‘‘(C) the amount entitled to be received for 
each such month, and 
‘‘(D) such other information as the Sec-
retary may prescribe. 
‘‘(c) STATEMENTS TO BE FURNISHED TO INDIVID-
UALS WITH RESPECT TO WHOM INFORMATION IS RE-
QUIRED.—Every person required to make a return under 
subsection (a) shall furnish to each individual whose name 
is required to be set forth in such return a written state-
ment showing— 
‘‘(1) the name and address of the person re-
quired to make such return and the phone number 
of the information contact for such person, and 
‘‘(2) the information required to be shown on 
the return with respect to such individual. 
The written statement required under the preceding sen-
tence shall be furnished on or before January 31 of the 
year following the calendar year for which the return 
under subsection (a) is required to be made.’’. 
(2) ASSESSABLE PENALTIES.— 
(A) 
Subparagraph 
(B) 
of 
section 
6724(d)(1) of such Code (relating to defini-
tions) is amended by striking ‘‘or’’ at the end 
of clause (xix), by striking ‘‘and’’ at the end of 
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clause (xx) and inserting ‘‘or’’, and by inserting 
after clause (xx) the following new clause: 
‘‘(xxi) section 6050W (relating to re-
turns relating to credit for health insur-
ance costs of low-income individuals), 
and’’. 
(B) Paragraph (2) of section 6724(d) of 
such Code is amended by striking ‘‘or’’ at the 
end of subparagraph (BB), by striking the pe-
riod at the end of subparagraph (CC) and in-
serting ‘‘, or’’, and by adding after subpara-
graph (CC) the following new subparagraph: 
‘‘(DD) section 6050W (relating to returns 
relating to credit for health insurance costs of 
low-income individuals).’’. 
(d) CLERICAL AMENDMENTS.— 
(1) The table of sections for chapter 77 of such 
Code is amended by adding at the end the following 
new item: 
‘‘Sec. 7529. Advance payment of credit as premium payment for qualified 
health insurance.’’. 
(2) The table of sections for subpart B of part 
III of subchapter A of chapter 61 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 6050W. Returns relating to credit for health insurance costs of low-in-
come individuals.’’. 
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(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 103. DEDUCTION FOR QUALIFIED HEALTH INSURANCE 
COSTS OF INDIVIDUALS. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
additional itemized deductions) is amended by redesig-
nating section 224 as section 225 and by inserting after 
section 223 the following new section: 
‘‘SEC. 224. COSTS OF QUALIFIED HEALTH INSURANCE. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a deduction an amount equal to 
the amount paid during the taxable year for coverage for 
the taxpayer, his spouse, and dependents under qualified 
health insurance. 
‘‘(b) QUALIFIED HEALTH INSURANCE.—For pur-
poses of this section, the term ‘qualified health insurance’ 
means insurance which constitutes medical care; except 
that such term shall not include any insurance if substan-
tially all of its coverage is of excepted benefits described 
in section 9832(c). 
‘‘(c) SPECIAL RULES.— 
‘‘(1) COORDINATION
WITH
MEDICAL
DEDUC-
TION, ETC.—Any amount paid by a taxpayer for in-
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surance to which subsection (a) applies shall not be 
taken into account in computing the amount allow-
able to the taxpayer as a deduction under section 
162(l) or 213(a). Any amount taken into account in 
determining the credit allowed under section 35 shall 
not be taken into account for purposes of this sec-
tion. 
‘‘(2) DEDUCTION NOT ALLOWED FOR SELF-EM-
PLOYMENT
TAX
PURPOSES.—The deduction allow-
able by reason of this section shall not be taken into 
account in determining an individual’s net earnings 
from self-employment (within the meaning of section 
1402(a)) for purposes of chapter 2.’’. 
(b) DEDUCTION
ALLOWED
IN
COMPUTING
AD-
JUSTED GROSS INCOME.—Subsection (a) of section 62 of 
such Code is amended by inserting before the last sentence 
the following new paragraph: 
‘‘(22) COSTS
OF
QUALIFIED
HEALTH
INSUR-
ANCE.—The deduction allowed by section 224.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 of such Code 
is amended by redesignating the item relating to section 
224 as an item relating to section 225 and inserting before 
such item the following new item: 
‘‘Sec. 224. Costs of qualified health insurance.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 104. LIMITATION ON EMPLOYER DEDUCTION FOR 
GROUP HEALTH PLAN EXPENSES. 
(a) IN GENERAL.—Section 162 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(q) as subsection (r) and by inserting after subsection (o) 
the following new subsection: 
‘‘(q) LIMITATION
ON
DEDUCTION
FOR
GROUP 
HEALTH PLAN EXPENSES.—The deduction allowed for 
any taxable year under this section for any amount paid 
or incurred in connection with a group health plan (as de-
fined in subsection (n)(3)) shall not exceed the sum of— 
‘‘(1) $15,000 for each contract for family cov-
erage under such plan, and 
‘‘(2) $7,500 for each contract for self-only cov-
erage under such plan.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 105. EQUAL EMPLOYER CONTRIBUTION RULE TO PRO-
MOTE CHOICE. 
(a) EXCISE TAX FOR FAILURE TO PROVIDE CON-
TRIBUTION ELECTION.— 
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(1) IN GENERAL.—Chapter 47 of the Internal 
Revenue Code of 1986 is amended by inserting after 
section 5000 the following new section: 
‘‘SEC. 5000A. HEALTH CARE CONTRIBUTION ELECTION. 
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 
on any employer or employee organization that contributes 
to a group health plan and fails to meet the requirement 
of subsection (b) with respect to any individual eligible to 
participate in such plan (determined under the terms of 
the plan and without regard to the election described in 
subsection (b)) a tax equal to 3 times the contribution 
amount with respect to the individual. 
‘‘(b) CONTRIBUTION ELECTION.—The requirement 
of this subsection is met with respect to any individual 
if such individual may elect to have the employer or em-
ployee organization pay an amount which is not less than 
the contribution amount to any provider of insurance 
(other than insurance described in section 36(e)(2)) which 
constitutes medical care of the individual or individual’s 
spouse or dependents in lieu of any group health plan cov-
erage otherwise provided or contributed to by the employer 
with respect to such individual. 
‘‘(c) CONTRIBUTION AMOUNT.—For purposes of this 
section, the term ‘contribution amount’ means, with re-
spect to an individual under a group health plan, the por-
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