Commonsense Reporting Act of 2022
This bill addresses the eligibility verification process for the premium assistance tax credit and cost-sharing subsidy under the Patient Protection and Affordable Care Act (PPACA). It requires the Department of the Treasury to develop and implement a reporting system that allows employers to voluntarily report information about their health plans for the current plan year prior to the beginning of open enrollment. The bill also allows electronic transmission of employee and enrollee statements and permits Treasury to accept full names and dates of birth in lieu of dependents' and spouses' Social Security account numbers.
The bill also allows certain large employers who do not offer their employees minimum health care coverage 90 days to appeal an assessment for not providing such coverage.
The Government Accountability Office must evaluate (1) for the period beginning on January 1, 2015, and ending on December 31, 2020, the notification of employers by PPACA exchanges of the eligibility of employees for advance payments of the premium assistance tax credit or cost-sharing subsidies; and (2) for calendar year 2023, the functionality of the prospective reporting system established by this bill, including the accuracy of information collected.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7774 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 7774
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
May 13, 2022
Mr. Thompson of California (for himself and Mr. Smith of Nebraska)
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 2022''.
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, 2023.
(b) Requirements.--The system created under subsection (a) shall
include--
(1) voluntary reporting by each participating employer that
offers minimum essential coverage to its full-time employees
and their dependents under an eligible employer-sponsored plan,
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 for
purposes of section 6056 of the Internal Revenue Code
of 1986 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);
(D) what waiting periods, if any, apply with
respect to such coverage; and
(E) a list of all employer identification numbers
of the employer for entities that employ employees
within the employers control group under subsection
(b), (c), (m), or (o) of section 414 of the Internal
Revenue Code for 1986;
(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 through
``(and the effective date of such cessation); and'' 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 pursuant to
section 3(a) of the Commonsense Reporting Act of 2021, an employer
provides prospective reporting for any calendar year that meets the
requirements of section 3(b)(1) of such Act, such employer shall be
treated as satisfying the return requirements of subsections (a), (b),
and (c) for such year.''.
(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. Employers shall provide the employer's employer
identification number for purposes of section 6056 of the Internal
Revenue Code of 1986 on employee pay statements.
(h) Funding for Voluntary Prospective Reporting System.--There is
authorized to be appropriated 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 such sums as are
necessary to carry out this section.
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 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 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 subsection.''.
(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, 2021.
SEC. 6. TIME FOR APPEAL.
(a) In General.--Section 4980H(d) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(4) Time for appeal.--The Secretary shall allow an
applicable large employer 90 days from the date of the first
letter which allows the employer an opportunity for
administrative review of a proposed employer shared
responsibility payment under this section by the Internal
Revenue Service Independent Office of Appeals to appeal the
proposed assessment of such payment before issuing the notice
and demand for payment under paragraph (1).''.
(b) Effective Date.--The amendment made by this section shall apply
to assessments in taxable years beginning after the date of the
enactment of this Act.
SEC. 7. STATUTE OF LIMITATIONS ON PENALTY ASSESSMENT.
(a) In General.--Section 4980H(d) of the Internal Revenue Code of
1986, as amended by section 6, is amended by adding at the end the
following new paragraph:
``(5) Statute of limitations on penalty assessment.--With
respect to an assessment of an assessable payment under
paragraph (1), the statutory period for such assessment shall
expire at the end of the 3-year period beginning on the date
the employer files the return under section 6056 for the
calendar year with respect to which such payment is
determined.''.
(b) Effective Date.--The amendment made by this section shall apply
to proposed assessments with respect to which a letter described in
section 4980H(d)(4) of the Internal Revenue Code of 1986 (as added by
this section) is issued in taxable years beginning after the date which
is 1 year after the date of the enactment of this Act.
SEC. 8. GAO STUDIES.
(a) Study of First Years of Employer Reporting.--
(1) In general.--The Comptroller General of the United
States shall conduct a study that evaluates, with respect to
the period beginning on January 1, 2015, and ending on December
31, 2020--
(A) the notification of employers by Exchanges
established under title I of the Patient Protection and
Affordable Care Act (Public Law 111-148) that a full-
time employee of the employer has been determined
eligible for advance payment of premium tax credits
under section 36B of the Internal Revenue Code of 1986
or cost-sharing subsidies under section 1402 of such
Act (42 U.S.C. 18071), including information
regarding--
(i) the data elements included in the
employer notification;
(ii) the process by which the notification
forms were developed and sent to employers,
including whether the process provided for a
formal notice and comment period;
(iii) whether employers report that such
notifications provided sufficient and relevant
information for them to make appropriate
decisions about whether to utilize the appeals
process;
(iv) the total number of notifications sent
to employers and the timeline of when such
notifications were sent;
(v) differences in the notification process
between the marketplace facilitated by the
Federal Government and the State-Based
Marketplaces; and
(vi) challenges that have arisen in the
notification process, and recommendations to
address these challenges; and
(B) the extent to which the Secretary of Health and
Human Services has established a separate appeals
process for employers who received such a notification
to challenge the eligibility determination, as required
by section 1411(f)(2) of the Patient Protection and
Affordable Care Act (42 U.S.C. 18081(f)(2)).
(2) Report.--Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit 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 Labor of the House of
Representatives a report on the results of the study conducted
under paragraph (1).
(b) Study of Prospective Reporting System.--
(1) In general.--The Comptroller General of the United
States shall conduct a study that evaluates, with respect to
the period beginning on January 1, 2023, and ending on December
31, 2023, the functionality of the prospective reporting system
established pursuant to section 3, including the accuracy of
information collected, the number of employers electing to
report under such system, and any challenges that have arisen
in implementing such system.
(2) Report.--Not later than July 1, 2024, the Comptroller
General shall submit 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 Labor
of the House of Representatives a report on the results of the
study conducted under paragraph (1).
SEC. 9. TAX COMPLIANCE.
(a) In General.--Section 6724(d)(1)(B)(xxv) of the Internal Revenue
Code of 1986 is amended by inserting ``or, in the case of an employer
to which section 6056(f) applies, section 3(b)(1) of the Commonsense
Reporting Act of 2022'' before ``, or''.
(b) Effective Date.--The amendment made by this section shall apply
to returns required to be filed after the date of the enactment of this
Act.
<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.
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