Section 9016

SEC. 9016. MODIFICATION OF SECTION 833 TREATMENT OF CERTAIN HEALTH ORGANIZATIONS.

[a] In General- Subsection [c] of section 833 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

'[5] NONAPPLICATION OF SECTION IN CASE OF LOW MEDICAL LOSS RATIO- Notwithstanding the preceding paragraphs, this section shall not apply to any organization unless such organization's percentage of total premium revenue expended on reimbursement for clinical services provided to enrollees under its policies during such taxable year [as reported under section 2718 of the Public Health Service Act] is not less than 85 percent.'.

[b] Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2009.