SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Health Insurance Tax 
Credit Assistance Act of 2007’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) Health care spending in the United States 
has grown rapidly to a rate of approximately 10 per-
cent a year. 
(2) According to the Congressional Budget Of-
fice, with the cost of health care rising rapidly, 
spending for Medicare and Medicaid is projected to 
grow even faster—in the range of 7 percent to 8 
percent annually. 
(3) More and more Americans with health in-
surance coverage are experiencing increases in out- 
of-pocket expenses for health care. 
(4) The rising costs of healthcare is driving 
more citizens to be uninsured or underinsured. Ac-
cording to the Bureau of the Census, Department of 
Commerce, the number of Americans without health 
insurance in 2005 increased by 800,000 to 
46,600,000 from 45,800,000 in 2004. 
(5) Many of these uninsured, nonelderly adults 
face chronic conditions. 
(6) The rising costs of healthcare are com-
pounded for Americans who suffer from a chronic 
VerDate Aug 31 2005 
22:54 Dec 06, 2007
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4263.IH
H4263
pwalker on PROD1PC71 with BILLS
disease that requires expensive treatments. Some of 
these uninsured adults with chronic conditions forgo 
needed medical care or prescription drugs, due to 
the prohibitive costs. 
(7) Many families who have a loved one with an 
expensive chronic condition often face a difficult di-
lemma: if they receive public assistance through 
State Medicaid programs, they must meet and main-
tain a certain income threshold and if they leave 
public assistance for private insurance, they must 
then be able to meet higher premiums, co-payments 
and drug costs. 
(8) Currently, nonprofit charitable organiza-
tions have recognized a need to develop financial as-
sistance programs for patients with expensive chron-
ic illnesses to access treatment and therapies to lead 
productive and healthy lives. 
(9) These patient assistance organizations 
(PAOs) prevent patients with expensive chronic ill-
nesses and conditions from depleting financial re-
sources to qualify for public assistance programs by 
subsidizing health insurance premiums; pharmacy 
and treatment co-payments; and expense associated 
with Medicare. 
VerDate Aug 31 2005 
22:54 Dec 06, 2007
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4263.IH
H4263
pwalker on PROD1PC71 with BILLS
(10) The Federal Government should be looking 
for ways to reduce the costs to public programs like 
Medicaid at the same time transitioning beneficiaries 
into the private health market. One way to do this 
is to create incentives for beneficiaries and their 
families to enter the workforce, earn a better living 
and ultimately, participate in the private health in-
surance market. 
(11) A targeted tax credit is one way the Fed-
eral Government could encourage citizens to donate 
to qualified PAOs. 
(12) The benefits of a tax credit provides the 
Federal Government with a greater savings than the 
cost of the tax credits themselves by transitioning 
patients off public programs such as Medicaid, lift-
ing them out of poverty, and enabling them to access 
health insurance coverage. 
(13) This tax credit also contributes to PAOs 
that can cover the ‘‘TrOOP’’ or ‘‘doughnut hole’’ ex-
penses that Medicare part D does not cover for dis-
abled and senior citizens. 
(14) This tax credit in the end fosters a tax 
policy that addresses three major areas of public pol-
icy concern— 
(A) uninsured and underinsured citizens; 
VerDate Aug 31 2005 
22:54 Dec 06, 2007
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4263.IH
H4263
pwalker on PROD1PC71 with BILLS
(B) treatment for Medicare beneficiaries 
(‘‘doughnut hole’’); and 
(C) cost savings for Medicaid. 
SEC. 3. CREDIT FOR CHARITABLE CONTRIBUTIONS TO CER-
TAIN 
PRIVATE 
CHARITIES 
PROVIDING 
HEALTH INSURANCE PREMIUM ASSISTANCE 
AND DRUG COPAYMENT ASSISTANCE TO THE 
UNINSURED AND UNDERINSURED. 
(a) IN GENERAL.—Subpart A of part IV of chapter 
1 of the Internal Revenue Code of 1986 (relating to non-
refundable personal credits) is amended by inserting after 
section 25D the following new section: 
‘‘SEC. 25E. CREDIT FOR CONTRIBUTIONS TO THE CHRON-
ICALLY 
ILL 
UNINSURED 
AND 
UNDER-
INSURED. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to 
the qualified charitable contributions made by the tax-
payer. 
‘‘(b) LIMITATION.—The amount allowed as a credit 
to the taxpayer under subsection (a) shall not exceed 
$1,000 ($2,000 in the case of a joint return). 
‘‘(c) QUALIFIED CHARITABLE CONTRIBUTION.—For 
the purposes of this section, the term ‘qualified charitable 
VerDate Aug 31 2005 
22:54 Dec 06, 2007
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4263.IH
H4263
pwalker on PROD1PC71 with BILLS
contribution’ means a charitable contribution (as defined 
in section 170(c)) made in cash to a qualified charity. 
‘‘(d) QUALIFIED CHARITY.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘qualified charity’ 
means an organization described in section 501(c)(3) 
and exempt from tax under section 501(a)— 
‘‘(A) which is certified by the Office of In-
spector General of the Department of Health 
and Human Services as meeting the require-
ments of paragraph (2), and 
‘‘(B) which is organized under the laws of 
a State at the time the contribution is made 
and is exempt from income taxation (if any) by 
such State. 
‘‘(2) CHARITY MUST WORK TO ASSIST CHRON-
ICALLY
ILL
PATIENTS
WITH
HEALTH
INSURANCE 
PREMIUM
ASSISTANCE
AND
COPAYMENT
ASSIST-
ANCE.—An organization meets the requirements of 
this paragraph only if the predominant activity of 
such organization is the subsidizing of health insur-
ance premiums and pharmacy co-payments of indi-
viduals who are uninsured or cannot otherwise af-
ford health insurance or drug treatments. 
VerDate Aug 31 2005 
22:54 Dec 06, 2007
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4263.IH
H4263
pwalker on PROD1PC71 with BILLS