Commonsense Reporting Act of 2017
This bill amends the Patient Protection and Affordable Care Act and the Internal Revenue Code to modify the requirements for employers to report health insurance coverage information to the Internal Revenue Service (IRS) by the end of the tax year.
The bill changes the information that is required and permits employers to voluntarily report the information prior to the beginning of open enrollment.
The Department of the Treasury must develop a prospective reporting system to permit:
At the time of enrollment, exchanges must provide employers the names of employees and dependents that enroll in a qualified health plan for a year.
If a health insurance issuer or employer is unable to obtain the taxpayer identification number of a dependent, Treasury may permit the individual's full name and date of birth to be used instead.
Employers participating in the reporting system established by this bill are exempt from the requirement to report health insurance coverage information to the IRS by the end of the tax year.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3919 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 3919
To streamline the employer reporting process and strengthen the
eligibility verification process for the premium assistance tax credit
and cost-sharing subsidy.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 3, 2017
Mrs. Black (for herself and Mr. Thompson of California) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Energy and Commerce, 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 streamline the employer reporting process and strengthen the
eligibility verification process for the premium assistance tax credit
and cost-sharing subsidy.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Commonsense Reporting Act of 2017''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The Department of the Treasury and the Internal Revenue
Service should work together with other relevant departments
and agencies to identify and implement methods to minimize
compliance burdens on businesses, insurance carriers, and
individuals.
(2) Such collaboration should strike an appropriate balance
between sufficient reporting to enforce the law and protecting
the privacy of individuals.
SEC. 3. VOLUNTARY PROSPECTIVE REPORTING SYSTEM.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of the Treasury, in consultation
with the Secretary of Health and Human Services, the Secretary of
Labor, and the Administrator of the Small Business Administration,
shall develop and implement guidance providing for a prospective
reporting system meeting the requirements of subsection (b). Such
system shall be available for use by employers on a voluntary basis
beginning not later than January 1, 2019.
(b) Requirements.--The system created under subsection (a) shall
include--
(1) voluntary reporting by each participating employer, not
later than 45 days before the first day of the annual open
enrollment period under section 1311(c)(6)(B) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18031(c)(6)(B))
for each calendar year, of--
(A) the name and employer identification number of
the employer;
(B) a certification of--
(i) whether coverage meeting the definition
of minimum essential coverage in section
5000A(f) of the Internal Revenue Code of 1986
is offered to the full-time employees (within
the meaning of section 4980H of such Code) of
the employer;
(ii) whether such coverage is offered to
part-time employees of the employer;
(iii) whether such coverage is offered to
dependents of employees;
(iv) whether such coverage is offered to
spouses of employees;
(v) whether such coverage meets the minimum
value requirement of section 36B(c)(2)(C)(ii)
of such Code;
(vi) whether such coverage satisfies the
requirements to qualify for one of the
affordability safe harbors promulgated by the
Secretary of the Treasury for purposes of
section 4980H of such Code; and
(vii) whether the employer reasonably
expects to be liable for any shared
responsibility payment under section 4980H of
such Code for such year;
(C) the months during the prospective reporting
period that such coverage is available to individuals
described in clauses (i) through (iv) of subparagraph
(B); and
(D) what waiting periods, if any, apply with
respect to such coverage;
(2) processes necessary to ensure that Exchanges, the
Federal Marketplace Data Services Hub, and the Internal Revenue
Service can securely and confidentially access the information
described in paragraph (1) as necessary to carry out their
respective missions, and to provide to the Secretary of Health
and Human Services additional information relating to
eligibility determinations for advance payment of the premium
tax credits under section 36B of such Code and the cost-sharing
subsidies under section 1402 of the Patient Protection and
Affordable Care Act (42 U.S.C. 18071);
(3) a process to allow Exchanges to follow up with
employers in order to obtain additional reasonably necessary
information relating to an employee's eligibility for such
advance payment or such cost-sharing subsidies, and to allow an
employee to receive notification of any problem in verifying
such eligibility; and
(4) a process to allow employers using the system to
provide timely updates to the Federal Marketplace Data Services
Hub regarding any cancellation of coverage or significant
change in coverage for participating employees that would
change the information reported under paragraph (1).
(c) Employer Notification of Employee Enrollment in Exchange
Plans.--Subparagraph (J) of section 1311(d)(4) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18031(d)(4)(J)) is
amended by striking ``to each employer'' and all that follows and
inserting ``to each employer--
``(i) the name of each employee of the
employer who enrolls in a qualified health plan
for a plan year, or whose dependents enroll in
such a plan, at the time of such enrollment; or
``(ii) the name of each employee of the
employer described in subparagraph (I)(ii) who
ceases coverage under a qualified health plan
during a plan year (and the effective date of
such cessation); and''.
(d) Exemption From Reporting Requirement Under Internal Revenue
Code of 1986.--Section 6056 of the Internal Revenue Code of 1986 is
amended by redesignating subsection (f) as subsection (g) and by
inserting after subsection (e) the following new subsection:
``(f) Exemption.--If, through the system created under section 3(a)
of the Commonsense Reporting Act of 2017, an employer provides
prospective reporting for any calendar year that meets the requirements
of section 3(b)(1) of such Act--
``(1) such employer shall be treated as satisfying the
return requirements of subsections (a) and (b) for such year;
and
``(2) such employer shall be treated as satisfying the
requirements of subsection (c) for such year if the employer--
``(A) furnishes the statement described in such
section to those employees of the employer whose names
have been provided to the employer by an Exchange under
section 1311(d)(4)(J)(i) of the Patient Protection and
Affordable Care Act regarding enrollment of the
employee or a dependent in a qualified health plan (as
defined in section 1301 of such Act) through the
Exchange; and
``(B) furnishes a copy of such statement with
respect to such employees to the Secretary.''.
(e) Third-Party Filing.--An employer may contract with a third
party to make the report under subsection (b)(1) without affecting the
employer's treatment as having satisfied the return requirements of
subsections (a) and (b) of section 6056 of the Internal Revenue Code of
1986.
(f) Access to the National Directory of New Hires.--Subsection
(i)(3) of section 453 of the Social Security Act (42 U.S.C. 653) is
amended by adding at the end the following new sentence: ``The
Secretary of the Treasury and the Secretary of Health and Human
Services shall have access to the information in the National Directory
of New Hires for purposes of administering section 36B and 4980H of the
Internal Revenue Code of 1986 and section 1402 of the Patient
Protection and Affordable Care Act (42 U.S.C. 18071). Subsection (k)(3)
shall not apply to information received for purposes of the
administration of such sections 36B and 4980H of such Code and section
1402 of such Act.''.
(g) Improving Employee Access to Accurate EINs.--Not later than 1
year after the date of the enactment of this Act, the Secretary of the
Treasury shall develop and implement guidance for allowing any employee
of an employer to receive, on request, the employer's employer
identification number for purposes of section 6056 of the Internal
Revenue Code of 1986.
(h) Funding for Voluntary Prospective Reporting System.--It is the
sense of Congress that building and maintaining the voluntary
prospective reporting system described in this section will require
appropriations to the Secretary of the Treasury, the Secretary of
Health and Human Services, the Secretary of Labor, and the
Administrator of the Small Business Administration, and that necessary
sums to carry out the requirements of this section should be
appropriated for such purpose.
SEC. 4. PROTECTION OF DEPENDENT PRIVACY.
(a) In General.--Paragraph (1) of section 6055(b) of the Internal
Revenue Code of 1986 is amended by adding at the end the following
flush sentence:
``For purposes of subparagraph (B)(i), in the case of an
individual other than the primary insured, if the health
insurance issuer or the employer is unable to collect or
maintain information on the TINs of such individuals (other
than for purposes of this section), the Secretary may allow the
individual's full name and date of birth to be substituted for
the name and TIN. In the event the Secretary allows the use of
the individual's full name and date of birth in lieu of the
TIN, the Social Security Administration shall assist the
Internal Revenue Service in providing data matches to determine
the TIN associated with the name and date of birth provided by
the Internal Revenue Service with respect to such
individual.''.
(b) Effective Date.--The amendment made by this section shall apply
to returns the due date for which is after the date that is 60 days
after the date of the enactment of this Act.
SEC. 5. ELECTRONIC STATEMENTS.
(a) In General.--Subsection (c) of section 6056 of the Internal
Revenue Code of 1986 is amended by adding at the end the following
flush sentence:
``An individual shall be deemed to have consented to receive the
statement under this section in electronic form if such individual has
affirmatively consented at any prior time, to the person who is the
employer of the individual during the calendar year to which the
statement relates, to receive such statement in electronic form. The
preceding sentence shall not apply if the individual revokes consent in
writing with respect to the statement under this section.''.
(b) Statements Relating to Health Insurance Coverage.--Subsection
(c) of section 6055 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new paragraph:
``(3) Electronic delivery.--An individual shall be deemed
to have consented to receive the statement under this
subsection in electronic form if such individual has
affirmatively consented at any prior time, to the person
required to make such statement (such as the provider of the
individual's health coverage), to receive in electronic form
any private health information (such as electronic health
records), unless the individual revokes such consent in
writing.''.
(c) Effective Date.--The amendments made by this section shall
apply to statements the due date for which is after December 31, 2017.
SEC. 6. GAO STUDIES.
(a) Study of Prospective Reporting System.--Not later than July 1,
2020, the Comptroller General of the United States shall conduct a
study evaluating, with respect to the period beginning on January 1,
2019, and ending on December 31, 2019, the functionality of the
prospective reporting system established under section 3 of this Act,
including the accuracy of information collected, the number of
employers electing to report under such system, and any challenges that
have arisen.
(b) Report.--The results of the study under subsection (a) shall be
reported to the Committees on Finance and Health, Education, Labor, and
Pensions of the Senate and the Committees on Ways and Means, Energy and
Commerce, and Education and the Workforce of the House of
Representatives.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, 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 Ways and Means, and in addition to the Committee on Energy and Commerce, 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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