108th CONGRESS
2d Session
H. R. 4845
To amend the Internal Revenue Code of 1986 to impose an excise tax
on the termination of retiree prescription drug coverage.
IN THE HOUSE OF REPRESENTATIVES
July 15, 2004
Mr. ENGEL introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to impose an excise tax
on the termination of retiree prescription drug coverage.
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 `Medicare Corporate Accountability Act of 2004'.
SEC. 2. EXCISE TAX ON TERMINATION OF RETIREE PRESCRIPTION DRUG COVERAGE.
(a) In General- Chapter 47 of the Internal Revenue Code of 1986 (relating
to certain group health plans) is amended by adding at the end the following
new section:
`SEC. 5000A. TERMINATION OF RETIREE PRESCRIPTION DRUG COVERAGE.
`(a) In General- There is hereby imposed on any employer or employee organization
that contributes to a group health plan (as defined in section 5000(b)) a
tax on the termination of the provision of prescription drug benefits to any
qualified retiree under the plan.
`(b) Rate of Tax- The rate of tax imposed under this section is--
`(1) $750 in the case of a qualified retiree with self-only prescription
drug coverage under the plan (determined at the time of the termination
of benefits), and
`(2) $1,500 in the case of any other qualified retiree.
`(c) Qualified Retiree- For purposes of this section, the term `qualified
retiree' means any former employee of the employer--
`(1) who attained age 65 before the termination of benefits referred to
in subsection (a), and
`(2) whose employment with the employer terminated before the date of the
enactment of this section.
`(d) Regulations- The Secretary may issue regulations to carry out the purposes
of this section, including regulations with respect to the meaning of the
terms `termination' and `prescription drug benefits'.
`(e) Transfers to Medicare Prescription Drug Account- The Secretary shall
from time to time transfer from the the general fund of the Treasury to the
Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance
Trust Fund amounts equal to the taxes imposed under this section.'.
(b) Clerical Amendment- The table of sections for such chapter is amended
by adding at the end the following new item:
`Sec. 5000A. Termination of retiree prescription drug coverage.'.
(c) Effective Date- The amendments made by this section shall apply to terminations
of benefits which take effect on or after the date of the enactment of this
Act.
END
