I 
108TH CONGRESS 
1ST SESSION 
H. R. 66
To amend the Internal Revenue Code of 1986 to allow a refundable credit 
to certain senior citizens for premiums paid for coverage under Medicare 
Part B. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 7, 2003
Mrs. EMERSON introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Energy 
and Commerce, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
refundable credit to certain senior citizens 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 ‘‘Notch Baby Health 
Care Relief Act’’.
SEC. 2. PREMIUMS PAID BY CERTAIN SENIOR CITIZENS 
FOR MEDICARE 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 CERTAIN SENIOR CITIZENS 
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 subtitle 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 indi-
vidual 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 born after 1916 and before 
1927 who had wages or self-employment income 
credited for one or more years prior to 1979 and 
who was not eligible for an old-age or disability in-
surance benefit, and did not die, prior to January 
1979,
‘‘(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 certain senior citizens for medicare 
part B. 
‘‘Sec. 36. Overpayments of tax.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to premiums paid after the date 
of enactment of this Act. 
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 35(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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