I 
114TH CONGRESS 
1ST SESSION H. R. 2712 
To streamline the employer reporting process and strengthen the eligibility 
verification process for the health care premium tax credit and cost- 
sharing subsidy, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 10, 2015 
Mrs. BLACK (for herself and Mr. THOMPSON of California) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Energy and Commerce, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To streamline the employer reporting process and strengthen 
the eligibility verification process for the health care pre-
mium tax credit and cost-sharing subsidy, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Commonsense Reporting and Verification Act of 2015’’. 
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(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Prospective reporting system. 
Sec. 4. Protection of dependent privacy. 
Sec. 5. Electronic statements. 
Sec. 6. GAO studies. 
Sec. 7. Eligibility verification process for ACA subsidies. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The Department of the Treasury and the 
Internal Revenue Service should work together with 
other relevant departments and agencies to identify 
and implement methods to minimize compliance bur-
dens on businesses, insurance carriers, and individ-
uals under provisions of the Patient Protection and 
Affordable Care Act. 
(2) Such collaboration should strike an appro-
priate balance between sufficient reporting to en-
force the law and protecting the privacy of individ-
uals. 
SEC. 3. PROSPECTIVE REPORTING SYSTEM. 
(a) IN GENERAL.—Not later than 180 days after the 
enactment of this Act, the Secretary of the Treasury, in 
consultation with the Secretary of Health and Human 
Services, the Secretary of Labor, and the Administrator 
of the Small Business Administration, shall implement a 
voluntary prospective reporting system meeting the re-
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quirements of subsection (b). Such system shall be estab-
lished not later than September 2, 2016, and shall be 
available for use by employers with respect to plan years 
beginning after December 31, 2015. 
(b) REQUIREMENTS.—The system created under sub-
section (a) shall be maintained by the Secretary of the 
Treasury and shall include— 
(1) a process whereby employers may volun-
tarily report— 
(A) the name and employer identification 
number of the employer; 
(B) a certification of— 
(i) whether coverage meeting the defi-
nition of minimum essential coverage in 
section 5000A(f) of the Internal Revenue 
Code of 1986 is offered to the full-time 
employees; 
(ii) whether such coverage is offered 
to dependents of such employees; 
(iii) whether such coverage is offered 
to spouses of such employees; 
(iv) whether such coverage is offered 
to part-time employees; 
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(v) whether such coverage meets the 
minimum value requirement of section 
36B(c)(2)(C)(ii) of such Code; and 
(vi) whether such coverage satisfies 
the requirements to qualify for one of the 
affordability safe harbors promulgated by 
the Secretary of the Treasury for purposes 
of section 4980H of such Code; 
(C) the months during the prospective re-
porting period that such coverage is available to 
full time employees of the employer; and 
(D) whether any waiting periods apply 
with respect to such coverage; 
to be reported not later than 60 days before the 
start of the open enrollment period under section 
1311(c)(6)(B) of the Patient Protection and Afford-
able Care Act with respect to each such calendar 
year; 
(2) a process to ensure that Exchanges, the 
Federal Marketplace Data Services Hub, and the In-
ternal Revenue Service can securely and confiden-
tially access the information described in paragraph 
(1) as necessary to carry out their respective mis-
sions, and to provide to the Secretary of Health and 
Human Services additional information relating to 
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eligibility determinations for advance payment of the 
premium tax credits under section 36B of such Code 
and the cost-sharing subsidies under section 1402 of 
the Patient Protection and Affordable Care Act 
(Public Law 111–148); 
(3) a process to allow the appropriate agency 
described in subsection (a) to follow up with employ-
ers in order to obtain additional necessary informa-
tion relating to an employee’s eligibility for such ad-
vance payment or such cost-sharing subsidies, and to 
allow an employee to receive notification of any 
problem in verifying such eligibility; and 
(4) a process to allow employers using the sys-
tem to provide timely updates to the Federal Mar-
ketplace Data Services Hub regarding any cancella-
tion of coverage or significant change in availability 
of coverage for participating employees. 
(c) EXEMPTION FROM REPORTING REQUIREMENT 
UNDER
INTERNAL
REVENUE
CODE
OF
1986.—If, 
through the system created under subsection (a), an em-
ployer provides prospective reporting for a calendar year 
in which a plan year ends that meets the requirements 
of subsection (b)(1)— 
(1) such employer shall be treated as satisfying 
the return requirements of subsections (a) and (b) 
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of section 6056 of the Internal Revenue Code of 
1986 for the calendar year in which such plan year 
ends; and 
(2) such employer shall be treated as satisfying 
the requirements of section 6056(c) of such Code for 
the calendar year in which such plan year ends if the 
employer furnishes the statement described in such 
section to the Internal Revenue Service and to those 
employees of the employer for whom the employer 
has 
received 
a 
notice 
under 
section 
1411(e)(4)(B)(iii) of the Patient Protection and Af-
fordable Care Act (42 U.S.C. 18081) from the Ex-
change (established under section 1311 or 1321 of 
the Patient Protection and Affordable Care Act (42 
U.S.C. 18031, 18041)) that the employee, or the 
spouse or dependent of the employee, has enrolled in 
a qualified health plan (as defined in section 1301 
of such Act (42 U.S.C. 18021)) through the Ex-
change or been deemed eligible for an advance pay-
ment of premium tax credits under section 36B of 
such Code or cost-sharing subsidies under section 
1402 of the Patient Protection and Affordable Care 
Act (42 U.S.C. 18071). 
(d) THIRD-PARTY
FILING.—Employers may use 
third parties to complete the filing described in subsection 
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(b)(1). Use of such a third party to complete the filing 
does not affect an employer’s liability under sections 6055 
or 6056 of the Internal Revenue Code of 1986. 
(e) EMPLOYER NOTIFICATION OF EMPLOYEE EN-
ROLLMENTS.—Each Exchange established under title I of 
the Patient Protection and Affordable Care Act shall pro-
vide notice to each employer at the time an employee (or 
dependent of an employee) is enrolled under a qualified 
health plan through the Exchange. 
SEC. 4. PROTECTION OF DEPENDENT PRIVACY. 
(a) IN GENERAL.—Section 6055(b) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(3) TINs NOT COLLECTED OR MAINTAINED.— 
For purposes of subparagraph (B)(i), in the case of 
an individual other than the primary insured, if, be-
fore January 1, 2014, the health insurance issuer or 
the employer did not collect or maintain information 
on the TINs of such individuals (other than for pur-
poses of this section), the individual’s name and date 
of birth may be substituted for the name and TIN.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to returns the due date for which 
is after the date that is 60 days after the date of the enact-
ment of this Act. 
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SEC. 5. ELECTRONIC STATEMENTS. 
(a) IN GENERAL.—Section 6056(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(3) ELECTRONIC
DELIVERY.—An individual 
shall be deemed to have consented to receive the 
statement under this section in electronic form if 
such individual has consented at any prior time, to 
the person who is the employer of the individual dur-
ing the calendar year or the preceding plan year to 
which the statement relates, to receive such state-
ment in electronic form. The preceding sentence 
shall not apply if the individual refuses consent in 
writing with respect to the statement under this sec-
tion.’’. 
(b) STATEMENTS RELATING TO HEALTH INSURANCE 
COVERAGE.—Section 6055(c) of such Code, as amended 
by this Act, is amended by adding at the end the following 
new paragraph: 
‘‘(4) ELECTRONIC
DELIVERY.—An individual 
shall be deemed to have consented to receive the 
statement under this subsection in electronic form if 
such individual has consented at any prior time to 
receive in electronic form any private health infor-
mation (such as electronic health records) furnished 
to such individual by the person required to make 
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such statement, unless the individual refuses such 
consent in writing.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to statements the due date for 
which is after December 31, 2015. 
SEC. 6. GAO STUDIES. 
(a) STUDY OF FIRST YEARS OF EMPLOYER REPORT-
ING.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study that evalu-
ates, with respect to the period beginning on Janu-
ary 1, 2014, and ending on December 31, 2016— 
(A) the notification of employers by Ex-
changes established under title I of the Patient 
Protection and Affordable Care Act (Public 
Law 111–148) that a full-time employee of the 
employer has been determined eligible for ad-
vance payment of premium tax credits under 
section 36B of the Internal Revenue Code of 
1986 or cost-sharing subsidies under section 
1402 of such Act (42 U.S.C. 18071), including 
information regarding— 
(i) the data elements included in the 
employer notification; 
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(ii) the process by which the notifica-
tion forms were developed and sent to em-
ployers, including whether the process pro-
vided for a formal notice and comment pe-
riod; 
(iii) whether employers report that 
such notifications provided sufficient and 
relevant information for them to make ap-
propriate decisions about whether to utilize 
the appeals process; 
(iv) the total number of notifications 
sent to employers and the timeline of when 
such notifications were sent; 
(v) differences in the notification proc-
ess between the marketplace facilitated by 
the Federal Government and the State- 
Based Marketplaces; and 
(vi) challenges that have arisen in the 
notification process, and recommendations 
to address these challenges; and 
(B) the extent to which the Secretary of 
Health and Human Services has established a 
separate appeals process for employers who re-
ceived such a notification to challenge the eligi-
bility determination, as required by section 
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1411(f)(2) of the Patient Protection and Af-
fordable Care Act (42 U.S..C. 18081(f)(2)). 
(2) REPORT.—Not later than 1 year after the 
date of the enactment of this Act, the Comptroller 
General shall submit to the Committees on Finance 
and Health, Education, Labor, and Pensions of the 
Senate and the Committees on Ways and Means, 
Energy and Commerce, and Education and the 
Workforce of the House of Representatives a report 
on the results of the study conducted under para-
graph (1). 
(b) STUDY OF PROSPECTIVE REPORTING SYSTEM.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study that evalu-
ates, with respect to the period beginning on Janu-
ary 1, 2017, and ending on December 31, 2017, the 
functionality of the prospective reporting system es-
tablished under section 3, including the accuracy of 
information collected, the number of employers elect-
ing to report under such system, and any challenges 
that have arisen in implementing such system. 
(2) REPORT.—Not later than July 1, 2018, the 
Comptroller General shall submit to the Committees 
on Finance and Health, Education, Labor, and Pen-
sions of the Senate and the Committees on Ways 
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and Means, Energy and Commerce, and Education 
and the Workforce of the House of Representatives 
a report on the results of the study conducted under 
paragraph (1). 
SEC. 7. ELIGIBILITY VERIFICATION PROCESS FOR ACA SUB-
SIDIES. 
(a) IN GENERAL.—Except as specified in subsection 
(b), a marketplace (as defined in subsection (d)) may 
automatically reenroll an individual into a qualified health 
plan (as defined for purposes of title I of the Patient Pro-
tection and Affordable Care Act) so long as the market-
place— 
(1) redetermines on an annual basis the eligi-
bility of the individual for any advanced premium 
tax credit or a cost-sharing reduction pursuant to 
section 1412 of the Patient Protection and Afford-
able Care Act (42 U.S.C. 18082); and 
(2) takes into account, in making such redeter-
minations, annual changes in premiums and in the 
Federal poverty level as well as the most recent in-
come data available with respect to the individual in-
volved. 
(b) REENROLLMENT LIMITATIONS.—If a market-
place does not follow the processes specified under the sec-
tion with respect to an individual, then the marketplace 
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may not automatically reenroll the individual into a quali-
fied health plan with an advanced premium tax credit or 
a cost-sharing reduction until the individual provides cur-
rent income information to the marketplace so that eligi-
bility for a credit or reduction can be redetermined. 
(c) COMPREHENSIVE GUIDANCE BASED
ON CUR-
RENT GUIDANCE.—The provisions of this section are in-
tended to generally reflect and be consistent with the guid-
ance on annual eligibility redeterminations and reenroll-
ments for marketplace coverage issued by the Centers for 
Medicare and Medicaid Services on April 22, 2015. In car-
rying out this section, the Secretary shall apply rules 
(whether through guidance or otherwise) regarding the an-
nual eligibility redeterminations and reenrollments for cov-
erage and for tax credits and cost-sharing reduction for 
individuals through a marketplace that are consistent with 
this section and are at least as comprehensive as the guid-
ance (issued on April 22, 2015) applied for coverage for 
2016. Such guidance shall include provisions that ensure 
that— 
(1) enrollees eligible to be automatically re-
enrolled in a qualified health plan and to continue 
provision of such a tax credit or cost-sharing reduc-
tion shall maintain on file with the marketplace (or 
otherwise provide to the marketplace) an authoriza-
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tion for disclosure of information verifying eligibility 
for such a credit or cost-sharing reduction; 
(2) the marketplace annually requests updated 
income information to verify such eligibility; and 
(3) enrollees are provided timely and appro-
priate notices of the rules regarding annual redeter-
minations and reenrollments. 
(d) MARKETPLACE DEFINED.—In this section, the 
term ‘‘marketplace’’ means State Based Exchanges and 
the Federally Facilitated Exchange established under sec-
tions 1311 and 1321 of the Patient Protection and Afford-
able Care Act (42 U.S.C. 18031, 18041), respectively. 
Æ 
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