[Pharm-policy] Senator Specter's 1995 Medical Outcomes Research/Tax proposal

[James Love]

Thanks to Thiru for finding this.  In 1995 Senator Specter introduced S.
18 in the 104th Congress.  One provision of the bill imposed a tax of .1
percent on health insurance policies.  The money was to be put into a
trust fund for medical outcomes research.  This is part of our research
on "Carrots and Sticks" for health care resaerch.  We are of course
grateful for pointers to simliar proposals.  Jamie


http://thomas.loc.gov/cgi-bin/query/z?c104:S.18:

S.18
Health Care Assurance Act of 1995 (Introduced in the Senate)


`Subchapter G--Tax on Health Insurance Policies

`Sec. 4501. Imposition of tax.

`Sec. 4502. Liability for tax.

`SEC. 4501. IMPOSITION OF TAX.

     `(a) GENERAL RULE- There is hereby imposed a tax equal to .001 cent
on each dollar, or fractional part thereof, of the premium paid on a
policy of health insurance.

     `(b) DEFINITION- For purposes of subsection (a), the term `policy
of health insurance' means any policy or other instrument by whatever
name called whereby a contract of insurance is made, continued, or
renewed with respect to the health of an individual or group of
individuals.

`SEC. 4502. LIABILITY FOR TAX.

     `The tax imposed by this subchapter shall be paid, on the basis of
a return, by any person who makes, signs, issues, or sells any of the
documents and instruments subject to the tax, or for whose use or
benefit the same are made, signed, issued, or sold. The United States or
any agency or instrumentality thereof shall not be liable for the tax.'.

              (B) CONFORMING AMENDMENT- The table of subchapters for
chapter 36 of the Internal Revenue Code of 1986 is amended by adding at
the end thereof the following new item:

`SUBCHAPTER G. Tax on health insurance policies.'.

         (2) ESTABLISHMENT OF TRUST FUND-

              (A) IN GENERAL- Subchapter A of chapter 98 of such Code
(relating to trust fund code) is amended by adding at the end thereof
the following new section:

`SEC. 9512. TRUST FUND FOR MEDICAL TREATMENT OUTCOMES RESEARCH.

     `(a) CREATION OF TRUST FUND- There is established in the Treasury
of the United States a trust fund to be known as the `Trust Fund for
Medical Treatment Outcomes Research' (referred to in this section as the
`Trust Fund'), consisting of such amounts as may be appropriated or
credited to the Trust Fund as provided in this section or section
9602(b).

     `(b) TRANSFERS TO TRUST FUND- There is hereby appropriated to the
Trust Fund an amount equivalent to the taxes received in the Treasury
under section 4501 (relating to tax on health insurance policies).

     `(c) DISTRIBUTION OF AMOUNTS IN TRUST FUND- On an annual basis the
Secretary shall distribute the amounts in the Trust Fund to the
Secretary of Health and Human Services. Such amounts shall be available
to the Secretary of Health and Human Services to pay for research
activities related to medical treatment outcomes.'.

              (B) CONFORMING AMENDMENT- The table of sections for
subchapter A of chapter 98 of such Code is amended by adding at the end
thereof the following new item:

`Sec. 9512. Trust Fund for Medical Treatment Outcomes Research.'.

         (3) EFFECTIVE DATE- The amendments made by this subsection
shall apply to policies issued after December 31, 1995.

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James Love, Director           | http://www.cptech.org
Consumer Project on Technology | mailto:love@cptech.org 
P.O. Box 19367                 | voice: 1.202.387.8030
Washington, DC 20036           | fax:   1.202.234.5176
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