§4377 — Title 26 Internal Revenue Code | U.S. Code

Summary

Sets rules for words and who must pay the fees under this part of the tax code. It says what counts as certain kinds of health coverage and insurance, says government bodies are treated as "persons," limits which government programs do not pay the fees, treats the fees like taxes for subtitle F, and bars sending the money to U.S. possessions. It defines key terms in short form: "accident and health coverage" — coverage that would be a specified health insurance policy under section 4375(c); "insurance policy" — any contract that is issued, renewed, or extended; "United States" — includes U.S. possessions; "person" — includes governmental entities. Exempt governmental program means four kinds of federal medical programs: Medicare (title XVIII), Medicaid or CHIP (titles XIX and XXI), federal military or veterans programs that give care directly (not by insurance), and federal programs for Indian tribes (see IHCIA sec. 4(d)). No fee will be charged under section 4375 or section 4376 on covered lives in those exempt programs. Fees are treated as taxes for subtitle F, and amounts collected under this part must not be sent to any U.S. possession.

Title 26, §4377

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of this subchapter—

(1)The term “accident and health coverage” means any coverage which, if provided by an insurance policy, would cause such policy to be a specified health insurance policy (as defined in section 4375(c)).

(2)The term “insurance policy” means any policy or other instrument whereby a contract of insurance is issued, renewed, or extended.

(3)The term “United States” includes any possession of the United States.

(b)(1)For purposes of this subchapter—

(A)the term “person” includes any governmental entity, and

(B)notwithstanding any other law or rule of law, governmental entities shall not be exempt from the fees imposed by this subchapter except as provided in paragraph (2).

(2)In the case of an exempt governmental program, no fee shall be imposed under section 4375 or section 4376 on any covered life under such program.

(3)For purposes of this subchapter, the term “exempt governmental program” means—

(A)any insurance program established under title XVIII of the Social Security Act,

(B)the medical assistance program established by title XIX or XXI of the Social Security Act,

(C)any program established by Federal law for providing medical care (other than through insurance policies) to individuals (or the spouses and dependents thereof) by reason of such individuals being members of the Armed Forces of the United States or veterans, and

(D)any program established by Federal law for providing medical care (other than through insurance policies) to members of Indian tribes (as defined in section 4(d) of the Indian Health Care Improvement Act).

(c)For purposes of subtitle F, the fees imposed by this subchapter shall be treated as if they were taxes.

(d)Notwithstanding any other provision of law, no amount collected under this subchapter shall be covered over to any possession of the United States.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Social Security Act, referred to in subsec. (b)(3)(A), (B), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Titles XVIII, XIX, and XXI of the Act are classified generally to subchapters XVIII (§ 1395 et seq.), XIX (§ 1396 et seq.), and XXI (§ 1397aa et seq.), respectively, of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables. section 4(d) of the Indian Health Care Improvement Act, referred to in subsec. (b)(3)(D), is classified to section 1603(d) of Title 25, Indians.

§4377 Definitions and Special Rules

Summary

Title 26, §4377

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata