2014 -- S 2511

========

LC004535

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

____________

A N   A C T

RELATING TO INSURANCE -- INDIVIDUAL HEALTHCARE COVERAGE

     Introduced By: Senators Goldin, Lynch, and Cool Rumsey

     Date Introduced: February 27, 2014

     Referred To: Senate Health & Human Services

     (by request)

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 27-18.5 of the General Laws entitled "Individual Health Insurance

Coverage" is hereby amended by adding thereto the following section:

     27-18.5-11. State coverage mandate. – (a) Commencing July 1, 2014, the following

individuals age eighteen (18) years and over shall obtain and maintain creditable coverage

pursuant to the provisions of the Affordable Care Act enacted by the Congress of the United

States:

     (1) Residents of the state; or

     (2) Individuals who become residents of the state within sixty-three (63) days thereof; or

     (3) Residents who, within sixty-three (63) days, have terminated any prior creditable

coverage shall obtain and maintain creditable coverage within sixty-three (63) days of such

termination.

     (b) Every person who files or is required to file an individual return as a resident of the

state, either separately or jointly with a spouse, shall indicate on the return, in a manner

prescribed by the tax administrator, whether such person, as of the last day of the taxable year for

which the return is filed:

     (1) Had creditable coverage as required under subsection (a) of this section whether

covered as an individual or as a named beneficiary of a policy covering multiple individuals; or

     (2) Claims an exemption under subsection (d) of this section.

     (c)(1) If the person fails to comply with subsection (b) of this section, or indicates that he

or she did not have such coverage in force, then the tax shall be computed on the return without

benefit of the personal exemption set forth in § 44-30-2.6(c)(2)(E), or, in the case of a person who

files jointly with a spouse, without benefit of fifty percent (50%) of the personal exemption set

forth in § 44-30-2.6(c)(2)(E).

     (2) If the person indicates that he or she had such creditable coverage available through

the state health insurance exchange but the tax administrator determines, based on the information

available to him or her, that the requirement of subsection (a) was not met, then the tax

administrator shall compute the tax for the taxable year without benefit of the personal exemption

set forth in § 44-30-2.6(c)(2)(E) or, in the case of a person who files jointly with a spouse,

without benefit of fifty percent (50%) of the personal exemption set forth in § 44-30-2.6(c)(2)(E).

     (3) The tax administrator shall first give notice to such person of his or her intent to

recompute the tax and provide an opportunity for a hearing pursuant to the Administrative

Procedures Act.

     (4) Whenever, under this section, the tax is computed without benefit of the personal

exemption, or without benefit of fifty percent (50%) of the personal exemption, the difference

between the tax so computed and the tax that would be computed in the absence of this section

shall constitute a penalty assessed under this section. The tax administrator shall have all

enforcement and collection procedures available under title 44 to collect the penalty assessed

under this section.

     (5) The tax administrator shall deposit all penalties assessed under this section into the

state Health Care Trust Fund to be established by the general treasurer for the purpose of

defraying the administrative costs of the state health care exchange.

     (d) An individual shall be exempt from subsection (c) of this section if he or she files a

sworn affidavit with his or her income tax return stating that he or she did not have creditable

coverage and that his or her sincerely held religious beliefs are the basis of his or her refusal to

obtain and maintain creditable coverage during the twelve (12) months of the taxable year for

which the return was filed. Any individual who claimed an exemption but received medical

health care during the taxable year for which the return is filed shall be liable for providing or

arranging for full payment for the medical health care and be subject to the penalty assessed

under subsection (c) of this section. The division of taxation and the state health care exchange

may conduct data matches for the purposes of administering this section. The exchange may

disclose to the division whether a health care provider has submitted data indicating that it has

provided health care services during the relevant tax year to an individual claiming an exemption

under this section.

LC004535 - Page 2 of 3

     (e) An individual subject to subsection (c) of this section, who disputes the determination

of applicability or affordability, as enforced by the division of taxation, may seek a review of this

determination through an appeal established by the state health commissioner; provided,

however, that no additional penalties shall be enforced against an individual seeking review until

the review is complete and any subsequent appeals are exhausted.

     SECTION 2. This act shall take effect upon passage.

========

LC004535

========

LC004535 - Page 3 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- INDIVIDUAL HEALTHCARE COVERAGE

***

     This act would establish a state individual health care coverage mandate requiring that

persons eighteen (18) years of age or older maintain creditable coverage pursuant to the Federal

Affordable Care Act and would impose tax penalties on individuals who fail to comply to be used

to defray the administrative costs of the state's health care exchange.

     This act would take effect upon passage.

========

LC004535

========

LC004535 - Page 4 of 3