with respect to such coverage for any 
qualifying child. 
‘‘(ii) 
COMMUNITY-RATED
PRE-
MIUMS.—The premiums charged for such 
coverage are community-rated for individ-
uals without regard to health status. 
‘‘(E) NO RIDERS.—The arrangement does 
not permit riders to the health benefits cov-
erage. 
‘‘(f) OTHER SPECIFIED COVERAGE.—For purposes of 
this section, an individual has access to other specified 
coverage for any month if, as of the first day of such 
month— 
‘‘(1) MEDICARE, MEDICAID, AND SCHIP.—Such 
individual— 
‘‘(A) is entitle to benefits under part A of 
title XVIII of the Social Security Act or is en-
rolled under part B of such title, or 
‘‘(B) is eligible to participate in any pro-
gram under title XIX or XXI of such Act 
(other than under section 1928 of such Act). 
‘‘(2) CERTAIN OTHER COVERAGE.—Such indi-
vidual— 
VerDate Aug 31 2005 
02:58 May 05, 2007
Jkt 059200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H2147.IH
H2147
hmoore on PRODPC68 with HMBILLS
‘‘(A) is enrolled in a health benefits plan 
under chapter 89 of title 5, United States Code, 
or 
‘‘(B) is entitle to receive benefits under 
chapter 55 of title 10, United States Code. 
‘‘(g) DESIGNATED STATE AGENCY.—For purposes of 
this section, the term ‘designated State agency’ means, 
with respect to any State, the agency responsible for ad-
ministering the State children’s health insurance program 
under title XXI of Social Security Act in such State. For 
purposes of carrying out any responsibility under this sec-
tion, such agency may utilize eligibility procedures under 
title XIX or XXI of such Act to the extent not inconsistent 
with this section. 
‘‘(h) SPECIAL RULES.— 
‘‘(1) COORDINATION
WITH
ADVANCE
PAY-
MENT.—With respect to any taxable year, the 
amount which would (but for this subsection) be al-
lowed as a credit under subsection (a) shall be re-
duced (but not below zero) by the aggregate amount 
paid on behalf of such taxpayer under section 7529 
for such taxable year. 
‘‘(2) COORDINATION WITH OTHER HEALTH IN-
SURANCE
CREDIT.—Amounts taken into account 
VerDate Aug 31 2005 
02:58 May 05, 2007
Jkt 059200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H2147.IH
H2147
hmoore on PRODPC68 with HMBILLS
under subsection (a) shall not be taken into account 
under section 35(a). 
‘‘(3) APPLICATION
OF
OTHER
RULES.—Rules 
similar to the rules of paragraphs (2), (3), (4), (8), 
and (9) of section 35(g) shall apply for purposes of 
this section.’’. 
(b) ADVANCE PAYMENT OF CREDIT.—Chapter 77 of 
such Code (relating to miscellaneous provisions) is amend-
ed by adding at the end the following new section: 
‘‘SEC. 7529. ADVANCE PAYMENT OF CREDIT FOR HEALTH 
INSURANCE FOR QUALIFYING CHILDREN. 
‘‘The Secretary shall establish a program for making 
payments to providers of qualified health insurance (as de-
fined in section 36) on behalf of taxpayers eligible for the 
credit under section 36. Except as otherwise provided by 
the Secretary, such payments shall be made on the basis 
of the adjusted gross income of the taxpayer for the pre-
ceding taxable year.’’. 
(c) DISCLOSURE
OF RETURN INFORMATION
FOR 
PURPOSES OF ADVANCE PAYMENT OF CREDIT AS PRE-
MIUMS FOR HEALTH INSURANCE FOR QUALIFYING CHIL-
DREN.— 
(1) IN
GENERAL.—Subsection (l) of section 
6103 of such Code is amended by adding at the end 
the following new paragraph: 
VerDate Aug 31 2005 
02:58 May 05, 2007
Jkt 059200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6201
E:\BILLS\H2147.IH
H2147
hmoore on PRODPC68 with HMBILLS
‘‘(21) DISCLOSURE OF RETURN INFORMATION 
FOR PURPOSES OF ADVANCE PAYMENT OF CREDIT 
AS PREMIUMS FOR HEALTH INSURANCE FOR QUALI-
FYING CHILDREN.—The Secretary may, on behalf of 
taxpayers eligible for the credit under section 36, 
disclose to a provider of qualified health insurance 
(as defined in such section), and persons acting on 
behalf of such provider, return information with re-
spect to any such taxpayer only to the extent nec-
essary (as prescribed by regulations issued by the 
Secretary) to carry out the program established by 
section 7529 (relating to advance payment of credit 
as premium payment for health insurance for quali-
fying children).’’. 
(2) CONFIDENTIALITY
OF
INFORMATION.— 
Paragraph (3) of section 6103(a) of such Code is 
amended by striking ‘‘or (20)’’ and inserting ‘‘(20), 
or (21)’’. 
(3) UNAUTHORIZED
DISCLOSURE.—Paragraph 
(2) of section 7213(a) of such Code is amended by 
striking ‘‘or (20)’’ and inserting ‘‘(20), or (21)’’. 
(d) INFORMATION REPORTING.— 
(1) IN GENERAL.—Subpart B of part III of 
subchapter A of chapter 61 of such Code (relating 
to information concerning transactions with other 
VerDate Aug 31 2005 
02:58 May 05, 2007
Jkt 059200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6201
E:\BILLS\H2147.IH
H2147
hmoore on PRODPC68 with HMBILLS
persons) is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 6050W. RETURNS RELATING TO CREDIT FOR HEALTH 
INSURANCE FOR QUALIFYING CHILDREN. 
‘‘(a) REQUIREMENT OF REPORTING.—Every person 
who is entitled to receive payments for any month of any 
calendar year under section 7529 (relating to advance pay-
ment of credit as premium payment for qualified health 
insurance) with respect to any individual shall, at such 
time as the Secretary may prescribe, make the return de-
scribed in subsection (b) with respect to each such indi-
vidual. 
‘‘(b) FORM AND MANNER OF RETURNS.—A return 
is described in this subsection if such return— 
‘‘(1) is in such form as the Secretary may pre-
scribe, and 
‘‘(2) contains— 
‘‘(A) the name, address, and TIN of each 
individual referred to in subsection (a), 
‘‘(B) the number of months for which 
amounts were entitled to be received with re-
spect to such individual under section 7529 (re-
lating to advance payment of credit as premium 
payment for health insurance for qualifying 
children), 
VerDate Aug 31 2005 
02:58 May 05, 2007
Jkt 059200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6201
E:\BILLS\H2147.IH
H2147
hmoore on PRODPC68 with HMBILLS