1434 
subsection to the Secretary of the Treasury 
and the Health Choices Commissioner. The 
Secretary shall take such timely enforcement 
action as appropriate to achieve compliance. 
‘‘SEC. 803. HEALTH COVERAGE PARTICIPATION REQUIRE-
MENTS. 
‘‘For purposes of this part, the term 
‘health coverage participation requirements’ 
means the requirements of part 1 of subtitle 
B of title III of division A of America’s Afford-
able Health Choices Act of 2009 (as in effect 
on the date of the enactment of such Act). 
‘‘SEC. 804. RULES FOR APPLYING REQUIREMENTS. 
‘‘(a) AFFILIATED GROUPS.—In the case of 
any employer which is part of a group of em-
ployers who are treated as a single employer 
under subsection (b), (c), (m), or (o) of section 
414 of the Internal Revenue Code of 1986, the 
election under section 801 shall be made by 
such employer as the Secretary may provide. 
Any such election, once made, shall apply to 
all members of such group. 
‘‘(b) SEPARATE ELECTIONS.—Under regula-
tions prescribed by the Secretary, separate 
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elections may be made under section 801 with 
respect to— 
‘‘(1) separate lines of business, and 
‘‘(2) full-time employees and employ-
ees who are not full-time employees. 
‘‘SEC. 805. TERMINATION OF ELECTION IN CASES OF SUB-
STANTIAL NONCOMPLIANCE. 
‘‘The Secretary may terminate the elec-
tion of any employer under section 801 if the 
Secretary (in coordination with the Health 
Choices Commissioner) determines that such 
employer is in substantial noncompliance 
with the health coverage participation re-
quirements and shall refer any such deter-
mination to the Secretary of the Treasury as 
appropriate. 
‘‘SEC. 806. REGULATIONS. 
‘‘The Secretary may promulgate such reg-
ulations as may be necessary or appropriate 
to carry out the provisions of this part, in ac-
cordance with section 324(a) of the America’s 
Affordable Health Choices Act of 2009. The 
Secretary may promulgate any interim final 
rules as the Secretary determines are appro-
priate to carry out this part.’’. 
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(b) ENFORCEMENT
OF HEALTH COVERAGE 
PARTICIPATION REQUIREMENTS.—Section 502 of 
such Act (29 U.S.C. 1132) is amended— 
(1) in subsection (a)(6), by striking 
‘‘paragraph’’ and all that follows through 
‘‘subsection (c)’’ and inserting ‘‘paragraph 
(2), (4), (5), (6), (7), (8), (9), (10), or (11) of 
subsection (c)’’; and 
(2) in subsection (c), by redesignating 
the second paragraph (10) as paragraph 
(12) and by inserting after the first para-
graph (10) the following new paragraph: 
‘‘(11) HEALTH COVERAGE PARTICIPATION 
REQUIREMENTS.— 
‘‘(A) CIVIL PENALTIES.—In the case 
of any employer who fails (during any 
period with respect to which an elec-
tion under section 801(a) is in effect) 
to satisfy the health coverage partici-
pation requirements with respect to 
any employee, the Secretary may as-
sess a civil penalty against the em-
ployer of $100 for each day in the pe-
riod beginning on the date such fail-
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ure first occurs and ending on the 
date such failure is corrected. 
‘‘(B) HEALTH COVERAGE PARTICIPA-
TION REQUIREMENTS.—For purposes of 
this paragraph, the term ‘health cov-
erage participation requirements’ has 
the meaning provided in section 803. 
‘‘(C) LIMITATIONS
ON
AMOUNT
OF 
PENALTY.— 
‘‘(i) PENALTY
NOT
TO
APPLY 
WHERE
FAILURE
NOT
DISCOVERED 
EXERCISING
REASONABLE
DILI-
GENCE.—No penalty shall be as-
sessed under subparagraph (A) 
with respect to any failure during 
any period for which it is estab-
lished to the satisfaction of the 
Secretary that the employer did 
not know, or exercising reason-
able diligence would not have 
known, that such failure existed. 
‘‘(ii) PENALTY NOT TO APPLY TO 
FAILURES
CORRECTED
WITHIN
DAYS.—No penalty shall be as-
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sessed under subparagraph (A) 
with respect to any failure if— 
‘‘(I) such failure was due 
to reasonable cause and not 
to willful neglect, and 
‘‘(II) such failure is cor-
rected during the 30-day pe-
riod beginning on the 1st date 
that the employer knew, or 
exercising 
reasonable 
dili-
gence would have known, that 
such failure existed. 
‘‘(iii) OVERALL LIMITATION FOR 
UNINTENTIONAL
FAILURES.—In the 
case of failures which are due to 
reasonable cause and not to will-
ful neglect, the penalty assessed 
under subparagraph (A) for fail-
ures during any 1-year period 
shall not exceed the amount equal 
to the lesser of— 
‘‘(I) 10 percent of the ag-
gregate amount paid or in-
curred by the employer (or 
predecessor employer) during 
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the preceding 1-year period 
for group health plans, or 
‘‘(II) $500,000. 
‘‘(D) 
ADVANCE
NOTIFICATION
OF 
FAILURE PRIOR TO ASSESSMENT.—Before 
a reasonable time prior to the assess-
ment of any penalty under this para-
graph with respect to any failure by 
an employer, the Secretary shall in-
form the employer in writing of such 
failure and shall provide the em-
ployer information regarding efforts 
and procedures which may be under-
taken by the employer to correct such 
failure. 
‘‘(E) COORDINATION
WITH
EXCISE 
TAX.—Under regulations prescribed in 
accordance with section 324 of the 
America’s Affordable Health Choices 
Act of 2009, the Secretary and the 
Secretary of the Treasury shall co-
ordinate the assessment of penalties 
under this section in connection with 
failures to satisfy health coverage 
participation requirements with the 
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imposition of excise taxes on such 
failures under section 4980H(b) of the 
Internal Revenue Code of 1986 so as 
to avoid duplication of penalties with 
respect to such failures. 
‘‘(F) DEPOSIT
OF
PENALTY
COL-
LECTED.—Any amount of penalty col-
lected under this paragraph shall be 
deposited as miscellaneous receipts 
in the Treasury of the United States.’’. 
(c) CLERICAL AMENDMENTS.—The table of 
contents in section 1 of such Act is amended 
by inserting after the item relating to section 
734 the following new items: 
‘‘PART 8—NATIONAL HEALTH COVERAGE PARTICIPATION 
REQUIREMENTS 
‘‘Sec. 801. Election of employer to be subject to national health 
coverage participation requirements. 
‘‘Sec. 802. Treatment of coverage resulting from election. 
‘‘Sec. 803. Health coverage participation requirements. 
‘‘Sec. 804. Rules for applying requirements. 
‘‘Sec. 805. Termination of election in cases of substantial non-
compliance. 
‘‘Sec. 806. Regulations.’’. 
(d) EFFECTIVE
DATE.—The amendments 
made by this section shall apply to periods be-
ginning after December 31, 2012. 
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SEC. 322. SATISFACTION OF HEALTH COVERAGE PARTICI-
PATION REQUIREMENTS UNDER THE INTER-
NAL REVENUE CODE OF 1986. 
(a) FAILURE TO ELECT, OR SUBSTANTIALLY 
COMPLY WITH, HEALTH COVERAGE PARTICIPA-
TION REQUIREMENTS.—For employment tax on 
employers who fail to elect, or substantially 
comply with, the health coverage participa-
tion requirements described in part 1, see sec-
tion 3111(c) of the Internal Revenue Code of 
1986 (as added by section 412 of this Act). 
(b) OTHER FAILURES.—For excise tax on 
other failures of electing employers to comply 
with such requirements, see section 4980H of 
the Internal Revenue Code of 1986 (as added 
by section 411 of this Act). 
SEC. 323. SATISFACTION OF HEALTH COVERAGE PARTICI-
PATION REQUIREMENTS UNDER THE PUBLIC 
HEALTH SERVICE ACT. 
(a) IN GENERAL.—Part C of title XXVII of 
the Public Health Service Act is amended by 
adding at the end the following new section: 
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‘‘SEC. 2793. NATIONAL HEALTH COVERAGE PARTICIPATION 
REQUIREMENTS. 
‘‘(a) ELECTION OF EMPLOYER TO BE SUBJECT 
TO NATIONAL HEALTH COVERAGE PARTICIPATION 
REQUIREMENTS.— 
‘‘(1) IN
GENERAL.—An employer may 
make an election with the Secretary to be 
subject to the health coverage participa-
tion requirements. 
‘‘(2) TIME
AND
MANNER.—An election 
under paragraph (1) may be made at such 
time and in such form and manner as the 
Secretary may prescribe. 
‘‘(b) TREATMENT OF COVERAGE RESULTING 
FROM ELECTION.— 
‘‘(1) 
IN
GENERAL.—If 
an 
employer 
makes an election to the Secretary under 
subsection (a)— 
‘‘(A) such election shall be treated 
as the establishment and mainte-
nance of a group health plan for pur-
poses of this title, subject to section 
151 
of 
the 
America’s 
Affordable 
Health Choices Act of 2009, and 
‘‘(B) the health coverage partici-
pation requirements shall be deemed 
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to be included as terms and condi-
tions of such plan. 
‘‘(2) PERIODIC
INVESTIGATIONS
TO
DE-
TERMINE
COMPLIANCE
WITH
HEALTH
COV-
ERAGE PARTICIPATION REQUIREMENTS.—The 
Secretary shall regularly audit a rep-
resentative sampling of employers and 
conduct investigations and other activi-
ties with respect to such sampling of em-
ployers so as to discover noncompliance 
with the health coverage participation 
requirements in connection with such 
employers (during any period with re-
spect to which an election under sub-
section (a) is in effect). The Secretary 
shall communicate findings of noncompli-
ance made by the Secretary under this 
subsection to the Secretary of the Treas-
ury and the Health Choices Commis-
sioner. The Secretary shall take such 
timely enforcement action as appropriate 
to achieve compliance. 
‘‘(c) HEALTH COVERAGE PARTICIPATION RE-
QUIREMENTS.—For purposes of this section, 
the term ‘health coverage participation re-
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1444 
quirements’ means the requirements of part 1 
of subtitle B of title III of division A of the 
America’s Affordable Health Choices Act of 
2009 (as in effect on the date of the enactment 
of this section). 
‘‘(d) SEPARATE ELECTIONS.—Under regula-
tions prescribed by the Secretary, separate 
elections may be made under subsection (a) 
with respect to full-time employees and em-
ployees who are not full-time employees. 
‘‘(e) TERMINATION OF ELECTION IN CASES OF 
SUBSTANTIAL NONCOMPLIANCE.—The Secretary 
may terminate the election of any employer 
under subsection (a) if the Secretary (in co-
ordination with the Health Choices Commis-
sioner) determines that such employer is in 
substantial noncompliance with the health 
coverage 
participation 
requirements 
and 
shall refer any such determination to the Sec-
retary of the Treasury as appropriate. 
‘‘(f) ENFORCEMENT
OF HEALTH COVERAGE 
PARTICIPATION REQUIREMENTS.— 
‘‘(1) CIVIL PENALTIES.—In the case of 
any employer who fails (during any pe-
riod with respect to which the election 
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1445 
under subsection (a) is in effect) to sat-
isfy the health coverage participation re-
quirements with respect to any employee, 
the Secretary may assess a civil penalty 
against the employer of $100 for each day 
in the period beginning on the date such 
failure first occurs and ending on the 
date such failure is corrected. 
‘‘(2) LIMITATIONS
ON
AMOUNT
OF
PEN-
ALTY.— 
‘‘(A) PENALTY NOT TO APPLY WHERE 
FAILURE
NOT
DISCOVERED
EXERCISING 
REASONABLE
DILIGENCE.—No penalty 
shall be assessed under paragraph (1) 
with respect to any failure during 
any period for which it is established 
to the satisfaction of the Secretary 
that the employer did not know, or 
exercising 
reasonable 
diligence 
would not have known, that such fail-
ure existed. 
‘‘(B) PENALTY
NOT
TO
APPLY
TO 
FAILURES CORRECTED WITHIN 30 DAYS.— 
No penalty shall be assessed under 
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paragraph (1) with respect to any 
failure if— 
‘‘(i) such failure was due to 
reasonable cause and not to will-
ful neglect, and 
‘‘(ii) such failure is corrected 
during the 30-day period begin-
ning on the 1st date that the em-
ployer knew, or exercising rea-
sonable 
diligence 
would 
have 
known, that such failure existed. 
‘‘(C) OVERALL LIMITATION FOR UNIN-
TENTIONAL
FAILURES.—In the case of 
failures which are due to reasonable 
cause and not to willful neglect, the 
penalty assessed under paragraph (1) 
for failures during any 1-year period 
shall not exceed the amount equal to 
the lesser of— 
‘‘(i) 10 percent of the aggre-
gate amount paid or incurred by 
the employer (or predecessor em-
ployer) during the preceding tax-
able year for group health plans, 
or 
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‘‘(ii) $500,000. 
‘‘(3) ADVANCE NOTIFICATION OF FAILURE 
PRIOR
TO
ASSESSMENT.—Before a reason-
able time prior to the assessment of any 
penalty under paragraph (1) with respect 
to any failure by an employer, the Sec-
retary shall inform the employer in writ-
ing of such failure and shall provide the 
employer information regarding efforts 
and procedures which may be under-
taken by the employer to correct such 
failure. 
‘‘(4) 
ACTIONS
TO
ENFORCE
ASSESS-
MENTS.—The Secretary may bring a civil 
action in any District Court of the United 
States to collect any civil penalty under 
this subsection. 
‘‘(5) COORDINATION WITH EXCISE TAX.— 
Under regulations prescribed in accord-
ance with section 324 of the America’s Af-
fordable Health Choices Act of 2009, the 
Secretary and the Secretary of the Treas-
ury shall coordinate the assessment of 
penalties under paragraph (1) in connec-
tion with failures to satisfy health cov-
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1448 
erage participation requirements with 
the imposition of excise taxes on such 
failures under section 4980H(b) of the In-
ternal Revenue Code of 1986 so as to 
avoid duplication of penalties with re-
spect to such failures. 
‘‘(6) DEPOSIT OF PENALTY COLLECTED.— 
Any amount of penalty collected under 
this subsection shall be deposited as mis-
cellaneous receipts in the Treasury of the 
United States. 
‘‘(g) REGULATIONS.—The Secretary may 
promulgate such regulations as may be nec-
essary or appropriate to carry out the provi-
sions of this section, in accordance with sec-
tion 324(a) of the America’s Affordable Health 
Choices Act of 2009. The Secretary may pro-
mulgate any interim final rules as the Sec-
retary determines are appropriate to carry 
out this section.’’. 
(b) EFFECTIVE
DATE.—The amendments 
made by subsection (a) shall apply to periods 
beginning after December 31, 2012. 
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SEC. 324. ADDITIONAL RULES RELATING TO HEALTH COV-
ERAGE PARTICIPATION REQUIREMENTS. 
(a) ASSURING COORDINATION.—The officers 
consisting of the Secretary of Labor, the Sec-
retary of the Treasury, the Secretary of 
Health and Human Services, and the Health 
Choices Commissioner shall ensure, through 
the execution of an interagency memorandum 
of understanding among such officers, that— 
(1) regulations, rulings, and interpre-
tations issued by such officers relating to 
the same matter over which two or more 
of such officers have responsibility under 
subpart B of part 6 of subtitle B of title I 
of the Employee Retirement Income Se-
curity Act of 1974, section 4980H of the 
Internal Revenue Code of 1986, and sec-
tion 2793 of the Public Health Service Act 
are administered so as to have the same 
effect at all times; and 
(2) coordination of policies relating to 
enforcing the same requirements through 
such officers in order to have a coordi-
nated enforcement strategy that avoids 
duplication of enforcement efforts and 
assigns priorities in enforcement. 
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(b) MULTIEMPLOYER PLANS.—In the case of 
a group health plan that is a multiemployer 
plan (as defined in section 3(37) of the Em-
ployee Retirement Income Security Act of 
1974), the regulations prescribed in accord-
ance with subsection (a) by the officers re-
ferred to in subsection (a) shall provide for 
the application of the health coverage partici-
pation requirements to the plan sponsor and 
contributing sponsors of such plan. 
TITLE IV—AMENDMENTS TO IN-
TERNAL REVENUE CODE OF 
1986 
Subtitle A—Shared Responsibility 
PART 1—INDIVIDUAL RESPONSIBILITY 
SEC. 401. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE 
HEALTH CARE COVERAGE. 
(a) IN GENERAL.—Subchapter A of chapter 
1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following 
new part: 
‘‘PART VIII—HEALTH CARE RELATED TAXES 
‘‘SUBPART A. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH 
CARE COVERAGE. 
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‘‘Subpart A—Tax on Individuals Without Acceptable 
Health Care Coverage 
‘‘Sec. 59B. Tax on individuals without acceptable health care 
coverage. 
‘‘SEC. 59B. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE 
HEALTH CARE COVERAGE. 
‘‘(a) TAX IMPOSED.—In the case of any indi-
vidual who does not meet the requirements of 
subsection (d) at any time during the taxable 
year, there is hereby imposed a tax equal to 
2.5 percent of the excess of— 
‘‘(1) the taxpayer’s modified adjusted 
gross income for the taxable year, over 
‘‘(2) the amount of gross income speci-
fied in section 6012(a)(1) with respect to 
the taxpayer. 
‘‘(b) LIMITATIONS.— 
‘‘(1) TAX
LIMITED
TO
AVERAGE
PRE-
MIUM.— 
‘‘(A) IN
GENERAL.—The tax im-
posed under subsection (a) with re-
spect to any taxpayer for any taxable 
year shall not exceed the applicable 
national average premium for such 
taxable year. 
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‘‘(B) APPLICABLE
NATIONAL
AVER-
AGE PREMIUM.— 
‘‘(i) IN GENERAL.—For purposes 
of subparagraph (A), the ‘applica-
ble national average premium’ 
means, with respect to any tax-
able year, the average premium 
(as determined by the Secretary, 
in coordination with the Health 
Choices Commissioner) for self- 
only coverage under a basic plan 
which is offered in a Health In-
surance Exchange for the cal-
endar year in which such taxable 
year begins. 
‘‘(ii) FAILURE TO PROVIDE COV-
ERAGE
FOR
MORE
THAN
ONE
INDI-
VIDUAL.—In the case of any tax-
payer who fails to meet the re-
quirements of subsection (e) with 
respect to more than one indi-
vidual during the taxable year, 
clause (i) shall be applied by sub-
stituting 
‘family 
coverage’ 
for 
‘self-only coverage’. 
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‘‘(2) PRORATION
FOR
PART
YEAR
FAIL-
URES.—The tax imposed under subsection 
(a) with respect to any taxpayer for any 
taxable year shall not exceed the amount 
which bears the same ratio to the amount 
of tax so imposed (determined without 
regard to this paragraph and after appli-
cation of paragraph (1)) as— 
‘‘(A) the aggregate periods during 
such taxable year for which such in-
dividual failed to meet the require-
ments of subsection (d), bears to 
‘‘(B) the entire taxable year. 
‘‘(c) EXCEPTIONS.— 
‘‘(1) 
DEPENDENTS.—Subsection 
(a) 
shall not apply to any individual for any 
taxable year if a deduction is allowable 
under section 151 with respect to such in-
dividual to another taxpayer for any tax-
able year beginning in the same calendar 
year as such taxable year. 
‘‘(2) NONRESIDENT ALIENS.—Subsection 
(a) shall not apply to any individual who 
is a nonresident alien. 
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‘‘(3) 
INDIVIDUALS
RESIDING
OUTSIDE 
UNITED STATES.—Any qualified individual 
(as defined in section 911(d)) (and any 
qualifying child residing with such indi-
vidual) shall be treated for purposes of 
this section as covered by acceptable cov-
erage during the period described in sub-
paragraph (A) or (B) of section 911(d)(1), 
whichever is applicable. 
‘‘(4) INDIVIDUALS
RESIDING
IN
POSSES-
SIONS
OF
THE
UNITED
STATES.—Any indi-
vidual who is a bona fide resident of any 
possession of the United States (as deter-
mined under section 937(a)) for any tax-
able year (and any qualifying child resid-
ing with such individual) shall be treated 
for purposes of this section as covered by 
acceptable coverage during such taxable 
year. 
‘‘(5) 
RELIGIOUS
CONSCIENCE
EXEMP-
TION.— 
‘‘(A) IN
GENERAL.—Subsection (a) 
shall not apply to any individual (and 
any qualifying child residing with 
such individual) for any period if 
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such individual has in effect an ex-
emption which certifies that such in-
dividual is a member of a recognized 
religious sect or division thereof de-
scribed in section 1402(g)(1) and an 
adherent of established tenets or 
teachings of such sect or division as 
described in such section. 
‘‘(B) EXEMPTION.—An application 
for the exemption described in sub-
paragraph (A) shall be filed with the 
Secretary at such time and in such 
form and manner as the Secretary 
may prescribe. Any such exemption 
granted by the Secretary shall be ef-
fective for such period as the Sec-
retary determines appropriate. 
‘‘(d) 
ACCEPTABLE
COVERAGE
REQUIRE-
MENT.— 
‘‘(1) IN GENERAL.—The requirements of 
this subsection are met with respect to 
any individual for any period if such in-
dividual (and each qualifying child of 
such individual) is covered by acceptable 
coverage at all times during such period. 
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‘‘(2) ACCEPTABLE COVERAGE.—For pur-
poses of this section, the term ‘acceptable 
coverage’ means any of the following: 
‘‘(A) QUALIFIED
HEALTH
BENEFITS 
PLAN
COVERAGE.—Coverage under a 
qualified health benefits plan (as de-
fined in section 100(c) of the Amer-
ica’s Affordable Health Choices Act of 
2009). 
‘‘(B) GRANDFATHERED
HEALTH
IN-
SURANCE
COVERAGE; COVERAGE
UNDER 
GRANDFATHERED
EMPLOYMENT-BASED 
HEALTH
PLAN.—Coverage 
under 
a 
grandfathered health insurance cov-
erage (as defined in subsection (a) of 
section 102 of the America’s Afford-
able Health Choices Act of 2009) or 
under a current employment-based 
health plan (within the meaning of 
subsection (b) of such section). 
‘‘(C) MEDICARE.—Coverage under 
part A of title XVIII of the Social Se-
curity Act. 
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‘‘(D) 
MEDICAID.—Coverage 
for 
medical assistance under title XIX of 
the Social Security Act. 
‘‘(E) 
MEMBERS
OF
THE
ARMED 
FORCES
AND
DEPENDENTS
(INCLUDING 
TRICARE).—Coverage under chapter 55 
of title 10, United States Code, includ-
ing similar coverage furnished under 
section 1781 of title 38 of such Code. 
‘‘(F) VA.—Coverage under the vet-
eran’s health care program under 
chapter 17 of title 38, United States 
Code, but only if the coverage for the 
individual involved is determined by 
the Secretary in coordination with 
the Health Choices Commissioner to 
be not less than the level specified by 
the Secretary of the Treasury, in co-
ordination with the Secretary of Vet-
eran’s Affairs and the Health Choices 
Commissioner, based on the individ-
ual’s priority for services as provided 
under section 1705(a) of such title. 
‘‘(G) 
OTHER
COVERAGE.—Such 
other health benefits coverage as the 
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Secretary, in coordination with the 
Health Choices Commissioner, recog-
nizes for purposes of this subsection. 
‘‘(e) 
OTHER
DEFINITIONS
AND
SPECIAL 
RULES.— 
‘‘(1) QUALIFYING CHILD.—For purposes 
of this section, the term ‘qualifying child’ 
has the meaning given such term by sec-
tion 152(c). With respect to any period 
during which health coverage for a child 
must be provided by an individual pursu-
ant to a child support order, such child 
shall be treated as a qualifying child of 
such individual (and not as a qualifying 
child of any other individual). 
‘‘(2) BASIC PLAN.—For purposes of this 
section, the term ‘basic plan’ has the 
meaning given such term under section 
100(c) of the America’s Affordable Health 
Choices Act of 2009. 
‘‘(3) HEALTH
INSURANCE
EXCHANGE.— 
For purposes of this section, the term 
‘Health Insurance Exchange’ has the 
meaning given such term under section 
100(c) of the America’s Affordable Health 
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Choices Act of 2009, including any State- 
based health insurance exchange ap-
proved for operation under section 208 of 
such Act. 
‘‘(4) FAMILY COVERAGE.—For purposes 
of this section, the term ‘family coverage’ 
means any coverage other than self-only 
coverage. 
‘‘(5) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of this section, the 
term ‘modified adjusted gross income’ 
means adjusted gross income— 
‘‘(A) determined without regard to 
section 911, and 
‘‘(B) increased by the amount of 
interest received or accrued by the 
taxpayer during the taxable year 
which is exempt from tax. 
‘‘(6) NOT TREATED AS TAX IMPOSED BY 
THIS CHAPTER FOR CERTAIN PURPOSES.—The 
tax imposed under this section shall not 
be treated as tax imposed by this chapter 
for purposes of determining the amount 
of any credit under this chapter or for 
purposes of section 55. 
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‘‘(f) REGULATIONS.—The Secretary shall 
prescribe such regulations or other guidance 
as may be necessary or appropriate to carry 
out the purposes of this section, including 
regulations or other guidance (developed in 
coordination with the Health Choices Com-
missioner) which provide— 
‘‘(1) exemption from the tax imposed 
under subsection (a) in cases of de mini-
mis lapses of acceptable coverage, and 
‘‘(2) a process for applying for a waiv-
er of the application of subsection (a) in 
cases of hardship.’’. 
(b) INFORMATION REPORTING.— 
(1) IN GENERAL.—Subpart B of part III 
of subchapter A of chapter 61 of such 
Code is amended by inserting after sec-
tion 6050W the following new section: 
‘‘SEC. 6050X. RETURNS RELATING TO HEALTH INSURANCE 
COVERAGE. 
‘‘(a) REQUIREMENT
OF REPORTING.—Every 
person who provides acceptable coverage (as 
defined in section 59B(d)) to any individual 
during any calendar year shall, at such time 
as the Secretary may prescribe, make the re-
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turn described in subsection (b) with respect 
to such individual. 
‘‘(b) FORM AND MANNER OF RETURNS.—A re-
turn is described in this subsection if such re-
turn— 
‘‘(1) is in such form as the Secretary 
may prescribe, and 
‘‘(2) contains— 
‘‘(A) the name, address, and TIN 
of the primary insured and the name 
of each other individual obtaining 
coverage under the policy, 
‘‘(B) the period for which each 
such individual was provided with 
the coverage referred to in subsection 
(a), and 
‘‘(C) such other information as the 
Secretary may require. 
‘‘(c) STATEMENTS TO BE FURNISHED TO INDI-
VIDUALS WITH RESPECT TO WHOM INFORMATION 
IS REQUIRED.—Every person required to make 
a return under subsection (a) shall furnish to 
each primary insured whose name is required 
to be set forth in such return a written state-
ment showing— 
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‘‘(1) the name and address of the per-
son required 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 sentence shall be furnished on or 
before January 31 of the year following the 
calendar year for which the return under sub-
section (a) is required to be made. 
‘‘(d) COVERAGE
PROVIDED
BY
GOVERN-
MENTAL UNITS.—In the case of coverage pro-
vided by any governmental unit or any agen-
cy or instrumentality thereof, the officer or 
employee who enters into the agreement to 
provide such coverage (or the person appro-
priately designated for purposes of this sec-
tion) shall make the returns and statements 
required by this section.’’. 
(2) PENALTY FOR FAILURE TO FILE.— 
(A) RETURN.—Subparagraph (B) of 
section 6724(d)(1) of such Code is 
amended by striking ‘‘or’’ at the end 
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of clause (xxii), by striking ‘‘and’’ at 
the end of clause (xxiii) and inserting 
‘‘or’’, and by adding at the end the fol-
lowing new clause: 
‘‘(xxiv) section 6050X (relating 
to returns relating to health in-
surance coverage), and’’. 
(B) STATEMENT.—Paragraph (2) of 
section 
6724(d) 
of 
such 
Code 
is 
amended by striking ‘‘or’’ at the end 
of subparagraph (EE), by striking the 
period at the end of subparagraph 
(FF) and inserting ‘‘, or’’, and by in-
serting after subparagraph (FF) the 
following new subparagraph: 
‘‘(GG) section 6050X (relating to 
returns relating to health insurance 
coverage).’’. 
(c) RETURN REQUIREMENT.—Subsection (a) 
of section 6012 of such Code is amended by in-
serting after paragraph (9) the following new 
paragraph: 
‘‘(10) Every individual to whom sec-
tion 59B(a) applies and who fails to meet 
the requirements of section 59B(d) with 
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respect to such individual or any quali-
fying child (as defined in section 152(c)) 
of such individual.’’. 
(d) CLERICAL AMENDMENTS.— 
(1) The table of parts for subchapter 
A of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the 
end the following new item: 
‘‘PART VIII. HEALTH CARE RELATED TAXES.’’. 
(2) The table of sections for subpart B 
of part III of subchapter A of chapter 61 
is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 6050X. Returns relating to health insurance coverage.’’. 
(e) SECTION 15 NOT TO APPLY.—The amend-
ment made by subsection (a) shall not be 
treated as a change in a rate of tax for pur-
poses of section 15 of the Internal Revenue 
Code of 1986. 
(f) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments 
made by this section shall apply to tax-
able years beginning after December 31, 
2012. 
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