Healthy Kids Act of 2007 - Amends title XXI (State Children's Health Insurance) (SCHIP) of the Social Security Act to extend the SCHIP program for FY2008 and each subsequent fiscal year at increased levels.
Limits to one year starting FY2008 (currently three years) the initial availability of SCHIP allotments.
Revises requirements for redistribution of unused allotments to address state funding shortfalls.
Provides for bonus payments for states that implement administrative policies to streamline enrollment procedures under Medicaid and SCHIP.
Gives states the option to provide for "express lane" and simplified determinations of a child's financial eligibility for Medicaid or SCHIP.
Provides for enhanced federal funding for improvements related to implementation of certain model outreach and enrollment practices.
Provides for: (1) optional coverage of targeted low-income pregnant women under SCHIP; (2) optional coverage of legal immigrants under Medicaid and SCHIP; (3) adjustment of SCHIP allotment due to increased outreach; (4) grants to promote innovative outreach and enrollment under Medicaid and SCHIP; (5) authority for qualifying states to use a portion of their SCHIP allotment for any fiscal year for certain Medicaid expenditures; and (6) application of Medicaid outreach procedures to all pregnant women and children.
Prohibits limitations on enrollment under SCHIP.
Amends the Internal Revenue Code to provide for: (1) a tax credit for qualified health insurance for qualifying children; and (2) advanced payment of such credit.
Requires that, if a broker is otherwise required to make a return with respect to any applicable security, the broker shall include in it the customer's adjusted basis for each such security.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2147 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 2147
To amend titles XXI and XIX of the Social Security Act to extend the
State Children's Health Insurance Program (SCHIP) and streamline
enrollment under SCHIP and Medicaid and to amend the Internal Revenue
Code of 1986 to provide for a healthy savings tax credit for purchase
of children's health coverage.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 3, 2007
Mr. Emanuel (for himself, Mr. Ramstad, Mr. LaHood, Mr. Ross, Ms.
Schwartz, Ms. Shea-Porter, Mrs. Emerson, Mr. Kennedy, Mr. Courtney, Mr.
Platts, Mr. Schiff, Mrs. McCarthy of New York, Mr. McNulty, Mr.
Alexander, Ms. Hirono, Ms. Berkley, Mr. Sarbanes, Mr. Cohen, Mr. Moran
of Virginia, Ms. Norton, Mr. Jackson of Illinois, Mr. Davis of Alabama,
Mr. Smith of Washington, Mr. Kind, Mrs. Tauscher, Mr. Crowley, Mr.
Rush, Mr. Hare, Mr. Higgins, Mr. Braley of Iowa, Mr. Snyder, Mr. Meeks
of New York, and Mr. Cleaver) introduced the following bill; which was
referred to the Committee on Energy and Commerce, and in addition to
the Committee on Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend titles XXI and XIX of the Social Security Act to extend the
State Children's Health Insurance Program (SCHIP) and streamline
enrollment under SCHIP and Medicaid and to amend the Internal Revenue
Code of 1986 to provide for a healthy savings tax credit for purchase
of children's health coverage.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; FINDINGS.
(a) Short Title.--This Act may be cited as the ``Healthy Kids Act
of 2007''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents; findings.
TITLE I--SCHIP EXTENSION
Sec. 101. Extension of SCHIP program.
Sec. 102. 1-year initial availability of SCHIP allotments.
Sec. 103. Redistribution of unused allotments to address State funding
shortfalls.
TITLE II--INCREASING ENROLLMENT UNDER SCHIP AND MEDICAID
Sec. 201. Bonus payments for States that implement administrative
policies to streamline enrollment process.
Sec. 202. State option to provide for ``express lane'' and simplified
determinations of a child's financial
eligibility for medical assistance under
Medicaid or child health assistance under
SCHIP.
Sec. 203. Information technology connections to improve health coverage
determinations.
Sec. 204. State option to expand or add coverage of certain pregnant
women under SCHIP.
Sec. 205. Optional coverage of legal immigrants under the medicaid
program and SCHIP.
Sec. 206. Authorizing adjustment of SCHIP allotment due to increased
outreach.
Sec. 207. Grants to promote innovative outreach and enrollment under
Medicaid and SCHIP.
Sec. 208. Model of Interstate coordinated enrollment and coverage
process.
Sec. 209. Authority for qualifying States to use portion of SCHIP
allotment for any fiscal year for certain
medicaid expenditures.
Sec. 210. Application of medicaid outreach procedures to all pregnant
women and children.
Sec. 211. No impact on section 1115 waivers.
Sec. 212. Elimination of counting medicaid child presumptive
eligibility costs against title XXI
allotment.
Sec. 213. Prohibiting limitations on enrollment.
TITLE III--HEALTHY SAVINGS TAX CREDIT
Sec. 301. Healthy savings tax credit.
TITLE IV--BROKER REPORTING OF CUSTOMER'S BASIS IN SECURITIES
TRANSACTIONS
Sec. 401. Broker reporting of customer's basis in securities
transactions.
(c) Findings Regarding the Need for Universal Health Coverage for
Children.--Congress finds the following:
(1) Currently, there are more than 9 million children who
are uninsured in the United States.
(2) Approximately 75 percent of uninsured children are
eligible for Medicaid or the State Children's Health Insurance
Program (SCHIP).
(3) As the wealthiest nation in the world, the United
States can and should be doing a better job to improve the
health of children.
(4) In 2004, according to the World Health Organization,
the United States ranked 35th on infant mortality, behind Korea
and Cuba.
(5) Two-thirds of nations have lower rates of children
dying from injuries than does the United States.
(6) One-third of uninsured children in the United States
went without any medical care for the entire year in 2003,
while 88 percent of insured children received care.
(7) Uninsured children more often have unmet health care
needs and delay seeking care, resulting in poorer health.
(8) Uninsured children are less likely to have access to
and receive appropriate preventive care, such as immunizations,
hearing and vision screens, and monitoring of growth and
development.
(9) Uninsured children are between three and five times
more likely to have an unmet medical need than are insured
children.
(10) Uninsured children may delay necessary care because
they visit a doctor only when their care needs become urgent.
(11) Uninsured children are four times more likely than
insured children to seek care in an emergency department with
conditions that could have been avoided.
(12) The cost of unmet health needs among children extends
beyond measurable health system costs.
(13) Recognizing that children whose parents have health
insurance are more likely to obtain preventive and necessary
care, many States are employing strategies to promote coverage
of the entire family and offer programs that leverage employer
sponsored insurance.
(14) Problems that should be managed or cured with regular
access to health care result in lower school attendance.
(15) In 2004, asthma alone accounted for an estimate 14
million lost school days among children.
(16) Recurrent ear infections, which could be addressed
through regular access to health care, reduce children's
ability to communicate and thus school readiness and
performance.
(d) Findings Regarding the Role of Medicaid and SCHIP in Covering
Children.--Congress finds the following:
(1) Since SCHIP was created, enormous progress has been
made in reducing disparities in children's coverage rates.
(2) SCHIP and Medicaid have improved children's coverage
rates and access to needed health care services.
(3) SCHIP and Medicaid account for the 30 percent decline
in the number of uninsured children since 1998, even as
employer-based coverage decreased and the overall rate of
uninsured people grew.
(4) Children enrolled in SCHIP or Medicaid are three times
more likely to have a usual source of care than are uninsured
children.
(5) SCHIP reduces the percent of children with an unmet
health care need.
(6) According to a Federal evaluation of SCHIP, uninsured
children who gained coverage through SCHIP received more
preventive care, and their parents reported better access to
providers and improved communications with their children's
doctors.
(7) SCHIP covers children who would otherwise be uninsured.
(8) Most newly enrolled children in SCHIP were previously
uninsured or had recently lost their Medicaid or private health
coverage for involuntary reasons.
(9) SCHIP established important strategies to avoid ``crowd
out'' of existing health insurance coverage, and research
suggests that these measures remain critical to the effective
use of public dollars.
TITLE I--SCHIP EXTENSION
SEC. 101. EXTENSION OF SCHIP PROGRAM.
Section 2104 of the Social Security Act (42 U.S.C. 1397dd) is
amended--
(1) in subsection (a)--
(A) by striking ``and'' at the end of paragraph
(9);
(B) by striking the period at the end of paragraph
(10) and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(11) for each fiscal year 2008 and each subsequent fiscal
year, $7,500,000,000 multiplied by the population and cost
inflation factor for that fiscal year, as determined under
subsection (i).''; and
(2) by adding at the end the following new subsection:
``(i) Population and Cost Inflation Factor.--For purposes of
subsection (a)(11), the population and cost inflation factor for a
fiscal year is equal to the product of the following:
``(1) Child population growth factor.--One plus the
percentage increase in the population of children under 20
years of age in the United States from July 1, 2007, to July 1
during the fiscal year involved, as projected by the Secretary
based on the most recent published estimates of the Bureau of
the Census before the beginning of the fiscal year involved.
``(2) Per capita health care growth factor.--One plus the
percentage increase in the projected per capita amount of
National Health Expenditures from fiscal year 2007 to the
fiscal year involved, as most recently published by the
Secretary before the beginning of the fiscal year involved.''.
SEC. 102. 1-YEAR INITIAL AVAILABILITY OF SCHIP ALLOTMENTS.
Section 2104(e) of the Social Security Act (42 U.S.C. 1397dd(e)) is
amended to read as follows:
``(e) Availability of Amounts Allotted.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), amounts allotted to a State pursuant to this section--
``(A) for each of fiscal years 1998 through 2007,
shall remain available for expenditure by the State
through the end of the second succeeding fiscal year;
and
``(B) for fiscal year 2008 and each fiscal year
thereafter, shall remain available for expenditure by
the State through the end of the fiscal year involved.
``(2) Availability of amounts reallotted.--Subject to
paragraph (3), amounts reallotted to a State under subsection
(f) shall be available for expenditure by the State through the
end of the fiscal year in which they are reallotted.
``(3) Permanent availability of unused funds.--Reallotted
funds that are not used by the end of the fiscal year described
in paragraph (2) shall be subject to reallotment under
subsection (f) in subsequent fiscal years subject to such
paragraph and shall remain available for subsequent reallotment
until expended.''.
SEC. 103. REDISTRIBUTION OF UNUSED ALLOTMENTS TO ADDRESS STATE FUNDING
SHORTFALLS.
Section 2104(f) of the Social Security Act (42 U.S.C. 1397dd(f)) is
amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'';
(2) by striking ``States that have fully expended the
amount of their allotments under this section'' and inserting
``States that the Secretary determines with respect to the
fiscal year for which unused allotments are available for
redistribution under this subsection, are shortfall States
described in paragraph (2) for such fiscal year''; and
(3) by adding at the end the following new paragraph:
``(2) Shortfall states described.--
``(A) In general.--For purposes of paragraph (1),
with respect to a fiscal year, a shortfall State
described in this subparagraph is a State with a State
child health plan approved under this title for which
the Secretary estimates on the basis of the most recent
data available to the Secretary, that the projected
expenditures under such plan for the State for the
fiscal year will exceed the sum of--
``(i) the amount of the State's allotments
for any preceding fiscal years that remain
available for expenditure and that will not be
expended by the end of the immediately
preceding fiscal year; and
``(ii) the amount of the State's allotment
for the fiscal year (taking into account any
increase made in such allotment under section
2104(j), as added by section 205(a) of the
Healthy Kids Act of 2007).
``(B) Proration rule.--If the amounts available for
redistribution under paragraph (1) for a fiscal year
are less than the total amounts of the estimated
shortfalls determined for the year under subparagraph
(A), the amount to be reallotted under such paragraph
for each shortfall State shall be reduced
proportionally.
``(C) Retrospective adjustment.--The Secretary may
adjust the estimates and determinations made under
paragraph (1) and this paragraph with respect to a
fiscal year as necessary on the basis of the amounts
reported by States not later than November 30 of the
succeeding fiscal year, as approved by the
Secretary.''.
TITLE II--INCREASING ENROLLMENT UNDER SCHIP AND MEDICAID
SEC. 201. BONUS PAYMENTS FOR STATES THAT IMPLEMENT ADMINISTRATIVE
POLICIES TO STREAMLINE ENROLLMENT PROCESS.
(a) Bonus in FMAP and Enhanced FMAP for Application of Streamline
Enrollment Procedures Under Medicaid and SCHIP.--Section 2102 of the
Social Security Act (42 U.S.C. 1397bb) is amended by adding at the end
the following new subsection:
``(d) Streamline Enrollment Procedures.--
``(1) Increase in federal matching rate.--
``(A) In general.--In the case of a State that
meets the condition described in subparagraph (B)
(relating to agreeing to implement administrative
enrollment policies under this title and title XIX) for
a fiscal year, the Federal medical assistance
percentage (for purposes of title XIX only) and the
enhanced FMAP (for purposes of this title, but
determined without regard to the application of this
subsection to the Federal medical assistance percentage
under title XIX) otherwise computed for such fiscal
year as applied to medical assistance for children and
child health assistance, respectively, shall be
increased by 2 percentage points.
``(B) Agreeing to remove enrollment and access
barriers.--The condition described in this
subparagraph, for a State for a fiscal year is that the
State agrees to do the following:
``(i) Presumptive eligibility for
children.--The State agrees--
``(I) to provide presumptive
eligibility for children under this
title and title XIX in accordance with
section 1920A; and
``(II) to treat any items or
services that are provided to an
uncovered child (as defined in section
2110(c)(8)) who is determined
ineligible for medical assistance under
title XIX as child health assistance
for purposes of paying a provider of
such items or services, so long as such
items or services would be considered
child health assistance for a targeted
low-income child under this title.
``(ii) 12-month continuous eligibility.--
The State agrees to provide that eligibility of
children for assistance under this title and
title XIX shall not be regularly redetermined
more often than once every year.
``(iii) Automatic renewal.--The State
agrees to provide for the automatic renewal of
the eligibility of children for assistance
under this title and under title XIX if the
child's family does not report any changes to
family income or other relevant circumstances,
subject to verification of information from
databases available to the State for such
purpose.
``(iv) Elimination of asset test.--The
State has amended its plans under this title
and title XIX so that no asset or resource test
is applied for eligibility under this title or
title XIX with respect to children.
``(v) Administrative verification of
income.--The State agrees to permit the family
of a child applying for child health assistance
under this title or medical assistance under
title XIX to declare and certify, by signature
under penalty of perjury, the family income for
purposes of collecting financial eligibility
information.''.
(b) Conforming Medicaid Amendments.--
(1) In general.--Section 1905(b) of the Social Security Act
(42 U.S.C. 1396d(b)) is amended by inserting ``and section
2102(d)(1)'' after ``section 1933(d)''.
(2) Increase in medicaid cap for territories.--Section
1108(g) of such Act (42 U.S.C. 1308(g)) is amended--
(A) in paragraph (2), by striking ``paragraph (3)''
and inserting ``paragraphs (3) and (4)''; and
(B) by adding at the end the following new
paragraph:
``(4) Disregard of increased expenditures directly
attributable to increase in fmap for application of streamlined
enrollment procedures.--The limitation of paragraph (2) shall
not apply to payment under title XIX to a territory insofar as
such payment is attributable to an increase in the Federal
medical assistance percentage under subparagraph (A) of section
2102(d)(1).''.
(c) Effective Date.--The amendments made by this section shall
apply beginning with fiscal year 2007.
SEC. 202. STATE OPTION TO PROVIDE FOR ``EXPRESS LANE'' AND SIMPLIFIED
DETERMINATIONS OF A CHILD'S FINANCIAL ELIGIBILITY FOR
MEDICAL ASSISTANCE UNDER MEDICAID OR CHILD HEALTH
ASSISTANCE UNDER SCHIP.
(a) Medicaid.--Section 1902(e) of the Social Security Act (42
U.S.C. 1396a(e)) is amended by adding at the end the following:
``(13)(A) At the option of the State, the plan may provide that
eligibility requirements (including such requirements applicable to
redeterminations or renewals of eligibility) for medical assistance
relating to income, assets (or resources), or citizenship status are
met for a child who is under an age specified by the State (not to
exceed 21 years of age) by using a determination made within a
reasonable period (as determined by the State) before its use for this
purpose, of the child's family or household income, or if applicable
for purposes of determining eligibility under this title or title XXI,
assets or resources, or citizenship status, respectively,
(notwithstanding any other provision of law, including sections
1902(a)(46)(B), 1903(x), and 1137(d)), by a Federal or State agency, or
a public or private entity making such determination on behalf of such
agency, specified by the plan, including an agency administering the
State program funded under part A of title IV, the Food Stamp Act of
1977, the Richard B. Russell National School Lunch Act, or the Child
Nutrition Act of 1966, notwithstanding any differences in budget unit,
disregard, deeming, or other methodology, but only if--
``(i) the agency has fiscal liabilities or responsibilities
affected by such determination; and
``(ii) the agency or entity notifies the child's family--
``(I) of the information which shall be disclosed
in accordance with this subparagraph;
``(II) that the information disclosed will be used
solely for purposes of determining eligibility for
medical assistance under this title or for child health
assistance under title XXI; and
``(III) that interagency agreements limit the use
of such information to that purpose; and
``(iii) the requirements of section 1939 are satisfied.
``(B) Nothing in this paragraph shall be construed to relieve a
State of the obligation to determine, on another basis, eligibility for
medical assistance under this title or for child health assistance
under title XXI if a child is determined ineligible for such assistance
on the basis of information furnished pursuant to this paragraph.
``(C) If a State applies the eligibility process described in
subparagraph (A) to individuals eligible under this title and to
individuals eligible under title XXI, the State may, at its option,
implement its duties under subparagraphs (A) and (B) of section
2102(b)(3) using either or both of the following approaches:
``(i) The State may--
``(I) establish a threshold percentage of the
Federal poverty level (that shall exceed the income
eligibility level applicable for a population of
individuals under this title by 30 percentage points
(as a fraction of the Federal poverty level) or such
other higher number of percentage points as the State
determines reflects the typical application of income
methodologies by the non-health program and the State
plan under this title); and
``(II) provide that, with respect to any individual
within such population whom a non-health agency
determines has income that does not exceed such
threshold percentage for such population, such
individual is eligible for medical assistance under
this title (regardless of whether such individual would
otherwise be determined to be eligible to receive such
assistance).
In exercising the approach under this clause, a State shall
inform families whose children are enrolled in a State child
health plan under title XXI based on having family income above
the threshold described in subclause (I) that they may qualify
for medical assistance under this title and, at their option,
can seek a regular eligibility determination for such
assistance for their child.
``(ii) Regardless of whether a State otherwise provides for
presumptive eligibility under section 1920A, a State may
provide presumptive eligibility under this title, consistent
with subsection (e) of section 1920A, to a child who, based on
a determination by a non-health agency, would qualify for child
health assistance under a State child health plan under title
XXI. During such presumptive eligibility period, the State may
determine the child's eligibility for medical assistance under
this title, pursuant to subparagraph (A) of section 2102(b)(3),
based on telephone contact with family members, access to data
available in electronic or paper form, and other means of
gathering information that are less burdensome to the family
than completing an application form on behalf of the child. The
procedures described in the previous sentence may be used
regardless of whether the State uses similar procedures under
other circumstances for purposes of determining eligibility for
medical assistance under this title.
``(D) At the option of a State, the eligibility process described
in subparagraph (A) may apply to an individual who is not a child.
``(E)(i) At the option of a State, an individual determined to be
eligible for medical assistance or child health assistance pursuant to
subparagraph (A), (C), or (D) or other procedures through which
eligibility is determined based on data obtained from sources other
than the individual may receive medical assistance under this title if
such individual (or, in the case of an individual under age 19 (or if
the State elects the option under subparagraph (A), age 20 or 21) who
is not authorized to consent to medical care, the individual's parent,
guardian, or other caretaker relative) has acknowledged notice of such
determination and has consented to such eligibility determination. The
State (at its option) may waive any otherwise applicable requirements
for signatures by or on behalf of an individual who has so consented.
``(ii) In the case of an individual enrolled pursuant to clause
(i), the State shall inform the individual (or, in the case of an
individual under age 19 (or if the State elects the option under
subparagraph (A), age 20 or 21), the individual's parent, guardian, or
other caretaker relative) about the significance of such enrollment,
including appropriate methods to access covered services.
``(F) For purposes of this paragraph--
``(i) the term `non-health agency' means an agency or
entity described in subparagraph (A); and
``(ii) the term `non-health benefits' means the benefits or
assistance provided by a non-health agency.''.
(b) SCHIP.--Section 2107(e)(1) of such Act (42 U.S.C. 1397gg(e)(1))
is amended by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F) and by inserting after subparagraph (B)
the following new subparagraph:
``(C) Section 1902(e)(13) (relating to the State
option to base a determination of a child's eligibility
for assistance on determinations made by a program
providing nutrition or other public assistance (except
that the State option under subparagraph (D) of such
section shall apply under this title only if an
individual is pregnant)).''.
(c) Presumptive Eligibility.--Section 1920A of such Act (42 U.S.C.
1396r-1a) is amended--
(1) in subsection (b)(3)(A)(i), is amended by striking ``or
(IV)'' and inserting ``(IV) is an agency or entity described in
section 1902(e)(13)(A), or (V)''; and
(2) by adding at the end the following:
``(e) In the case of a State with a child health plan under title
XXI that provides for presumptive eligibility under such plan for
children, the State shall make a reasonable effort to place each
presumptively eligible child in the program under this title or title
XXI for which the child appears most likely to qualify. During the
child's period of presumptive eligibility, the State shall receive
Federal matching funds under section 1903 or section 2105, depending on
the program in which the child has been placed. If at the conclusion of
such period, the child is found to qualify for, and is enrolled in, the
program established under this title or title XXI when the child was
enrolled in the program under the other such title during such period,
the State's receipt of Federal matching funds shall be adjusted both
retroactively and prospectively so that Federal matching funds are
provided, both during and following such period of presumptive
eligibility, based on the program in which the child is enrolled.''.
(d) Signature Requirements.--Section 1902(a) of such Act (42 U.S.C.
1396a(a)) is amended by adding at the end the following:
``Notwithstanding any other provision of law, a signature under penalty
of perjury shall not be required on an application form for medical
assistance as to any element of eligibility for which eligibility is
based on information received from a source other than applicant,
rather than on representations from the applicant. Notwithstanding any
other provision of law, any signature requirement for an application
for medical assistance may be satisfied through an electronic
signature, as defined in section 1710(1) of the Government Paperwork
Elimination Act (44 U.S.C. 3504 note).''.
SEC. 203. INFORMATION TECHNOLOGY CONNECTIONS TO IMPROVE HEALTH COVERAGE
DETERMINATIONS.
(a) Enhanced Federal Funding for Improvements Related to
Implementation of Certain Model Outreach and Enrollment Practices.--
(1) In general.--Section 1903(a)(3)(A) of the Social
Security Act (42 U.S.C. 1396b(a)(3)(A)) is amended--
(A) by striking ``and'' at the end of clause (i);
and
(B) by adding at the end the following new clause:
``(iii) 75 percent of so much of the sums expended
during such quarter as are attributable to the design,
development, or installation of such mechanized claims
processing and information retrieval systems and the
implementation of administrative systems and processes
(including modification of eligibility computer systems
to permit the exchange of electronic information with
other Federal or State programs) as the Secretary
determines are directly related to the implementation
of a model outreach and enrollment practice described
in subparagraph (B), (C), (D), (E), or (F) of section
1905(y)(3), and''.
(2) Conforming amendment to ensure availability for
territories.--Section 1108(g) of such Act (42 U.S.C. 1308(g)),
as amended by section 201(b)(2)(B), is amended--
(A) in paragraph (2), by striking ``and (4)'' and
inserting ``, (4), and (5)''; and
(B) by adding at the end the following new
paragraph:
``(5) Additional increase for certain expenditures.--With
respect to fiscal year 2008 and each fiscal year thereafter, if
Puerto Rico, the Virgin Islands, Guam, the Northern Mariana
Islands, or American Samoa qualify for a payment under section
1903(a)(3)(A)(iii) for a calendar quarter of such fiscal year,
the additional Federal financial participation under such
section shall not be counted towards the limitation on
expenditures under title XIX for such commonwealth or territory
otherwise determined under subsection (f) and this subsection
for such fiscal year.''.
(b) Authorization of Information Disclosure.--
(1) In general.--Title XIX of such Act (42 U.S.C. 1396 et
seq.) is amended--
(A) by redesignating section 1939 as section 1940;
and
(B) by inserting after section 1938 the following:
``authorization to receive pertinent information
``Sec. 1939. (a) In General.--Notwithstanding any other provision
of law, a Federal or State agency or private entity in possession of
the sources of data potentially pertinent to eligibility determinations
under this title or title XXI (including eligibility files maintained
by programs described in section 1902(e)(13)(A), information described
in paragraph (2) or (3) of section 1137(a), vital records information
about births in any State, and information described in sections 453(i)
and 1902(a)(25)(I)) is authorized to convey such data or information to
a State agency administering a State plan under this title or title
XXI, if--
``(1) such data or information are used only to establish
or verify eligibility or provide coverage under this title or
title XXI; and
``(2) an interagency or other agreement, consistent with
standards developed by the Secretary, prevents the unauthorized
use, disclosure, or modification of such data and otherwise
meets applicable Federal requirements safeguarding privacy and
data security.
``(b) Requirements for Conveyance.--Data or information may be
conveyed pursuant to this section only if the following requirements
are met:
``(1) The individual whose circumstances are described in
the data or information (or such individual's parent, guardian,
caretaker relative, or authorized representative) has either
provided advance consent to disclosure or has not objected to
disclosure after receiving advance notice of disclosure and a
reasonable opportunity to object.
``(2) Such data or information are used solely for the
purposes of--
``(A) identifying individuals who are eligible or
potentially eligible for assistance under this title or
title XXI and enrolling such individuals in the State
plans established under such titles; and
``(B) verifying the eligibility of individuals for
assistance under the State plans established under this
title or title XXI.
``(3) An interagency or other agreement, consistent with
standards developed by the Secretary--
``(A) prevents the unauthorized use, disclosure, or
modification of such data and otherwise meets
applicable Federal requirements safeguarding privacy
and data security; and
``(B) requires the State agencies administering the
State plans established under this title and title XXI
to use the data and information obtained under this
section to seek to enroll individuals in such plans.
``(c) Criminal Penalty.--A person described in the subsection (a)
who publishes, divulges, discloses, or makes known in any manner, or to
any extent not authorized by Federal law, any information obtained
under this section shall be fined not more than $1,000 or imprisoned
not more than 1 year, or both for each such unauthorized activity.
``(d) Rule of Construction.--The limitations and requirements that
apply to disclosure pursuant to this section shall not be construed to
prohibit the conveyance or disclosure of data or information otherwise
permitted under Federal law (without regard to this section).''.
(2) Conforming amendment to assure access to national new
hires database.--Section 453(i)(1) of such Act (42 U.S.C.
653(i)(1)) is amended by striking ``and programs funded under
part A'' and inserting ``, programs funded under part A, and
State plans approved under title XIX or XXI''.
(3) Conforming amendment to provide schip programs with
access to national income data.--Section 6103(l)(7)(D)(ii) of
the Internal Revenue Code of 1986 is amended by inserting ``or
title XXI'' after ``title XIX''.
(4) Conforming amendment to provide access to data about
enrollment in insurance for purposes of evaluating applications
and for schip.--Section 1902(a)(25)(I)(i) of the Social
Security Act (42 U.S.C. 1396a(a)(25)(I)(i)) is amended--
(A) by inserting ``(and, at State option,
individuals who are potentially eligible or who
apply)'' after ``with respect to individuals who are
eligible''; and
(B) by inserting ``under this title (and, at State
option, child health assistance under title XXI)''
after ``the State plan''.
SEC. 204. STATE OPTION TO EXPAND OR ADD COVERAGE OF CERTAIN PREGNANT
WOMEN UNDER SCHIP.
(a) SCHIP.--
(1) Coverage.--Title XXI of the Social Security Act (42
U.S.C. 1397aa et seq.) is amended by adding at the end the
following new section:
``SEC. 2111. OPTIONAL COVERAGE OF TARGETED LOW-INCOME PREGNANT WOMEN.
``(a) Optional Coverage.--Notwithstanding any other provision of
this title, a State may provide for coverage, through an amendment to
its State child health plan under section 2102, of pregnancy-related
assistance for targeted low-income pregnant women in accordance with
this section, but only if--
``(1) the State has established an income eligibility
level--
``(A) for pregnant women under subsection
(a)(10)(A)(i)(III) or (l)(2)(A) of section 1902 that is
at least 185 percent of the poverty line; and
``(B) for children under this title that is at
least 200 percent of the poverty line; and
``(2) the State meets the requirement of section 2105(i)(2)
(relating to no waiting list for children).
``(b) Definitions.--For purposes of this title:
``(1) Pregnancy-related assistance.--The term `pregnancy-
related assistance' has the meaning given the term child health
assistance in section 2110(a) as if any reference to targeted
low-income children were a reference to targeted low-income
pregnant women.
``(2) Targeted low-income pregnant woman.--The term
`targeted low-income pregnant woman' means a woman--
``(A) during pregnancy and through the end of the
month in which the 60-day period (beginning on the last
day of her pregnancy) ends;
``(B) whose family income exceeds 185 percent of
the poverty level applicable to a family of the size
involved, but does not exceed the income eligibility
level established under the State child health plan
under this title for a targeted low-income child; and
``(C) who satisfies the requirements of paragraphs
(1)(A), (1)(C), (2), and (3) of section 2110(b).
``(c) References to Terms and Special Rules.--In the case of, and
with respect to, a State providing for coverage of pregnancy-related
assistance to targeted low-income pregnant women under subsection (a),
the following special rules apply:
``(1) Any reference in this title (other than in subsection
(b)) to a targeted low-income child is deemed to include a
reference to a targeted low-income pregnant woman.
``(2) Any such reference to child health assistance with
respect to such women is deemed a reference to pregnancy-
related assistance.
``(3) Any such reference to a child is deemed a reference
to a woman during pregnancy and the period described in
subsection (b)(2)(A).
``(4) In applying section 2102(b)(3)(B), any reference to
children found through screening to be eligible for medical
assistance under the State medicaid plan under title XIX is
deemed a reference to pregnant women.
``(5) There shall be no exclusion of benefits for services
described in subsection (b)(1) based on any preexisting
condition and no waiting period (including any waiting period
imposed to carry out section 2102(b)(3)(C)) shall apply.
``(6) In applying section 2103(e)(3)(B) in the case of a
pregnant woman provided coverage under this section, the
limitation on total annual aggregate cost-sharing shall be
applied to such pregnant woman.
``(7) In applying section 2104(i)--
``(A) in the case of State which did not provide
for coverage for pregnant women under this title (under
a waiver or otherwise) during fiscal year 2007, the
allotment amount otherwise computed for the first
fiscal year in which the State elects to provide
coverage under this section shall be increased by an
amount (determined by the Secretary) equal to the
enhanced FMAP of the expenditures under this title for
such coverage, based upon projected enrollment and per
capita costs of such enrollment; and
``(B) in the case of a State which provided for
coverage of pregnant women under this title for the
previous fiscal year--
``(i) in applying paragraph (1)(B)(ii) of
such section, there shall also be taken into
account (in an appropriate proportion) the
percentage increase in births in the United
States for the relevant period; and
``(ii) in applying paragraph (1)(C),
pregnant women (and per capita expenditures for
such women) shall be accounted for separately
from children, but shall be included in the
total amount of any allotment adjustment under
such paragraph.
``(d) Automatic Enrollment for Children Born to Women Receiving
Pregnancy-Related Assistance.--If a child is born to a targeted low-
income pregnant woman who was receiving pregnancy-related assistance
under this section on the date of the child's birth, the child shall be
deemed to have applied for child health assistance under the State
child health plan and to have been found eligible for such assistance
under such plan or to have applied for medical assistance under title
XIX and to have been found eligible for such assistance under such
title, as appropriate, on the date of such birth and to remain eligible
for such assistance until the child attains 1 year of age. During the
period in which a child is deemed under the preceding sentence to be
eligible for child health or medical assistance, the child health or
medical assistance eligibility identification number of the mother
shall also serve as the identification number of the child, and all
claims shall be submitted and paid under such number (unless the State
issues a separate identification number for the child before such
period expires).''.
(2) No cost-sharing for pregnancy-related benefits.--
Section 2103(e)(2) of such Act (42 U.S.C. 1397cc(e)(2)) is
amended--
(A) in the heading, by inserting ``or pregnancy-
related services'' after ``preventive services''; and
(B) by inserting before the period at the end the
following: ``or for pregnancy-related services''.
(3) Additional amendment.--Section 2107(e)(1)(F) of such
Act (42 U.S.C. 1397gg(e)(1)(G)), as redesignated by section
202(b), is amended to read as follows:
``(F) Sections 1920 and 1920A (relating to
presumptive eligibility for pregnant women and
children).''.
(b) Amendments to Medicaid.--
(1) Eligibility of a newborn.--Section 1902(e)(4) of such
Act (42 U.S.C. 1396a(e)(4)) is amended in the first sentence by
striking ``so long as the child is a member of the woman's
household and the woman remains (or would remain if pregnant)
eligible for such assistance''.
(2) Application of qualified entities to presumptive
eligibility for pregnant women under medicaid.--Section 1920(b)
of such Act (42 U.S.C. 1396r-1(b)) is amended by adding after
paragraph (2) the following flush sentence:
``The term `qualified provider' includes a qualified entity, as defined
in section 1920A(b)(3).''.
SEC. 205. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE MEDICAID
PROGRAM AND SCHIP.
(a) Medicaid Program.--Section 1903(v) of the Social Security Act
(42 U.S.C. 1396b(v)) is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (4)''; and
(2) by adding at the end the following new paragraph:
``(4)(A) A State may elect (in a plan amendment under this title)
to provide medical assistance under this title, notwithstanding
sections 401(a), 402(b), 403, and 421 of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996, for aliens who are
lawfully residing in the United States (including battered aliens
described in section 431(c) of such Act) and who are otherwise eligible
for such assistance, within either or both of the following eligibility
categories:
``(i) Pregnant women.--Women during pregnancy (and during
the 60-day period beginning on the last day of the pregnancy).
``(ii) Children.--Individuals under 21 years of age,
including optional targeted low-income children described in
section 1905(u)(2)(B).
``(B) In the case of a State that has elected to provide medical
assistance to a category of aliens under subparagraph (A), no debt
shall accrue under an affidavit of support against any sponsor of such
an alien on the basis of provision of assistance to such category and
the cost of such assistance shall not be considered as an unreimbursed
cost.''.
(b) SCHIP.--Section 2107(e)(1) of such Act (42 U.S.C.
1397gg(e)(1)), as amended by sections 202(b) and 204(a)(3), is amended
by redesignating subparagraphs (D) through (F) as subparagraph (E)
through (G), respectively, and by inserting after subparagraph (C) the
following new subparagraph:
``(D) Section 1903(v)(4) (relating to optional
coverage of categories of lawfully residing immigrant
children), but only if the State has elected to apply
such section to the category of children under title
XIX.''.
(c) Effective Date.--The amendments made by this section take
effect on October 1, 2007, and apply to medical assistance and child
health assistance furnished on or after such date.
(d) Construction.--Nothing in this section shall be construed as
affecting eligibility of aliens who are not lawfully residing in the
United States to benefits under the Medicaid program under title XIX of
the Social Security Act or under the State children's health insurance
program (SCHIP) under title XXI of such Act.
SEC. 206. AUTHORIZING ADJUSTMENT OF SCHIP ALLOTMENT DUE TO INCREASED
OUTREACH.
(a) In General.--Section 2104 of the Social Security Act (42 U.S.C.
1397dd), as amended by section 101, is further amended by adding at the
end the following new subsection:
``(j) Authorizing Allotment Adjustment Due to Increased Outreach.--
``(1) In general.--Notwithstanding the previous provisions
of this section, if the Secretary determines that--
``(A) a State has an increase in the average number
of children enrolled under its State child health plan
in a fiscal year that exceeds the enrollment of
children projected under paragraph (2) for the State
for such fiscal year, and
``(B) the total Federal expenditures under the
State child health plan (or waiver) under this title
exceeds the amount of the allotment made available to
the State for the fiscal year,
the Secretary shall increase the allotment under this section
for the State for the fiscal year by the amount specified in
paragraph (3). There are hereby appropriated, out of any money
in the Treasury not otherwise appropriated, such sums as may be
necessary to provide for such increase in allotment.
``(2) Projected enrollment of children.--The projected
enrollment of children for a State under this paragraph for a
fiscal year is equal to the average number of children enrolled
under the State child health plan in fiscal year 2007
increased, for each subsequent fiscal year through the fiscal
year involved, by a factor equal to the population growth of
children in the State for such fiscal year, as projected by the
Secretary before the beginning of the fiscal year involved.
``(3) Amount of allotment increase.--
``(A) In general.--Subject to subparagraph (B), the
amount of the allotment increase under this subsection
for a State for a fiscal year shall be an amount equal
to the product of--
``(i) the number by which the average
number of children enrolled under the State
child health plan in the fiscal year exceeds
the enrollment of children projected under
paragraph (2) for such State for such fiscal
year; and
``(ii) the per capita expenditures for
children under the State child health plan for
the previous year, increased by the average
annual rate of increase (for the three previous
fiscal years) in the amount of such per capita
expenditures.
The amount of the allotment increase under this
subsection shall not be subject to administrative or
judicial review.
``(B) Limitation.--
``(i) In general.--Subject to clause (ii),
in no case shall the sum of the allotment
increases for all States under this subsection
for a fiscal year exceed an amount equal to 20
percent of the total Federal payments to all of
the States otherwise made under this title for
the fiscal year. If such sum exceeds such
amount, subject to clause (ii), the allotment
increase for each State under this subsection
for the fiscal year shall be reduced in a pro
rata manner in order that such sum does not
exceed such amount.
``(ii) Congressional approval of additional
amounts.--If the Secretary estimates that the
allotment increases that should be provided
under this subsection, but for clause (i),
would exceed the limitation established under
such clause, the Secretary shall submit to
Congress a request for supplemental
appropriations for the purpose of meeting such
shortfall.
``(4) Clarification.--An adjustment in an allotment shall
not be made under this subsection due to excess State
expenditures resulting from a growth in per capita costs,
increased reimbursement to providers, or other factors not
directly related to outreach to eligible, but previously
unenrolled children.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect beginning with allotments for fiscal year 2008.
SEC. 207. GRANTS TO PROMOTE INNOVATIVE OUTREACH AND ENROLLMENT UNDER
MEDICAID AND SCHIP.
Title XXI of the Social Security Act (42 U.S.C. 1397aa et seq.), as
amended by section 204(a), is amended by adding at the end the
following:
``SEC. 2112. EXPANDED OUTREACH ACTIVITIES THROUGH GRANTS TO CONDUCT
INNOVATIVE OUTREACH AND ENROLLMENT EFFORTS.
``(a) In General.--The Secretary shall award grants to eligible
entities to--
``(1) conduct innovative outreach and enrollment efforts
that are designed to increase the enrollment and participation
of eligible children under this title and title XIX; and
``(2) promote understanding of the importance of health
insurance coverage for prenatal care and children. `
``(b) Priority for Award of Grants.--
``(1) In general.--In making grants under subsection (a),
the Secretary shall give priority to--
``(A) eligible entities that propose to target
geographic areas with high rates of--
``(i) eligible but unenrolled children,
including such children who reside in rural
areas; or
``(ii) racial and ethnic minorities and
health disparity populations, including those
proposals that address cultural and linguistic
barriers to enrollment; and
``(B) eligible entities that plan to engage in
outreach efforts with respect to individuals described
in subparagraph (A) and that are--
``(i) Federal health safety net
organizations; or
``(ii) faith-based organizations or
consortia.
``(c) Application.--An eligible entity that desires to receive a
grant under subsection (a) shall submit an application to the Secretary
in such form and manner, and containing such information, as the
Secretary may decide. Such application shall include--
``(1) quality and outcomes performance measures to evaluate
the effectiveness of activities funded by a grant awarded under
this section to ensure that the activities are meeting their
goals; and
``(2) an assurance that the entity shall--
``(A) conduct an assessment of the effectiveness of
such activities against such performance measures;
``(B) cooperate with the collection and reporting
of enrollment data and other information determined as
a result of conducting such assessments to the
Secretary, in such form and manner as the Secretary
shall require; and
``(C) conduct work under the grant in conjunction
with the States involved.
``(d) Dissemination of Enrollment Data and Information Determined
From Effectiveness Assessments; Annual Report.--The Secretary shall--
``(1) disseminate to eligible entities and make publicly
available the enrollment data and information collected and
reported in accordance with subsection (c)(2)(B); and
``(2) submit an annual report to Congress on the outreach
activities funded by grants awarded under this section.
``(e) Supplement, Not Supplant.--Federal funds awarded under this
section shall be used to supplement, not supplant, non-Federal funds
that are otherwise available for activities funded under this section.
``(f) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means
any of the following:
``(A) A local government.
``(B) A Federal health safety net organization.
``(C) A national, local, or community-based public
or nonprofit private organization, including community
health workers.
``(D) A faith-based organization or consortia, to
the extent that a grant awarded to such an entity is
consistent with the requirements of section 1955 of the
Public Health Service Act (42 U.S.C. 300x-65) relating
to a grant award to non-governmental entities.
``(E) An elementary or secondary school.
``(2) Federal health safety net organization.--The term
`Federal health safety net organization' means--
``(A) an Indian tribe, tribal organization, or an
urban Indian organization receiving funds under title V
of the Indian Health Care Improvement Act (25 U.S.C.
1651 et seq.), or an Indian Health Service provider;
``(B) a Federally-qualified health center (as
defined in section 1905(l)(2)(B));
``(C) a hospital defined as a disproportionate
share hospital for purposes of section 1923;
``(D) a covered entity described in section
340B(a)(4) of the Public Health Service Act (42 U.S.C.
256b(a)(4)); and
``(E) any other entity or a consortium that serves
children under a federally-funded program, including
the special supplemental nutrition program for women,
infants, and children (WIC) established under section
17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786),
the head start and early head start programs under the
Head Start Act (42 U.S.C. 9801 et seq.), the school
lunch program established under the Richard B. Russell
National School Lunch Act, and an elementary or
secondary school.
``(3) Indians; indian tribe; tribal organization; urban
indian organization.--The terms `Indian', `Indian tribe',
`tribal organization', and `urban Indian organization' have the
meanings given such terms in section 4 of the Indian Health
Care Improvement Act (25 U.S.C. 1603).
``(g) Appropriation.--There is appropriated, out of any money in
the Treasury not otherwise appropriated, $50,000,000 for each of fiscal
years 2008 through 2012 for the purpose of awarding grants under this
section. Amounts appropriated and paid under the authority of this
section shall be in addition to amounts appropriated under section 2104
and paid to States in accordance with section 2105, including with
respect to expenditures for outreach activities in accordance with
subsection (a)(1)(D)(iii) of such section.''.
SEC. 208. MODEL OF INTERSTATE COORDINATED ENROLLMENT AND COVERAGE
PROCESS.
In order to assure continuity of coverage of low-income children
under the Medicaid program and the State Children's Health Insurance
Program (SCHIP), the Secretary of Health and Human Services, in
consultation with State Medicaid and SCHIP directors, shall develop and
disseminate a model process for the coordination of the enrollment and
coverage under such programs of children who, because of migration of
families, emergency evacuations, educational needs, or otherwise,
frequently change their State of residency or otherwise are temporarily
present outside of the State of their residency.
SEC. 209. AUTHORITY FOR QUALIFYING STATES TO USE PORTION OF SCHIP
ALLOTMENT FOR ANY FISCAL YEAR FOR CERTAIN MEDICAID
EXPENDITURES.
Section 2105(g)(1)(A) of the Social Security Act (42 U.S.C.
1397ee(g)(1)(A)), as amended by section 201(b) of the National
Institutes of Health Reform Act of 2006 (Public Law 109-482) is amended
by striking ``fiscal year 1998, 1999, 2000, 2001, 2004, 2005, 2006, or
2007'' and inserting ``a fiscal year''.
SEC. 210. APPLICATION OF MEDICAID OUTREACH PROCEDURES TO ALL PREGNANT
WOMEN AND CHILDREN.
(a) In General.--Section 1902(a)(55) of the Social Security Act (42
U.S.C. 1396a(a)(55)) is amended by striking ``individuals for medical
assistance under subsection (a)(10)(A)(i)(IV), (a)(10)(A)(i)(VI),
(a)(10)(A)(i)(VII), or (a)(10)(A)(ii)(IX)'' and inserting ``child and
pregnant women for medical assistance (including under clauses (i)(IV),
(i)(VI), (i)(VII), and (ii)(IX) of paragraph (10)(A))''.
(b) Effective Date.--
(1) In general.--
(2) Exception for state legislation.--In the case of a
State plan under title XIX of the Social Security Act, which
the Secretary of Health and Human Services determines requires
State legislation in order for the plan to meet the additional
requirements imposed by the amendment made by subsection (a),
the State plan shall not be regarded as failing to comply with
the requirements of such Act solely on the basis of its failure
to meet these additional requirements before the first day of
the first calendar quarter beginning after the close of the
first regular session of the State legislature that begins
after the date of enactment of this Act. For purposes of the
previous sentence, in the case of a State that has a 2-year
legislative session, each year of the session shall be
considered to be a separate regular session of the State
legislature.
SEC. 211. NO IMPACT ON SECTION 1115 WAIVERS.
Nothing in this Act shall be construed to affect waivers regarding
State flexibility on eligibility previously approved by the Secretary
of Health and Human Services under section 1115 of the Social Security
Act (42 U.S.C. 1315).
SEC. 212. ELIMINATION OF COUNTING MEDICAID CHILD PRESUMPTIVE
ELIGIBILITY COSTS AGAINST TITLE XXI ALLOTMENT.
Section 2105(a)(1) of the Social Security Act (42 U.S.C.
1397ee(a)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``(or, in the case of expenditures described in subparagraph
(B), the Federal medical assistance percentage (as defined in
the first sentence of section 1905(b)))''; and
(2) by amending subparagraph (B) to read as follows:
``(B) [reserved]''.
SEC. 213. PROHIBITING LIMITATIONS ON ENROLLMENT.
(a) In General.--Section 2102(b)(3)(B) of the Social Security Act
(42 U.S.C. 1397bb(b)(3)(B)) is amended--
(1) by striking ``and'' at the end of clause (i);
(2) by striking the period at the end of clause (ii) and
inserting ``; and''; and
(3) by adding at the end the following new clause:
``(iii) shall not impose, with respect to
enrollment of targeted low-income children
under the State child health plan, any
enrollment cap or other numerical limitation on
enrollment, any waiting list, any procedures
designed to delay the consideration of
applications for enrollment, or similar
limitation with respect to enrollment.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to State child health plans as of October 1, 2007.
TITLE III--HEALTHY SAVINGS TAX CREDIT
SEC. 301. HEALTHY SAVINGS TAX CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable personal
credits) is amended by redesignating section 36 as section 37 and by
inserting after section 35 the following new section:
``SEC. 36. HEALTH INSURANCE FOR QUALIFYING CHILDREN.
``(a) In General.--In the case of an individual, there shall be
allowed as a credit against the tax imposed by subtitle A an amount
equal to the applicable percentage of the amount paid by the taxpayer
for coverage of qualifying children of the taxpayer under qualified
health insurance for eligible coverage months beginning in the taxable
year.
``(b) Eligible Coverage Month.--For purposes of this section, the
term `eligible coverage month' means, with respect to any qualifying
child of the taxpayer, any month with respect to which the designated
State agency has certified that, as of the first day of such month,
such child--
``(1) is covered by qualified health insurance,
``(2) does not have access to other specified coverage for
such month (as determined under subsection (f)), and
``(3) is not imprisoned under Federal, State, or local
authority.
``(c) Applicable Percentage.--
``(1) In general.--For purposes of this section, the term
`applicable percentage' means the percentage determined in
accordance with the following table:
In the case of a taxpayer whose adjusted gross income for
the taxable year is: The applicable percentage is:
200 percent of the poverty line or less.................... 0 percent
More than 200 percent, but not more than 225 percent, of 75 percent
the poverty line.
More than 225 percent, but not more than 250 percent, of 65 percent
the poverty line.
More than 250 percent, but not more than 300 percent, of 55 percent
the poverty line.
More than 300 percent, but not more than 350 percent, of 50 percent
the poverty line.
More than 350 percent of the poverty line.................. 0 percent.
``(2) Poverty line.--For purposes of paragraph (1), the
term `poverty line' means the income official poverty line (as
defined by the Office of Management and Budget, and revised
annually in accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a
family of the size involved.
``(d) Qualifying Child.--For purposes of this section, the term
`qualifying child' means, with respect to any taxpayer, any qualifying
child of the taxpayer (as defined in section 152(c)).
``(e) Qualified Health Insurance.--For purposes of this section--
``(1) In general.--The term `qualified health insurance'
means, with respect to any qualifying child of the taxpayer--
``(A) coverage under any insurance constituting
medical care which is certified by the designated State
agency as being--
``(i) provided under a group health plan
(as defined in section 5000(b)(1)), and
``(ii) at least actuarially equivalent in
benefits coverage to the plan described in
paragraph (2), or
``(B) in the case of a qualifying child who is
certified by the designated State agency as not
eligible for coverage under any insurance described in
subparagraph (A), coverage under any of the following
plans if such coverage has been certified by the
designated State agency as being at least actuarially
equivalent in benefits coverage to the plan described
in paragraph (2):
``(i) Coverage offered through hmo.--The
health insurance coverage plan that--
``(I) is offered by a health
maintenance organization (as defined in
section 2791(b)(3) of the Public Health
Service Act), and
``(II) has the largest insured
commercial, nonmedicaid enrollment of
covered lives of such coverage plans
offered by such a health maintenance
organization in the State.
``(ii) State employee coverage.--The health
insurance plan that is offered to State
employees and has the largest enrollment of
covered lives of any such plan.
``(iii) SCHIP coverage.--Coverage provided
under the State plan approved under the State
children's health insurance program under title
XXI of Social Security Act (without regard to
coverage provided under a waiver of the
requirements of such program).
``(iv) State certified actuarially
equivalent coverage.--A State-based health
insurance program.
``(2) FEHBP actuarially equivalent health benefits
coverage.--
``(A) In general.--The plan described in and
offered under chapter 89 of title 5, United States Code
with the highest number of enrollees under such section
for the year preceding the year in which the coverage
described in paragraph (1) is provided.
``(B) Application of benchmark standard.--Coverage
is actuarially equivalent to benefits coverage under
the plan described in subparagraph (A) if such coverage
covers all items and services offered by the benchmark
plan, with out-of-pocket cost-sharing for such items
and services that is not greater than under the
benchmark plan.
``(3) Insurance which covers other individuals.--In the
case of any contract for qualified health insurance under which
amounts are payable for coverage of any individual other than
one or more qualifying children, the amount treated as paid for
coverage of qualifying children under such insurance shall be
the greater of--
``(A) the amount which would be so treated under
rules similar to the rules of section 213(d)(6), or
``(B) 30 percent of the amounts payable for
coverage of all individuals covered under the contract
under qualified health insurance.
``(4) Only one policy taken into account per child.--With
respect to any qualifying child for any period, coverage under
not more than one contract for qualified health insurance may
be taken into account under subsection (a).
``(5) Exception.--The term `qualified health insurance'
shall not include--
``(A) a flexible spending or similar arrangement,
and
``(B) any insurance if substantially all of its
coverage is of excepted benefits described in section
9832(c).
``(6) Other requirements.--The term `qualified health
insurance'shall not include any insurance unless such insurance
meets the following requirements:
``(A) Group health plan requirements.--The health
benefits coverage provided meets the requirements
applicable to a group health plan under chapter 100 of
this title, part 7 of subtitle B of title I of the
Employee Retirement Income Security Act of 1974, and
State law.
``(B) Guaranteed issue and renewable.--The
arrangement does not deny coverage (including renewal
of coverage) with respect to any qualifying child on
the basis of health status of such qualifying child or
any other factor, condition or requirement.
``(C) No preexisting condition exclusion.--The
arrangement does not permit a preexisting condition
exclusion as defined under section 9801(b)(1).
``(D) No underwriting; community-rated premiums.--
``(i) Underwriting.--Subject to
subparagraph (B), the arrangement does not
permit underwriting, through a preexisting
condition limitation, differential benefits, or
different premium levels, or otherwise, with
respect to such coverage for any qualifying
child.
``(ii) Community-rated premiums.--The
premiums charged for such coverage are
community-rated for individuals without regard
to health status.
``(E) No riders.--The arrangement does not permit
riders to the health benefits coverage.
``(f) Other Specified Coverage.--For purposes of this section, an
individual has access to other specified coverage for any month if, as
of the first day of such month--
``(1) Medicare, medicaid, and schip.--Such individual--
``(A) is entitle to benefits under part A of title
XVIII of the Social Security Act or is enrolled under
part B of such title, or
``(B) is eligible to participate in any program
under title XIX or XXI of such Act (other than under
section 1928 of such Act).
``(2) Certain other coverage.--Such individual--
``(A) is enrolled in a health benefits plan under
chapter 89 of title 5, United States Code, or
``(B) is entitle to receive benefits under chapter
55 of title 10, United States Code.
``(g) Designated State Agency.--For purposes of this section, the
term `designated State agency' means, with respect to any State, the
agency responsible for administering the State children's health
insurance program under title XXI of Social Security Act in such State.
For purposes of carrying out any responsibility under this section,
such agency may utilize eligibility procedures under title XIX or XXI
of such Act to the extent not inconsistent with this section.
``(h) Special Rules.--
``(1) Coordination with advance payment.--With respect to
any taxable year, the amount which would (but for this
subsection) be allowed as a credit under subsection (a) shall
be reduced (but not below zero) by the aggregate amount paid on
behalf of such taxpayer under section 7529 for such taxable
year.
``(2) Coordination with other health insurance credit.--
Amounts taken into account under subsection (a) shall not be
taken into account under section 35(a).
``(3) Application of other rules.--Rules similar to the
rules of paragraphs (2), (3), (4), (8), and (9) of section
35(g) shall apply for purposes of this section.''.
(b) Advance Payment of Credit.--Chapter 77 of such Code (relating
to miscellaneous provisions) is amended by adding at the end the
following new section:
``SEC. 7529. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE FOR
QUALIFYING CHILDREN.
``The Secretary shall establish a program for making payments to
providers of qualified health insurance (as defined in section 36) on
behalf of taxpayers eligible for the credit under section 36. Except as
otherwise provided by the Secretary, such payments shall be made on the
basis of the adjusted gross income of the taxpayer for the preceding
taxable year.''.
(c) Disclosure of Return Information for Purposes of Advance
Payment of Credit as Premiums for Health Insurance for Qualifying
Children.--
(1) In general.--Subsection (l) of section 6103 of such
Code is amended by adding at the end the following new
paragraph:
``(21) Disclosure of return information for purposes of
advance payment of credit as premiums for health insurance for
qualifying children.--The Secretary may, on behalf of taxpayers
eligible for the credit under section 36, disclose to a
provider of qualified health insurance (as defined in such
section), and persons acting on behalf of such provider, return
information with respect to any such taxpayer only to the
extent necessary (as prescribed by regulations issued by the
Secretary) to carry out the program established by section 7529
(relating to advance payment of credit as premium payment for
health insurance for qualifying children).''.
(2) Confidentiality of information.--Paragraph (3) of
section 6103(a) of such Code is amended by striking ``or (20)''
and inserting ``(20), or (21)''.
(3) Unauthorized disclosure.--Paragraph (2) of section
7213(a) of such Code is amended by striking ``or (20)'' and
inserting ``(20), or (21)''.
(d) Information Reporting.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 of such Code (relating to information concerning
transactions with other persons) is amended by adding at the
end the following new section:
``SEC. 6050W. RETURNS RELATING TO CREDIT FOR HEALTH INSURANCE FOR
QUALIFYING CHILDREN.
``(a) Requirement of Reporting.--Every person who is entitled to
receive payments for any month of any calendar year under section 7529
(relating to advance payment of credit as premium payment for qualified
health insurance) with respect to any individual shall, at such time as
the Secretary may prescribe, make the return described in subsection
(b) with respect to each such individual.
``(b) Form and Manner of Returns.--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, address, and TIN of each individual
referred to in subsection (a),
``(B) the number of months for which amounts were
entitled to be received with respect to such individual
under section 7529 (relating to advance payment of
credit as premium payment for health insurance for
qualifying children),
``(C) the amount entitled to be received for each
such month, and
``(D) such other information as the Secretary may
prescribe.
``(c) Statements To Be Furnished to Individuals With Respect to
Whom Information Is Required.--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--
``(1) the name and address of the person required to make
such return and the phone number of the information contact for
such person, and
``(2) the information required to be shown on the return
with respect to such individual.
The written statement required under the preceding sentence shall be
furnished on or before January 31 of the year following the calendar
year for which the return under subsection (a) is required to be
made.''.
(2) Assessable penalties.--
(A) Subparagraph (B) of section 6724(d)(1) of such
Code (relating to definitions) is amended by striking
``or'' at the end of clause (xix), by striking ``and''
at the end of clause (xx) and inserting ``or'', and by
inserting after clause (xx) the following new clause:
``(xxi) section 6050W (relating to returns
relating to credit for health insurance for
qualifying children), and''.
(B) Paragraph (2) of section 6724(d) of such Code
is amended by striking ``or'' at the end of
subparagraph (BB), by striking the period at the end of
subparagraph (CC) and inserting ``, or'', and by adding
after subparagraph (CC) the following new subparagraph:
``(DD) section 6050W (relating to returns relating
to credit for health insurance for qualifying
children).''.
(e) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``or 36'' after ``section
35''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by redesignating the item relating to section 36 as
an item relating to section 37 and by inserting after the item
relating to section 35 the following new item:
``Sec. 36. Health insurance for qualifying children.''.
(3) The table of sections for subpart B of part III of
subchapter A of chapter 61 of such Code is amended by adding at
the end the following new item:
``Sec. 6050W. Returns relating to credit for health insurance for
qualifying children.''.
(4) The table of sections for chapter 77 of such Code is
amended by adding at the end the following new item:
``Sec. 7529. Advance payment of credit for health insurance of
qualifying children.''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
(g) Reimbursement for Administrative Costs Incurred in Determining
Eligibility for Credit.--
(1) In general.--The Secretary of Health and Human Services
shall reimburse States for all reasonable administrative costs
incurred in making eligibility determinations in accordance
with section 36 of the Internal Revenue Code of 1986 (as added
by subsection (a)). Such reimbursement shall not apply to State
costs incurred under the State children's health insurance
programs or Medicaid.
(2) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated such sums as may be necessary to carry out this
subsection.
TITLE IV--BROKER REPORTING OF CUSTOMER'S BASIS IN SECURITIES
TRANSACTIONS
SEC. 401. BROKER REPORTING OF CUSTOMER'S BASIS IN SECURITIES
TRANSACTIONS.
(a) In General.--Section 6045 of the Internal Revenue Code of 1986
(relating to returns of brokers) is amended by adding at the end the
following new subsection:
``(g) Additional Information Required in the Case of Securities
Transactions.--
``(1) In general.--If a broker is otherwise required to
make a return under subsection (a) with respect to any
applicable security, the broker shall include in such return
the information described in paragraph (2).
``(2) Additional information required.--
``(A) In general.--The information required under
paragraph (1) to be shown on a return with respect to
an applicable security of a customer shall include for
each reported applicable security the customer's
adjusted basis in such security.
``(B) Exemption from requirement.--The Secretary
shall issue such regulations or guidance as necessary
concerning the application of the requirement under
subparagraph (A) in cases in which a broker in making a
return does not have sufficient information to meet
such requirement with respect to the reported
applicable security. Such regulations or guidance may--
``(i) require such other information
related to such adjusted basis as the Secretary
may prescribe, and
``(ii) exempt classes of cases in which the
broker does not have sufficient information to
meet either the requirement under subparagraph
(A) or the requirement under clause (i).
``(3) Information transfers.--To the extent provided in
regulations, there shall be such exchanges of information
between brokers as such regulations may require for purposes of
enabling such brokers to meet the requirements of this
subsection.
``(4) Definitions.--For purposes of this subsection, the
term `applicable security' means any--
``(A) security described in subparagraph (A) or (C)
of section 475(c)(2),
``(B) interest in a regulated investment company
(as defined in section 851), or
``(C) other financial instrument designated in
regulations prescribed by the Secretary.''.
(b) Effective Date.--The amendment made by this section shall apply
to returns the due date for which (determined without regard to
extensions) is after December 31, 2009, with respect to securities
acquired after December 31, 2008.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, 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.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, 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.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, 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.
Referred to the Subcommittee on Health.
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