="HC14A943A61AD46CBA168DC4CEB0D13B4" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">July 1, 2022, if this section is enacted after July 1, 2021.</text></subparagraph></paragraph> 
<paragraph id="H854EBCD3A1CD492D88C435B12C25BE20"><enum>(2)</enum><header>Reform years</header> 
<subparagraph id="H7470727110F9470FB04CD272A6F07209"><enum>(A)</enum><text>The term <term>reform year</term> means a fiscal year beginning with the first reform year.</text></subparagraph> <subparagraph id="H5282FC6DD743455F873912CDA0FD9980"><enum>(B)</enum><text>The term <term>first reform year</term> means the fiscal year in which the implementation date occurs.</text></subparagraph> 
<subparagraph id="H52CAB99BC81949B8AB15DA9599675AC2"><enum>(C)</enum><text>The terms <term>second</term>, <term>third</term>, and successive similar terms mean, with respect to a reform year, the second, third, or successive reform year, respectively, succeeding the first reform year.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H3718C6D77C8740A388936C4F46617BF0"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H006DB05B180447649CDD1E7289C0EF6E"><enum>(1)</enum><header>Continued application of clawback provisions</header> <subparagraph id="HC22CBF75DC8F4A32898D9DF62D727084"><enum>(A)</enum><header>Continued application</header><text>Subsections (a) and (c)(1)(C) of section 1935 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396u-5">42 U.S.C. 1396u–5</external-xref>) are each amended by inserting <quote>or 1903A(a)</quote> after <quote>1903(a)</quote>.</text></subparagraph> 
<subparagraph id="H2F781597FFB64D659AB5D7C73A8BA5AE"><enum>(B)</enum><header>Technical amendment</header><text>Section 1935(d)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396u-5">42 U.S.C. 1396u–5(d)(1)</external-xref>) is amended by inserting <quote>except as provided in section 1903A(g)</quote> after <quote>any other provision of this title</quote>.</text></subparagraph></paragraph> <paragraph id="H975BAFB37D3849E08B9AC500150D18E8"><enum>(2)</enum><header>Payment rules under section 1903</header> <subparagraph id="H612D61A3B8874BA5B8F00F6BF8EF59AD"><enum>(A)</enum><text>Section 1903(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(a)</external-xref>) is amended, in the matter before paragraph (1), by inserting <quote>and section 1903A</quote> after <quote>except as otherwise provided in this section</quote>.</text></subparagraph> 
<subparagraph commented="no" id="H79B55660D82E42FDB0183D857A16C81B"><enum>(B)</enum><text display-inline="yes-display-inline">Section 1903(d) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(d)</external-xref>) is amended—</text> <clause commented="no" id="HFB114F36FDB44910A2B7B8AD9E21CDAA"><enum>(i)</enum><text>in paragraph (1), by inserting <quote>and under section 1903A</quote> after <quote>subsections (a) and (b)</quote>;</text></clause> 
<clause commented="no" id="HF065D556F2EE49DDBF1A9F24B9CDCC5D"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text> <subclause commented="no" id="H6CCF75503A6543C3AFF1B237520537E9"><enum>(I)</enum><text>in subparagraph (A), by inserting <quote>or section 1903A</quote> after <quote>was made under this section</quote>; and</text></subclause> 
<subclause commented="no" id="HBB2554D236C242868F65E641E83D7ACD"><enum>(II)</enum><text display-inline="yes-display-inline">in subparagraph (B), by inserting <quote>or section 1903A</quote> after <quote>under subsection (a)</quote>;</text></subclause></clause> <clause commented="no" id="H6D0D5CB8B4CA42ECB4873BD4510A0D60"><enum>(iii)</enum><text>in paragraph (4)—</text> 
<subclause id="H38DFF4AA8E9A4EF9A16983B3C2587C15"><enum>(I)</enum><text>by striking <quote>under this subsection</quote> and inserting <quote>, with respect to this section or section 1903A, under this subsection</quote>; and</text></subclause> <subclause id="H791406145C91495A94A1F8EDA102068B"><enum>(II)</enum><text>by striking <quote>under this section</quote> and inserting <quote>under the respective section</quote>; and</text></subclause></clause> 
<clause commented="no" display-inline="no-display-inline" id="H8AD9916A215F46C3BAC8805455B81B27"><enum>(iv)</enum><text>in paragraph (5), by inserting <quote>or section 1903A</quote> after <quote>overpayment under this section</quote>.</text></clause></subparagraph></paragraph> <paragraph id="H3935908E00E54691861ACB206C811171"><enum>(3)</enum><header>Conforming waiver authority</header><text>Section 1115(a)(2)(A) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1315">42 U.S.C. 1315(a)(2)(A)</external-xref>) is amended by striking <quote>or 1903</quote> and inserting <quote>1903, or 1903A</quote>.</text></paragraph> 
<paragraph id="HE52913CE9C8049FF98D9D7B4CA102944"><enum>(4)</enum><header>Report on additional conforming amendments needed</header><text>Not later than 6 months after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to Congress a report that includes a description of any additional technical and conforming amendments to law that are required to properly carry out this Act.</text></paragraph></subsection></section></title> <title id="H5D723F29B734490FAD21CD0F7CF7F279"><enum>V</enum><header>Price Transparency</header> <section id="HB5BD74E32E9D4D2EA11C178EE2F1C9D5"><enum>501.</enum><header>Promoting transparent hospital prices for consumers</header><text display-inline="no-display-inline">The provisions of the rule entitled <quote>Price Transparency Requirements for Hospitals to Make Standard Charges Public</quote> published by the Department of Health and Human Services on November 27, 2019 (85 Fed. Reg. 65524) shall have the force and effect of law.</text></section></title> 
</legis-body> 
</bill> 


