[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1107 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1107

To extend COBRA continuation coverage to retirees and their dependents, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               August 2 (legislative day, July 10), 1995

Mr. Daschle (for himself, Mr. Simon, Ms. Moseley-Braun, Mr. Leahy, and 
 Mr. Pressler) introduced the following bill; which was read twice and 
         referred to the Committee on Labor and Human Resources

_______________________________________________________________________

                                 A BILL


 
To extend COBRA continuation coverage to retirees and their dependents, 
                        and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Retiree Continuation Coverage Act of 
1995''.

SEC. 2. EXTENSION OF COBRA CONTINUATION COVERAGE.

    (a) Public Health Service Act.--
            (1) Period of coverage.--Section 2202(2)(A) of the Public 
        Health Service Act (42 U.S.C. 300bb-2(2)(A)) is amended by 
        adding at the end thereof the following new clause:
                            ``(v) Qualifying event involving 
                        substantial reduction or elimination of a 
                        retiree group health plan.--In the case of an 
                        event described in section 2203(6), the date on 
                        which such covered qualified beneficiary 
                        becomes entitled to benefits under title XVIII 
                        of the Social Security Act.''.
            (2) Qualifying event.--Section 2203 of the Public Health 
        Service Act (42 U.S.C. 300bb-3) is amended by adding at the end 
        thereof the following new paragraph:
            ``(6) The substantial reduction or elimination of group 
        health coverage as a result of plan changes or termination with 
        respect to a qualified beneficiary described in section 
        2208(3)(A).''.
            (3) Notice.--Section 2206 of the Public Health Service Act 
        (42 U.S.C. 300bb-6) is amended--
                    (A) in paragraph (2), by striking ``or (4)'' and 
                inserting ``(4), or (6)''; and
                    (B) in paragraph (4)(A), by striking ``or (4)'' and 
                inserting ``(4), or (6)''.
            (4) Definition.--Section 2208(3) of the Public Health 
        Service Act (42 U.S.C. 300bb-8(3)) is amended by adding at the 
        end thereof the following new subparagraph:
                    ``(C) Special rule for retirees.--In the case of a 
                qualifying event described in section 2203(6), the term 
                `qualified beneficiary' includes a covered employee who 
                had retired on or before the date of substantial 
                reduction or elimination of coverage and any other 
                individual who, on the day before such qualifying 
                event, is a beneficiary under the plan--
                            ``(i) as the spouse of the covered 
                        employee;
                            ``(ii) as the dependent child of the 
                        covered employee; or
                            ``(iii) as the surviving spouse of the 
                        covered employee.''.
    (b) Employee Retirement Income Security Act of 1974.--
            (1) Period of coverage.--Section 602(2)(A) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) 
        is amended by adding at the end thereof the following new 
        clause:
                            ``(vi) Qualifying event involving 
                        substantial reduction or elimination of a group 
                        health plan covering retirees, spouses and 
                        dependents.--In the case of an event described 
                        in section 603(7), the date on which such 
                        covered qualified beneficiary becomes entitled 
                        to benefits under title XVIII of the Social 
                        Security Act.''.
            (2) Qualifying event.--Section 603 of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1163) is 
        amended by adding at the end thereof the following new 
        paragraph:
            ``(7) The substantial reduction or elimination of group 
        health plan coverage as a result of plan changes or termination 
        with respect to a qualified beneficiary described in section 
        607(3)(C).''.
            (3) Notice.--Section 606(a) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1166) is amended--
                    (A) in paragraph (2), by striking ``or (6)'' and 
                inserting ``(6), or (7)''; and
                    (B) in paragraph (4)(A), by striking ``or (6)'' and 
                inserting ``(6), or (7)''.
            (4) Definition.--Section 607(3)(C) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1167(2)) is 
        amended by striking ``603(6)'' and inserting ``603(6) or 
        603(7)''.
    (c) Internal Revenue Code of 1986.--
            (1) Period of coverage.--Section 4980B(f)(2)(B)(i) of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        thereof the following new subclause:
                                    ``(VI) Qualifying event involving 
                                substantial reduction or elimination of 
                                a retiree group health plan.--In the 
                                case of an event described in paragraph 
                                (3)(G), the date on which such covered 
                                qualified beneficiary becomes entitled 
                                to benefits under title XVIII of the 
                                Social Security Act.''.
            (2) Qualifying event.--Section 4980B(f)(3) of the Internal 
        Revenue Code of 1986 is amended by adding at the end thereof 
        the following new subparagraph:
                    ``(G) The substantial reduction or elimination of 
                group health coverage as a result of plan changes or 
                termination with respect to a qualified beneficiary 
                described in subsection (g)(1)(D).''.
            (3) Notice.--Section 4980B(f)(6) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) in subparagraph (B), by striking ``or (F)'' and 
                inserting ``(F), or (G)''; and
                    (B) in subparagraph (D)(i), by striking ``or (F)'' 
                and inserting ``(F), or (G)''.
            (4) Definition.--Section 4980B(g)(1)(D) of the Internal 
        Revenue Code of 1986 is amended by striking ``(f)(3)(F)'' and 
        inserting ``(f)(3)(F) or (f)(3)(G)''.

SEC. 3. EFFECTIVE DATE.

    This Act shall take effect as if enacted on January 1, 1995.
                                 <all>