In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Neutral Cost Recovery Act of 2001''.

SEC. 2. NEUTRAL COST RECOVERY DEPRECIATION ADJUSTMENT FOR CERTAIN 
              PROPERTY PLACED IN SERVICE AFTER DECEMBER 31, 2001.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
(relating to accelerated cost recovery system) is amended by adding at 
the end thereof the following new subsection:
    ``(k) Deduction Adjustment To Allow Equivalent of Expensing for 
Certain Property Placed in Service After December 31, 2001.--
            ``(1) In general.--In the case of tangible property placed 
        in service after December 31, 2001, the deduction under this 
        section with respect to such property--
                    ``(A) shall be determined by substituting `150 
                percent' for `200 percent' in subsection (b)(1) in the 
                case of property to which the 200 percent declining 
                balance method would otherwise apply, and
                    ``(B) for any taxable year after the taxable year 
                during which the property is placed in service shall 
                be--
                            ``(i) the amount determined under this 
                        section for such taxable year without regard to 
                        this subparagraph, multiplied by
                            ``(ii) the applicable neutral cost recovery 
                        ratio for such taxable year.
            ``(2) Applicable neutral cost recovery ratio.--For purposes 
        of paragraph (1)--
                    ``(A) In general.--The applicable neutral cost 
                recovery ratio for the property for any taxable year is 
                the number determined by--
                            ``(i) dividing--
                                    ``(I) the gross domestic product 
                                deflator for the calendar quarter 
                                ending in such taxable year which 
                                corresponds to the calendar quarter 
                                during which the property was placed in 
                                service by the taxpayer, by
                                    ``(II) the gross domestic product 
                                deflator for the calendar quarter 
                                during which the property was placed in 
                                service by the taxpayer, and
                            ``(ii) then multiplying the number 
                        determined under clause (i) by the number equal 
                        to 1.035 to the nth power where `n' is the 
                        number of full years in the period beginning on 
                        the 1st day of the calendar quarter during 
                        which the property was placed in service by the 
                        taxpayer and ending on the day before the 
                        beginning of the corresponding calendar quarter 
                        ending during such taxable year.
                The applicable neutral cost recovery ratio shall never 
                be less than 1. The applicable neutral cost recovery 
                ratio shall be rounded to the nearest \1/1000\.
                    ``(B) Special rule for certain property.--In the 
                case of property described in paragraph (2) or (3) of 
                subsection (b) or in subsection (g), the applicable 
                neutral cost recovery ratio shall be determined without 
                regard to subparagraph (A)(ii).
            ``(3) Gross domestic product deflator.--For purposes of 
        paragraph (2), the gross domestic product deflator for any 
        calendar quarter is the implicit price deflator for the gross 
        domestic product for such quarter (as shown in the first 
        revision thereof).
            ``(4) Election not to have subsection apply.--This 
        subsection shall not apply to any property if the taxpayer 
        elects not to have this subsection apply to such property. Such 
        an election, once made, shall be irrevocable.
            ``(5) Churning transactions.--This subsection shall not 
        apply to any property if this section would not apply to such 
        property were subsection (f)(5)(A)(ii) applied by substituting 
        `2002' for `1981' and `2001' for `1980'.
            ``(6) Additional deduction not to affect basis or 
        recapture.--
                    ``(A) In general.--The additional amount determined 
                under this section by reason of this subsection shall 
                not be taken into account in determining the adjusted 
                basis of any property or of any interest in a pass-thru 
                entity which holds such property and shall not be 
                treated as a deduction for depreciation for purposes of 
                sections 1245 and 1250.
                    ``(B) Pass-thru entity defined.--For purposes of 
                subparagraph (A), the term `pass-thru entity' means--
                            ``(i) a regulated investment company,
                            ``(ii) a real estate investment trust,
                            ``(iii) an S corporation,
                            ``(iv) a partnership,
                            ``(v) an estate or trust, and
                            ``(vi) a common trust fund.''
    (b) Minimum Tax Treatment.--
            (1) Paragraph (1) of section 56(a) of such Code is amended 
        by adding at the end thereof the following new subparagraph:
                    ``(E) Use of neutral cost recovery ratio.--In the 
                case of property to which section 168(k) applies and 
                which is placed in service after December 31, 2001, the 
                deduction allowable under this paragraph with respect 
                to such property for any taxable year (after the 
                taxable year during which the property is placed in 
                service) shall be--
                            ``(i) the amount so allowable for such 
                        taxable year without regard to this 
                        subparagraph, multiplied by
                            ``(ii) the applicable neutral cost recovery 
                        ratio for such taxable year (as determined 
                        under section 168(k)).
                This subparagraph shall not apply to any property with 
                respect to which there is an election in effect not to 
                have section 168(k)) apply.''
            (2) Subparagraph (C) of section 56(g)(4) of such Code is 
        amended by adding at the end the following new clause:
                            ``(v) Neutral cost recovery deduction.--
                        Clause (i) shall not apply to the additional 
                        deduction allowable by reason of section 
                        168(k).''
    (c) Coordination With Depreciation Limitation on Certain 
Automobiles.--Clause (i) of section 280F(a)(1)(B) of such Code is 
amended by adding at the end the following new sentence: ``For purposes 
of this clause, the unrecovered basis of any passenger automobile shall 
be treated as including the additional amount determined under section 
168 by reason of subsection (k) thereof to the extent not allowed as a 
deduction by reason of this paragraph for any taxable year in the 
recovery period.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2001.
Amends the Internal Revenue Code to require that the depreciation deduction for tangible property placed in service after 2001 be computed using neutral cost recovery ratios.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medical Nutrition Equity Act of 
2017''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Specialized food is often medically necessary for the 
        safe and effective management of many digestive and inherited 
        metabolic disorders that impact digestion, absorption, and 
        metabolism of nutrients.
            (2) Although medically necessary food is essential for 
        patients, it is often expensive and not uniformly reimbursed by 
        health insurance, leaving many families with an insurmountable 
        financial burden.
            (3) As a result, many patients who cannot afford medically 
        necessary food may experience adverse health consequences from 
        suboptimal disease management, including hospitalization, 
        intellectual impairment, behavioral dysfunction, inadequate 
        growth, nutrient deficiencies, and even death.

SEC. 3. COVERAGE OF MEDICALLY NECESSARY FOOD AND VITAMINS FOR DIGESTIVE 
              AND INHERITED METABOLIC DISORDERS UNDER FEDERAL HEALTH 
              PROGRAMS AND PRIVATE HEALTH INSURANCE.

    (a) Coverage Under the Medicare Program.--
            (1) Medically necessary food.--
                    (A) In general.--Section 1861(s)(2) of the Social 
                Security Act (42 U.S.C. 1395x(s)(2)) is amended--
                            (i) in subparagraph (FF), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (GG), by inserting 
                        ``and'' at the end; and
                            (iii) by adding at the end the following 
                        new subparagraph:
            ``(HH) medically necessary food (as defined in subsection 
        (jjj)) and the medical equipment and supplies necessary to 
        administer such food (other than medical equipment and supplies 
        described in subsection (n));''.
                    (B) Definition.--Section 1861 of the Social 
                Security Act (42 U.S.C. 1395x) is amended by adding at 
                the end the following new subsection:

                       ``Medically Necessary Food

    ``(jjj)(1) Subject to paragraph (2), the term `medically necessary 
food' means food, including a low protein modified food product and an 
amino acid preparation product, that is--
            ``(A) furnished pursuant to the prescription, order, or 
        recommendation (as applicable) of a physician or other health 
        care professional qualified to make such prescription, order, 
        or recommendation, for the dietary management of a covered 
        disease or condition;
            ``(B) a specially formulated and processed product (as 
        opposed to a naturally occurring foodstuff used in its natural 
        state) for the partial or exclusive feeding of an individual by 
        means of oral intake or enteral feeding by tube;
            ``(C) intended for the dietary management of an individual 
        who, because of therapeutic or chronic medical needs, has 
        limited or impaired capacity to ingest, digest, absorb, or 
        metabolize ordinary foodstuffs or certain nutrients, or who has 
        other special medically determined nutrient requirements, the 
        dietary management of which cannot be achieved by the 
        modification of the normal diet alone;
            ``(D) intended to be used under medical supervision, which 
        may include in a home setting; and
            ``(E) intended only for an individual receiving active and 
        ongoing medical supervision wherein the individual requires 
        medical care on a recurring basis for, among other things, 
        instructions on the use of the food.
    ``(2) For purposes of paragraph (1), the term `medically necessary 
food' does not include the following:
            ``(A) Foods taken as part of an overall diet designed to 
        reduce the risk of a disease or medical condition or as weight 
        loss products, even if they are recommended by a physician or 
        other health professional.
            ``(B) Foods marketed as gluten-free for the management of 
        celiac disease or non-celiac gluten sensitivity.
            ``(C) Foods marketed for the management of diabetes.
            ``(D) Other products determined appropriate by the 
        Secretary.
    ``(3) In this subsection, the term `covered disease or condition' 
means the following diseases or conditions:
            ``(A) Inherited metabolic disorders, including the 
        following:
                    ``(i) Disorders classified as metabolic disorders 
                on the Recommended Uniform Screening Panel Core 
                Conditions list of the Secretary of Health and Human 
                Services' Advisory Committee on Heritable Disorders in 
                Newborns and Children.
                    ``(ii) N-acetyl glutamate synthase deficiency.
                    ``(iii) Ornithine transcarbamlyase deficiency.
                    ``(iv) Carbamoyl phosphate synthestase deficiency.
                    ``(v) Inherited disorders of mitochondrial 
                functioning.
            ``(B) Medical and surgical conditions of malabsorption, 
        including the following:
                    ``(i) Impaired absorption of nutrients caused by 
                disorders affecting the absorptive surface, functional 
                length, and motility of the gastrointestinal tract, 
                including short bowel syndrome and chronic intestinal 
                pseudo-obstruction.
                    ``(ii) Malabsorption due to liver or pancreatic 
                disease.
            ``(C) Immunoglobulin E and non-Immunoglobulin E-mediated 
        allergies to food proteins, including the following:
                    ``(i) Immunoglobulin E and non-Immunoglobulin E-
                mediated allergies to food proteins.
                    ``(ii) Food protein-induced enterocolitis syndrome.
                    ``(iii) Eosinophilic disorders, including 
                eosinophilic esophagitis, eosinophilic gastroenteritis, 
                eosinophilic colitis, and post-transplant eosinophilic 
                disorders.
            ``(D) Inflammatory or immune mediated conditions of the 
        alimentary tract, including the following:
                    ``(i) Inflammatory bowel disease, including Crohn's 
                disease, ulcerative colitis, and indeterminate colitis.
                    ``(ii) Gastroesophageal reflux disease that is 
                nonresponsive to standard medical therapies.
            ``(E) Any other disease or condition determined appropriate 
        by the Secretary.
    ``(4) In this subsection, the term ` low protein modified food 
product' means a product formulated to have less than one gram of 
protein per serving.''.
                    (C) Payment.--Section 1833(a)(1) of the Social 
                Security Act (42 U.S.C. 1395l(a)(1)) is amended--
                            (i) by striking ``and'' before ``(BB)''; 
                        and
                            (ii) by inserting before the semicolon at 
                        the end the following: ``, and (CC) with 
                        respect to medically necessary food (as defined 
                        in section 1861(jjj)), the amount paid shall be 
                        an amount equal to 80 percent of the lesser of 
                        the actual charge for the services or the 
                        amount determined under a fee schedule 
                        established by the Secretary for purposes of 
                        this subparagraph.''.
                    (D) Effective date.--The amendments made by this 
                subsection shall apply to items and services furnished 
                on or after the date that is 1 year after the date of 
                the enactment of this Act.
            (2) Inclusion of medically necessary vitamins as a covered 
        part d drug.--
                    (A) In general.--Section 1860D-2(e)(1) of the 
                Social Security Act (42 U.S.C. 1395w-102(e)(1)) is 
                amended--
                            (i) in subparagraph (A), by striking ``or'' 
                        at the end;
                            (ii) in subparagraph (B), by striking the 
                        comma at the end and inserting ``; or''; and
                            (iii) by inserting after subparagraph (B) 
                        the following new subparagraph:
                    ``(C) medically necessary vitamins used for the 
                management of a covered disease or condition (as 
                defined in section 1861(jjj)(3)) pursuant to the 
                prescription, order, or recommendation (as applicable) 
                of a physician or other health care professional 
                qualified to make such prescription, order, or 
                recommendation,''.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall apply to plan years beginning on 
                or after the date that is 1 year after the date of the 
                enactment of this Act.
    (b) Coverage Under the Medicaid Program.--
            (1) In general.--Section 1905(a) of the Social Security Act 
        (42 U.S.C. 1396d(a)) is amended--
                    (A) in paragraph (28), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (29) as paragraph 
                (31); and
                    (C) by inserting after paragraph (28) the following 
                new paragraphs:
            ``(29) medically necessary food (as defined in section 
        1861(jjj)) and the medical equipment and supplies necessary to 
        administer such food;
            ``(30) medically necessary vitamins used for the management 
        of a covered disease or condition (as defined in section 
        1861(jjj)(3)) pursuant to the prescription, order, or 
        recommendation (as applicable) of a physician or other health 
        care professional qualified to make such prescription, order, 
        or recommendation; and''.
            (2) Conforming amendments.--
                    (A) Mandatory benefits.--Section 1902(a)(10)(A) of 
                the Social Security Act (42 U.S.C. 1396a(a)(10)(A)) is 
                amended, in the matter preceding clause (i), by 
                striking ``and (28)'' and inserting ``(28), (29), and 
                (30)''.
                    (B) Exception to coverage restriction.--Section 
                1927(d)(2)(E) of the Social Security Act (42 U.S.C. 
                1396r-8(d)(2)(E)) is amended by inserting ``and except 
                for medically necessary vitamins described in section 
                1905(a)(30)'' before the period at the end.
            (3) Effective date.--
                    (A) In general.--Subject to subparagraph (B), the 
                amendments made by this subsection shall take effect on 
                the date that is 1 year after the date of the enactment 
                of this Act.
                    (B) Exception to effective date if state 
                legislation required.--In the case of a State plan for 
                medical assistance under title XIX of the Social 
                Security Act which the Secretary of Health and Human 
                Services determines requires State legislation (other 
                than legislation appropriating funds) in order for the 
                plan to meet the additional requirements imposed by the 
                amendments made by this subsection, the State plan 
                shall not be regarded as failing to comply with the 
                requirements of such title solely on the basis of its 
                failure to meet this additional requirement before the 
                first day of the first calendar quarter beginning after 
                the close of the first regular session of the State 
                legislature that begins after the date of the enactment 
                of this Act. For purposes of the previous sentence, in 
                the case of a State that has a 2-year legislative 
                session, each year of such session shall be deemed to 
                be a separate regular session of the State legislature.
    (c) Coverage Under CHIP.--
            (1) In general.--Section 2103(c) of the Social Security Act 
        (42 U.S.C. 1397cc(c)) is amended by adding at the end the 
        following:
            ``(9) Medically necessary food.--The child health 
        assistance provided to a targeted low-income child under the 
        plan shall include coverage of medically necessary food (as 
        defined in section 1861(jjj)) and the medical equipment and 
        supplies necessary to administer such food.
            ``(10) Certain vitamins.--The child health assistance 
        provided to a targeted low-income child under the plan shall 
        include coverage of medically necessary vitamins used for the 
        management of a covered disease or condition (as defined in 
        section 1861(jjj)(3)) pursuant to the prescription, order, or 
        recommendation (as applicable) of a physician or other health 
        care professional qualified to make such prescription, order, 
        or recommendation.''.
            (2) Conforming amendment.--Section 2103(a) of the Social 
        Security Act (42 U.S.C. 1397cc(a)) is amended, in the matter 
        preceding paragraph (1), by striking ``and (7)'' and inserting 
        ``(7), (9), and (10)''.
            (3) Effective date.--
                    (A) In general.--Subject to subparagraph (B), the 
                amendments made by this subsection shall take effect on 
                the date that is 1 year after the date of the enactment 
                of this Act.
                    (B) Exception to effective date if state 
                legislation required.--In the case of a State child 
                health plan for child health assistance under title XXI 
                of the Social Security Act which the Secretary of 
                Health and Human Services determines requires State 
                legislation (other than legislation appropriating 
                funds) in order for the plan to meet the additional 
                requirements imposed by the amendments made by this 
                subsection, the State child health plan shall not be 
                regarded as failing to comply with the requirements of 
                such title solely on the basis of its failure to meet 
                this additional requirement before the first day of the 
                first calendar quarter beginning after the close of the 
                first regular session of the State legislature that 
                begins after the date of the enactment of this Act. For 
                purposes of the previous sentence, in the case of a 
                State that has a 2-year legislative session, each year 
                of such session shall be deemed to be a separate 
                regular session of the State legislature.
    (d) Modification of Diseases and Conditions Covered Under TRICARE 
Program.--Section 1077(h)(3) of title 10, United States Code, is 
amended--
            (1) in subparagraph (D), by striking ``and'';
            (2) by redesignating subparagraph (E) as subparagraph (F); 
        and
            (3) by inserting after subparagraph (D) the following:
            ``(E) Immunoglobulin E or non-Immunoglobulin E mediated 
        allergies to food proteins.''.
    (e) Coverage Under FEHBP.--
            (1) In general.--Section 8902 of title 5, United States 
        Code, is amended by adding at the end the following:
    ``(p) A contract for a plan under this chapter shall require the 
carrier to provide coverage for--
            ``(1) medically necessary food (as defined in section 
        1861(jjj) of the Social Security Act) and the medical equipment 
        and supplies necessary to administer such food; and
            ``(2) medically necessary vitamins in the same manner 
        provided for under section 1860D-2(e)(1)(C) of the Social 
        Security Act.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to contract years beginning on or 
        after the date that is 1 year after the date of enactment of 
        this Act.
    (f) Coverage Under Private Health Insurance.--
            (1) In general.--Subpart II of part A of title XXVII of the 
        Public Health Service Act (42 U.S.C. 300gg-11 et seq.) is 
        amended by adding at the end the following:

``SEC. 2729. COVERAGE OF MEDICALLY NECESSARY FOOD AND VITAMINS.

    ``A health insurance issuer offering group or individual health 
insurance coverage shall provide coverage for--
            ``(1) medically necessary food (as defined in section 
        1861(jjj) of the Social Security Act) and the medical equipment 
        and supplies necessary to administer such food; and
            ``(2) medically necessary vitamins in the same manner 
        provided for under section 1860D-2(e)(1)(C) of the Social 
        Security Act.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to plan years beginning on or after the date that 
        is 1 year after the date of the enactment of this Act.
Medical Nutrition Equity Act of 2017 This bill provides for coverage, under Medicare, Medicaid, other specified federal health-care programs, and private health insurance,&nbsp;of foods and vitamins that are medically necessary for the management of&nbsp;certain digestive and metabolic disorders&nbsp;and conditions. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Children's Access to Reconstructive 
Evaluation & Surgery (CARES) Act of 2007''.

SEC. 2. COVERAGE OF MINOR CHILD'S CONGENITAL OR DEVELOPMENTAL DEFORMITY 
              OR DISORDER.

    (a) Group Health Plans.--
            (1) Public health service act amendments.--(A) Subpart 2 of 
        part A of title XXVII of the Public Health Service Act is 
        amended by adding at the end the following new section:

``SEC. 2707. STANDARDS RELATING TO BENEFITS FOR MINOR CHILD'S 
              CONGENITAL OR DEVELOPMENTAL DEFORMITY OR DISORDER.

    ``(a) Requirements for Reconstructive Surgery.--
            ``(1) In general.--A group health plan, and a health 
        insurance issuer offering group health insurance coverage, that 
        provides coverage for surgical benefits shall provide coverage 
        for outpatient and inpatient diagnosis and treatment of a minor 
        child's congenital or developmental deformity, disease, or 
        injury. A minor child shall include any individual through 21 
        years of age.
            ``(2) Requirements.--Any coverage provided under paragraph 
        (1) shall be subject to pre-authorization or pre-certification 
        as required by the plan or issuer, and such coverage shall 
        include any surgical treatment which, in the opinion of the 
        treating physician, is medically necessary to approximate a 
        normal appearance.
            ``(3) Treatment defined.--
                    ``(A) In general.--In this section, the term 
                `treatment' includes reconstructive surgical procedures 
                (procedures that are generally performed to improve 
                function, but may also be performed to approximate a 
                normal appearance) that are performed on abnormal 
                structures of the body caused by congenital defects, 
                developmental abnormalities, trauma, infection, tumors, 
                or disease, including--
                            ``(i) procedures that do not materially 
                        affect the function of the body part being 
                        treated; and
                            ``(ii) procedures for secondary conditions 
                        and follow-up treatment.
                    ``(B) Exception.--Such term does not include 
                cosmetic surgery performed to reshape normal structures 
                of the body to improve appearance or self-esteem.
    ``(b) Notice.--A group health plan under this part shall comply 
with the notice requirement under section 714(b) of the Employee 
Retirement Income Security Act of 1974 with respect to the requirements 
of this section as if such section applied to such plan.''.
            (B) Section 2723(c) of such Act (42 U.S.C. 300gg-23(c)) is 
        amended by striking ``section 2704'' and inserting ``sections 
        2704 and 2707''.
            (2) ERISA amendments.--(A) Subpart B of part 7 of subtitle 
        B of title I of the Employee Retirement Income Security Act of 
        1974 is amended by adding at the end the following new section:

``SEC. 714. STANDARDS RELATING TO BENEFITS FOR MINOR CHILD'S CONGENITAL 
              OR DEVELOPMENTAL DEFORMITY OR DISORDER.

    ``(a) Requirements for Reconstructive Surgery.--
            ``(1) In general.--A group health plan, and a health 
        insurance issuer offering group health insurance coverage, that 
        provides coverage for surgical benefits shall provide coverage 
        for outpatient and inpatient diagnosis and treatment of a minor 
        child's congenital or developmental deformity, disease, or 
        injury. A minor child shall include any individual who has not 
        attained age 22.
            ``(2) Requirements.--Any coverage provided under paragraph 
        (1) shall be subject to pre-authorization or pre-certification 
        as required by the plan or issuer, and such coverage shall 
        include any surgical treatment which, in the opinion of the 
        treating physician, is medically necessary to approximate a 
        normal appearance.
            ``(3) Treatment defined.--
                    ``(A) In general.--For purposes of this section, 
                the term `treatment' includes reconstructive surgical 
                procedures (procedures that are generally performed to 
                improve function, but may also be performed to 
                approximate a normal appearance) that are performed on 
                abnormal structures of the body caused by congenital 
                defects, developmental abnormalities, trauma, 
                infection, tumors, or disease, including--
                            ``(i) procedures that do not materially 
                        affect the function of the body part being 
                        treated; and
                            ``(ii) procedures for secondary conditions 
                        and follow-up treatment.
                    ``(B) Exception.--Such term does not include 
                cosmetic surgery performed to reshape normal structures 
                of the body to improve appearance or self-esteem.
    ``(b) Notice Under Group Health Plan.--The imposition of the 
requirements of this section shall be treated as a material 
modification in the terms of the plan described in the last sentence of 
section 102(a), for purposes of assuring notice of such requirements 
under the plan; except that the summary description required to be 
provided under the fourth sentence of section 104(b)(1) with respect to 
such modification shall be provided by not later than 60 days after the 
first day of the first plan year in which such requirements apply.''.
            (B) Section 731(c) of such Act (29 U.S.C. 1191(c)) is 
        amended by striking ``section 711'' and inserting ``sections 
        711 and 714''.
            (C) Section 732(a) of such Act (29 U.S.C. 1191a(a)) is 
        amended by striking ``section 711'' and inserting ``sections 
        711 and 714''.
            (D) The table of contents in section 1 of such Act is 
        amended by inserting after the item relating to section 713 the 
        following new item:

``Sec. 714. Standards relating to benefits for minor child's congenital 
                            or developmental deformity or disorder.''.
            (3) Internal revenue code amendments.--
                    (A) In general.--Subchapter B of chapter 100 of the 
                Internal Revenue Code of 1986 is amended by adding at 
                the end the following new section:

``SEC. 9813. STANDARDS RELATING TO BENEFITS FOR MINOR CHILD'S 
              CONGENITAL OR DEVELOPMENTAL DEFORMITY OR DISORDER.

    ``(a) Requirements for Reconstructive Surgery.--
            ``(1) In general.--A group health plan, and a health 
        insurance issuer offering group health insurance coverage, that 
        provides coverage for surgical benefits shall provide coverage 
        for outpatient and inpatient diagnosis and treatment of a minor 
        child's congenital or developmental deformity, disease, or 
        injury. A minor child shall include any individual who has not 
        attained age 22.
            ``(2) Requirements.--Any coverage provided under paragraph 
        (1) shall be subject to pre-authorization or pre-certification 
        as required by the plan or issuer, and such coverage shall 
        include any surgical treatment which, in the opinion of the 
        treating physician, is medically necessary to approximate a 
        normal appearance.
            ``(3) Treatment defined.--
                    ``(A) In general.--For purposes of this section, 
                the term `treatment' includes reconstructive surgical 
                procedures (procedures that are generally performed to 
                improve function, but may also be performed to 
                approximate a normal appearance) that are performed on 
                abnormal structures of the body caused by congenital 
                defects, developmental abnormalities, trauma, 
                infection, tumors, or disease, including--
                            ``(i) procedures that do not materially 
                        affect the function of the body part being 
                        treated; and
                            ``(ii) procedures for secondary conditions 
                        and follow-up treatment.
                    ``(B) Exception.--Such term does not include 
                cosmetic surgery performed to reshape normal structures 
                of the body to improve appearance or self-esteem.''.
                    (B) Clerical amendment.--The table of sections for 
                such subchapter is amended by adding at the end the 
                following new item:

``Sec. 9813. Standards relating to benefits for minor child's 
                            congenital or developmental deformity or 
                            disorder.''.
    (b) Individual Health Insurance.--(1) Part B of title XXVII of the 
Public Health Service Act is amended by inserting after section 2752 
the following new section:

``SEC. 2753. STANDARDS RELATING TO BENEFITS FOR MINOR CHILD'S 
              CONGENITAL OR DEVELOPMENTAL DEFORMITY OR DISORDER.

    ``(a) Requirements for Reconstructive Surgery.--
            ``(1) In general.--A group health plan, and a health 
        insurance issuer offering group health insurance coverage, that 
        provides coverage for surgical benefits shall provide coverage 
        for outpatient and inpatient diagnosis and treatment of a minor 
        child's congenital or developmental deformity, disease, or 
        injury. A minor child shall include any individual through 21 
        years of age.
            ``(2) Requirements.--Any coverage provided under paragraph 
        (1) shall be subject to pre-authorization or pre-certification 
        as required by the plan or issuer, and such coverage shall 
        include any surgical treatment which, in the opinion of the 
        treating physician, is medically necessary to approximate a 
        normal appearance.
            ``(3) Treatment defined.--
                    ``(A) In general.--In this section, the term 
                `treatment' includes reconstructive surgical procedures 
                (procedures that are generally performed to improve 
                function, but may also be performed to approximate a 
                normal appearance) that are performed on abnormal 
                structures of the body caused by congenital defects, 
                developmental abnormalities, trauma, infection, tumors, 
                or disease, including--
                            ``(i) procedures that do not materially 
                        affect the function of the body part being 
                        treated; and
                            ``(ii) procedures for secondary conditions 
                        and follow-up treatment.
                    ``(B) Exception.--Such term does not include 
                cosmetic surgery performed to reshape normal structures 
                of the body to improve appearance or self-esteem.
    ``(b) Notice.--A health insurance issuer under this part shall 
comply with the notice requirement under section 714(b) of the Employee 
Retirement Income Security Act of 1974 with respect to the requirements 
referred to in subsection (a) as if such section applied to such issuer 
and such issuer were a group health plan.''.
    (2) Section 2762(b)(2) of such Act (42 U.S.C. 300gg-62(b)(2)) is 
amended by striking ``section 2751'' and inserting ``sections 2751 and 
2753''.
    (c) Effective Dates.--(1) The amendments made by subsection (a) 
shall apply with respect to group health plans for plan years beginning 
on or after January 1, 2008.
    (2) The amendment made by subsection (b) shall apply with respect 
to health insurance coverage offered, sold, issued, renewed, in effect, 
or operated in the individual market on or after such date.
    (d) Coordinated Regulations.--Section 104(1) of Health Insurance 
Portability and Accountability Act of 1996 is amended by striking 
``this subtitle (and the amendments made by this subtitle and section 
401)'' and inserting ``the provisions of part 7 of subtitle B of title 
I of the Employee Retirement Income Security Act of 1974, the 
provisions of parts A and C of title XXVII of the Public Health Service 
Act, and chapter 100 of the Internal Revenue Code of 1986''.

Children's Access to Reconstructive Evaluation & Surgery (CARES) Act of 2007 - Amends the Public Health Service Act, the Employee Retirement Income Security Act of 1974 (ERISA), and the Internal Revenue Code to require a group health plan, and a health insurance issuer offering group coverage, that cover surgical benefits to also cover outpatient and inpatient diagnosis and treatment of a congenital or developmental deformity, disease, or injury of a minor child (defined as child under the age of 22).

Requires that such coverage: (1) be subject to pre-authorization or pre-certification requirements of the plan or issuer; and (2) include any surgical treatment deemed by the treating physician to be medically necessary to approximate a normal appearance. Defines "treatment" to include reconstructive surgical procedures that are performed on abnormal structures of the body caused by congenital defects, abnormalities, trauma, infection, tumors, or disease, including: (1) procedures that do not materially affect the function of the body part being treated; and (2) procedures for secondary conditions and follow-up treatment. Excludes cosmetic surgery performed to reshape normal structures of the body to improve appearance or self-esteem.