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‘‘(c) MODIFIED GROSS INCOME.—For purposes of
this section, the term ‘modified gross income’ means the
adjusted gross income of the taxpayer for the taxable year
determined—
‘‘(1) without regard to paragraphs (6), (7), and
(11) of section 62(a) and without regard to sections
911, 931, and 933, and
‘‘(2) increased by—
‘‘(A) the amount of interest received or ac-
crued by the taxpayer during the taxable year
which is exempt from tax,
‘‘(B) the amount of social security benefits
(as defined in section 86(d)) received during the
taxable year which is not includible in gross in-
come under section 86,
‘‘(C) the amount of qualified military bene-
fits (as defined in section 134(b)) received dur-
ing the taxable year, and
‘‘(D) the amounts described in paragraphs
(7) and (8) of section 6051(a) which are not in-
cludible in gross income.
‘‘(d) MEDICARE
BENEFICIARIES
EXEMPT
FROM
TAX.—
‘‘(1) IN GENERAL.—The tax imposed by this
section shall not apply to any individual who is a
114
medicare-eligible individual for more than 6 full
months beginning in the taxable year.
‘‘(2) MEDICARE-ELIGIBLE
INDIVIDUAL.—For
purposes of this subsection, the term ‘medicare-eligi-
ble individual’ means, with respect to any month,
any individual who is entitled to (or, on application
without the payment of an additional premium,
would be entitled to) benefits under part A of title
XVIII of the Social Security Act.
‘‘(3) SPECIAL
RULES
FOR
JOINT
RETURNS
WHERE ONLY 1 SPOUSE IS MEDICARE-ELIGIBLE.—In
the case of a joint return where only 1 spouse is a
medicare-eligible individual, this section shall be ap-
plied—
‘‘(A) as if such return were the return of
an unmarried individual, and
‘‘(B) by taking into account one-half of the
modified gross income determined under the
joint return.
‘‘(e) COST-OF-LIVING ADJUSTMENT.—In the case of
any taxable year beginning in a calendar year after 1995,
the $8,000 and $16,000 amounts contained in this section
shall be increased by an amount equal to—
‘‘(1) such dollar amount, multiplied by
115
‘‘(2) the cost-of-living adjustment determined
under section 1(f)(3), for the calendar year in which
the taxable year begins, by substituting ‘calendar
year 1993’ for ‘calendar year 1987’ in subparagraph
(B) thereof.
‘‘(f) COORDINATION WITH OTHER PROVISIONS.—
‘‘(1) NOT TREATED AS MEDICAL EXPENSE.—
For purposes of section 213, the tax imposed by this
section shall not be treated as an expense for medi-
cal care.
‘‘(2) NOT TREATED AS TAX FOR CERTAIN PUR-
POSES.—The taxes imposed by this section shall not
be treated as taxes imposed by this chapter for pur-
poses of determining—
‘‘(A) the amount of any credit allowable
under this chapter, or
‘‘(B) the amount of the minimum tax im-
posed by section 55.
‘‘SEC. 59C. TAX ON GROSS RECEIPTS OF HEALTH SERVICE
PROVIDERS 
FROM 
PROVIDING 
COVERED
BENEFITS.
‘‘(a) TAX IMPOSED.—In addition to other taxes,
there is hereby imposed a tax on every health service pro-
vider for the taxable year an amount equal to 10 percent
116
of the gross receipts of such provider for such taxable year
attributable to covered benefits provided by such provider.
‘‘(b) HEALTH SERVICE PROVIDER.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘health service
provider’ means any person entitled to submit a
claim under section 2152 of the Social Security Act
for services provided by such person.
‘‘(2) PERSON.—The term ‘person’ includes—
‘‘(A) any entity exempt from tax under
section 501(a), and
‘‘(B) the United States, any State or polit-
ical subdivision thereof, the District of Colum-
bia, and any agency or instrumentality of the
foregoing.
‘‘(c) COVERED BENEFITS.—The term ‘covered bene-
fit’ means any benefit to which an individual is entitled
by reason of section 2121 of the Social Security Act.
‘‘(d) NOT TREATED AS TAX FOR CERTAIN PUR-
POSES.—The taxes imposed by this section shall not be
treated as taxes imposed by this chapter for purposes of
determining—
‘‘(1) the amount of any credit allowable under
this chapter, or
117
‘‘(2) the amount of the minimum tax imposed
by section 55.’’
(b) TAXES INCLUDED IN ESTIMATED TAX.—
(1) Subparagraph (A) of section 6655(g)(1) of
such Code is amended by striking ‘‘plus’’ at the end
of clause (iii), by redesignating clause (iv) as clause
(v), and by inserting after clause (iii) the following
new clause:
‘‘(iv) the tax imposed by section 59C,
plus’’.
(2) Section 6655 of such Code is amended by
redesignating subsection (j) as subsection (k) and by
inserting after subsection (i) the following new sub-
section:
‘‘(j) EXEMPT ENTITIES TREATED AS CORPORATIONS
FOR MEDIPLAN TAX.—Each entity referred to in section
59C(b)(2) shall be treated as a corporation for purposes
of applying this section with respect to the tax imposed
by section 59C.’’
(c) CERTAIN INFORMATION INCLUDED ON W–2.—
Subsection (a) of section 6051 of such Code is amended
by striking ‘‘and’’ at the end of paragraph (8), by striking
the period at the end of paragraph (9) and inserting ‘‘,
and’’, and by inserting after paragraph (9) the following
new paragraph: