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
A BILL TO BE ENTITLED
AN ACT
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.