I
105TH CONGRESS
2D SESSION
H. R. 4167
To amend the Internal Revenue Code of 1986 to allow a refundable credit
to military retirees for premiums paid for coverage under Medicare
part B.
IN THE HOUSE OF REPRESENTATIVES
JUNE 25, 1998
Mrs. EMERSON (for herself, Mr. MCHUGH, Mr. CALVERT, Mr. WATTS of
Oklahoma, Ms. DANNER, Mr. ROMERO-BARCELO´, Mr. BLUNT, and Mr.
BARR of Georgia) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Commerce, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to allow a
refundable credit to military retirees for premiums paid
for coverage under Medicare part B.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Military Retiree Health
Care Relief Act’’.
SEC. 2. PREMIUMS PAID BY MILITARY RETIREES FOR MEDI-
CARE PART B.
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to refundable credits) is amended by redes-
ignating section 35 as section 36 and by inserting after
section 34 the following new section:
‘‘SEC. 35. PREMIUMS PAID BY MILITARY RETIREES FOR
MEDICARE PART B.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible individual, there shall be allowed as a credit against
the tax imposed by this chapter for the taxable year an
amount equal to the aggregate premiums paid under sec-
tion 1840 of the Social Security Act by the taxpayer dur-
ing the taxable year for enrollment of the eligible individ-
ual under part B of title XVIII of such Act.
‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of sub-
section (a), the term ‘eligible individual’ means—
‘‘(1) an individual who is entitled to retired or
retainer pay based upon service in the uniformed
services (as defined in section 101 of title 10, United
States Code),
‘‘(2) the spouse (as determined under section
7703) of an individual described in paragraph (1),
and
‘‘(3) the widow or widower, as the case may be,
of an individual described in paragraph (1).’’.
(b) TECHNICAL AMENDMENTS.—
(1) Paragraph (2) of section 1324(b) of title
31, United States Code, is amended by striking ‘‘or
enacted’’ and inserting ‘‘enacted’’ and by inserting
before the period ‘‘, or from section 35 of such
Code’’.
(2) The table of sections for subpart C of part
IV of subchapter A of chapter 1 of such Code is
amended by striking the last item and inserting the
following new items:
‘‘Sec. 35. Premiums paid by military retirees for medicare part
B.
‘‘Sec. 36. Overpayments of tax.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to expenses incurred after Decem-
ber 31, 1997.
SEC. 3. ELIMINATION OF MEDICARE PART B PREMIUM PEN-
ALTY.
(a) IN GENERAL.—Section 1839(b) of the Social Se-
curity Act (42 U.S.C. 1395r(b)) is amended by adding at
the end the following: ‘‘Any increase in an individual’s
monthly premium under the first sentence of this sub-
section shall not be applicable with respect to an eligible
individual (or dependent of such an individual), as defined
in section 25B(b) of the Internal Revenue Code of 1986.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to premiums for months begin-
ning after the date of the enactment of this Act.
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