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Code · BILL · 113th Congress · S. 2492 (Introduced in Senate) — To amend the Internal Revenue Code of 1986 to increase access for the uninsured to high quality physician care. · Sec. 2

Sec. 2. Physician charity care deduction

448 words·~2 min read·/bill/113/s/2492/is/section-2

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Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: In the case of a physician, there shall be allowed as a deduction for the taxable year an amount equal to the amount such physician would have otherwise charged for qualified charity care provided by such physician during the taxable year. For purposes of this section— The term qualified charity care means physicians’ services (as defined in section 1861(q) of the Social Security Act) provided on a volunteer or pro bono basis through a qualifying arrangement.
The term physician has the meaning given to such term in section 1861 of the Social Security Act ( 42 U.S.C. 1395x(r) ). The term qualifying arrangement means an agreement or contract to provide physicians' services on a volunteer or pro bono basis which is entered into— between the physician and a health care clinic or other organization providing health care which is targeted to serve underserved or low-income individuals, and before the date the services are provided. The amount determined under subsection
(a)with respect to any services shall not exceed the medicare economic index (referred to in the fourth sentence of section 1842(b)(3) of the Social Security Act ( 42 U.S.C. 1395u(b)(3) )) applicable to the services provided. In the case of physicians’ services to which the medicare economic index is not applicable, the Secretary, in consultation with the Secretary of Health and Human Services, shall use data on uncompensated care for purposes of the limitation under subparagraph (B), and may adjust such data so as to be an appropriate proxy, including a downward adjustment to eliminate bad debt data from uncompensated care data. The amount allowed as a deduction under subsection
(a)for any taxable year shall not exceed an amount equal to— 10 percent of the gross income of the taxpayer for the taxable year derived from the taxpayer’s provision of physicians’ services (as defined in section 1861(q) of the Social Security Act), or in the case of a physician who does not have income for the taxable year derived from the provision of physicians' services, $10,000. Physicians' services shall not be treated as qualified charity care under subsection
(b)if a physician receives any reimbursement, including payment at a partial or discounted rate, for such services. . The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 199A. Physician charity care. . The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
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Physician charity care deduction
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