[House Report 118-110]
[From the U.S. Government Publishing Office]


118th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                    {       118-110

======================================================================



 
                     PAPERWORK BURDEN REDUCTION ACT

                                _______
                                

 June 13, 2023.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Smith of Missouri, from the Committee on Ways and Means, submitted 
                             the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3797]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 3797) to amend the Internal Revenue Code of 1986 to 
provide an alternative manner of furnishing certain health 
insurance coverage statements to individuals, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page 
                                                                   
  I. SUMMARY AND BACKGROUND........................................... 2
          A. Purpose and Summary.................................      2
          B. Background and Need for Legislation.................      2
          C. Legislative History.................................      3
          D. Legislative History.................................      3
 II. EXPLANATION OF THE BILL.......................................... 4
          A. Alternative Manner of Furnishing Certain Health 
              Insurance Coverage Statements to Individuals (sec. 
              2 of the bill and secs. 6055 and 6056 of the Code).      4
III. VOTE OF THE COMMITTEE............................................ 9
 IV. BUDGET EFFECTS OF THE BILL....................................... 9
          A. Committee Estimate of Budgetary Effects.............      9
          B. Statement Regarding New Budget Authority and Tax  
              Expenditures Budget Authority......................      9
          C. Cost Estimate Prepared by the Congressional Budget  
              Office.............................................      9
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE...... 10
          A. Committee Oversight Findings and Recommendations....     10
          B. Statement of General Performance Goals and 
              Objectives.........................................     10
          C. Information Relating to Unfunded Mandates...........     10
          D. Congressional Earmarks, Limited Tax Benefits, and  
              Limited Tariff Benefits............................     10
          E. Tax Complexity Analysis.............................     10
          F. Duplication of Federal Programs.....................     10
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED........... 11
          A. Changes in Existing Law Proposed by the Bill, as 
              Reported...........................................     11
VII. DISSENTING VIEWS................................................ 15

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Paperwork Burden Reduction Act''.

SEC. 2. ALTERNATIVE MANNER OF FURNISHING CERTAIN HEALTH INSURANCE 
                    COVERAGE STATEMENTS TO INDIVIDUALS.

  (a) Reporting of Health Insurance Coverage.--Section 6055(c) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
          ``(3) Alternative manner of furnishing statements.--For 
        purposes of this subsection, any person required to make a 
        return under subsection (a) shall be treated as timely 
        furnishing the written statement required under paragraph (1) 
        if--
                  ``(A) such person provides clear, conspicuous, and 
                accessible notice (at such time and in such manner as 
                the Secretary may provide) that any individual to whom 
                a statement would otherwise be required to be furnished 
                under paragraph (1) may request a copy of such 
                statement, and
                  ``(B) such person, on request of any such individual, 
                furnishes a copy of such statement to such individual 
                not later than the later of--
                          ``(i) January 31 of the year following the 
                        calendar year for which the return under 
                        subsection (a) was required to be made, or
                          ``(ii) 30 days after the date of such 
                        request.''.
  (b) Certain Employers Required to Report on Health Insurance 
Coverage.--Section 6056(c) of such Code is amended by adding at the end 
the following new paragraph:
          ``(3) Alternative manner of furnishing statements.--For 
        purposes of this subsection, any person required to make a 
        return under subsection (a) shall be treated as timely 
        furnishing the written statement required under paragraph (1) 
        if--
                  ``(A) such person provides clear, conspicuous, and 
                accessible notice (at such time and in such manner as 
                the Secretary may provide) that any individual to whom 
                a statement would otherwise be required to be furnished 
                under paragraph (1) may request a copy of such 
                statement, and
                  ``(B) such person, on request of any such individual, 
                furnishes a copy of such statement to such individual 
                not later than the later of--
                          ``(i) January 31 of the year following the 
                        calendar year for which the return under 
                        subsection (a) was required to be made, or
                          ``(ii) 30 days after the date of such 
                        request.''.
  (c) Effective Date.--The amendments made by this section shall apply 
to statements with respect to returns for calendar years after 2023.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The bill, H.R. 3797, the ``Paperwork Burden Reduction 
Act,'' as ordered reported by the Committee on Ways and Means 
on June 7, 2023, codifies the Treasury rule (26 CFR 1.6055-1; 
26 CFR 301.6056-1) allowing for 1095-B forms available to be 
requested online and extend this flexibility to employers 
providing 1095-C forms.

                 B. Background and Need for Legislation

    Every year, the IRS requires reporting entities to provide 
individuals with information regarding their health insurance 
coverage. The Tax Cuts and Jobs Act (PL 115-97) reduced the 
individual shared responsibility payment amount (individual 
mandate) to zero dollars. 1095-B forms are used by the IRS to 
verify coverage for the purposes of administering the 
individual mandate. In December 2022, the Treasury Department 
finalized a rule giving reporting entities an alternative 
manner of furnishing 1095-B statements due to the reduced 
importance of the individual mandate penalty. If the reporting 
entity chooses not to mail an individual their 1095-B form, 
they would be required to post a clear and conspicuous notice 
on the entity's website stating that responsible individuals 
may receive a copy of their 1095-B statement upon request. The 
notice is required to include an email address, a physical 
address to which a request may be sent, and a telephone number 
responsible individuals may use to contact a reporting entity 
with any questions. In the final rule, the Treasury Department 
noted they did not feel they had the authority to extend this 
flexibility to a similar form, the 1095-C. 1095-C forms are 
used by individuals who decline their employer coverage offer 
because it's unaffordable, enroll in and pay for exchange 
coverage, then request a premium tax credit with their 
subsequent tax return. According to estimates from the Centers 
for Medicare and Medicaid Services provided to the Committee, 
less than 1% of 2023 federal exchange enrollees receiving a 
premium tax credit attested to being offered employer sponsored 
coverage that did not meet the minimum value standard or was 
unaffordable. Ways and Means majority felt the 1095-C form 
should be treated with the same option of an alternative manner 
of furnishing because the form is unnecessary for the vast 
majority of individuals.

                         C. Legislative History


Background

    H.R. 3797 was introduced on June 5, 2023, and was referred 
to the Committee on Ways and Means.

Committee hearings

    On Thursday, March 23, 2023, the Ways and Means 
Subcommittee on Health held hearing on ``Why Health Care is 
Unaffordable: The Fallout of Democrats'' Inflation on Patients 
and Small Businesses''.

Committee action

    The Committee on Ways and Means marked up H.R. 3797, the 
``Paperwork Burden Reduction Act,'' on June 7, 2023, and 
ordered the bill, as amended, favorably reported (with a quorum 
being present).

                         D. Legislative History

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearings were used to develop and consider H.R. 3797:
    (1) Committee on Ways and Means Subcommittee on Health 
``Why Health Care is Unaffordable: The Fallout of Democrats'' 
Inflation on Patients and Small Businesses''.

                      II. EXPLANATION OF THE BILL


 A. Alternative Manner of Furnishing Certain Health Insurance Coverage 
 Statements to Individuals (sec. 2 of the bill and secs. 6055 and 6056 
                              of the Code)


                              PRESENT LAW

Minimum essential coverage

    The Patient Protection and Affordable Care Act 
(``PPACA'')\1\ required individuals to have minimum essential 
health insurance coverage,\2\ to qualify for an exemption from 
the coverage requirements, or to make a shared responsibility 
payment for failure to maintain the coverage (commonly referred 
to as the ``individual mandate'').\3\ However, beginning in 
2019, the amount of the shared responsibility payment was 
reduced to zero.\4\
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    \1\Pub. L. No. 111-148, March 23, 2010, as amended by the Health 
Care and Education Reconciliation Act of 2010, March 30, 2010, Pub. L. 
No. 111-152.
    \2\As defined under section 5000A(f).
    \3\Sec. 5000A. If an individual is a dependent, as defined in 
section 152, of another taxpayer, the other taxpayer is liable for any 
tax for failure to maintain the required coverage with respect to the 
individual. Sec. 5000A(b)(3)(A).
    \4\Secs. 5000A(c)(2)(B)(iii); (c)(3)(A). These changes were 
effective for months beginning after December 31, 2018. Pub. L. No. 
115-97, secs. 11081(a)(1)-(2), July 20, 2018.
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    Certain employers must offer minimum essential coverage to 
employees or must pay a penalty. Specifically, an applicable 
large employer that does not offer minimum essential coverage 
for all of its full-time employees, that offers minimum 
essential coverage that is unaffordable, or that offers minimum 
essential coverage that consists of a plan under which the 
plan's share of the total allowed cost of benefits is less than 
60 percent, is required to pay a penalty if any full-time 
employee is certified to the employer as having purchased 
health insurance through an Exchange\5\ with respect to which a 
tax credit or cost-sharing reduction is allowed or paid to the 
employee.\6\ An applicable large employer is generally defined, 
with respect to a calendar year, as an employer who employed an 
average of at least 50 full-time employees on business days 
during the preceding calendar year.\7\
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    \5\An Exchange established under section 1311 of the PPACA.
    \6\Sec. 4980H(a), (b); sec. 36B(c)(2)(C).
    \7\Sec. 4980H(c)(2). An employer is not considered to employ more 
than 50 full-time employees if (1) the employer's workforce exceeds 50 
full-time employees for 120 days or fewer during the calendar year, and 
(2) the employees in excess of 50 employed during such 120-day period 
were seasonal workers. All persons treated as a single employer under 
subsection (b), (c), (m), or (o) of section 414 are treated as one 
employer.
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Reporting of health insurance coverage (Form 1095-B)

    A person (including a health insurance issuer or an 
employer that self-insures) that provides minimum essential 
coverage to any individual during a calendar year (``reporting 
entity'') must file an information return and transmittal 
reporting certain health insurance coverage information and 
must furnish statements to responsible individuals on forms 
prescribed by the Internal Revenue Service (``IRS'').\8\ For 
this purpose, the responsible individual includes a primary 
insured, employee, former employee, uniformed services sponsor, 
parent, or other related person named on an application who 
enrolls one or more individuals, including him or herself, in 
minimum essential coverage.\9\ In the case of coverage provided 
by a governmental unit, or by any agency or instrumentality 
thereof, the reporting requirement applies to the officer or 
employee who enters into the agreement to provide the health 
insurance coverage (or their designee).\10\
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    \8\Sec. 6055; Treas. Reg. sec. 1.6055-1(a).
    \9\Treas. Reg. sec. 1.6055-1(b)(11).
    \10\Sec. 6055(d).
---------------------------------------------------------------------------
    The information required to be reported includes: (1) the 
name, address, and taxpayer identification number of the 
responsible individual (unless the individual is not enrolled 
in the coverage), and the name and taxpayer identification 
number of each other individual obtaining coverage under the 
policy; (2) the dates during which the individual was covered 
under the policy during the calendar year; (3) whether the 
coverage is a qualified health plan offered through an 
Exchange; (4) the amount of any premium tax credit\11\ or cost-
sharing reduction received by the individual with respect to 
such coverage;\12\ and (5) such other information as the 
Secretary of Treasury (``Secretary'') may require.\13\
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    \11\Sec. 36B.
    \12\The amount of any cost-sharing reduction under section 1402 of 
the PPACA.
    \13\Sec. 6055(b). See Treas. Reg. sec. 1.6055-1(d), (e).
---------------------------------------------------------------------------
    To the extent health insurance coverage is provided through 
an employer-sponsored group health plan, the reporting entity 
is also required to report the name, address and employer 
identification number of the employer, the portion of the 
premium, if any, required to be paid by the employer, and any 
other information the Secretary may require to administer the 
tax credit for eligible small employers.\14\
---------------------------------------------------------------------------
    \14\Sec. 6055(b)(2). The tax credit is under section 45R.
---------------------------------------------------------------------------
            Time and manner of reporting, in general
    The reporting entity is required to report the above 
information, along with the name, address and contact 
information of the reporting insurer, to the IRS on or before 
February 28 (March 31 if filing electronically) of the year 
following the calendar year to which the information relates 
and to furnish the information in a written statement to the 
responsible individual on or before January 31 of the year 
following the calendar year to which the statement relates.\15\ 
Reporting entities are permitted an automatic 30-day extension 
to provide the written statement to individuals.\16\
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    \15\Treas. Reg. sec. 1.6055-1(f)(1), (g)(4)(i).
    \16\Treas. Reg. sec. 1.6055-1(g)(4)(i).
---------------------------------------------------------------------------
    The IRS has generally designated Form 1094-B, Transmittal 
of Health Coverage Information Returns, and Form 1095-B, Health 
Coverage, for reporting entities to meet these requirements. 
However, an applicable large employer that offers coverage 
through a self-insured health plan generally reports this 
information using Part III of the Form 1095-C, Employer-
Provided Health Insurance Offer and Coverage, which is the form 
that is also used by applicable large employers--whether self-
insured or not--for the separate requirement (described below) 
of reporting offers of health insurance coverage for their 
employees.\17\
---------------------------------------------------------------------------
    \17\Treas. Reg. sec. 1.6055-1(f)(2). Thus, an employer with a self-
insured health plan may use the Form 1095-C to satisfy both the 
requirements of sections 6055 (relating to insurer reporting of health 
insurance coverage) and 6056 (relating to applicable large employer 
reporting of health insurance coverage offered to employees).
---------------------------------------------------------------------------
    A reporting entity that fails to comply with these 
reporting requirements is subject to the penalties for failure 
to file an information return and failure to furnish payee 
statements, respectively.\18\
---------------------------------------------------------------------------
    \18\Secs. 6721, 6722; Treas. Reg. sec. 1.6055-1(h).
---------------------------------------------------------------------------
            Alternative manner of furnishing
    Under Treasury regulations, instead of furnishing a written 
statement to a responsible individual, reporting entities are 
permitted to provide a notice on their website, provided that 
certain requirements are met, stating that responsible 
individuals may receive a copy of their statement upon 
request.\19\ The notice must be clear and conspicuous, and in a 
location on the website that is reasonably accessible to all 
responsible individuals. It must include an email address, a 
physical address to which a request for a statement may be 
sent, and a telephone number that responsible individuals may 
use to contact the insurer with any questions. A notice 
satisfies these requirements if it is written in plain, non-
technical terms and with letters of a font size large enough, 
including any visual clues or graphical figures, to call to a 
viewer's attention that the information pertains to tax 
statements reporting that individuals had health coverage.
---------------------------------------------------------------------------
    \19\Treas. Reg. sec. 1.6055-1(g)(4)(ii)(B). The alternative manner 
of furnishing is only available for a calendar year for which the 
individual shared responsibility payment is zero (2019 or later).
---------------------------------------------------------------------------
    For example, a website provides a clear and conspicuous 
notice if it includes a statement on the main page (or a link 
on the main page, reading ``Tax Information,'' to a secondary 
page that includes a statement) in capital letters, ``IMPORTANT 
HEALTH COVERAGE TAX DOCUMENTS''; explains how responsible 
individuals may request a copy of Form 1095-B; and includes the 
reporting entity's email address, mailing address, and 
telephone number. This alternative manner of furnishing the 
statement is also available to a self-insured applicable large 
employer that uses the Form 1095-C to meet these reporting 
requirements, but only with respect to non-full-time employees 
and non-employees who are enrolled in the group health 
plan.\20\
---------------------------------------------------------------------------
    \20\Treas. Reg. sec. 1.6055-1(g)(4)(ii)(B).
---------------------------------------------------------------------------
    The reporting entity also must post the notice on its 
website no later than the date that the statements are 
otherwise required to be furnished to individuals, and must 
retain the notice in the same location on its website through 
October 15 of the year following the calendar year to which the 
statements relate.\21\ Lastly, the reporting entity must 
furnish the statement to a requesting responsible individual 
within 30 days of the date the request is received.\22\
---------------------------------------------------------------------------
    \21\Or the first business day after October 15, if October 15 falls 
on a Saturday, Sunday or legal holiday.
    \22\Treas. Reg. sec. 1.6055-(1)(g)(4)(ii)(B). The reporting entity 
may furnish the statement electronically pursuant to Treas. Reg. secs. 
1.6055-2(a)(2) through (6).
---------------------------------------------------------------------------

Reporting by applicable large employers on health insurance coverage 
        (Form 1095-C)

    An applicable large employer must file an information 
return and transmittal reporting certain health insurance 
coverage information, and furnish statements to full-time 
employees, on forms prescribed by the IRS.\23\ In the case of 
coverage provided by a governmental unit, or any agency or 
instrumentality thereof, the reporting requirement applies to 
the person or employee appropriately designated for purposes of 
making the returns and statements required by the 
provision.\24\
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    \23\Sec. 6056(a).
    \24\Sec. 6056(e).
---------------------------------------------------------------------------
    The information required to be reported includes: (1) the 
name, address and employer identification number of the 
employer; (2) a certification as to whether the employer offers 
its full-time employees and their dependents the opportunity to 
enroll in minimum essential coverage under an eligible 
employer-sponsored plan;\25\ (3) if the employer so certifies, 
(i) the length of any waiting period with respect to such 
coverage, (ii) the months coverage was available, (iii) the 
monthly premium for the lowest cost option in each of the 
enrollment categories, and (iv) the employer's share of the 
total allowed costs of benefits provided; (4) the number of 
full-time employees of the employer for each month during the 
calendar year; (5) the name, address and taxpayer 
identification number of each full-time employee employed by 
the employer during the calendar year and the number of months, 
if any, during which the employee (and any dependents) was 
covered under a plan sponsored by the employer during the 
calendar year; and (6) such other information as the Secretary 
may require.\26\
---------------------------------------------------------------------------
    \25\As defined in section 5000A(f)(2).
    \26\Sec. 6056(b). See Treas. Reg. sec. 301.6056-1.
---------------------------------------------------------------------------
    The employer is required to file the return and transmittal 
on or before February 28 (March 31 if filing electronically) of 
the year succeeding the calendar year to which it relates.\27\ 
The employer must also provide a written statement to each 
full-time employee named in the return that includes the 
information required to be reported with respect to that 
employee, along with the name, address, and contact information 
of the reporting employer, on or before January 31 of the year 
following the calendar year for which the return is required to 
be filed.\28\ Employers are permitted an automatic 30-day 
extension to provide the written statement to individuals.\29\
---------------------------------------------------------------------------
    \27\Treas. Reg. sec. 301.6056-1(e).
    \28\Sec. 6056(c).
    \29\Treas. Reg. sec. 301.6056-1(g)(1).
---------------------------------------------------------------------------
    The IRS generally has designated Form 1094-C, Transmittal 
of Employer-Provided Health Insurance Offer and Coverage 
Information Returns, and Form 1095-C, Employer-Provided Health 
Insurance Offer and Coverage, for employers to meet these 
requirements.
    An employer that fails to comply with these reporting 
requirements is subject to the penalties for failure to file an 
information return and failure to furnish payee statements, 
respectively.\30\
---------------------------------------------------------------------------
    \30\Secs. 6721, 6722; Treas. Reg. sec. 301.6056-1(i).
---------------------------------------------------------------------------
    Treasury regulations do not provide for an alternative 
manner of furnishing the written statement upon the request of 
the individual.

                           REASONS FOR CHANGE

    The Committee wishes to reduce the administrative and 
paperwork burdens that the present law reporting requirements 
relating to the Form 1095-C place on certain employers with 
respect to their full-time employees. The vast majority of 
employees do not need to use the Form 1095-C and may be 
confused when they receive it. The Committee believes 
businesses, particularly smaller businesses that nonetheless 
qualify as applicable large employers, should be permitted to 
save time and money by no longer being required to furnish the 
Form 1095-C to employees, except upon request.
    The Committee believes that the Treasury regulations 
allowing reporting entities to use the alternative manner 
furnishing of Form 1095-B\31\ have successfully reduced 
taxpayer administrative burdens and confusion. The Committee 
wishes to ensure that such rules are retained, and to extend 
such rules to the furnishing of the Form 1095-C.
---------------------------------------------------------------------------
    \31\And for self-insured employers with respect to non-full-time 
employees and non-employees, the 1095-C.
---------------------------------------------------------------------------

                        EXPLANATION OF PROVISION

Reporting of health insurance coverage (Form 1095-B)

    The provision provides that any person required to make a 
return on account of providing minimum essential coverage to an 
individual is treated as timely furnishing the required written 
statement to an individual if (1) the person provides clear, 
conspicuous, and accessible notice (at such time and in such 
manner as the Secretary may provide) that the individual may 
request a copy of the statement, and (2) on request of any such 
individual, the person furnishes a copy of the statement to the 
individual by the later of (i) January 31 of the year following 
the calendar year for which the return was required to be made, 
or (ii) 30 days after the date of such request.
    Thus, the provision codifies the rules under Treasury 
regulations that permit an alternative manner of furnishing the 
written statement (the Form 1095-B, or in certain cases of 
self-insured applicable large employers, the Form 1095-C) by 
furnishing the statement upon the request of the individual.

Reporting by applicable large employers on health insurance coverage 
        (Form 1095-C)

    The provision provides that the alternative manner of 
furnishing a written statement also applies to the required 
written statement (the Form 1095-C) that applicable large 
employers must furnish to full-time employees. Under the 
provision, an applicable large employer is treated as timely 
furnishing the required written statement on health insurance 
coverage to a full-time employee if (1) the employer provides 
clear, conspicuous, and accessible notice (at such time and in 
such manner as the Secretary may provide) that the individual 
may request a copy of the statement, and (2) on request of any 
such individual, the employer furnishes a copy of the statement 
to the individual by the later of (i) January 31 of the year 
following the calendar year for which the return was required 
to be made, or (ii) 30 days after the date of such request.

                             EFFECTIVE DATE

    The provision is effective for statements with respect to 
returns for calendar years after 2023.

                       III. VOTE OF THE COMMITTEE

    Pursuant to clause 3(b) of rule XIII of the Rules of the 
House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 3797, the ``Paperwork Burden Reduction 
Act,'' on June 7, 2023.
    The bill, H.R. 3797, the ``Paperwork Burden Reduction 
Act,'' as amended, was ordered favorably reported to the House 
of Representatives by a recorded vote of 38 yeas to 0 nays 
(with a quorum being present).

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO).................        X   ........  .........  Mr. Neal.........  ........  ........  .........
Mr. Buchanan...................        X   ........  .........  Mr. Doggett......        X   ........  .........
Mr. Smith (NE).................        X   ........  .........  Mr. Thompson.....        X   ........  .........
Mr. Kelly......................        X   ........  .........  Mr. Larson.......        X   ........  .........
Mr. Schweikert.................        X   ........  .........  Mr. Blumenauer...        X   ........  .........
Mr. LaHood.....................        X   ........  .........  Mr. Pascrell.....        X   ........  .........
Dr. Wenstrup...................        X   ........  .........  Mr. Davis........        X   ........  .........
Mr. Arrington..................        X   ........  .........  Ms. Sanchez......  ........  ........  .........
Dr. Ferguson...................        X   ........  .........  Mr. Higgins......        X   ........  .........
Mr. Estes......................        X   ........  .........  Ms. Sewell.......  ........  ........  .........
Mr. Smucker....................  ........  ........  .........  Ms. DelBene......  ........  ........  .........
Mr. Hern.......................        X   ........  .........  Ms. Chu..........        X   ........  .........
Ms. Miller.....................        X   ........  .........  Ms. Moore........        X   ........  .........
Dr. Murphy.....................        X   ........  .........  Mr. Kildee.......        X   ........  .........
Mr. Kustoff....................        X   ........  .........  Mr. Beyer........        X   ........  .........
Mr. Fitzpatrick................        X   ........  .........  Mr. Evans........        X   ........  .........
Mr. Steube.....................        X   ........  .........  Mr. Schneider....        X   ........  .........
Ms. Tenney.....................        X   ........  .........  Mr. Panetta......        X   ........  .........
Mrs. Fischbach.................        X
Mr. Moore......................        X
Mrs. Steel.....................        X
Ms. Van Duyne..................        X
Mr. Feenstra...................        X
Ms. Malliotakis................        X
Mr. Carey......................        X
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 3797, as 
reported.
    The bill is estimated to have no effect on the Federal 
fiscal year budget receipts for the period 2023 through 2033.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee states further that the bill involves no new or 
increased tax expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee made findings and 
recommendations that are reflected in this report.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill does not authorize funding, so no statement of general 
performance goals and objectives is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

  D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                       E. Tax Complexity Analysis

    Pursuant to clause 3(h)(1) of rule XIII of the Rules of the 
House of Representatives, the staff of the Joint Committee on 
Taxation has determined that a complexity analysis is not 
required under section 4022(b) of the IRS Reform Act because 
the bill contains no provisions that amend the Internal Revenue 
Code of 1986 and that have ``widespread applicability'' to 
individuals or small businesses, within the meaning of the 
rule.

                   F. Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED


      A. Changes in Existing Law Proposed by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

                     INTERNAL REVENUE CODE OF 1986




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Subtitle F--Procedure and Administration

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CHAPTER 61--INFORMATION AND RETURNS

           *       *       *       *       *       *       *


Subchapter A--RETURNS AND RECORDS

           *       *       *       *       *       *       *


PART III--INFORMATION RETURNS

           *       *       *       *       *       *       *



Subpart D--INFORMATION REGARDING HEALTH INSURANCE COVERAGE

           *       *       *       *       *       *       *



SEC. 6055. REPORTING OF HEALTH INSURANCE COVERAGE.

  (a) In general.--Every person who provides minimum essential 
coverage to an individual during a calendar year shall, at such 
time as the Secretary may prescribe, make a return described in 
subsection (b).
  (b) Form and manner of return.--
          (1) In general.--A return is described in this 
        subsection if such return--
                  (A) is in such form as the Secretary may 
                prescribe, and
                  (B) contains--
                          (i) the name, address and TIN of the 
                        primary insured and the name and TIN of 
                        each other individual obtaining 
                        coverage under the policy,
                          (ii) the dates during which such 
                        individual was covered under minimum 
                        essential coverage during the calendar 
                        year,
                          (iii) in the case of minimum 
                        essential coverage which consists of 
                        health insurance coverage, information 
                        concerning--
                                  (I) whether or not the 
                                coverage is a qualified health 
                                plan offered through an 
                                Exchange established under 
                                section 1311 of the Patient 
                                Protection and Affordable Care 
                                Act, and
                                  (II) in the case of a 
                                qualified health plan, the 
                                amount (if any) of any advance 
                                payment under section 1412 of 
                                the Patient Protection and 
                                Affordable Care Act of any 
                                cost-sharing reduction under 
                                section 1402 of such Act or of 
                                any premium tax credit under 
                                section 36B with respect to 
                                such coverage, and
                          (iv) such other information as the 
                        Secretary may require.
          (2) Information relating to employer-provided 
        coverage.--If minimum essential coverage provided to an 
        individual under subsection (a) consists of health 
        insurance coverage of a health insurance issuer 
        provided through a group health plan of an employer, a 
        return described in this subsection shall include--
                  (A) the name, address, and employer 
                identification number of the employer 
                maintaining the plan,
                  (B) the portion of the premium (if any) 
                required to be paid by the employer, and
                  (C) if the health insurance coverage is a 
                qualified health plan in the small group market 
                offered through an Exchange, such other 
                information as the Secretary may require for 
                administration of the credit under section 45R 
                (relating to credit for employee health 
                insurance expenses of small employers).
  (c) Statements to be furnished to individuals with respect to 
whom information is reported.--
          (1) In general.--Every person required to make a 
        return under subsection (a) shall furnish to each 
        individual whose name is required to be set forth in 
        such return a written statement showing--
                  (A) the name and address of the person 
                required to make such return and the phone 
                number of the information contact for such 
                person, and
                  (B) the information required to be shown on 
                the return with respect to such individual.
          (2) Time for furnishing statements.--The written 
        statement required under paragraph (1) shall be 
        furnished on or before January 31 of the year following 
        the calendar year for which the return under subsection 
        (a) was required to be made.
          (3) Alternative manner of furnishing statements.--For 
        purposes of this subsection, any person required to 
        make a return under subsection (a) shall be treated as 
        timely furnishing the written statement required under 
        paragraph (1) if--
                  (A) such person provides clear, conspicuous, 
                and accessible notice (at such time and in such 
                manner as the Secretary may provide) that any 
                individual to whom a statement would otherwise 
                be required to be furnished under paragraph (1) 
                may request a copy of such statement, and
                  (B) such person, on request of any such 
                individual, furnishes a copy of such statement 
                to such individual not later than the later 
                of--
                          (i) January 31 of the year following 
                        the calendar year for which the return 
                        under subsection (a) was required to be 
                        made, or
                          (ii) 30 days after the date of such 
                        request.
  (d) Coverage provided by governmental units.--In the case of 
coverage provided by any governmental unit or any agency or 
instrumentality thereof, the officer or employee who enters 
into the agreement to provide such coverage (or the person 
appropriately designated for purposes of this section) shall 
make the returns and statements required by this section.
  (e) Minimum essential coverage.--For purposes of this 
section, the term ``minimum essential coverage'' has the 
meaning given such term by section 5000A(f).

SEC. 6056. CERTAIN EMPLOYERS REQUIRED TO REPORT ON HEALTH INSURANCE 
                    COVERAGE.

  (a) In general.--Every applicable large employer required to 
meet the requirements of section 4980H with respect to its 
full-time employees during a calendar year shall, at such time 
as the Secretary may prescribe, make a return described in 
subsection (b).
  (b) Form and manner of return.--A return is described in this 
subsection if such return--
          (1) is in such form as the Secretary may prescribe, 
        and
          (2) contains--
                  (A) the name, date, and employer 
                identification number of the employer,
                  (B) a certification as to whether the 
                employer offers to its full-time employees (and 
                their dependents) the opportunity to enroll in 
                minimum essential coverage under an eligible 
                employer-sponsored plan (as defined in section 
                5000A(f)(2)),
                  (C) if the employer certifies that the 
                employer did offer to its full-time employees 
                (and their dependents) the opportunity to so 
                enroll--
                          (i) the length of any waiting period 
                        (as defined in section 2701(b)(4) of 
                        the Public Health Service Act) with 
                        respect to such coverage,
                          (ii) the months during the calendar 
                        year for which coverage under the plan 
                        was available,
                          (iii) the monthly premium for the 
                        lowest cost option in each of the 
                        enrollment categories under the plan, 
                        and
                          (iv) the employer share of the total 
                        allowed costs of benefits provided 
                        under the plan,
                  (D) the number of full-time employees for 
                each month during the calendar year,
                  (E) the name, address, and TIN of each full-
                time employee during the calendar year and the 
                months (if any) during which such employee (and 
                any dependents) were covered under any such 
                health benefits plans, and
                  (F) such other information as the Secretary 
                may require.
The Secretary shall have the authority to review the accuracy 
of the information provided under this subsection, including 
the applicable large employer's share under paragraph 
(2)(C)(iv).
  (c) Statements to be furnished to individuals with respect to 
whom information is reported.--
          (1) In general.--Every person required to make a 
        return under subsection (a) shall furnish to each full-
        time employee whose name is required to be set forth in 
        such return under subsection (b)(2)(E) a written 
        statement showing--
                  (A) the name and address of the person 
                required to make such return and the phone 
                number of the information contact for such 
                person, and
                  (B) the information required to be shown on 
                the return with respect to such individual.
          (2) Time for furnishing statements.--The written 
        statement required under paragraph (1) shall be 
        furnished on or before January 31 of the year following 
        the calendar year for which the return under subsection 
        (a) was required to be made.
          (3) Alternative manner of furnishing statements.--For 
        purposes of this subsection, any person required to 
        make a return under subsection (a) shall be treated as 
        timely furnishing the written statement required under 
        paragraph (1) if--
                  (A) such person provides clear, conspicuous, 
                and accessible notice (at such time and in such 
                manner as the Secretary may provide) that any 
                individual to whom a statement would otherwise 
                be required to be furnished under paragraph (1) 
                may request a copy of such statement, and
                  (B) such person, on request of any such 
                individual, furnishes a copy of such statement 
                to such individual not later than the later 
                of--
                          (i) January 31 of the year following 
                        the calendar year for which the return 
                        under subsection (a) was required to be 
                        made, or
                          (ii) 30 days after the date of such 
                        request.
  (d) Coordination with other requirements.--To the maximum 
extent feasible, the Secretary may provide that--
          (1) any return or statement required to be provided 
        under this section may be provided as part of any 
        return or statement required under section 6051 or 
        6055, and
          (2) in the case of an applicable large employer 
        offering health insurance coverage of a health 
        insurance issuer, the employer may enter into an 
        agreement with the issuer to include information 
        required under this section with the return and 
        statement required to be provided by the issuer under 
        section 6055.
  (e) Coverage provided by governmental units.--In the case of 
any applicable large employer which is a governmental unit or 
any agency or instrumentality thereof, the person appropriately 
designated for purposes of this section shall make the returns 
and statements required by this section.
  (f) Definitions.--For purposes of this section, any term used 
in this section which is also used in section 4980H shall have 
the meaning given such term by section 4980H.

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                         VII. DISSENTING VIEWS

                          House of Representatives,
                               Committee on Ways and Means,
                                      Washington, DC, June 7, 2023.

   DISSENTING VIEWS ON THE PAPERWORK BURDEN REDUCTION ACT, H.R. 3797

    H.R. 3797, the Paperwork Burden Reduction Act (Rep. Smith, 
R-MO, Rep. Panetta, D-CA) would codify the rules under the 
United States Department of Treasury (Treasury) regulations 
that permit an alternative manner of furnishing certain 
Internal Revenue Service (IRS) forms, Form 1095-B or Form 1095-
C in certain cases of self-insured applicable large employers, 
by furnishing the statement upon the request of the individual. 
These forms describe whether the employer offers or the 
employee elects employer-sponsored health insurance coverage.
    While H.R. 3797 codifies existing practice, this bill does 
not address the lack of information that consumers need to 
navigate health insurance choices. The legislation codifies 
existing Treasury regulations allowing employer to send the 
forms upon request if employers prominently display how 
employees can access the forms, instead of mailing the form to 
all employees. However, these forms do not sufficiently or 
clearly describe whether an employer's health insurance offer 
is affordable, and particularly important for low-income 
workers, whether they can access potentially more affordable 
subsidized marketplace coverage.
    There is more work we can do to support employers, 
consumers, and streamline reporting. If workers do not 
understand their coverage options, they may incorrectly choose 
coverage that has higher out-of-pocket costs. Improving the 
information provided to employees to include comprehensive 
information about the affordability and value of their health 
care coverage and how it compares to subsidized coverage in the 
marketplace could help.
    This legislation may inappropriately tie the IRS' hands in 
the event that future flexibility is needed to work with 
reporting entities. While codifications of existing regulations 
may provide certainty for reporting entities for the time 
being, this codification could hamper IRS flexibility to 
improve processes in the future.

                                           Richard E. Neal,
                                                    Ranking Member.

 Ranking Member Richard E. Neal, Opening Statement, Committee on Ways 
         and Means Markup of H.R. 3797, Wednesday, June 7, 2023

    Thank you, Mr. Chairman. I'd like I yield to Congressman 
Panetta and thank you both for your work on this issue.

 Rep. Panetta Remarks on H.R. 3797, the Paperwork Burden Reduction Act 
        Ways and Means Committee Markup, Wednesday, June 7, 2023

    Thank you, representative Chu, and, of course, thank you 
Chairman Smith for this opportunity to lead with you on this 
bipartisan, very very common-sense measure that, as you 
appropriately summed up, will ease confusion for taxpayers and 
paperwork for small business employers and employees.
    As you mentioned, Mr. Chair, under current law employers 
must send a 1095 tax form to employees to verify their health 
coverage for the previous year. However, employees no longer 
need this form to complete their taxes.
    So, the form is, really, an unnecessary burden and just a 
waste. Now, this administration has already moved to reduce the 
need for this unnecessary paperwork and that's why I am proud, 
Mr. Chairman, to work with you to continue this effort and end 
the burdensome requirement to have business send a printed form 
that for most taxpayers serves absolutely no purpose.
    The ``PBR Act,'' as I call it--the Paperwork Burden 
Reduction Act--will allow employers to provide a 1095-B or 
1095-C form upon request rather than wasting time, money, and 
paper. It's kind of an easy bill--easy fix--and if you ask me 
an easy yes vote.
    So, I urge my colleagues to support this common-sense, 
bipartisan legislation, and I thank you Mr. Chairman for your 
leadership on this bill.
    I yield back.

                                  [all]