123STA T .465PUBLIC LA W 111 – 5 —FE B.1 7, 2 0 0 9(B)CLERICA LA M E ND MEN T.—Thetabl e ofs e c t i o n sof p a r t I ofs u bchapter B of chapter 68 of such Co d eis a m ended b y addin g at the end the follo w ing new item
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‘ Sec.6720C . P e naltyfor fa i l u re to notify h ealth p lan of ce s sation of eli g i b ility for C OBRA pre m ium assistance. ’ ’. (C) EF FECTI V E DATE.—The amendments made by this paragraph shall apply to failures occurring after the date of the enactment of this A ct. ( 14 )C O ORDINATION W IT H HCTC.— (A) IN G ENERAL.— S ubsection (g) of section 35 of the Internal R e v enue Code of 1 9 86 is amended by redesignating paragraph (9) as paragraph (1 0 ) and inserting after para - graph (8) the following new paragraph: ‘ ‘(9) C O BRA P REMI U MA S SISTANCE.—In the case of an assist- ance eligible individual who receives premium reduction for COBRA continuation coverage under section 300 2 (a) of the H ealth Insurance Assistance for the U nemployed Act of 2009 for any month during the ta x able year , such individual shall not be treated as an eligible individual, a certified individual, ora q ualifying family member for purposes of this section or section 7 527 with respect to such month. ’ ’. (B) EFFECTIVE DATE.—The amendment made by subparagraph (A) shall apply to taxable years ending after the date of the enactment of this Act. (15) E X CLUSION OF CO B RA PREMIUM ASSISTANCE FROM GROSS INCOME.— (A) IN GENERAL.— P art III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139B the following new section: ‘ ‘ SEC.139 C.C OBRAP RE MIU M ASSIS T A N CE. ‘‘In the case of an assistance eligible individual (as defined in section 3002 of the Health Insurance Assistance for the Unemployed Act of 2009), gross income does not include any pre- mium reduction provided under subsection (a) of such section.’’. (B) CLERICAL AMENDMENT.—The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139B the following new item: ‘‘Sec. 139 C. COBRA premium assistance.’’. (C) EFFECTIVE DATE.—The amendments made by this paragraph shall apply to taxable years ending after the date of the enactment of this Act. (b) ELIMINATION OF PREMIUM SUBSID Y FOR HIGH-INCOME INDIVIDUALS.— (1) RECAPTURE OF SUBSIDY FOR HIGH-INCOME INDIVID- UALS.—If— (A) premium assistance is provided under this section with respect to any COBRA continuation coverage which covers the taxpayer, the taxpayer’s spouse, or any dependent (within the meaning of section 152 of the Internal Revenue Code of 1986, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of the taxpayer during any portion of the taxable year, and (B) the taxpayer’s modified ad j usted gross income for such taxable year exceeds $ 125,000 ($250,000 in the case of a joint return), 26USC139 C . 26USC3 5 .
