[Federal Register Volume 79, Number 134 (Monday, July 14, 2014)]
[Notices]
[Page 40763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16406]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Resources and Services Administration
Clarifications Regarding the Ryan White HIV/AIDS Program and
Reconciliation of Advanced Premium Tax Credits Under the Affordable
Care Act; Request for Comment
AGENCY: Health Resources and Services Administration (HRSA), Department
of Health and Human Services (HHS).
ACTION: Request for Public Comment on Reconciliation of Advanced
Premium Tax Credits (APTC or premium tax credit) under the Affordable
Care Act and the Ryan White HIV/AIDS Program (RWHAP).
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SUMMARY: HRSA's HIV/AIDS Bureau (HAB) recently released HAB Policy
Clarification Notice 14-01, which requires RWHAP grantees and
subgrantees that use program funds to purchase health insurance in the
Marketplace to establish appropriate mechanisms to vigorously pursue
any excess premium tax credit a client receives from the Internal
Revenue Service (IRS) upon submission of the client's tax return. HRSA
now seeks public comment on the operational feasibility for RWHAP
grantees and subgrantees to implement a complementary policy that would
allow RWHAP grantees and subgrantees to use RWHAP funds to pay the IRS
any additional income tax liability a client may owe to the IRS solely
based on reconciliation of the premium tax credit. In addition to
general comments about the feasibility of implementing such a policy,
HRSA would like feedback on the following issues related to this
policy:
Could this proposed policy be easily implemented by a
grantee?
What challenges would grantees and subgrantees face in
implementing this proposed policy?
Will grantees be able to conduct fiscal monitoring of this
proposed policy? If so, what level of effort would be required?
DATES: Submit comments no later than August 13, 2014.
ADDRESSES: Comments should be submitted to [email protected]
by August 13, 2014.
FOR FURTHER INFORMATION CONTACT: Theresa Jumento using the email above
or by telephone at (301) 443-5807.
SUPPLEMENTARY INFORMATION: Many RWHAP clients with incomes between 100-
400 percent of the federal poverty level (FPL) who do not have minimum
essential coverage may be eligible for an APTC to offset the cost of
purchasing a qualified health plan through the Marketplace. The amount
of the premium tax credit is based on the individual's income, family
size, and the cost of the second-lowest cost silver plan available to
them in the Marketplace. If an individual qualifies for a premium tax
credit, the individual may choose to have some or all of the estimated
premium tax credit paid in advance directly to the insurance company to
lower the individual's monthly premium or can wait to get all of the
premium tax credit when the individual files a tax return at the end of
the year.
Taxpayers will reconcile the APTC when they file their tax returns.
Individuals will subtract the total of any APTC they receive during the
year from the amount of the premium tax credit calculated on their tax
return (i.e., ``actual premium tax credit''). If an individual received
APTC that exceeds the actual premium tax credit for which the
individual is eligible, the individual will owe that amount back to the
IRS.
It is important for RWHAP grantees and subgrantees to convey to
clients the importance of reporting accurate income information on
their Marketplace application and reporting to the Marketplace any
income changes as these changes occur throughout the year. Other
changes in circumstances that can affect the amount of an individual's
premium tax credit, that should be reported as they occur, include:
Marriage, divorce, birth or adoption of a child, other changes to
household composition, and gaining or losing eligibility for
government-sponsored or employer-sponsored health care coverage.
Notifying the Marketplace about changes in circumstances will decrease
the likelihood of a significant difference between the APTC payments
and the actual premium tax credit. For example, if an individual winds
up making more money than estimated on the Marketplace application, the
individual could have to pay back some or all of the premium tax credit
on their next tax return.
It is possible that, despite RWHAP grantees' and subgrantees' best
efforts to encourage clients to report changes in circumstances to the
Marketplace during the year, a RWHAP client's actual premium tax credit
is less than the APTC resulting in the client owing the difference to
the IRS. HRSA is considering allowing RWHAP grantees and subgrantees to
use RWHAP funds to pay the IRS any additional income tax liability a
client may owe to the IRS solely based on reconciliation of the premium
tax credit.
Should such a policy be implemented, grantees and subgrantees would
be responsible for establishing and maintaining policies and procedures
for coordinating such payments to the IRS since RWHAP grantees and
subgrantees are prohibited from making any direct payments to clients.
HRSA seeks comment from the public regarding this proposed policy,
particularly on whether this policy could be easily implemented by the
grantees and subgrantees and what challenges grantees and subgrantees
might face in implementing such a policy.
Dated: July 3, 2014.
Mary K. Wakefield,
Administrator.
[FR Doc. 2014-16406 Filed 7-11-14; 8:45 am]
BILLING CODE 4165-15-P