Summary
Generally excludes from gross income the value of any qualified Indian health care benefit. Applies to benefits and coverage provided after the date of enactment.
Implementation Status
An IRS FAQ addresses issues such as what Indian health care benefits may be excluded from gross income.
Statutory Text
SEC. 9021. EXCLUSION OF HEALTH BENEFITS PROVIDED BY INDIAN
TRIBAL GOVERNMENTS.
(a) IN GENERAL.—Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139C the following new section:
‘‘SEC. 139D. INDIAN HEALTH CARE BENEFITS.
‘‘(a) GENERAL RULE.—Except as otherwise provided in this section,
gross income does not include the value of any qualified Indian
health care benefit.
‘‘(b) QUALIFIED INDIAN HEALTH CARE BENEFIT.—For purposes
of this section, the term ‘qualified Indian health care benefit’
means—
‘‘(1) any health service or benefit provided or purchased,
directly or indirectly, by the Indian Health Service through a
grant to or a contract or compact with an Indian tribe or tribal
organization, or through a third-party program funded by the
Indian Health Service,
‘‘(2) medical care provided or purchased by, or amounts to
reimburse for such medical care provided by, an Indian tribe
or tribal organization for, or to, a member of an Indian tribe,
including a spouse or dependent of such a member,
‘‘(3) coverage under accident or health insurance (or an arrangement
having the effect of accident or health insurance),
or an accident or health plan, provided by an Indian tribe or
tribal organization for medical care to a member of an Indian
tribe, include a spouse or dependent of such a member, and
‘‘(4) any other medical care provided by an Indian tribe or
tribal organization that supplements, replaces, or substitutes
for a program or service relating to medical care provided by
the Federal government to Indian tribes or members of such a
tribe.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning
given such term by section 45A(c)(6).
‘‘(2) TRIBAL ORGANIZATION.—The term ‘tribal organization’
has the meaning given such term by section 4(l) of the Indian
Self-Determination and Education Assistance Act.
‘‘(3) MEDICAL CARE.—The term ‘medical care’ has the same
meaning as when used in section 213.
‘‘(4) ACCIDENT OR HEALTH INSURANCE; ACCIDENT OR
HEALTH PLAN.—The terms ‘accident or health insurance’ and
‘accident or health plan’ have the same meaning as when used
in section 105.
‘‘(5) DEPENDENT.—The term ‘dependent’ has the meaning
given such term by section 152, determined without regard to
subsections (b)(1), (b)(2), and (d)(1)(B) thereof.
‘‘(d) DENIAL OF DOUBLE BENEFIT.—Subsection (a) shall not
apply to the amount of any qualified Indian health care benefit
which is not includible in gross income of the beneficiary of such
benefit under any other provision of this chapter, or to the amount
of any such benefit for which a deduction is allowed to such beneficiary
under any other provision of this chapter.’’.
(b) CLERICAL AMENDMENT.—The table of sections for part III of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after the item relating to section 139C the
following new item:
‘‘Sec. 139D. Indian health care benefits.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to benefits and coverage provided after the date of the
enactment of this Act.
(d) NO INFERENCE.—Nothing in the amendments made by this
section shall be construed to create an inference with respect to the
exclusion from gross income of—
(1) benefits provided by an Indian tribe or tribal organization
that are not within the scope of this section, and
(2) benefits provided prior to the date of the enactment of
this Act.