Summary

Denies the refundable premium tax credit for health insurance and federal Medicaid matching funds for any individual who is a “sex offender” as defined by the Adam Walsh Child Protection and Safety Act. The tax credit denial applies to taxable years ending after enactment; the Medicaid funding exclusion applies to individuals enrolled or reenrolled in Medicaid on or after enactment and allows states to not furnish federal-matched medical assistance for those individuals.

• Denies the Affordable Care Act premium tax credit for any individual (and a spouse on a joint return) who is a sex offender under the Adam Walsh Act.
• Prohibits federal Medicaid matching funds for medical assistance provided to individuals who meet the Adam Walsh Act's sex offender definition.
• Tax change applies to taxable years ending after enactment; Medicaid change applies to enrollments or reenrollments on or after enactment.
• Relies on the Adam Walsh Act definition, requiring agencies to identify offender status for tax and Medicaid eligibility.
• Could create coverage gaps for affected individuals and shift costs to states, providers, or the individuals themselves.
• May increase administrative burdens for IRS, HHS, and state Medicaid agencies to verify status and implement exclusions.
• Spouses filing joint tax returns can lose the premium tax credit if one spouse qualifies as a covered sex offender.
• Raises likely legal, privacy, and public-health concerns tied to denying health coverage as a penalty for criminal status.