Bill Text: PA SB37 | 2009-2010 | Regular Session | Introduced

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Bill Title: In health investment insurance, adding definitions, expanding adult basic coverage insurance; and providing for a health insurance tax credit for small employers.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-01-20 - Referred to BANKING AND INSURANCE [SB37 Detail]

Download: Pennsylvania-2009-SB37-Introduced.html

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PRINTER'S NO. 21
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 37 Session of2009
INTRODUCED BY GREENLEAF, FONTANA, WILLIAMS, BROWNE, RAFFERTY, EARLL AND O'PAKE, JANUARY 20, 2009
REFERRED TO BANKING AND INSURANCE, JANUARY 20, 2009
AN ACT
Amending the act of June 26, 2001 (P.L.755, No.77), entitled "An
act establishing a special fund and account for money
received by the Commonwealth from the Master Settlement
Agreement with tobacco manufacturers; providing for home and
community-based care, for tobacco use prevention and
cessation efforts, for Commonwealth universal research
enhancement, for hospital uncompensated care, for health
investment insurance, for medical assistance for workers with
disabilities, for regional biotechnology research centers,
for the HealthLink Program, for community-based health care
assistance programs, for PACE reinstatement and PACENET
expansion, for medical education loan assistance and for
percentage allocation and appropriation of moneys," in health
investment insurance, adding definitions, expanding adult
basic coverage insurance; and providing for a health
insurance tax credit for small employers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1302 of the act of June 26, 2001 (P.L.
755, No.77), known as the Tobacco Settlement Act, is amended by
adding definitions to read:
Section 1302. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Qualified adult." A person who is self-employed or an
active employee of a small employer, and at least 19 years of
age, but less than 65 years of age and whose household income
exceeds 200% of the Federal poverty level at the time of
eligibility determination.
"Small employer." A person, firm, corporation, partnership
or association which employed, on at least 50% of its working
days during the preceding year, at least two but not more than
50 employees.
Section 2. The act is amended by adding sections to read:
Section 1305. Qualified adults and small employers.
(a) Eligibility.--A qualified adult shall be eligible to
purchase adult basic coverage insurance if the qualified adult
has not been covered by a health insurance plan, a self-
insurance plan or a self-funded plan during the three months
immediately preceding the determination of eligibility. In
addition, a small employer shall be eligible to purchase adult
basic coverage insurance if it has not provided health insurance
coverage, directly or indirectly, to qualified adults anytime
during the 12 months immediately preceding the determination of
eligibility.
(b) Payment.--A qualified adult or small employer seeking to
purchase adult basic coverage insurance shall:
(1) Submit an application to the department.
(2) Be responsible for any required copayments for
health care services rendered under the benefit package in
section 1303(f)(2).
(3) Pay the cost of the adult basic coverage insurance
actually incurred by the department or its contractors.
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Section 1306. Small employer health insurance tax credit.
(a) Credit for health insurance expense.--
(1) A taxpayer who incurs a qualified health insurance
expense in a taxable year may apply for a health insurance
premium tax credit as provided in this section. By September
15, a taxpayer must submit an application to the department
for a qualified health insurance expense incurred in the
taxable year that ended in the prior calendar year.
(2) A taxpayer that is eligible under paragraph (1)
shall receive a health insurance premium tax credit for the
taxable year in an amount up to $30,000 per small employer.
(3) By December 15 of the calendar year following the
close of the taxable year during which a qualified health
insurance expense was incurred, the department shall notify
the taxpayer of the amount of the taxpayer's health insurance
tax credit approved by the department.
(b) Carryover, carryback, refund and assignment of credit.--
(1) If a taxpayer cannot use the entire amount of the
health insurance tax credit for the taxable year in which the
health insurance tax credit is first approved, then the
excess may be carried over to succeeding taxable years and
used as a credit against the qualified tax liability of the
taxpayers for those taxable years. Each time that the health
insurance tax credit is carried over to a succeeding taxable
year, it shall be reduced by the amount that was used as a
credit during the immediately preceding taxable year. The
health insurance tax credit provided by this section may be
carried over and applied to succeeding taxable years for no
more than 15 taxable years following the first taxable year
for which the taxpayer was entitled to claim the credit.
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(2) A health insurance tax credit approved by the
department for a qualified health insurance expense in a
taxable year first shall be applied against the taxpayer's
qualified tax liability for the current taxable year as of
the date on which the credit was approved before the health
insurance tax credit is applied against any tax liability
under paragraph (1).
(3) A taxpayer is not entitled to carry back or obtain a
refund of an unused health insurance tax credit.
(c) Determination of qualified health insurance expenses.--
The department shall require the documentation it deems
necessary to determine which health insurance expense is to be
deemed a qualified health insurance expense for purposes of
computing the credit provided by this section.
(d) Pennsylvania S corporation shareholder pass-through.--
(1) If a Pennsylvania S corporation does not have an
eligible tax liability against which the health insurance tax
credit may be applied, a shareholder of the Pennsylvania S
corporation is entitled to a health insurance tax credit
equal to the health insurance tax credit determined for the
Pennsylvania S corporation for the taxable year multiplied by
the percentage of the Pennsylvania S corporation's
distributive income to which the shareholder is entitled.
(2) The credit provided under paragraph (1) is in
addition to any health insurance tax credit to which a
shareholder of a Pennsylvania S corporation is otherwise
entitled under the act of March 4, 1971 (P.L.6, No.2), known
as the Tax Reform Code of 1971. However, a Pennsylvania S
corporation and a shareholder of a Pennsylvania S corporation
may not claim a credit under this section for the same
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qualified health insurance expense.
(e) Report to General Assembly.--
(1) The secretary shall submit an annual report to the
General Assembly indicating the effectiveness of the credits
provided by this section no later than March 15 following the
year in which the credits were approved. The report shall
include the names of all taxpayers utilizing the credits as
of the date of the report and the amount of credits approved
and utilized by each taxpayer.
(2) The report may also include any recommendations for
changes in the calculation or administration of the credits.
Notwithstanding any law providing for the confidentiality of
tax records, the information contained in the report shall be
public information.
(f) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Department." The Department of Revenue of the Commonwealth.
"Qualified health insurance expense." Fifty percent of the
expense incurred by a small employer in purchasing adult basic
coverage insurance for qualified adults.
"Qualified tax liability." The liability for taxes imposed
under Article III, IV or VI of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
"Secretary." The Secretary of Revenue of the Commonwealth.
"Tax credit." The health insurance tax credit authorized
under this section.
"Taxpayer." An employer that is liable for taxes under
Article III, IV or VI of the act of March 4, 1971 (P.L.6, No.2),
known as the Tax Reform Code of 1971. The term shall include the
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shareholder of a Pennsylvania S corporation that receives a
health insurance tax credit.
Section 3. This act shall take effect in 60 days.
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