TITLE 44
Taxation

CHAPTER 44-30
Personal Income Tax

SECTION 44-30-102


§ 44-30-102. Reporting requirement for applicable entities providing minimum essential coverage.

(a) Findings.

(1) Ensuring the health of insurance markets is a responsibility reserved for states under the McCarran-Ferguson Act and other federal law.

(2) There is substantial evidence that being uninsured causes health problems and unnecessary deaths.

(3) The shared responsibility payment penalty imposed by § 44-30-101(c) is necessary to protect the health and welfare of the state's residents.

(4) The reporting requirement provided for in this section is necessary for the successful implementation of the shared responsibility payment penalty imposed by § 44-30-101(c). This requirement provides the only widespread source of third-party reporting to help taxpayers and the tax administrator verify whether an applicable individual maintains minimum essential coverage. There is compelling evidence that third-party reporting is crucial for ensuring compliance with tax provisions.

(5) The shared responsibility payment penalty imposed by § 44-30-101(c), and therefore the reporting requirement in this section, is necessary to ensure a stable and well-functioning health insurance market. There is compelling evidence that, without an effective shared responsibility payment penalty in place for those who go without coverage, there would be substantial instability in health insurance markets, including higher prices and the possibility of areas without any insurance available.

(6) The shared responsibility payment penalty imposed by § 44-30-101(c), and therefore the reporting requirement in this section, is also necessary to foster economic stability and growth in the state.

(7) The reporting requirement in this section has been narrowly tailored to support compliance with the shared responsibility payment penalty imposed by § 44-30-101(c), while imposing only an incidental burden on reporting entities. In particular, the information that must be reported is limited to the information that must already be reported under a similar federal reporting requirement under section 6055 of the Internal Revenue Code of 1986. In addition, this section provides that its reporting requirement may be satisfied by providing the same information that is currently reported under such federal requirement.

(b) Definitions. For purposes of this section:

(1) "Applicable entity" means:

(i) An employer or other sponsor of an employment-based health plan that offers employment-based minimum essential coverage to any resident of Rhode Island.

(ii) The Rhode Island Medicaid single state agency providing Medicaid or Children's Health Insurance Program (CHIP) coverage.

(iii) Carriers licensed or otherwise authorized by the Rhode Island office of the health insurance commissioner to offer health coverage providing coverage that is not described in subsection (b)(1)(i) or (b)(1)(ii) of this section.

(2) "Minimum essential coverage" has the meaning given the term by § 44-30-101(a)(2).

(c) For purposes of administering the shared responsibility payment penalty to individuals who do not maintain minimum essential coverage under § 44-30-101(b), every applicable entity that provides minimum essential coverage to an individual during a calendar year shall, at such time as the tax administrator may prescribe, file a form in a manner prescribed by the tax administrator.

(d) Form and manner of return.

(1) A return, in the form as the tax administrator may prescribe, contains the following information:

(i) The name, address, and Taxpayer Identification Number (TIN) of the primary insured and the name and TIN of each other individual obtaining coverage under the policy;

(ii) The dates during which the individual was covered under minimum essential coverage during the calendar year; and

(iii) Such other information as the tax administrator may require.

(2) Sufficiency of information submitted for federal reporting. Notwithstanding the requirements of subsection (d)(1) of this section, a return shall not fail to be a return described in this section if it includes the information contained in a return described in section 6055 of the Internal Revenue Code of 1986, as that section is in effect and interpreted on the 15th day of December 2017.

(e) Statements to be furnished to individuals with respect to whom information is reported.

(1) Any applicable entity providing a return under the requirements of this section shall also provide to each individual whose name is included in the return a written statement containing the name, address, and contact information of the person required to provide the return to the tax administrator and the information included in the return with respect to the individuals listed thereupon. The written statement must be provided on or before January 31 of the year following the calendar year for which the return was required to be made or by a date as may be determined by the tax administrator.

(2) Sufficiency of federal statement. Notwithstanding the requirements of subsection (e)(1), the requirements of this subsection (e) may be satisfied by a written statement provided to an individual under section 6055 of the Internal Revenue Code of 1986, as that section is in effect and interpreted on the 15th day of December 2017.

(f) Reporting responsibility.

(1) Coverage provided by governmental units. In the case of coverage provided by an applicable entity that is any governmental unit or any agency or instrumentality thereof, the officer or employee who enters into the agreement to provide the coverage (or the person appropriately designated for purposes of this section) shall be responsible for the returns and statements required by this section.

(2) Delegation. An applicable entity may contract with third-party service providers, including insurance carriers, to provide the returns and statements required by this section.

History of Section.
(P.L. 2019, ch. 88, art. 11, § 5.)