To amend the Internal Revenue Code of 1986 to allow individuals to designate any portion of a refund for use by the Secretary of Health and Human Services in providing catastrophic health coverage to individuals who do not otherwise have health coverage.

April 28, 2003

Mr. ALLEN introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to allow individuals to designate any portion of a refund for use by the Secretary of Health and Human Services in providing catastrophic health coverage to individuals who do not otherwise have health 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 `American LIFE Trust Fund for the Medical Treatment of the Uninsured in Honor of the Victims and Families of September 11, 2001, Act'.

SEC. 2. DESIGNATION OF OVERPAYMENTS FOR HEALTH COVERAGE FOR UNINSURED.

(a) IN GENERAL- Subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:

`PART IX--DESIGNATION OF OVERPAYMENTS FOR HEALTH COVERAGE FOR UNINSURED

`Sec. 6097. Designation.

`SEC. 6097. DESIGNATION.

`(a) IN GENERAL- In the case of an individual, with respect to each taxpayer's return for the taxable year of the tax imposed by chapter 1, such taxpayer may designate that a specified portion (not less than $1) of any overpayment of tax for such taxable year be paid over to the American LIFE Trust Fund for the Medical Treatment of the Uninsured in Honor of the Victims and Families of September 11, 2001.

`(b) MANNER AND TIME OF DESIGNATION- A designation under subsection (a) may be made with respect to any taxable year only at the time of filing the return of the tax imposed by chapter 1 for such taxable year. Such designation shall be made in such manner as the Secretary prescribes by regulations except that such designation shall be made either on the first page of the return or on the page bearing the taxpayer's signature.

`(c) OVERPAYMENTS TREATED AS REFUNDED- For purposes of this title, any portion of an overpayment of tax designated under subsection (a) shall be treated as being refunded to the taxpayer as of the last date prescribed for filing the return of tax imposed by chapter 1 (determined without regard to extensions) or, if later, the date the return is filed.'.

(b) Transfers to American LIFE Trust Fund for the Medical Treatment of the Uninsured in Honor of the Victims and Families of September 11, 2001- The Secretary of the Treasury shall, from time to time, transfer to the American LIFE Trust Fund for the Medical Treatment of the Uninsured in Honor of the Victims and Families of September 11, 2001, the amounts designated under section 6097 of the Internal Revenue Code of 1986.

(c) CLERICAL AMENDMENT- The table of parts for subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following new item:

`Part IX. Designation of overpayments for health coverage for uninsured.'.

(d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

SEC. 3. AMERICAN LIFE TRUST FUND FOR THE MEDICAL TREATMENT OF THE UNINSURED IN HONOR OF THE VICTIMS AND FAMILIES OF SEPTEMBER 11, 2001.

(a) IN GENERAL- Subchapter A of chapter 98 of the Internal Revenue Code of 1986 (relating to trust fund code) is amended by adding at the end the following new section:

`SEC. 9511. AMERICAN LIFE TRUST FUND FOR THE MEDICAL TREATMENT OF THE UNINSURED IN HONOR OF THE VICTIMS AND FAMILIES OF SEPTEMBER 11, 2001.

`(a) CREATION OF TRUST FUND- There is established in the Treasury of the United States a trust fund to be known as the `American LIFE Trust Fund for the Medical Treatment of the Uninsured in Honor of the Victims and Families of September 11, 2001', consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section or section 9602(b).

`(b) TRANSFERS TO TRUST FUND- There are hereby appropriated to the American LIFE Trust Fund for the Medical Treatment of the Uninsured in Honor of the Victims and Families of September 11, 2001, amounts equivalent to the amounts designated under section 6097 (relating to designation of overpayments for health coverage for uninsured).

`(c) EXPENDITURES- Amounts in the American LIFE Trust Fund for the Medical Treatment of the Uninsured in Honor of the Victims and Families of September 11, 2001, shall be available to the Health Care Financing Administration to carry out a program which provides health coverage for catastrophic illnesses and injuries of individuals who otherwise have no health coverage.'.

(b) CLERICAL AMENDMENT- The table of sections for such subchapter is amended by adding at the end thereof the following new item:

`Sec. 9511. American LIFE Trust Fund for the Medical Treatment of the Uninsured in Honor of the Victims and Families of September 11, 2001.'.

END