26 U.S.C. § 4377: Definitions and special rules

Summary

Defines key words and says who must pay the fees under this part of the tax law. It explains what "accident and health coverage" means (coverage that would be a specified health insurance policy), what an "insurance policy" is (any written insurance contract), and that "United States" includes U.S. possessions. Says the word "person" covers government bodies, and governments must pay the fees unless a program is listed as exempt. Programs that are exempt and do not pay the fees are: Medicare (title XVIII of the Social Security Act), Medicaid and CHIP (titles XIX and XXI), federal medical care programs for members of the Armed Forces or for veterans (when care is provided other than by insurance), and federal medical care programs for members of Indian tribes (per section 4(d) of the Indian Health Care Improvement Act). Fees under this part count as taxes for subtitle F. Money collected under this part cannot be sent to any U.S. possession.

Title 26, §4377

Internal Revenue Code, Source: USLM XML via OLRC

(a)Definitions

For purposes of this subchapter—

(1)Accident and health coverage

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)Insurance policy

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

(3)United States

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

(b)Treatment of governmental entities

(1)In general

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)Treatment of exempt governmental programs

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)Exempt governmental program defined

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)Treatment as tax

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

(d)No cover over to possessions

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