EXCLUSION FROM WAGES AND COMPENSATION OF REFUNDS REQUIRED FROM EMPLOYERS TO COMPENSATE FOR DUPLICATION OF MEDICARE BENEFITS BY HEALTH CARE BENEFITS PROVIDED BY THE EMPLOYERS.

SEC. 10202. EXCLUSION FROM WAGES AND COMPENSATION OF REFUNDS REQUIRED FROM EMPLOYERS TO COMPENSATE FOR DUPLICATION OF MEDICARE BENEFITS BY HEALTH CARE BENEFITS PROVIDED BY THE EMPLOYERS. (a) Old-Age, Survivors, and Disability, and Hospital Insurance Programs.—For purposes of title II of the Social Security Act and chapter 21 of the Internal Revenue Code of 1986, the term “wages” shall not include the amount of any refund required under section 421 of the Medicare Catastrophic Coverage Act of 1988. (b) Railroad Retirement Program.—For purposes of chapter 22 of the Internal Revenue Code of 1986, the term “compensation” shall not include the amount of any refund required under section 421 of the Medicare Catastrophic Coverage Act of 1988. (c) Federal Unemployment Programs.— (1) Federal unemployment tax.—For purposes of chapter 23 of the Internal Revenue Code of 1986, the term “wages” shall not include the amount of any refund required under section 421 of the Medicare Catastrophic Coverage Act of 1988. (2) Railroad unemployment contributions.—For purposes of the Railroad Unemployment Insurance Act, the term “compensation” shall not include the amount of any refund required under section 421 of the Medicare Catastrophic Coverage Act of 1988. (3) Railroad unemployment repayment tax.—For purposes of chapter 23A of the Internal Revenue Code of 1986, the term “rail wages” shall not include the amount of any refund required under section 421 of the Medicare Catastrophic Coverage Act of 1988. (d) Reporting Requirements.—Any refund required under section 421 of the Medicare Catastrophic Coverage Act of 1988 shall be reported to the Secretary of the Treasury or his delegate and to the person to whom such refund is made in such manner as the Secretary of the Treasury or his delegate shall prescribe. (e) Effective Date.—This section shall apply with respect to refunds provided on or after January 1, 1989.