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I
118TH CONGRESS
1ST SESSION H. R. 3004
To amend the Internal Revenue Code of 1986 to provide for a temporary
expansion of health insurance premium tax credits for certain low-income
populations, and to amend title XIX of the Social Security Act to
establish a Federal Medicaid program.
IN THE HOUSE OF REPRESENTATIVES
APRIL 28, 2023
Mrs. FLETCHER introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Energy
and Commerce, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to provide
for a temporary expansion of health insurance premium
tax credits for certain low-income populations, and to
amend title XIX of the Social Security Act to establish
a Federal Medicaid program.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Affordable Care Cov-
4
erage Expansion and Support for States Act’’ or the ‘‘AC-
5
CESS Act’’.
6
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SEC. 2. TEMPORARY EXPANSION OF HEALTH INSURANCE
1
PREMIUM TAX CREDITS FOR CERTAIN LOW-
2
INCOME POPULATIONS.
3
(a) IN GENERAL.—Section 36B of the Internal Rev-
4
enue Code of 1986 is amended by redesignating subsection
5
(h) as subsection (i) and by inserting after subsection (g)
6
the following new subsection:
7
‘‘(h) CERTAIN TEMPORARY RULES BEGINNING IN
8
2024.—With respect to any taxable year beginning after
9
December 31, 2023, and before January 1, 2027—
10
‘‘(1) ELIGIBILITY
FOR
CREDIT
NOT
LIMITED
11
BASED ON INCOME.—Subsection (c)(1)(A) shall be
12
disregarded in determining whether a taxpayer is an
13
applicable taxpayer.
14
‘‘(2) CREDIT ALLOWED TO CERTAIN LOW-IN-
15
COME
EMPLOYEES
OFFERED
EMPLOYER-PROVIDED
16
COVERAGE.—Subclause
(II)
of
subsection
17
(c)(2)(C)(i) shall not apply if the taxpayer’s house-
18
hold income does not exceed 138 percent of the pov-
19
erty line for a family of the size involved. Subclause
20
(II) of subsection (c)(2)(C)(i) shall also not apply to
21
an individual described in the last sentence of such
22
subsection if the taxpayer’s household income does
23
not exceed 138 percent of the poverty line for a fam-
24
ily of the size involved.
25
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‘‘(3) CREDIT ALLOWED TO CERTAIN LOW-IN-
1
COME EMPLOYEES OFFERED QUALIFIED SMALL EM-
2
PLOYER
HEALTH
REIMBURSEMENT
ARRANGE-
3
MENTS.—A qualified small employer health reim-
4
bursement arrangement shall not be treated as con-
5
stituting affordable coverage for an employee (or any
6
spouse or dependent of such employee) for any
7
months of a taxable year if the employee’s household
8
income for such taxable year does not exceed 138
9
percent of the poverty line for a family of the size
10
involved.
11
‘‘(4) LIMITATIONS ON RECAPTURE.—
12
‘‘(A) IN GENERAL.—In the case of a tax-
13
payer whose household income is less than 200
14
percent of the poverty line for the size of the
15
family involved for the taxable year, the amount
16
of the increase under subsection (f)(2)(A) shall
17
in no event exceed $300 (one-half of such
18
amount in the case of a taxpayer whose tax is
19
determined under section 1(c) for the taxable
20
year).
21
‘‘(B) LIMITATION ON INCREASE FOR CER-
22
TAIN NON-FILERS.—In the case of any taxpayer
23
who would not be required to file a return of
24
tax for the taxable year but for any require-
25
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•HR 3004 IH
ment to reconcile advance credit payments
1
under subsection (f), if an Exchange established
2
under title I of the Patient Protection and Af-
3
fordable Care Act has determined that—
4
‘‘(i) such taxpayer is eligible for ad-
5
vance payments under section 1412 of
6
such Act for any portion of such taxable
7
year, and
8
‘‘(ii) such taxpayer’s household in-
9
come for such taxable year is projected to
10
not exceed 138 percent of the poverty line
11
for a family of the size involved,
12
subsection (f)(2)(A) shall not apply to such tax-
13
payer for such taxable year and such taxpayer
14
shall not be required to file such return of tax.
15
‘‘(C) INFORMATION
PROVIDED
BY
EX-
16
CHANGE.—The information required to be pro-
17
vided by an Exchange to the Secretary and to
18
the taxpayer under subsection (f)(3) shall in-
19
clude such information as is necessary to deter-
20
mine whether such Exchange has made the de-
21
terminations described in clauses (i) and (ii) of
22
subparagraph (B) with respect to such tax-
23
payer.’’.
24
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(b) EMPLOYER SHARED RESPONSIBILITY PROVISION
1
NOT APPLICABLE WITH RESPECT TO CERTAIN LOW-IN-
2
COME TAXPAYERS RECEIVING PREMIUM ASSISTANCE.—
3
Section 4980H(c)(3) is amended to read as follows:
4
‘‘(3) APPLICABLE PREMIUM TAX CREDIT AND
5
COST-SHARING REDUCTION.—
6
‘‘(A) IN GENERAL.—The term ‘applicable
7
premium tax credit and cost-sharing reduction’
8
means—
9
‘‘(i) any premium tax credit allowed
10
under section 36B,
11
‘‘(ii) any cost-sharing reduction under
12
section 1402 of the Patient Protection and
13
Affordable Care Act, and
14
‘‘(iii) any advance payment of such
15
credit or reduction under section 1412 of
16
such Act.
17
‘‘(B) EXCEPTION WITH RESPECT TO CER-
18
TAIN
LOW-INCOME
TAXPAYERS.—Such term
19
shall not include any premium tax credit, cost-
20
sharing reduction, or advance payment other-
21
wise described in subparagraph (A) if such
22
credit, reduction, or payment is allowed or paid
23
for a taxable year of an employee (beginning
24
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•HR 3004 IH
after December 31, 2023, and before January
1
1, 2027) with respect to which—
2
‘‘(i) an Exchange established under
3
title I of the Patient Protection and Af-
4
fordable Care Act has determined that
5
such employee’s household income for such
6
taxable year is projected to not exceed 138
7
percent of the poverty line for a family of
8
the size involved, or
9
‘‘(ii) such employee’s household in-
10
come for such taxable year does not exceed
11
138 percent of the poverty line for a family
12
of the size involved.’’.
13
(c) EFFECTIVE DATE.—The amendments made by
14
this section shall apply to taxable years beginning after
15
December 31, 2023.
16
SEC. 3. CLOSING THE MEDICAID COVERAGE GAP.
17
(a) FEDERAL MEDICAID PROGRAM TO CLOSE COV-
18
ERAGE GAP IN NONEXPANSION STATES.—Title XIX of
19
the Social Security Act (42 U.S.C. 1396 et seq.) is amend-
20
ed by adding at the end the following new section:
21
‘‘SEC. 1948. FEDERAL MEDICAID PROGRAM TO CLOSE COV-
22
ERAGE GAP IN NONEXPANSION STATES.
23
‘‘(a) ESTABLISHMENT.—In the case of a State that
24
the Secretary determines (based on the State plan under
25
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•HR 3004 IH
this title, waiver of such plan, or other relevant informa-
1
tion) is not expected to expend amounts under the State
2
plan (or waiver of such plan) for all individuals described
3
in section 1902(a)(10)(A)(i)(VIII) during a year (begin-
4
ning with 2027) (in this section defined as ‘a coverage
5
gap State’, with respect to such year), the Secretary shall
6
(including through contract with eligible entities (as speci-
7
fied by the Secretary), consistent with subsection (b)) pro-
8
vide for the offering to such individuals residing in such
9
State of a health benefits plan (in this section referred
10
to as the ‘Federal Medicaid program’ or the ‘Program’),
11
for each quarter during the period beginning on January
12
1 of such year, and ending with the last day of the first
13
quarter during which the State provides medical assist-
14
ance to all such individuals under the State plan (or waiv-
15
er of such plan). Under the Federal Medicaid program,
16
the Secretary—
17
‘‘(1) may use the Federally Facilitated Market-
18
place to facilitate eligibility determinations and en-
19
rollments under the Federal Medicaid Program and
20
shall establish a set of eligibility rules to be applied
21
under the Program in a manner consistent with sec-
22
tion 1902(e)(14); and
23
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•HR 3004 IH
‘‘(2) shall establish benefits, beneficiary protec-
1
tions, and access to care standards by, at a min-
2
imum—
3
‘‘(A) establishing a minimum set of bene-
4
fits to be provided (and providing such benefits)
5
under the Federal Medicaid program, which
6
shall be in compliance with the requirements of
7
section 1937 and shall consist of benchmark
8
coverage described in section 1937(b)(1) or
9
benchmark equivalent coverage described in sec-
10
tion 1937(b)(2) to the same extent as medical
11
assistance provided to such an individual under
12
this title (without application of this section) is
13
required under section 1902(k)(1) to consist of
14
such benchmark coverage or benchmark equiva-
15
lent coverage;
16
‘‘(B) applying the provisions of sections
17
1902(a)(8), 1902(a)(34) (which may be applied
18
in accordance with such phased-in implementa-
19
tion as the Secretary deems necessary, but be-
20
ginning as soon as practicable), and 1943 with
21
respect to such an individual, benefits under the
22
Federal Medicaid program, and making applica-
23
tion for such benefits (which may be in accord-
24
ance with a phased-in implementation as the
25
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•HR 3004 IH
Secretary deems necessary, but beginning as
1
soon as practicable) in the same manner as
2
such provisions would apply to such an indi-
3
vidual, medical assistance under this title (other
4
than pursuant to this section), and making ap-
5
plication for such medical assistance under this
6
title (other than pursuant to this section); and
7
providing that redeterminations and appeals of
8
eligibility and coverage determinations of serv-
9
ices (including benefit reductions, terminations,
10
and suspension) shall be conducted under the
11
Federal Medicaid program in accordance with a
12
Federal fair hearing process established by the
13
Secretary that is subject to the same require-
14
ments as applied with respect to redetermina-
15
tions and appeals of eligibility, and with respect
16
to coverage of services (including benefit reduc-
17
tions, terminations, and suspension), under a
18
State plan under this title and that may provide
19
for such fair hearings related to denials of eligi-
20
bility (based on modified adjusted gross income
21
eligibility determinations) to be conducted
22
through the Federally Facilitated Marketplace
23
for Exchanges;
24
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•HR 3004 IH
‘‘(C) applying, in accordance with sub-
1
section (d), the provisions of section 1927
2
(other than subparagraphs (B) and (C) of sub-
3
section (b)(1) of such section) with respect to
4
the Secretary and payment under the Federal
5
Medicaid program for covered outpatient drugs
6
with respect to a rebate period in the same
7
manner and to the same extent as such provi-
8
sions apply with respect to a State and payment
9
under the State plan for covered outpatient
10
drugs with respect to the rebate period; and
11
‘‘(D) applying the provisions of sections
12
1902(a)(14), 1902(a)(23), 1902(a)(47), and
13
1920 through 1920C (as applicable) to the Fed-
14
eral Medicaid program and such individuals en-
15
rolled in such program in the same manner and
16
to the same extent as such provisions apply to
17
a State plan and such individuals eligible for
18
medical assistance under the State plan, and
19
applying
the
provisions
of
section
20
1902(a)(30)(A) with respect to medical assist-
21
ance available under the Federal Medicaid pro-
22
gram in the same manner and to the same ex-
23
tent as such provisions apply to medical assist-
24
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•HR 3004 IH
ance under a State plan under this title, except
1
that—
2
‘‘(i) the Secretary shall provide that
3
no cost sharing shall be applied under the
4
Federal Medicaid program;
5
‘‘(ii) the Secretary may waive the pro-
6
visions of subparagraph (A) of section
7
1902(a)(23) to the extent deemed appro-
8
priate to facilitate the implementation of
9
managed care; and
10
‘‘(iii) in applying the provisions of sec-
11
tion
1902(a)(47)
and
sections
1920
12
through 1920C, the Secretary—
13
‘‘(I) shall establish a single pre-
14
sumptive eligibility process for individ-
15
uals eligible under the Federal Med-
16
icaid program, under which the Sec-
17
retary may contract with entities to
18
carry out such process; and
19
‘‘(II) may apply such provisions
20
and process in accordance with such
21
phased-in implementation as the Sec-
22
retary deems necessary, but beginning
23
as soon as practicable.
24
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‘‘(b) ADMINISTRATION OF FEDERAL MEDICAID PRO-
1
GRAM THROUGH CONTRACTS WITH MEDICAID MANAGED
2
CARE ORGANIZATION AND THIRD PARTY PLAN ADMINIS-
3
TRATOR REQUIREMENTS.—
4
‘‘(1) IN GENERAL.—For the purpose of admin-
5
istering the benefits under the Program (across all
6
coverage gap geographic areas (as defined in para-
7
graph (8))) to provide medical assistance to individ-
8
uals described in section 1902(a)(10)(A)(i)(VIII) en-
9
rolled under the Federal Medicaid program and re-
10
siding in such areas, the Secretary shall solicit bids
11
described in paragraph (2) and enter into contracts
12
with a total of at least 2 eligible entities (as speci-
13
fied by the Secretary, w
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