House Health Care Bill Tracks FICA Exemption For Religious Objectors

The House version of the health care bill passed Saturday, HR 3962, imposes a 2.5% penalty tax on anyone who fails to obtain acceptable health care coverage. (Internal Revenue Code Sec. 59B(a) [pg. 297 of PDF]). However the bill does provide a "conscience exemption" for members of religious sects whose tenets reject insurance benefits. The exemption in Section 501of the bill [IRC Sec. 59B(c)(5) at pg. 299 of PDF] tracks the exemption from payment of social security and self-employment taxes for members of groups such as the Old Order Amish, described in Section 1402(g) of the Internal Revenue Code. (See prior related posting.)