I
107TH CONGRESS
2D SESSION
H. R. 4604
To amend the Internal Revenue Code of 1986 to allow individuals a refund-
able credit against income tax for the purchase of private health insur-
ance.
IN THE HOUSE OF REPRESENTATIVES
APRIL 25, 2002
Ms. GRANGER (for herself, Mr. WYNN, Mr. COOKSEY, Mr. OWENS, and Mr.
SMITH of New Jersey) introduced the following bill; which was referred
to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow indi-
viduals a refundable credit against income tax for the
purchase of private health insurance.
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 ‘‘Securing Access,
Value, and Equality in Health Care Act.’’.
SEC. 2. REFUNDABLE CREDIT FOR HEALTH INSURANCE
COVERAGE.
(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. HEALTH INSURANCE COSTS.
‘‘(a) IN GENERAL.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this subtitle an amount equal to the amount paid dur-
ing the taxable year for qualified health insurance for the
taxpayer, his spouse, and dependents.
‘‘(b) LIMITATIONS.—
‘‘(1) IN GENERAL.—The amount allowed as a
credit under subsection (a) to the taxpayer for the
taxable year shall not exceed the sum of the monthly
limitations for coverage months during such taxable
year for each individual referred to in subsection (a)
for whom the taxpayer paid during the taxable year
any amount for coverage under qualified health in-
surance.
‘‘(2) PHASEOUT OF AMOUNT.—
‘‘(A) REDUCTION
BASED
ON
ADJUSTED
GROSS INCOME.—The amount determined under
paragraph (1) for any taxable year shall be re-
duced (but not below zero) by the amount de-
termined under subparagraph (B).
‘‘(B) 
AMOUNT
OF
REDUCTION.—The
amount determined under this subparagraph
with respect to any amount determined under
paragraph (1) shall be the amount which bears
the same ratio to such amount determined
under paragraph (1) as—
‘‘(i) the excess of—
‘‘(I) 
the 
taxpayer’s 
adjusted
gross income for such taxable year,
over
‘‘(II) 
the 
applicable 
dollar
amount, bears to
‘‘(ii) $15,000 ($10,000 in the case of
a joint return or a married individual filing
a separate return).
The rules of subparagraphs (B) and (C) of sec-
tion 219(g)(2) shall apply to any reduction
under this subparagraph.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph.—
‘‘(i) adjusted gross income shall be de-
termined in the same manner as under sec-
tion 408A(c)(3)(C)(i), and
‘‘(ii) the applicable dollar amount is—
‘‘(I) in the case of a taxpayer fil-
ing a joint return, $105,000,
‘‘(II) in the case of any other
taxpayer (other than a married indi-
vidual 
filing 
a 
separate 
return),
$65,000, and
‘‘(III) in the case of a married
individual filing a separate return,
zero.
‘‘(3) MONTHLY LIMITATION.—
‘‘(A) IN GENERAL.—The monthly limita-
tion for an individual for each coverage month
of such individual during the taxable year is the
amount equal to 1/12th of—
‘‘(i) the base amount, plus
‘‘(ii) 50 percent of the amount paid in
excess of the base amount.
‘‘(B) BASE AMOUNT.—For purposes of this
paragraph, the base amount is—
‘‘(i) $1,000 if such individual is the
taxpayer,
‘‘(ii) $1,000 if—
‘‘(I) such individual is the spouse
of the taxpayer,
‘‘(II) the taxpayer and such
spouse are married as of the first day
of such month, and
‘‘(III) the taxpayer files a joint
return for the taxable year, and
‘‘(iii) $500 if such individual is an in-
dividual for whom a deduction under sec-
tion 151(c) is allowable to the taxpayer for
such taxable year.
‘‘(C) LIMITATION
TO
DEPENDENTS.—
Not more than 2 individuals may be taken into
account by the taxpayer under subparagraph
(B)(iii).
‘‘(D) SPECIAL RULE FOR MARRIED INDI-
VIDUALS.—In the case of an individual—
‘‘(i) who is married (within the mean-
ing of section 7703) as of the close of the
taxable year but does not file a joint return
for such year, and
‘‘(ii) who does not live apart from
such individual’s spouse at all times during
the taxable year,
the limitation imposed by subparagraph (C)
shall be divided equally between the individual