II

103D CONGRESS

1ST SESSION S. 1543

To amend the Internal Revenue Code of 1986 to provide a refundable credit

for qualified cancer screening tests.

IN THE SENATE OF THE UNITED STATES

OCTOBER 14 (legislative day, OCTOBER 13), 1993

Mr. MACK (for himself, Mr. BREAUX, Mr. INOUYE, Mr. D’AMATO, Mr. STEVENS, Mr. LOTT, Mr. LIEBERMAN, Mr. MCCAIN, Mr. JEFFORDS, Mr.

COATS, Mr. NICKLES, Mr. THURMOND, Mr. JOHNSTON, Mr. SHELBY,

Mr. SIMON, Mr. DECONCINI, Mr. SMITH, Mr. HATCH, Mr. KERRY, Mr.

CAMPBELL, Mrs. FEINSTEIN, and Mrs. HUTCHISON) introduced the

following bill; which was read twice and referred to the Committee on

Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide

a refundable credit for qualified cancer screening tests.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Cancer Screening

5 Incentive Act of 1993’’.

6 SEC. 2. FINDINGS.

7 The Congress finds the following:
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1 (1) Studies have shown that early detection and

2 screening for cancer can reduce cancer morbidity by

3 as much as 50 percent for certain types of cancer.

4 (2) Of the 1.17 million Americans diagnosed

5 with cancer in 1993, the American Cancer Society

6 estimates that 100,000 deaths could be avoided

7 through early detection and prompt treatment.

8 (3) Physicians report that concern about the

9 costs of early detection procedures is one of the

10 main reasons for hesitating to order such proce11 dures.

12 (4) Many low-income Americans lack com13 prehensive health insurance coverage and the major14 ity of existing health insurance policies do not ade15 quately cover the costs of cancer early detection and

16 screening procedures.

17 (5) Socioeconomically disadvantaged Americans

18 are disproportionately affected by cancer in terms of

19 incidence and mortality.

20 (6) Demographic forecasts predict that the el21 derly population will double by the year 2020. Since

22 cancer mortality and incidence rates rise dramati23 cally with age, cancer prevention in the elderly popu24 lation will become increasingly important.
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1 SEC. 3. CANCER SCREENING CREDIT.

2 (a) IN GENERAL.—Subpart C of part IV of sub3 chapter A of chapter 1 of the Internal Revenue Code of

4 1986 (relating to refundable credits) is amended by redes5 ignating section 35 as section 36 and by inserting after

6 section 34 the following new section:

7 ‘‘SEC. 35. CANCER SCREENING TEST CREDIT.

8 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al9 lowed as a credit against the tax imposed by this subtitle

10 for the taxable year expenditures paid or incurred during

11 the taxable year for any qualified cancer screening test

12 which is included in the list under subsection (c) and

13 which is not compensated by insurance or otherwise, as

14 follows:

15 ‘‘(1) ELIGIBLE INDIVIDUAL.—In the case of an

16 eligible individual, the amount of the credit allowable

17 under this subsection shall not exceed—

18 ‘‘(A) $250, or

19 ‘‘(B) $200 in the case of a taxpayer with

20 taxable income for the taxable year in excess of

21 the maximum rate of taxable income to which

22 the 15-percent rate applies under the applicable

23 table under section 1.

24 ‘‘(2) QUALIFIED CANCER SCREENING PRO25 VIDER.—In the case of a qualified cancer screening

26 provider, the amount of the credit allowable under
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1 this subsection shall be an amount equal to the

2 product of—

3 ‘‘(A) the lower of—

4 ‘‘(i) the usual and customary charges

5 for qualified cancer screening tests, or

6 ‘‘(ii) the rate of payment established

7 by the Health Care Financing Administra8 tion for qualified cancer screening tests,

9 multiplied by—

10 ‘‘(B) the number of qualified cancer

11 screening tests provided without charge during

12 the taxable year to qualifying low-income indi13 viduals.

14 ‘‘(b) DEFINITIONS.—For purposes of subsection

15 (a)—

16 ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible

17 individual’ means an individual who is—

18 ‘‘(A) the taxpayer,

19 ‘‘(B) the taxpayer’s spouse, or

20 ‘‘(C) any individual for whom the taxpayer

21 is allowed an exemption under section 151.

22 ‘‘(2) QUALIFIED CANCER SCREENING PRO23 VIDER.—The term ‘qualified cancer screening pro24 vider’ means a medical practitioner, facility, hospital,

25 laboratory, or similar institution licensed under
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1 State law to provide 1 or more qualified cancer

2 screening tests.

3 ‘‘(3) QUALIFYING LOW-INCOME INDIVIDUAL.—

4 The term ‘qualifying low-income individual’ means

5 an individual—

6 ‘‘(A) whose income level does not exceed

7 150 percent of the official poverty line (as de8 fined by the Office of Management and Budget

9 and revised annually in accordance with section

10 673(2) of the Omnibus Budget Reconciliation

11 Act of 1981) applicable to a family of the size

12 involved, and

13 ‘‘(B) with respect to whom identifying in14 formation is maintained.

15 ‘‘(c) QUALIFIED CANCER SCREENING TESTS.—

16 ‘‘(1) IN GENERAL.—For purposes of this sec17 tion, the Secretary, after consultation with the Sec18 retary of Health and Human Services and cancer re19 search and prevention organizations, shall publish,

20 not later than December 31, 1993, and annually

21 thereafter, a list of cancer screening tests which

22 qualify for the credit allowable under this section.

23 ‘‘(2) CANCER SCREENING TESTS.—The list of

24 cancer screening tests which qualify under this sec25 tion shall include at least the following tests:
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1 ‘‘(A) Physical breast examination and

2 mammogram for female breast cancer.

3 ‘‘(B) Digital rectal examination,

4 proctosigmoidoscopy, and blood stool test for

5 colon and rectum cancer.

6 ‘‘(C) Rectal examination for prostate can7 cer.

8 ‘‘(D) Pap test for uterine cancer.

9 ‘‘(E) Pelvic examination for ovarian can10 cer.

11 ‘‘(d) IDENTIFYING INFORMATION.—No credit shall

12 be allowed under this section unless the qualified cancer

13 screening provider maintains, to the satisfaction of the

14 Secretary, adequate records regarding the name and ad15 dress, date of testing, and type of test provided with re16 spect to each qualifying low-income individual with respect

17 to whom a credit is claimed.’’

18 (b) COORDINATION WITH DEDUCTIONS FOR MEDI19 CAL EXPENSES.—Section 213(f) of such Code (relating to

20 coordination with health insurance credit under section

21 32) is amended—

22 (1) by inserting ‘‘and the amount (if any) of

23 the cancer screening test credit allowable to the tax24 payer for the taxable year under section 35(a)(1)’’

25 before the end period; and
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1 (2) by inserting ‘‘AND CANCER SCREENING

2 TEST CREDIT UNDER SECTION 35’’ in the heading

3 after ‘‘SECTION 32’’.

4 (c) CLERICAL AMENDMENT.—The table of sections

5 for subpart C of part IV of subchapter A of chapter 1

6 of such Code is amended by striking the item relating to

7 section 35 and inserting:

‘‘Sec. 35. Cancer screening test credit.

‘‘Sec. 36. Overpayments of tax.’’

8 (d) EFFECTIVE DATE.—The amendments made by

9 this section shall apply to taxable years beginning after

10 December 31, 1993.

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