II 

113TH CONGRESS 

2D SESSION S. 2492 

To amend the Internal Revenue Code of 1986 to increase access for the 

uninsured to high quality physician care. 

IN THE SENATE OF THE UNITED STATES 

JUNE 18, 2014 

Mr. SCOTT 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 increase 

access for the uninsured to high quality physician care. 

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 ‘‘Charity Care Expan5 sion Act of 2014’’. 

6 SEC. 2. PHYSICIAN CHARITY CARE DEDUCTION. 

7 (a) IN GENERAL.—Part VI of subchapter B of chap8 ter 1 of the Internal Revenue Code of 1986 is amended 

9 by adding at the end the following new section: 


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1 ‘‘SEC. 199A. PHYSICIAN CHARITY CARE. 

2 ‘‘(a) IN GENERAL.—In the case of a physician, there 

3 shall be allowed as a deduction for the taxable year an 

4 amount equal to the amount such physician would have 

5 otherwise charged for qualified charity care provided by 

6 such physician during the taxable year. 

7 ‘‘(b) QUALIFIED CHARITY CARE.—For purposes of 

8 this section— 

9 ‘‘(1) QUALIFIED CHARITY CARE.—The term 

10 ‘qualified charity care’ means physicians’ services 

11 (as defined in section 1861(q) of the Social Security 

12 Act) provided on a volunteer or pro bono basis 

13 through a qualifying arrangement. 

14 ‘‘(2) PHYSICIAN.—The term ‘physician’ has the 

15 meaning given to such term in section 1861 of the 

16 Social Security Act (42 U.S.C. 1395x(r)). 

17 ‘‘(3) QUALIFYING ARRANGEMENT.—The term 

18 ‘qualifying arrangement’ means an agreement or 

19 contract to provide physicians’ services on a volun20 teer or pro bono basis which is entered into— 

21 ‘‘(A) between the physician and a health 

22 care clinic or other organization providing 

23 health care which is targeted to serve under24 served or low-income individuals, and 

25 ‘‘(B) before the date the services are pro26 vided. 


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1 ‘‘(c) LIMITATIONS.— 

2 ‘‘(1) SERVICE CHARGE LIMITATION.—The 

3 amount determined under subsection (a) with re4 spect to any services shall not exceed the medicare 

5 economic index (referred to in the fourth sentence of 

6 section 1842(b)(3) of the Social Security Act (42 

7 U.S.C. 1395u(b)(3))) applicable to the services pro8 vided. In the case of physicians’ services to which 

9 the medicare economic index is not applicable, the 

10 Secretary, in consultation with the Secretary of 

11 Health and Human Services, shall use data on un12 compensated care for purposes of the limitation 

13 under subparagraph (B), and may adjust such data 

14 so as to be an appropriate proxy, including a down15 ward adjustment to eliminate bad debt data from 

16 uncompensated care data. 

17 ‘‘(2) OVERALL LIMITATION.—The amount al18 lowed as a deduction under subsection (a) for any 

19 taxable year shall not exceed an amount equal to— 

20 ‘‘(A) 10 percent of the gross income of the 

21 taxpayer for the taxable year derived from the 

22 taxpayer’s provision of physicians’ services (as 

23 defined in section 1861(q) of the Social Secu24 rity Act), or 


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1 ‘‘(B) in the case of a physician who does 

2 not have income for the taxable year derived 

3 from the provision of physicians’ services, 

4 $10,000. 

5 ‘‘(3) EXCLUSION FOR SERVICES WITH RESPECT

6 TO WHICH ANY REIMBURSEMENT IS RECEIVED.— 

7 Physicians’ services shall not be treated as qualified 

8 charity care under subsection (b) if a physician re9 ceives any reimbursement, including payment at a 

10 partial or discounted rate, for such services.’’. 

11 (b) CLERICAL AMENDMENT.—The table of sections 

12 for part VI of subchapter B of chapter 1 of such Code 

13 is amended by adding at the end the following new item: 

‘‘Sec. 199A. Physician charity care.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

17 SEC. 3. PREVENTIVE HEALTH AND HEALTH SERVICES 

18 BLOCK GRANT. 

19 Part A of title XIX of the Public Health Service Act 

20 (42 U.S.C. 300w et seq.) is repealed. 

Æ 


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