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A BILL TO BE ENTITLED
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AN ACT
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relating to premium tax credits related to certain fees paid under |
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the Patient Protection and Affordable Care Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 222, Insurance Code, is amended by |
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adding Section 222.0071 to read as follows: |
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Sec. 222.0071. CREDIT FOR CERTAIN FEDERAL FEES PAID. (a) |
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In this section: |
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(1) "Affordable Care Act" means the Patient Protection |
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and Affordable Care Act (Pub. L. No. 111-148), as amended by the |
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Health Care and Education Reconciliation Act of 2010 (Pub. L. |
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No. 111-152). |
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(2) "Nationwide health premium or revenue amount" |
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means the amount of gross premium and revenue aggregated on a |
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nationwide basis attributable to lines of business, other than the |
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business of life insurance, identified by the commissioner under |
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Subsection (c) on which tax is imposed under this chapter. |
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(3) "Provider fee amount" means the amount of health |
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insurer provider fees, which may be recouped through adjustments to |
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the insurer's premium rate or the health maintenance organization's |
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formula or method for computing its schedule of charges, paid by an |
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insurer or health maintenance organization under Section 9010, |
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Affordable Care Act. |
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(b) An insurer or health maintenance organization is |
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entitled to a credit on the amount of tax due under this chapter in a |
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taxable year in an amount equal to the product of the insurer's or |
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health maintenance organization's provider fee amount multiplied |
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by the percentage of the insurer's or health maintenance |
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organization's nationwide health premium or revenue amount that the |
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insurer or health maintenance organization allocates to this state |
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multiplied by the rate of the tax imposed under this chapter. |
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(c) The commissioner by rule shall: |
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(1) establish formulas to calculate the amount of the |
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credit authorized by Subsection (b), including a formula to |
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calculate: |
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(A) an insurer's or health maintenance |
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organization's provider fee amount; and |
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(B) the provider fee amount attributable to an |
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insurer or health maintenance organization if the fees are imposed |
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on a controlled group, as defined by Section 9010(c)(3), Affordable |
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Care Act; and |
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(2) identify the lines of business, other than the |
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business of life insurance, included in the calculation of the |
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nationwide health premium or revenue amount. |
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SECTION 2. The changes in law made by this Act apply only to |
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a tax liability accruing on or after January 1, 2020. |
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SECTION 3. The comptroller of public accounts and |
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commissioner of insurance shall adopt rules necessary to implement |
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the changes in law made by this Act. |
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SECTION 4. This Act takes effect September 1, 2017. |