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

Summary

These definitions and special rules support the fees on health insurance policies and self-insured health plans under sections 4375 and 4376. "Accident and health coverage" means any coverage that would make an insurance policy a specified health insurance policy, and "United States" includes U.S. possessions. Government entities count as persons and are not exempt from the fees, with one exception: no fee applies to anyone covered by an exempt governmental program — insurance programs under title XVIII of the Social Security Act (Medicare), the medical assistance programs under titles XIX and XXI (Medicaid and children's health coverage), federal programs providing medical care to members of the Armed Forces, veterans, and their spouses and dependents, and federal programs providing medical care to members of Indian tribes. The fees are collected and enforced as if they were taxes, and none of the money goes to a U.S. possession.

Title 26, §4377

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(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

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