I 
109TH CONGRESS 
1ST SESSION 
H. R. 765 
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, and to establish State health insurance safety-net programs. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 10, 2005 
Mr. KENNEDY of Minnesota (for himself, Mr. LIPINSKI, Mr. AKIN, Mr. BRAD-
LEY of New Hampshire, Mr. CHOCOLA, Mr. MARIO DIAZ-BALART of 
Florida, Mr. FLAKE, Mr. HAYES, Mr. JOHNSON of Illinois, Mr. KLINE, 
Mr. MCCOTTER, Mr. MCHUGH, Mr. NEUGEBAUER, Mr. NORWOOD, Mr. 
PLATTS, Mr. SENSENBRENNER, Mr. SESSIONS, Mrs. JO ANN DAVIS of 
Virginia, and Mr. NEY) introduced the following 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 consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
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, and to establish 
State health insurance safety-net programs. 
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 ‘‘Fair Care for the Un-
insured Act of 2005’’. 
TITLE I—REFUNDABLE CREDIT 
FOR 
HEALTH 
INSURANCE 
COVERAGE 
SEC. 101. 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 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. 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 by 
the taxpayer for qualified health insurance for the tax-
payer, his spouse, and dependents for eligible coverage 
months beginning in the taxable year. 
‘‘(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 eligible coverage months during such 
taxable year for each individual referred to in sub-
section (a) for whom the taxpayer paid during the 
taxable year any amount for coverage under quali-
fied health insurance. 
‘‘(2) MONTHLY LIMITATIONS.— 
‘‘(A) IN GENERAL.—The monthly limita-
tion for an individual for each eligible coverage 
month of such individual during the taxable 
year is the amount equal to 1⁄12 of— 
‘‘(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. 
‘‘(B) LIMITATION
TO
DEPENDENTS.— 
Not more than 2 individuals may be taken into
account by the taxpayer under subparagraph 
(A)(iii). 
‘‘(C) 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 (B) 
shall be divided equally between the individual 
and the individual’s spouse unless they agree on 
a different division. 
‘‘(3) ELIGIBLE COVERAGE MONTH.—For pur-
poses of this subsection— 
‘‘(A) IN GENERAL.—The term ‘eligible cov-
erage month’ means, with respect to an indi-
vidual, any month if— 
‘‘(i) as of the first day of such month 
such individual is covered by qualified 
health insurance, and
‘‘(ii) the premium for coverage under 
such insurance for such month is paid by 
the taxpayer. 
‘‘(B) 
EMPLOYER-SUBSIDIZED
COV-
ERAGE.— 
‘‘(i) IN
GENERAL.—Such term shall 
not include any month for which such indi-
vidual is eligible to participate in any sub-
sidized health plan (within the meaning of 
section 162(l)(2)) maintained by any em-
ployer of the taxpayer or of the spouse of 
the taxpayer. 
‘‘(ii) PREMIUMS
TO
NONSUBSIDIZED 
PLANS.—If an employer of the taxpayer or 
the spouse of the taxpayer maintains a 
health plan which is not a subsidized 
health plan (as so defined) and which con-
stitutes qualified health insurance, em-
ployee contributions to the plan shall be 
treated as amounts paid for qualified 
health insurance. 
‘‘(C) CAFETERIA
PLAN
AND
FLEXIBLE 
SPENDING
ACCOUNT
BENEFICIARIES.—Such 
term shall not include any month during a tax-
able year if any amount is not includable in the