To amend the Internal Revenue Code of 1986 to allow a refundable credit to certain senior citizens for premiums paid for coverage under Medicare Part B.

January 7, 2003

Mrs. EMERSON introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To amend the Internal Revenue Code of 1986 to allow a refundable credit to certain senior citizens for premiums paid for coverage under Medicare Part B.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Notch Baby Health Care Relief Act'.

SEC. 2. PREMIUMS PAID BY CERTAIN SENIOR CITIZENS FOR MEDICARE PART B.

(a) IN GENERAL- Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 35 as section 36 and by inserting after section 34 the following new section:

`SEC. 35. PREMIUMS PAID BY CERTAIN SENIOR CITIZENS FOR MEDICARE PART B.

`(a) ALLOWANCE OF CREDIT- In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the aggregate premiums paid under section 1840 of the Social Security Act by the taxpayer during the taxable year for enrollment of the eligible individual under part B of title XVIII of such Act.

`(b) ELIGIBLE INDIVIDUAL- For purposes of subsection (a), the term `eligible individual' means--

`(1) an individual born after 1916 and before 1927 who had wages or self-employment income credited for one or more years prior to 1979 and who was not eligible for an old-age or disability insurance benefit, and did not die, prior to January 1979,

`(2) the spouse (as determined under section 7703) of an individual described in paragraph (1), and

`(3) the widow or widower, as the case may be, of an individual described in paragraph (1).'.

(b) TECHNICAL AMENDMENTS-

(1) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by striking `or enacted' and inserting `enacted' and by inserting before the period `, or from section 35 of such Code'.

(2) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by striking the last item and inserting the following new items:

`Sec. 35. Premiums paid by certain senior citizens for medicare part B.

`Sec. 36. Overpayments of tax.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to premiums paid after the date of enactment of this Act.

SEC. 3. ELIMINATION OF MEDICARE PART B PREMIUM PENALTY.

(a) IN GENERAL- Section 1839(b) of the Social Security Act (42 U.S.C. 1395r(b)) is amended by adding at the end the following: `Any increase in an individual's monthly premium under the first sentence of this subsection shall not be applicable with respect to an eligible individual (or dependent of such an individual), as defined in section 35(b) of the Internal Revenue Code of 1986.'.

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to premiums for months beginning after the date of the enactment of this Act.

END