Sec. 12. Transitional rule allowing deduction for surprise billing expenses below AGI floor
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Section 213 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: In addition to the deduction allowed by subsection
(a)for any taxable year, there shall be allowed as a deduction an amount equal to the lesser of— the excess of— the surprise billing expenses which would be allowed as a deduction for such taxable year under subsection
(a)if such subsection were applied without regard to the limitation based on the taxpayer’s adjusted gross income, over $600, or the applicable percentage of the taxpayer’s adjusted gross income. For purposes of this subsection, the term surprise billing expenses means expenses paid for medical care of an individual who is a participant, beneficiary, or enrollee in a group health plan or in group or individual health insurance coverage offered by a health insurance issuer (as such terms are defined in section 2791 of the Public Health Service Act), if— benefits are provided for such medical care under such plan or coverage, and such medical care— is furnished by a provider without a contractual relationship with such plan or coverage with respect to the furnishing of such medical care during a visit at a facility with a contractual relationship with such plan or coverage, or is furnished in an emergency department of a hospital or an independent freestanding emergency department. For purposes of this section, the term applicable percentage means, with respect to any taxpayer for any taxable year, the percentage in effect under subsection
(a)with respect to such taxpayer for such taxable year. Surprise billing expenses shall be taken into account under paragraph
(1)only if such expenses are paid during the period beginning on January 1, 2020, and ending on the date which is 1 year after the day before the date specified in section 2(a)(5) of the Consumer Protections Against Surprise Medical Bills Act of 2020. . Sections 105(f), 162(l)(3), and 7702B(e)(2) of such Code are each amended by striking 213(a) and inserting 213 . The amendments made by this section shall apply to taxable years ending after December 31, 2019.