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responsibilities among the various information issued by DAHER–SOCATA to Issued in Kansas City, Missouri, on January levels of government. eliminate the stress on the outboard hinge 17, 2014. For the reasons discussed above, I fittings, which is causing the cracks. If this Pat Mullen, certify this proposed regulation: condition is not prevented, the outboard Acting Manager, Small Airplane Directorate, (1) Is not a ‘‘significant regulatory hinge fittings could fail causing reduced Aircraft Certification Service. action’’ under Executive Order 12866, structural integrity of the horizontal [FR Doc. 2014–01470 Filed 1–24–14; 8:45 am] stabilizer, which could result in reduced (2) Is not a ‘‘significant rule’’ under BILLING CODE 4910–13–P the DOT Regulatory Policies and control. Procedures (44 FR 11034, February 26, (f) Actions and Compliance 1979), Unless already done, within the next 100 DEPARTMENT OF THE TREASURY (3) Will not affect intrastate aviation hours time-in-service after the effective date in Alaska, and of this AD or within the next 12 months after Internal Revenue Service (4) Will not have a significant the effective date of this AD, whichever economic impact, positive or negative, occurs first, install shims on the outboard 26 CFR Part 1 on a substantial number of small entities hinge fittings of the horizontal stabilizer. Do under the criteria of the Regulatory the modification following the [REG–141036–13] Accomplishment Instructions in DAHER– Flexibility Act. RIN 1545–BL91 SOCATA TBM Aircraft Mandatory Service List of Subjects in 14 CFR Part 39 Bulletin SB 70–080, Amendment 2, dated Minimum Essential Coverage and Air transportation, Aircraft, Aviation August 2012. Other Rules Regarding the Shared safety, Incorporation by reference, (g) Other FAA AD Provisions Responsibility Payment for Individuals Safety. The following provisions also apply to this AGENCY: Internal Revenue Service (IRS), The Proposed Amendment AD: Treasury. (1) Alternative Methods of Compliance Accordingly, under the authority (AMOCs): The Manager, Standards Office, ACTION: Notice of proposed rulemaking delegated to me by the Administrator, FAA, has the authority to approve AMOCs and notice of public hearing. the FAA proposes to amend 14 CFR part for this AD, if requested using the procedures 39 as follows: found in 14 CFR 39.19. Send information to SUMMARY: This document contains ATTN: Albert Mercado, Aerospace Engineer, proposed regulations relating to the PART 39—AIRWORTHINESS FAA, Small Airplane Directorate, 901 Locust, requirement to maintain minimum DIRECTIVES Room 301, Kansas City, Missouri 64106; essential coverage enacted by the telephone: (816) 329–4119; fax: (816) 329– Patient Protection and Affordable Care ■ 1. The authority citation for part 39 4090; email: [email protected]. Before Act and the Health Care and Education continues to read as follows: using any approved AMOC on any airplane Reconciliation Act of 2010, as amended Authority: 49 U.S.C. 106(g), 40113, 44701. to which the AMOC applies, notify your by the TRICARE Affirmation Act and appropriate principal inspector (PI) in the Public Law 111–173. These proposed § 39.13 [Amended] FAA Flight Standards District Office (FSDO), regulations affect individual taxpayers ■ 2. The FAA amends § 39.13 by or lacking a PI, your local FSDO. who may be liable for the shared removing Amendment 39–11096 (64 FR (2) Airworthy Product: For any requirement responsibility payment for not 14820, March 29, 1999), and adding the in this AD to obtain corrective actions from maintaining minimum essential following new AD: a manufacturer or other source, use these coverage. This document also provides actions if they are FAA-approved. Corrective SOCATA: Docket No. FAA–2014–0031; actions are considered FAA-approved if they notice of a public hearing on these Directorate Identifier 2013–CE–054–AD. are approved by the State of Design Authority proposed regulations. (a) Comments Due Date (or their delegated agent). You are required DATES: Comments must be received by We must receive comments by March 13, to assure the product is airworthy before it April 28, 2014. Outlines of topics to be 2014. is returned to service. discussed at the public hearing (h) Related Information scheduled for May 21, 2014, at 10 a.m., (b) Affected ADs must be received by April 28, 2014. Refer to MCAI European Aviation Safety This AD supersedes AD 99–07–11, ADDRESSES: Agency (EASA) AD No. 2013–0035, dated Send submissions to: Amendment 39–11096 (64 FR 14820, March CC:PA:LPD:PR (REG–141036–13), room 29, 1999). February 22, 2013, for related information. You may examine the MCAI on the Internet 5205, Internal Revenue Service, P.O. (c) Applicability at http://www.regulations.gov by searching Box 7604, Ben Franklin Station, This AD applies to SOCATA TBM 700 for and locating it in Docket No. FAA–2014– Washington, DC 20044. Submissions airplanes, manufacturer serial numbers 0031. For service information related to this may be hand-delivered Monday through (MSN) 1 through 98, 100 through 156, and AD, contact SOCATA, Direction des Services, Friday between the hours of 8 a.m. and 158 through 161, certificated in any category. 65921 Tarbes Cedex 9, France; telephone +33 4 p.m. to CC:PA:LPD:PR (REG–141036– (d) Subject (0) 5 62 41 73 00; fax +33 (0) 5 62 41 76 54, 13), Courier’s Desk, Internal Revenue or for North America: SOCATA NORTH Service, 1111 Constitution Avenue NW., Air Transport Association of America AMERICA, North Perry Airport, 7501 South (ATA) Code 55: Stabilizers. Washington, DC, or sent electronically Airport Road, Pembroke Pines, Florida via the Federal eRulemaking Portal at (e) Reason 33023; telephone: (954) 8–9893–1400; fax: www.regulations.gov (IRS REG–141036– This AD was prompted by mandatory (954) 964–4141; email: mysocata@ 13). The public hearing will be held in continuing airworthiness information (MCAI) socata.daher.com; Internet: the IRS Auditorium, Internal Revenue www.mysocata.com. You may review copies originated by an aviation authority of another Building, 1111 Constitution Avenue of the referenced service information at the country to identify and correct an unsafe NW., Washington, DC. condition on an aviation product. The MCAI FAA, Small Airplane Directorate, 901 Locust, describes the unsafe condition as cracks on Kansas City, Missouri 64106. For information FOR FURTHER INFORMATION CONTACT: the outboard hinge fittings. We are issuing on the availability of this material at the Concerning the proposed regulations, this AD to require the use of new service FAA, call (816) 329–4148. Sue-Jean Kim or John B. Lovelace, (202)

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317–7006; concerning the submission of for determining, for purposes of the lack minimum essential coverage does not comments, the public hearing, and to be of affordable coverage exemption, the include any health insurance coverage placed on the building access list to required contribution for individuals that consists solely of excepted benefits attend the public hearing, eligible to enroll in an eligible described in section 2791(c)(1), (c)(2), Oluwafunmilayo Taylor, (202) 317–6901 employer-sponsored plan that provides (c)(3), or (c)(4) of the Public Health (not toll-free numbers). employer contributions to health Service Act (42 U.S.C. 300gg–91(c)), or SUPPLEMENTARY INFORMATION: reimbursement arrangements (HRAs) or regulations issued under these wellness program incentives. These provisions (45 CFR 148.220) (excepted Paperwork Reduction Act proposed regulations address these benefits regulations). In general, The collection of information issues, consistent with the rules excepted benefits are benefits that are contained in § 1.5000A–3(h)(3) and contemplated in the preamble to the limited in scope or are conditional. § 1.5000A–4(a)(1) of this notice of final regulations. In addition, these Under 2791(b)(1) of the Public Health proposed rulemaking has been reviewed proposed regulations provide or clarify Service Act (42 U.S.C. 300gg–91(b)(1)), and approved by the Office of rules under section 5000A addressing health insurance coverage means Management and Budget in accordance the definition of excepted benefits, benefits consisting of medical care with the Paperwork Reduction Act of hardship exemptions that may be (provided directly, through insurance or 1995 (44 U.S.C. 3507(d)) under control claimed on a Federal income tax return, reimbursement, or otherwise and number 1545–0074 in conjunction with and the computation of the monthly including items and services paid for as the final regulations under section penalty amount. medical care) under any hospital or 5000A (TD 9632). The information is Minimum Essential Coverage medical service policy or certificate, necessary to determine whether the hospital or medical service plan individual shared responsibility Section 5000A(f)(1) enumerates the contract, or health maintenance provision applies to a taxpayer and, if types of health care coverage that organization contract offered by a health it applies, the amount of the payment. qualify as minimum essential coverage. insurance issuer. Comments on the collection of They include, among others, coverage information should be sent to the Office under specified government-sponsored Lack of Affordable Coverage Exemption programs and health benefits coverage of Management and Budget, Attn: Desk Section 5000A(e)(1) and § 1.5000A– that the Secretary of Health and Human Officer for the Department of the 3(e)(1) of the final regulations provide Services (HHS), in coordination with Treasury, Office of Information and that an individual is exempt for a month the Secretary of the Treasury, recognizes Regulatory Affairs, Washington, DC when the individual cannot afford as minimum essential coverage. Under 20503, with copies to the Internal minimum essential coverage. For this section 5000A(f)(1)(A), specified Revenue Service, Attn: IRS Reports purpose, an individual cannot afford government-sponsored programs Clearance Officer, minimum essential coverage if the SE:W:CAR:MP:T:T:SP, Washington, DC include, among other things, the Medicaid program under title XIX of the individual’s required contribution 20224. (determined on an annual basis) for Comments on the collection of Social Security Act and medical minimum essential coverage exceeds a information should be received by coverage under chapter 55 of title 10, percentage (8 percent for 2014) of the March 28, 2014. United States Code, including the TRICARE program. individual’s household income for the Background Section 1.5000A–2(b)(1)(ii) of the most recent taxable year for which the The Patient Protection and Affordable final regulations provides that Secretary of HHS, in consultation with Care Act, Public Law 111–148 (124 Stat. government-sponsored programs that the Secretary of the Treasury, 119 (2010)), and the Health Care and are minimum essential coverage include determines information is available. Education Reconciliation Act of 2010, the Medicaid program under Title XIX For individuals ineligible for coverage Public Law 111–152 (124 Stat. 1029 of the Social Security Act (42 U.S.C. under an eligible employer-sponsored (2010)) (collectively, the Affordable Care 1396 and following sections) other than plan, the required contribution is the Act), added section 5000A to the certain Medicaid coverage that may annual premium for the applicable plan Internal Revenue Code. Section 5000A provide limited benefits: (1) Optional reduced by the premium tax credit was subsequently amended by the coverage of family planning services allowable under section 36B for the TRICARE Affirmation Act of 2010, under section 1902(a)(10)(A)(ii)(XXI) of taxable year (determined as if the Public Law 111–159 (124 Stat. 1123) the Social Security Act (42 U.S.C. individual enrolled in a plan through an and Public Law 111–173 (124 Stat. 1396a(a)(10)(A)(ii)(XXI)); (2) optional Exchange for the entire taxable year). 1215). Section 5000A provides that, for coverage of tuberculosis-related services The applicable plan is the lowest cost months beginning after December 31, under section 1902(a)(10)(A)(ii)(XII) of bronze plan available in the Exchange 2013, a nonexempt individual must the Social Security Act (42 U.S.C. serving the rating area where the maintain minimum essential coverage 1396a(a)(10)(A)(ii)(XI)); (3) coverage of individual resides that would cover all or make a shared responsibility pregnancy-related services under members of the individual’s nonexempt payment. section 1902(a)(10)(A)(ii)(IX) of the family taking into account the rating Final regulations under section 5000A Social Security Act (42 U.S.C. factors that an Exchange would use to (TD 9632) were published on August 30, 1396a(a)(10)(A)(ii)(IX)); and (4) coverage determine the cost of coverage. If the 2013 (78 FR 53646). The preamble to the limited to the treatment of emergency Exchange serving the rating area where final regulations indicates that medical conditions in accordance with the individual resides does not offer a subsequent proposed regulations will 8 U.S.C. 1611(b)(1)(A), as authorized by single bronze plan that would cover all provide that coverage under certain section 1903(v) of the Social Security members of the individual’s nonexempt government-sponsored programs is not Act (42 U.S.C. 1396b(v)). family, the premium for the applicable government-sponsored minimum plan is the sum of the premiums for the essential coverage. The preamble to the Excepted Benefits lowest cost bronze plans available in the final regulations also describes rules to Under section 5000A(f)(3) and Exchange that provide coverage for all be included in subsequent regulations § 1.5000A–2(g) of the final regulations, members of the nonexempt family.

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Hardship Exemptions dollar amount is $95 in 2014, $325 in coverage of family planning services Section 5000A(e)(5) and § 1.5000A– 2015, and $695 in 2016. After 2016, the under section 1902(a)(10)(A)(ii)(XXI) of 3(h)(1) of the final regulations provide applicable dollar amount will be the Social Security Act (42 U.S.C. that, in general, an individual is exempt indexed by a cost-of-living adjustment. 1396a(a)(10)(A)(ii)(XXI)), and the for a month that includes a day on The specified percentage is 1.0 optional coverage of tuberculosis-related which the individual has in effect a percent for taxable years beginning in services under section hardship exemption certification. A 2014, 2.0 percent for taxable years 1902(a)(10)(A)(ii)(XII) of the Social Security Act (42 U.S.C. hardship exemption certification is beginning in 2015, and 2.5 percent for 1396a(a)(10)(A)(ii)(XII)). Accordingly, issued by an Exchange under section taxable years beginning after 2015. the proposed regulations provide that 1311(d)(4)(H) of the Affordable Care Act The final regulations incorporate coverage for medically needy (42 U.S.C. 18031(d)(4)(H)) certifying that these provisions. individuals generally is not government- the individual has suffered a hardship Explanation of Provisions sponsored minimum essential coverage. (as that term is defined in 45 CFR To the extent such coverage in a 155.605(g)) with respect to the I. Minimum Essential Coverage particular state is comprehensive individual’s ability to obtain coverage A. Medicaid-related programs coverage, such coverage may be under a qualified health plan. Section 1. Coverage for the Medically Needy recognized as minimum essential 1.5000A–3(h)(3) of the final regulations The Social Security Act provides coverage by the Secretary of HHS, in provides that a taxpayer who meets the coordination with the Secretary of the requirements of 45 CFR 155.605(g)(3) or states with flexibility to extend Medicaid eligibility to individuals with Treasury, under section 5000A(f)(1)(E). 45 CFR 155.605(g)(5) may claim a Because individuals receiving high medical expenses who would be hardship exemption for a calendar year medically needy coverage may not eligible for Medicaid but for their on a Federal income tax return. know at the time of open enrollment for income level (medically needy Pursuant to the authority under 45 the 2014 plan year that coverage under individuals). See section 1902(a)(10)(C) CFR 155.605(g), the Secretary of HHS the program is not minimum essential of the Social Security Act (42 U.S.C. has established an additional hardship coverage, Notice 2014–10 (available at exemption that applies to individuals 1396a(a)(10)(C)) and 42 CFR 435.300 www.irs.gov), (see § 601.601(d)(2)(ii)(b) enrolling in a qualified health plan and following sections. In general, of this chapter), released concurrently through an Exchange prior to the close individuals whose income is in excess with these proposed regulations, of the initial open enrollment period. of the maximum allowed for Medicaid provides that a taxpayer is not liable for Specifically, an individual may claim a eligibility but who are otherwise eligible the shared responsibility payment for a hardship exemption for the months for Medicaid may ‘‘spend down’’ their month in 2014 with respect to prior to the effective date of the income, based on incurred medical individuals in the taxpayer’s shared individual’s coverage on a Federal expenses, and thereby become eligible responsibility family who are enrolled income tax return for 2014 without the for the benefits provided for medically in medically needy coverage. need to request an exemption from the needy individuals in the state. States Exchange. See HHS Centers for providing coverage to medically needy 2. Section 1115 Demonstration Projects Medicare and Medicaid Services, individuals must establish a ‘‘budget Section 1115 of the Social Security Shared Responsibility Provision period’’ lasting from one to six months. Act (42 U.S.C. 1315) authorizes the Question and Answer (Oct. 28, 2013). Eligibility for coverage as a medically Secretary of HHS to approve needy individual, which must be experimental, pilot, or demonstration Monthly Penalty Amount determined each budget period, is projects that promote the objectives of Under section 5000A(c)(1), the provided only after an individual incurs the Medicaid program (‘‘Section 1115 amount of the shared responsibility sufficient medical expenses to spend demonstration projects’’). Some Section payment imposed on any taxpayer for down to the qualifying income level. 1115 demonstration projects involve any taxable year is equal to the lesser of Thus, depending on an individual’s waivers of Medicaid requirements that (A) the sum of monthly penalty amounts medical needs and the options exercised affect individuals eligible under the for months when one or more failures to by the state program, eligibility may be approved Medicaid state plan (for maintain minimum essential coverage assessed as frequently as every month, instance, waivers to permit changes in occurred, or (B) an amount equal to the and an individual may move in and out manners of delivering Medicaid national average premium for qualified of coverage for medically needy services), but do not change the basic health plans that satisfy requirements individuals multiple times in a year. requirement to provide comprehensive enumerated in section 5000A(c). States are permitted, and some states Medicaid coverage. Other Section 1115 Under section 5000A(c)(2), the have adopted the option, to offer demonstration projects, authorized monthly penalty amount, for any benefits to the medically needy that are under section 1115(a)(2) of the Social month, is 1⁄12 of the greater of (A) the more limited than the benefits generally Security Act (42 U.S.C. 1315(a)(2)), flat dollar amount, or (B) a specified provided to Medicaid beneficiaries. allow a state to extend benefits to percentage of the taxpayer’s household Because the benefits provided to additional populations (expansion income over the taxpayer’s applicable medically needy individuals are not populations). Because the expansion return filing threshold (as defined in required to be comprehensive, the populations are not described in section 6012(a)(1)). coverage is analogous to coverage approved Medicaid state plans, the The flat dollar amount is the lesser of consisting of excepted benefits that is coverage authorized under those Section (A) the sum of the defined applicable not minimum essential coverage under 1115 demonstration projects is not dollar amounts for all individuals in the section 5000A(f)(3). Other types of required to be comprehensive and may shared responsibility family who did coverage under government-sponsored be limited. Accordingly, the proposed not have minimum essential coverage in programs that potentially provide regulations provide that coverage under a particular month, or (B) 300 percent of limited benefits are not minimum Section 1115 demonstration projects the applicable dollar amount. Under essential coverage under the final authorized under section 1115(a)(2) of section 5000A(c)(3), the applicable regulations (for example, the optional the Social Security Act generally is not

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government-sponsored minimum active duty and are entitled to episodic II. Exemption for Individuals Who essential coverage. However, care for an injury, illness, or disease Cannot Afford Coverage comprehensive coverage for expansion incurred or aggravated in the line of A. Health Reimbursement Arrangements populations under certain Section 1115 duty (line-of-duty care). Line-of-duty demonstration programs may be care is limited to care appropriate for The preamble to the final regulations recognized as minimum essential treating the covered injury, illness, or provides that guidance on how coverage by the Secretary of HHS, in disease. This type of limited-benefit employer contributions to HRAs are counted in determining an employee’s coordination with the Secretary of the coverage is similar to coverage or a related individual’s required Treasury, under section 5000A(f)(1)(E). consisting of excepted benefits, The Treasury Department and IRS contribution will be consistent with including workers’ compensation, that understand that individuals receiving final rulemaking under section 36B. The benefits as part of an expansion is not minimum essential coverage regulations proposed under section 36B population under a demonstration under section 5000A(f)(3). addressing the treatment of employer project authorized under section Neither of these types of limited- contributions to HRAs were published 1115(a)(2) may not know at open benefit coverage offers beneficiaries on May 3, 2013 (78 FR 25909) (the enrollment for the 2014 plan year that coverage for comprehensive medical section 36B proposed regulations). The the coverage they receive under a care. Accordingly, the proposed section 36B proposed regulations Section 1115 demonstration project is regulations provide that Military Health provide that amounts newly made not minimum essential coverage. System eligibility limited only to space available for the current plan year under Accordingly, Notice 2014–10 (available available care and line-of-duty care are an HRA that is integrated with an at www.irs.gov), (see not government-sponsored programs eligible employer-sponsored plan are § 601.601(d)(2)(ii)(b) of this chapter), providing minimum essential coverage. counted toward the employee’s required contribution in determining the released concurrently with these Because individuals enrolled in space proposed regulations, provides that a affordability of the coverage if the available care or line-of-duty care may taxpayer will not be liable for the shared employee may use the amounts only for not know at open enrollment for the responsibility payment for a month in premiums or may choose to use the 2014 with respect to individuals in the 2014 plan year that space available care amounts for either premiums or cost taxpayer’s shared responsibility family and line-of-duty care are not minimum sharing. An HRA generally must be receiving benefits as part of an essential coverage, Notice 2014–10 integrated with an eligible employer- expansion population authorized under (available at www.irs.gov), (see sponsored plan to satisfy the market section 1115(a)(2). § 601.601(d)(2)(ii)(b) of this chapter), reform provisions imposed by Title I of released concurrently with these the Affordable Care Act. See Notice B. Limited-Benefit Coverage Under proposed regulations, provides that a 2013–54 (2013–40 IRB 287 (September Chapter 55 of Title 10, U.S.C. taxpayer is not liable for the shared 30, 2013)), (see § 601.601(d)(2)(ii)(b) of Similar to Medicaid programs that responsibility payment for a month in this chapter), which is available at provide a limited scope of benefits, two 2014 with respect to individuals in the www.irs.gov. types of coverage provided under taxpayer’s shared responsibility family Similar to the 36B proposed chapter 55 of Title 10, U.S.C., do not who are enrolled in either space regulations, under these proposed provide a scope of benefits comparable available care or line-of-duty care. regulations, an employer’s new to the full TRICARE program under the contributions to an HRA are taken into same chapter. Under sections 1079(a), C. Excepted Benefits account in determining (in other words, 1086(c)(1), and 1086(d)(1) of Title 10, they reduce) an employee’s required U.S.C., the first type of limited-benefit Section 5000A(f)(3) and § 1.5000A– contribution if the HRA is integrated coverage is provided for certain 2(g) of the final regulations provide that with an employer-sponsored plan and individuals who are excluded from minimum essential coverage does not the employee may use the amounts to TRICARE coverage for health care include health insurance coverage that pay premiums. Amounts in an HRA that services from private sector providers consists solely of excepted benefits. In may be used only for cost-sharing are and only eligible for space available care the rulemaking process under section not taken into account when in a facility of the uniformed services 5000A, the Treasury Department and determining affordability because they (space available care). There is no the IRS have provided that minimum cannot affect the employee’s out-of- guarantee of care and any care received essential coverage does not include pocket cost of acquiring minimum is subject to the availability of space and plans or programs that do not provide essential coverage. facilities, as well as the capabilities of a comprehensive scope of benefits. See, B. Contributions to a Cafeteria Plan the medical and dental staff. Coverage for example, § 1.5000A–2(b)(1)(ii)(A) potentially available to an affected describing the Medicaid program for Many employers maintain section 125 individual may not be accessible if there family planning services and § 1.5000A– cafeteria plans under which employees is no space available at the facility 2(b)(1)(v) excluding from the definition are given the option of making salary where the individual seeks care or of minimum essential coverage medical reduction contributions toward the cost of non-taxable benefits or receiving an treatment. These affected individuals care for veterans that does not provide equivalent amount in taxable cash. The are not entitled to comprehensive health comprehensive health care benefits. care coverage under chapter 55 of Title nontaxable benefit choices may include Consistent with this treatment, the 10, U.S.C., and the Department of both health and non-health benefits. If proposed regulations clarify that Defense has no statutory authority to an employee elects to make salary pay claims for any outside care minimum essential coverage excludes reduction contributions and to have provided to these individuals. any coverage, whether insurance or those amounts applied towards the cost Under sections 1074a and 1074b of otherwise, that consists solely of of premiums, those contributions are Title 10, U.S.C., the second type of excepted benefits. treated as employee contributions, and limited-benefit coverage is provided for the employee’s household income is certain individuals who are not on increased by the amount of the

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contributions for purposes of the B. Individuals Ineligible for Employer- alternative method, and the Treasury affordability determination under sponsored Coverage Department and the IRS continue to section 5000A(e)(1)(A). In general, for individuals ineligible consider this issue. A taxpayer may be unable to find a Alternatively, employers may make for coverage under employer-sponsored single bronze plan that would cover all contributions that can be received only plans, the required contribution is the members of the taxpayer’s nonexempt premium for the applicable plan in the form of nontaxable benefits under family. The final regulations provide the reduced by the maximum amount of any the plan (sometimes referred to as flex general rule that, if the Exchange premium tax credit allowable under contributions). In addition, some serving the rating area where the section 36B for the taxable year. In employers subsidize benefits available individual resides does not offer a single general, the applicable plan is the under the section 125 cafeteria plan so bronze plan that would cover all lowest cost bronze plan available in the that an employee can elect a benefit members of the taxpayer’s nonexempt while making salary reduction individual market through the Exchange family, the premium for the applicable contributions in an amount less than the serving the rating area in which the plan is the sum of the premiums for the value of the benefit. Some employers individual resides that would cover all lowest cost bronze plans available in the will provide contributions even if the members of the individual’s nonexempt Exchange that provide coverage for all employee declines the subsidized family. Pursuant to section 36B(b)(3)(C), members of the nonexempt family. The benefit. For example, an employer might the premium tax credit allowable under Treasury Department and the IRS offer a benefit with a value of $10,000 section 36B is calculated by reference to request comments on alternative the adjusted monthly premium for the for an employee salary reduction of methods for identifying the premium for applicable second lowest cost silver $4,000, but provide other benefits with the applicable plan when a single plan without regard to any premium a value of $3,000 if the employee bronze plan would not cover all discounts or rebates in a state declines the $10,000 benefit. members of the taxpayer’s nonexempt participating in the wellness discount family. Comments are requested on the demonstration project described in treatment of employer contributions section 2705(l) of the Public Health IV. Hardship Exemptions under a section 125 cafeteria plan for Service Act (42 U.S.C. 300gg–4(l)). The final regulations specify that an purposes of section 5000A to the extent A comment received on previously individual who meets the requirements employees may not opt to receive the issued proposed regulations under of 45 CFR 155.605(g)(3) (relating to employer contributions as a taxable section 5000A asked that, for purposes individuals with gross income below benefit, such as cash. Specifically, of computing the required contribution the applicable return filing threshold comments are requested regarding how for an individual not eligible for who filed a return) or 45 CFR these contributions should be taken into coverage under an eligible employer- 155.605(g)(5) (relating to the account for purposes of determining the sponsored plan, the applicable plan for affordability of coverage under an affordability of coverage. an individual residing in a rating area in eligible employer-sponsored plan for a state participating in the individual family members) may claim a hardship III. Wellness Program Incentives market wellness program demonstration exemption for a calendar year on a A. Individuals Eligible for Employer- project disregard any premium-based Federal income tax return. Consistent sponsored Coverage wellness incentive requirements, with guidance released by the Secretary including incentives relating to tobacco of HHS on October, 28, 2013, the The preamble to the final section use. Standards and processes proposed regulations provide that an 5000A regulations provides that implementing the individual market individual who enrolls in a plan guidance on how wellness program wellness program demonstration project through an Exchange during the open incentives are counted in determining have not yet been established. After the enrollment period for coverage for 2014 the affordability of coverage under individual market wellness program may claim a hardship exemption for section 5000A will be consistent with demonstration project is implemented, months in 2014 prior to the effective final rulemaking under section 36B. The additional guidance will be provided on date of the individual’s coverage proposed section 36B regulations whether and how individuals residing without obtaining a hardship exemption address the treatment of wellness in a rating area participating in the certification from an Exchange. If additional situations are identified incentives by providing that, for project will take wellness incentives where an individual should be allowed purposes of determining an individual’s into account in determining the affordability of their coverage for to claim a hardship exemption without required contribution for employer- purposes of section 5000A. obtaining a hardship exemption sponsored coverage under section certification from an Exchange, the 36B(c)(2)(C)(i), wellness program C. Simplified Method Secretary of HHS and the Secretary of incentives are treated as earned only if Proposed regulations previously the Treasury will continue to coordinate the incentives relate to tobacco use. This issued under section 5000A (78 FR guidance. To facilitate issuing guidance rule is consistent with other Affordable 7314) included an alternative method of in this situation, the proposed Care Act provisions (such as one identifying the premium for the regulations provide that a taxpayer may allowing insurers to charge higher applicable plan when a single bronze claim a hardship exemption on a return premiums based on tobacco use). plan is not offered that would cover all if the Secretary of HHS issues published Accordingly, these proposed regulations members of the nonexempt family. guidance of general applicability provide that, for purposes of During the comment period to the describing the hardship and indicating determining for section 5000A an proposed regulations, questions arose that the hardship can be claimed on a individual’s required contribution for concerning the efficacy of the proposed Federal income tax return pursuant to coverage under an employer-sponsored simplified method, as well as whether guidance published by the Secretary of plan, wellness program incentives are an election to use the simplified method the Treasury, and the Secretary of the treated as earned only if the incentives should be revocable. The final Treasury issues published guidance of relate to tobacco use. regulations removed the proposed general applicability allowing an

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individual to claim such hardship request comments on all aspects of the ■ Par. 3. Section 1.5000A–0 is amended exemption on a Federal income tax proposed rules. All comments will be by: return without obtaining a hardship available at www.regulations.gov or ■ 1. Revising the entry for § 1.5000A– exemption from an Exchange. upon request. 2(b)(2). A public hearing has been scheduled ■ 2. Removing the entries for Monthly Penalty Amounts for May 21, 2014, beginning at 10 a.m., § 1.5000A–2(b)(2)(i), (b)(2)(ii), and The final regulations provide that, for in the Auditorium, Internal Revenue (b)(2)(iii). each taxable year, the shared Building, 1111 Constitution Avenue ■ 3. Revising the entries for § 1.5000A– responsibility payment is the lesser of NW., Washington, DC. Due to building 3(e)(4)(ii)(C) and (e)(4)(ii)(D). the sum of monthly penalty amounts for security procedures, visitors must enter ■ 4. Adding a new entry for § 1.5000A– each individual in the shared at the Constitution Avenue entrance. In 3(e)(4)(ii)(E). responsibility family or the sum of the addition, all visitors must present photo ■ 5. Revising the entry for § 1.5000A– monthly national average bronze plan identification to enter the building. 3(h)(3). premiums for the shared responsibility Because of access restrictions, visitors The revisions and addition read as family. The monthly penalty amount is will not be admitted beyond the follows. computed for the taxpayer, not for each immediate entrance area more than 30 § 1.5000A–0 Table of contents. individual in the shared responsibility minutes before the hearing starts. For family. To avoid any confusion about information about having your name * * * * * this treatment, the proposed regulations placed on the building access list to § 1.5000A–2 Minimum essential coverage. remove from § 1.5000A–4(a) the clause attend the hearing, see the FOR FURTHER * * * * * ‘‘for each individual in the shared INFORMATION CONTACT section of this (b) * * * responsibility family’’ and add a preamble. (2) Certain health care coverage not reference to the taxpayer on whom the The rules of 26 CFR 601.601(a)(3) minimum essential coverage under a shared responsibility payment is apply to the hearing. Persons who wish government-sponsored program. imposed under § 1.5000A–1(c). to present oral comments at the hearing must submit electronic or written * * * * * Applicability Date comments, and an outline of the topics § 1.5000A–3 Exempt individuals. These regulations are proposed to to be discussed and the time to be * * * * * apply for months beginning after devoted to each topic (signed original (e) * * * December 31, 2013. and eight (8) copies) by April 28, 2014. (4) * * * Special Analyses A period of 10 minutes will be allotted (ii) * * * to each person for making comments. (C) Wellness program incentives. It has been determined that this notice An agenda showing the scheduling of of proposed rulemaking is not a (D) Credit allowable under section the speakers will be prepared after the 36B. significant regulatory action as defined deadline for receiving outlines has in Executive Order 12866, as (E) Required contribution for part-year passed. Copies of the agenda will be period. supplemented by Executive Order available free of charge at the hearing. 13563. Therefore, a regulatory * * * * * assessment is not required. It also has Drafting Information (h) * * * been determined that section 553(b) of The principal authors of the proposed (3) Hardship exemption without the Administrative Procedure Act (5 regulations are Sue-Jean Kim and John hardship exemption certification. U.S.C. chapter 5) does not apply to the B. Lovelace, Office of the Associate * * * * * proposed regulations. Pursuant to the Chief Counsel (Income Tax & ■ Par. 4. Section 1.5000A–2 is amended Regulatory Flexibility Act (RFA) (5 Accounting). Other personnel from the by: U.S.C. chapter 6), it is hereby certified Treasury Department and the IRS ■ 1. Revising paragraphs (b)(1)(ii) and that the proposed regulations will not participated in the development of the (b)(2). have a significant economic impact on regulations. ■ 2. Removing the language ‘‘health a substantial number of small entities. insurance’’ in paragraph (g). The applicability of the proposed List of Subjects in 26 CFR Part 1 The revisions read as follows: regulations is limited to individuals, Income taxes, Reporting and § 1.5000A–2 Minimum essential coverage. who are not small entities as defined by recordkeeping requirements. the RFA (5 U.S.C. 601). Accordingly, the * * * * * Proposed Amendments to the RFA does not apply. Therefore, a (b) * * * Regulations regulatory flexibility analysis is not (1) * * * required. Pursuant to section 7805(f) of Accordingly, 26 CFR part 1 is (ii) Medicaid. The Medicaid program the Code, the proposed regulations have proposed to be amended as follows: under Title XIX of the Social Security been submitted to the Chief Counsel for Act (42 U.S.C. 1396 and following PART 1—INCOME TAXES Advocacy of the Small Business sections); Administration for comment on its ■ Paragraph 1. The authority citation * * * * * impact on small business. for part 1 continues to read in part as (2) Certain health care coverage not follows: minimum essential coverage under a Comments and Public Hearing government-sponsored program. Before the proposed regulations are Authority: 26 U.S.C. 7805 * * * Government-sponsored program does adopted as final regulations, ■ Par 2. An undesignated center not mean any of the following: consideration will be given to any heading is added immediately following (i) Optional coverage of family comments that are submitted timely to § 1.1563–4 to read as follows: planning services under section the IRS as prescribed in this preamble Individual Shared Responsibility 1902(a)(10)(A)(ii)(XXI) of the Social under the ‘‘Addresses’’ heading. The Payment for Not Maintaining Minimum Security Act (42 U.S.C. Treasury Department and the IRS Essential Coverage 1396a(a)(10)(A)(ii)(XXI));

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(ii) Optional coverage of tuberculosis- employer-sponsored plan that affect imposed on a taxpayer in accordance related services under section premiums are treated as earned in with § 1.5000A–1(c) is the lesser of— 1902(a)(10)(A)(ii)(XII) of the Social determining an employee’s or a related (1) The sum of the monthly penalty Security Act (42 U.S.C. individual’s required contribution to the amounts; or 1396a(a)(10)(A)(ii)(XII)); extent the incentives relate to tobacco * * * * * (iii) Coverage of pregnancy-related use. Wellness program incentives that services under section do not relate to tobacco use are treated John Dalyrmple, 1902(a)(10)(A)(i)(IV) and as not earned for this purpose. Deputy Commissioner for Services and Enforcement. (a)(10)(A)(ii)(IX) of the Social Security * * * * * Act (42 U.S.C. 1396a(a)(10)(A)(i)(IV), (4) * * * [FR Doc. 2014–01439 Filed 1–23–14; 4:15 pm] (a)(10)(A)(ii)(IX)); (ii) * * * BILLING CODE 4830–01–P (iv) Coverage limited to treatment of (C) Wellness programs incentives. emergency medical conditions in [Reserved] accordance with 8 U.S.C. 1611(b)(1)(A), * * * * * ENVIRONMENTAL PROTECTION as authorized by section 1903(v) of the (h) Individuals with hardship AGENCY Social Security Act (42 U.S.C. 1396b(v)); exemption certification—(1) In general. 40 CFR Part 52 (v) Coverage for medically needy Except as provided in paragraph (h)(3) individuals under section 1902(a)(10)(C) of this section, an individual is an [EPA–R01–OAR–2010–0121; A–1–FRL– of the Social Security Act (42 U.S.C. exempt individual for a month that 9905–79–Region 1] 1396a(a)(10)(C)) and 42 CFR 435.300 includes a day on which the individual Approval and Promulgation of Air and following sections; or has in effect a hardship exemption (vi) Coverage authorized under Quality Implementation Plans; certification described in paragraph section 1115(a)(2) of the Social Security Connecticut; Low Emission Vehicle (h)(2) of this section. Act (42 U.S.C. 1315(a)(2)); Program (vii) Coverage under section 1079(a), * * * * * 1086(c)(1), or 1086(d)(1) of title 10, (3) Hardship exemption without AGENCY: Environmental Protection U.S.C., that is solely limited to space hardship exemption certification. An Agency (EPA). available care in a facility of the individual may claim an exemption ACTION: Proposed rule. uniformed services for individuals without obtaining a hardship exemption SUMMARY: The Environmental Protection excluded from TRICARE coverage for certification described in paragraph Agency (EPA) is proposing to approve a care from private sector providers; and (h)(2) of this section— State Implementation Plan (SIP) (viii) Coverage under sections 1074a (i) For any month that includes a day revision submitted by the State of and 1074b of title 10, U.S.C. for an on which the individual meets the Connecticut. The regulations adopted by injury, illness, or disease incurred or requirements of 45 CFR 155.605(g)(3) or Connecticut include the California Low aggravated in the line of duty for 45 CFR 155.605(g)(5); Emission Vehicle (LEV) II light-duty individuals who are not on active duty. (ii) For the months in 2014 prior to the individual’s effective date of motor vehicle emission standards * * * * * coverage, if the individual enrolls in a effective in model year 2008, the ■ Par. 5. Section 1.5000A–3 is amended plan through an Exchange prior to the California LEV II medium-duty vehicle by: standards effective in model year 2009, ■ close of the open enrollment period for 1. Revising paragraphs (e)(3)(ii)(D) and greenhouse gas emission standards and (e)(3)(ii)(E). coverage in 2014; or ■ (iii) For any month that includes a for light-duty motor vehicles and 2. Redesignating paragraphs medium-duty vehicles effective with (e)(4)(ii)(C) and (e)(4)(ii)(D) as day on which the individual meets the requirements of any other hardship for model year 2009. The Connecticut LEV (e)(4)(ii)(D) and (e)(4)(ii)(E), regulation submitted also includes a respectively, and adding and reserving a which: (A) The Secretary of HHS issues zero emission vehicle (ZEV) provision, new paragraph (e)(4)(ii)(C). as well as emission control label and ■ 3. Revising paragraphs (h)(1) and guidance of general applicability environmental performance label (h)(3). describing the hardship and indicating requirements. Connecticut has adopted The revisions and additions read as that an exemption for such hardship can these revisions to reduce emissions of follows: be claimed on a Federal income tax return pursuant to guidance published volatile organic compounds (VOC) and § 1.5000A–3 Exempt individuals. by the Secretary; and nitrogen oxides (NOX) in accordance * * * * * (B) The Secretary issues published with the requirements of the Clean Air (e) * * * guidance of general applicability, see Act (CAA), as well as to reduce (3) * * * § 601.601(d)(2) of this chapter, allowing greenhouse gases (carbon dioxide, (ii) * * * an individual to claim the hardship methane, nitrous oxide, and (D) Employer contributions to health exemption on a return without hydrofluorocarbons). In addition, reimbursement arrangements. Amounts obtaining a hardship exemption from an Connecticut has worked to ensure that newly made available for the current Exchange. their program is identical to California’s, plan year under a health reimbursement * * * * * as required by the CAA. The intended arrangement that is integrated with an ■ Par. 6. Section 1.5000A–4 is amended effect of this action is to propose eligible employer-sponsored plan and by revising paragraph (a) introductory approval of the Connecticut LEV II that an employee may use to pay text and paragraph (a)(1) to read as program. In addition, EPA is proposing premiums are taken into account in follows: to approve the removal of the definition determining the employee’s or a related and regulation of ‘‘composite motor individual’s required contribution. § 1.5000A–4 Computation of shared vehicles’’ from the Connecticut’s SIP- (E) Wellness program incentives. responsibility payment. approved vehicle inspection and Nondiscriminatory wellness program (a) In general. For each taxable year, maintenance program. These actions are incentives offered by an eligible the shared responsibility payment being taken under the CAA.

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