| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to premium and maintenance 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 identified by |
|
|
the commissioner under this section and taxed under this chapter. |
|
|
(3) "Provider fee amount" means the amount of health |
|
|
insurer provider fees that an insurer or health maintenance |
|
|
organization pays under Section 9010, Affordable Care Act, and may |
|
|
recoup through adjustments to the insurer's premium rate or the |
|
|
health maintenance organization's formula or method for computing |
|
|
its schedule of charges, as applicable. |
|
|
(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 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 lines of business included in the |
|
|
calculation of the nationwide health premium or revenue amount. |
|
|
(d) The lines of business identified by the commissioner |
|
|
under Subsection (c) may not include the business of life |
|
|
insurance. |
|
|
SECTION 2. Chapter 257, Insurance Code, is amended by |
|
|
adding Section 257.005 to read as follows: |
|
|
Sec. 257.005. 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 amount" means the |
|
|
amount of gross premium aggregated on a nationwide basis |
|
|
attributable to lines of business identified by the commissioner |
|
|
under this section and taxed under this chapter. |
|
|
(3) "Provider fee amount" means the amount of health |
|
|
insurer provider fees that an insurer pays under Section 9010, |
|
|
Affordable Care Act, and may recoup through adjustments to the |
|
|
insurer's premium rate. |
|
|
(b) An insurer 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 provider fee amount multiplied by the |
|
|
percentage of the insurer's nationwide health premium amount that |
|
|
the insurer allocates to this state multiplied by the rate of 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 provider fee amount; and |
|
|
(B) the provider fee amount attributable to an |
|
|
insurer if the fees are imposed on a controlled group, as defined by |
|
|
Section 9010(c)(3), Affordable Care Act; and |
|
|
(2) identify lines of business included in the |
|
|
calculation of the nationwide health premium amount. |
|
|
(d) The lines of business identified by the commissioner |
|
|
under Subsection (c) may not include the business of life |
|
|
insurance. |
|
|
SECTION 3. The changes in law made by this Act apply only to |
|
|
a tax liability accruing on or after January 1, 2014. |
|
|
SECTION 4. The comptroller of public accounts and |
|
|
commissioner of insurance shall adopt rules necessary to implement |
|
|
the changes in law made by this Act. |
|
|
SECTION 5. This Act takes effect September 1, 2019. |