S.Amdt. 3143

SA 3143. Mrs. HUTCHISON submitted an amendment intended to be
proposed to amendment SA 2786 proposed by Mr. Reid (for himself, Mr.
Baucus, Mr. Dodd, and Mr. Harkin) to the bill H.R. 3590, to amend the
Internal Revenue Code of 1986 to modify the first-time homebuyers
credit in the case of members of the Armed Forces and certain

[[Page S12940]]

other Federal employees, and for other purposes; which was ordered to
lie on the table; as follows:

At the appropriate place in title I, insert the following:

SEC. __. STATE OPT OUT.

(a) In General.--The provisions described in subsection (b)
shall not apply to
(1) individuals residing within a State;
(2) employers located within a State; and
(3) health coverage offered within a State;
if the State enacts a law rejecting such provisions as
described in subsection (b) and attests to the Secretary that
the State will implement reforms appropriate for application
within the State to reduce the uninsured population of the
State and increase access to affordable health insurance
options.
(b) Effect of State Law.--The provisions described in this
subsection are the following:
(1) The insurance market reform provisions of title I (and
the amendments made by such title), except for section 2704
of the Public Health Service Act (as added by section 1201
(relating to preexisting condition exclusions).
(2) The requirements relating to obtaining or providing
individual and employer health insurance coverage under title
I (and the amendments made by such title).
(3) The provisions relating to Medicaid expansion under the
amendments made by title I.
(4) The provisions relating to the Medicare program (and
the amendments to such program) under title III and (IV).
(5) The provisions relating to the imposition of, or
increases in, fees paid by insurance issuers and drug and
medical device manufacturers under the amendments made by
this Act.
(6) Any other provision of this Act (or an amendment made
by this Act), except for this section.
(c) Above-the-Line Deduction for Health Insurance
Premiums.--
(1) In general.--Section 62(a) of the Internal Revenue Code
of 1986 (defining adjusted gross income) is amended by
inserting after paragraph (21) the following new paragraph:
``(22) Health insurance payments.--
``(A) In general.--Any amount allowable as a deduction
under section 213 (determined without regard to any income
limitation under subsection (a) thereof) by reason of
subsection (d)(1)(D) thereof for qualified health insurance.
``(B) Qualified health insurance.--For purposes of this
paragraph--
``(i) In general.--The term `qualified health insurance'
means insurance offered to individuals located in a State
that enacts a law described in section __(a) of the Patient
Protection and Affordable Care Act which constitutes medical
care as defined in section 213(d) without regard to--

``(I) paragraph (1)(C) thereof, and
``(II) so much of paragraph (1)(D) thereof as relates to
qualified long-term care insurance contracts.

``(ii) Exclusion of certain other contracts.--Such term
shall not include insurance if a substantial portion of its
benefits are excepted benefits (as defined in section
9832(c)).''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after December 31,
2009.
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