Bill Text: TX HB2036 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to premium tax credits related to certain fees paid under the Patient Protection and Affordable Care Act.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2017-05-03 - Committee report sent to Calendars [HB2036 Detail]
Download: Texas-2017-HB2036-Comm_Sub.html
85R23275 PMO-F | |||
By: King of Parker, Flynn, Parker | H.B. No. 2036 | ||
Substitute the following for H.B. No. 2036: | |||
By: Phillips | C.S.H.B. No. 2036 |
|
||
|
||
relating to premium tax credits related to certain fees paid under | ||
the Patient Protection and Affordable Care Act. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 222, Insurance Code, is amended by | ||
adding Section 222.0071 to read as follows: | ||
Sec. 222.0071. CREDIT FOR CERTAIN FEDERAL FEES PAID. (a) | ||
In this section: | ||
(1) "Affordable Care Act" means the Patient Protection | ||
and Affordable Care Act (Pub. L. No. 111-148), as amended by the | ||
Health Care and Education Reconciliation Act of 2010 (Pub. L. | ||
No. 111-152). | ||
(2) "Nationwide health premium or revenue amount" | ||
means the amount of gross premium and revenue aggregated on a | ||
nationwide basis attributable to lines of business, other than the | ||
business of life insurance, identified by the commissioner under | ||
Subsection (c) on which tax is imposed under this chapter. | ||
(3) "Provider fee amount" means the amount of health | ||
insurer provider fees, which may be recouped through adjustments to | ||
the insurer's premium rate or the health maintenance organization's | ||
formula or method for computing its schedule of charges, paid by an | ||
insurer or health maintenance organization under Section 9010, | ||
Affordable Care Act. | ||
(b) An insurer or health maintenance organization is | ||
entitled to a credit on the amount of tax due under this chapter in a | ||
taxable year in an amount equal to the product of the insurer's or | ||
health maintenance organization's provider fee amount multiplied | ||
by the percentage of the insurer's or health maintenance | ||
organization's nationwide health premium or revenue amount that the | ||
insurer or health maintenance organization allocates to this state | ||
multiplied by the rate of the tax imposed under this chapter. | ||
(c) The commissioner by rule shall: | ||
(1) establish formulas to calculate the amount of the | ||
credit authorized by Subsection (b), including a formula to | ||
calculate: | ||
(A) an insurer's or health maintenance | ||
organization's provider fee amount; and | ||
(B) the provider fee amount attributable to an | ||
insurer or health maintenance organization if the fees are imposed | ||
on a controlled group, as defined by Section 9010(c)(3), Affordable | ||
Care Act; and | ||
(2) identify the lines of business, other than the | ||
business of life insurance, included in the calculation of the | ||
nationwide health premium or revenue amount. | ||
SECTION 2. The changes in law made by this Act apply only to | ||
a tax liability accruing on or after January 1, 2020. | ||
SECTION 3. The comptroller of public accounts and | ||
commissioner of insurance shall adopt rules necessary to implement | ||
the changes in law made by this Act. | ||
SECTION 4. This Act takes effect September 1, 2017. |