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Statutory Text

SEC. 9014. LIMITATION ON EXCESSIVE REMUNERATION PAID BY CERTAIN
HEALTH INSURANCE PROVIDERS.
(a) IN GENERAL.—Section 162(m) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new subparagraph:
‘‘(6) SPECIAL RULE FOR APPLICATION TO CERTAIN HEALTH INSURANCE
PROVIDERS.—
‘‘(A) IN GENERAL.—No deduction shall be allowed
under this chapter—
‘‘(i) in the case of applicable individual remuneration
which is for any disqualified taxable year beginning
after December 31, 2012, and which is attributable
to services performed by an applicable individual
during such taxable year, to the extent that the
amount of such remuneration exceeds $500,000, or
‘‘(ii) in the case of deferred deduction remuneration
for any taxable year beginning after December 31,
2012, which is attributable to services performed by
an applicable individual during any disqualified taxable
year beginning after December 31, 2009, to the
extent that the amount of such remuneration exceeds
$500,000 reduced (but not below zero) by the sum of—
‘‘(I) the applicable individual remuneration for
such disqualified taxable year, plus
‘‘(II) the portion of the deferred deduction remuneration
for such services which was taken
into account under this clause in a preceding taxable
year (or which would have been taken into
account under this clause in a preceding taxable
year if this clause were applied by substituting
‘December 31, 2009’ for ‘December 31, 2012’ in the
matter preceding subclause (I)).
‘‘(B) DISQUALIFIED TAXABLE YEAR.—For purposes of
this paragraph, the term ‘disqualified taxable year’ means,
with respect to any employer, any taxable year for which
such employer is a covered health insurance provider.
‘‘(C) COVERED HEALTH INSURANCE PROVIDER.—For purposes
of this paragraph—
‘‘(i) IN GENERAL.—The term ‘covered health insurance
provider’ means—
‘‘(I) with respect to taxable years beginning
after December 31, 2009, and before January 1,
2013, any employer which is a health insurance
issuer (as defined in section 9832(b)(2)) and which
receives premiums from providing health insurance
coverage (as defined in section 9832(b)(1)),
and
‘‘(II) with respect to taxable years beginning
after December 31, 2012, any employer which is a
health insurance issuer (as defined in section
9832(b)(2)) and with respect to which not less
than 25 percent of the gross premiums received
from providing health insurance coverage (as defined
in section 9832(b)(1)) is from minimum essential
coverage (as defined in section 5000A(f)).
‘‘(ii) AGGREGATION RULES.—Two or more persons
who are treated as a single employer under subsection
(b), (c), (m), or (o) of section 414 shall be treated as a
single employer, except that in applying section
1563(a) for purposes of any such subsection, paragraphs
(2) and (3) thereof shall be disregarded.
‘‘(D) APPLICABLE INDIVIDUAL REMUNERATION.—For
purposes of this paragraph, the term ‘applicable individual
remuneration’ means, with respect to any applicable individual
for any disqualified taxable year, the aggregate
amount allowable as a deduction under this chapter for
such taxable year (determined without regard to this subsection)
for remuneration (as defined in paragraph (4)
without regard to subparagraphs (B), (C), and (D) thereof)
for services performed by such individual (whether or not
during the taxable year). Such term shall not include any
deferred deduction remuneration with respect to services
performed during the disqualified taxable year.
‘‘(E) DEFERRED DEDUCTION REMUNERATION.—For purposes
of this paragraph, the term ‘deferred deduction remuneration’
means remuneration which would be applicable
individual remuneration for services performed in a
disqualified taxable year but for the fact that the deduc-
tion under this chapter (determined without regard to this
paragraph) for such remuneration is allowable in a subsequent
taxable year.
‘‘(F) APPLICABLE INDIVIDUAL.—For purposes of this
paragraph, the term ‘applicable individual’ means, with respect
to any covered health insurance provider for any disqualified
taxable year, any individual—
‘‘(i) who is an officer, director, or employee in such
taxable year, or
‘‘(ii) who provides services for or on behalf of such
covered health insurance provider during such taxable
year.
‘‘(G) COORDINATION.—Rules similar to the rules of subparagraphs
(F) and (G) of paragraph (4) shall apply for
purposes of this paragraph.
‘‘(H) REGULATORY AUTHORITY.—The Secretary may
prescribe such guidance, rules, or regulations as are necessary
to carry out the purposes of this paragraph.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2009,
with respect to services performed after such date.