[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1732 Placed on Calendar Senate (PCS)]
Calendar No. 238
107th CONGRESS
1st Session
S. 1732
To provide incentives for an economic recovery and relief for victims
of terrorism, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 27, 2001
Mr. Daschle introduced the following bill; which was read the first
time
November 28, 2001
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To provide incentives for an economic recovery and relief for victims
of terrorism, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Economic Recovery
and Assistance for American Workers Act of 2001''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--TEMPORARY ENHANCED UNEMPLOYMENT BENEFITS
Sec. 101. Short title.
Sec. 102. Federal-State agreements.
Sec. 103. Temporary supplemental unemployment compensation account.
Sec. 104. Payments to States having agreements under this title.
Sec. 105. Financing provisions.
Sec. 106. Fraud and overpayments.
Sec. 107. Definitions.
Sec. 108. Applicability.
Sec. 109. Rule of construction regarding changes to State law.
TITLE II--HEALTH INSURANCE COVERAGE OPTIONS FOR RECENTLY UNEMPLOYED
INDIVIDUALS AND THEIR FAMILIES
Sec. 201. Premium assistance for COBRA continuation coverage for
individuals and their families.
Sec. 202. State option to provide temporary medicaid coverage for
certain uninsured individuals.
Sec. 203. State option to provide temporary coverage under medicaid for
the unsubsidized portion of COBRA
continuation premiums.
Sec. 204. Temporary increases of medicaid FMAP for fiscal year 2002.
Sec. 205. Definitions.
TITLE I--TEMPORARY ENHANCED UNEMPLOYMENT BENEFITS
SEC. 101. SHORT TITLE.
This title may be cited as the ``Temporary Unemployment
Compensation Act of 2001''.
SEC. 102. FEDERAL-STATE AGREEMENTS.
(a) In General.--Any State which desires to do so may enter into
and participate in an agreement under this title with the Secretary of
Labor (in this title referred to as the ``Secretary''). Any State which
is a party to an agreement under this title may, upon providing 30
days' written notice to the Secretary, terminate such agreement.
(b) Provisions of Agreement.--
(1) In general.--Any agreement under subsection (a) shall
provide that the State agency of the State will make--
(A) payments of temporary enhanced regular
unemployment compensation to individuals; and
(B) payments of temporary supplemental unemployment
compensation to individuals who--
(i) have--
(I) exhausted all rights to regular
compensation under the State law (or,
as the case may be, all rights to
temporary enhanced regular unemployment
compensation); or
(II) received 26 weeks of regular
compensation under the State law (or,
as the case may be, 26 weeks of
temporary enhanced regular unemployment
compensation);
(ii) do not have any rights to regular
compensation under the State law of any other
State (or to temporary enhanced regular
unemployment compensation); and
(iii) are not receiving compensation under
the unemployment compensation law of any other
country.
(2) Temporary enhanced regular unemployment compensation
defined.--For purposes of this title, the term ``temporary
enhanced regular unemployment compensation'' means compensation
in amounts and to the extent that regular compensation would be
determined if the State law was applied with the following 3
conditions:
(A) Alternative base period.--An individual shall
be eligible for regular compensation if the individual
would be so eligible, determined by applying--
(i) the base period that would otherwise
apply under the State law if this title had not
been enacted; or
(ii) a base period ending at the close of
the calendar quarter most recently completed
before the date of the individual's application
for benefits, provided that wage data for that
quarter has been reported to the State or
supplied to the State agency on behalf of the
individual;
whichever results in the greater amount.
(B) Part-time employment.--An individual shall not
be denied regular compensation under the State law's
provisions relating to availability for work, active
search for work, or refusal to accept work, solely by
virtue of the fact that such individual is seeking, or
is available for, only part-time (and not full-time)
work, if--
(i) the individual's employment on which
eligibility for the regular compensation is
based was part-time employment; or
(ii) the individual can show good cause for
seeking, or being available for, only part-time
(and not full-time) work.
(C) Increased benefits.--
(i) In general.--The amount of regular
compensation (including dependents' allowances)
payable for any week shall be equal to the
amount determined under the State law (before
the application of this subparagraph), plus an
amount equal to the greater of--
(I) 15 percent of the amount so
determined; or
(II) $25.
(ii) Rounding.--For purposes of determining
the amount under clause (i)(I), such amount
shall be rounded to the dollar amount specified under State law.
(c) Nonreduction Rule.--Under the agreement, subsection (b)(2)(C)
shall not apply (or shall cease to apply) with respect to a State upon
a determination by the Secretary that the method governing the
computation of regular compensation under the State law of that State
has been modified in a way such that the average weekly amount of
regular compensation which will be payable during the period of the
agreement (determined disregarding any temporary enhanced regular
unemployment compensation) will be less than the average weekly amount
of regular compensation which would otherwise have been payable during
such period under the State law, as in effect on September 11, 2001.
(d) Coordination Rules.--
(1) Regular compensation payable under a federal law.--The
conditions described in subparagraphs (A), (B), and (C) of
subsection (b)(2) shall also apply in determining the amount of
benefits payable under any Federal law to the extent that those
benefits are determined by reference to regular compensation
payable under the State law of the State involved.
(2) Temporary supplemental unemployment compensation to
serve as second-tier benefits.--Notwithstanding any other
provision of law, neither regular compensation, temporary
enhanced regular unemployment compensation, extended
compensation, nor additional unemployment compensation under
any Federal or State law shall be payable to any individual for
any week for which temporary supplemental unemployment
compensation is payable to such individual.
(3) Treatment of other unemployment compensation.--After
the date on which a State enters into an agreement under this
title, any regular compensation (or, as the case may be,
temporary enhanced regular unemployment compensation) in excess
of 26 weeks, any extended compensation, and any additional
compensation under any Federal or State law shall be payable to
an individual in accordance with the State law after such
individual has exhausted any rights to temporary supplemental
unemployment compensation under the agreement.
(e) Exhaustion of Benefits.--For purposes of subsection
(b)(1)(B)(i)(I), an individual shall be considered to have exhausted
such individual's rights to regular compensation (or, as the case may
be, rights to temporary enhanced regular unemployment compensation)
under a State law when--
(1) no payments of regular compensation can be made under
such law because the individual has received all such
compensation available to the individual based on employment or
wages during the individual's base period; or
(2) the individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year with
respect to which such rights existed.
(f) Weekly Benefit Amount, Terms and Conditions, etc. Relating to
Temporary Supplemental Unemployment Compensation.--For purposes of any
agreement under this title--
(1) the amount of temporary supplemental unemployment
compensation which shall be payable to an individual for any
week of total unemployment shall be equal to--
(A) the amount of regular compensation (including
dependents' allowances) payable to such individual
under the State law for a week for total unemployment
during such individual's benefit year; plus
(B) the amount of any temporary enhanced regular
unemployment compensation payable to such individual
for a week for total unemployment during such
individual's benefit year;
(2) the terms and conditions of the State law which apply
to claims for regular compensation and to the payment thereof
shall apply to claims for temporary supplemental unemployment
compensation and the payment thereof, except where inconsistent
with the provisions of this title or with the regulations or
operating instructions of the Secretary promulgated to carry
out this title; and
(3) the maximum amount of temporary supplemental
unemployment compensation payable to any individual for whom a
temporary supplemental unemployment compensation account is
established under section 103 shall not exceed the amount
established in such account for such individual.
SEC. 103. TEMPORARY SUPPLEMENTAL UNEMPLOYMENT COMPENSATION ACCOUNT.
(a) In General.--Any agreement under this title shall provide that
the State will establish, for each eligible individual who files an
application for temporary supplemental unemployment compensation, a
temporary supplemental unemployment compensation account.
(b) Amount in Account.--
(1) In general.--The amount established in an account under
subsection (a) shall be equal to the greater of--
(A) 50 percent of--
(i) the total amount of regular
compensation (including dependents' allowances)
payable to the individual during the
individual's benefit year under such law; plus
(ii) the amount of any temporary enhanced
regular unemployment compensation payable to
the individual during the individual's benefit
year; or
(B) 13 times the individual's weekly benefit
amount.
(2) Weekly benefit amount.--For purposes of paragraph
(1)(B), an individual's weekly benefit amount for any week is
an amount equal to--
(A) the amount of regular compensation (including
dependents' allowances) under the State law payable to
the individual for such week for total unemployment;
plus
(B) the amount of any temporary enhanced regular
unemployment compensation payable to the individual for
such week for total unemployment.
SEC. 104. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS TITLE.
(a) General Rule.--There shall be paid to each State which has
entered into an agreement under this title an amount equal to--
(1) 100 percent of any temporary enhanced regular
unemployment compensation made payable to individuals by such
State by virtue of the conditions which are described in
section 102(b)(2) and deemed to be in effect with respect to
such State pursuant to such section;
(2) 100 percent of any regular compensation--
(A) which is paid to individuals by such State by
reason of the fact that its State law contains
provisions comparable to the conditions described in
subparagraphs (A) and (B) of section 102(b)(2); but
only
(B) to the extent that those amounts would, if such
amounts were instead payable by virtue of the State
law's being deemed to be in compliance with such
conditions pursuant to such section, have been
reimbursable under paragraph (1); and
(3) 100 percent of the temporary supplemental unemployment
compensation paid to individuals by the State pursuant to such
agreement.
(b) Determination of Amount.--Sums under subsection (a) payable to
any State by reason of such State having an agreement under this title
shall be payable, either in advance or by way of reimbursement (as may
be determined by the Secretary), in such amounts as the Secretary
estimates the State will be entitled to receive under this title for
each calendar month, reduced or increased, as the case may be, by any
amount by which the Secretary finds that the Secretary's estimates for
any prior calendar month were greater or less than the amounts which
should have been paid to the State. Such estimates may be made on the
basis of such statistical, sampling, or other method as may be agreed
upon by the Secretary and the State agency of the State involved.
(c) Administrative Expenses, Etc.--There is hereby appropriated,
without fiscal year limitation, out of the employment security
administration account of the Unemployment Trust Fund (as established
by section 901(a) of the Social Security Act (42 U.S.C. 1101(a)))
$500,000,000 to reimburse States for the costs of the administration of
agreements under this title (including any improvements in technology
in connection therewith) and to provide reemployment services to
unemployment compensation claimants in States having agreements under
this title. Each State's share of the amount appropriated by the
preceding sentence shall be determined by the Secretary according to
the factors described in section 302(a) of the Social Security Act (42
U.S.C. 501(a)) and certified by the Secretary to the Secretary of the
Treasury.
SEC. 105. FINANCING PROVISIONS.
(a) In General.--Funds in the extended unemployment compensation
account (as established by section 905(a) of the Social Security Act
(42 U.S.C. 1105(a))), and the Federal unemployment account (as
established by section 904(g) of such Act (42 U.S.C. 1104(g))), of the
Unemployment Trust Fund (as established by section 904(a) of such Act
(42 U.S.C. 1104(a))) shall be used, in accordance with subsection (b),
for the making of payments (described in section 104(a)) to States
having agreements entered into under this title.
(b) Certification.--The Secretary shall from time to time certify
to the Secretary of the Treasury for payment to each State the sums
described in section 104(a) which are payable to such State under this
title. The Secretary of the Treasury, prior to audit or settlement by
the General Accounting Office, shall make payments to the State in
accordance with such certification by transfers from the extended
unemployment compensation account, as so established (or, to the extent
that there are insufficient funds in that account, from the Federal
unemployment account, as so established) to the account of such State
in the Unemployment Trust Fund (as so established).
SEC. 106. FRAUD AND OVERPAYMENTS.
(a) In General.--If an individual knowingly has made, or caused to
be made by another, a false statement or representation of a material
fact, or knowingly has failed, or caused another to fail, to disclose a
material fact, and as a result of such false statement or
representation or of such nondisclosure such individual has received
any temporary enhanced regular unemployment compensation or temporary
supplemental unemployment compensation under this title to which such
individual was not entitled, such individual--
(1) shall be ineligible for any further benefits under this
title in accordance with the provisions of the applicable State
unemployment compensation law relating to fraud in connection
with a claim for unemployment compensation; and
(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
(b) Repayment.--In the case of individuals who have received any
temporary enhanced regular unemployment compensation or temporary
supplemental unemployment compensation under this title to which such
individuals were not entitled, the State shall require such individuals
to repay those benefits to the State agency, except that the State
agency may waive such repayment if it determines that--
(1) the payment of such benefits was without fault on the
part of any such individual; and
(2) such repayment would be contrary to equity and good
conscience.
(c) Recovery by State Agency.--
(1) In general.--The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any regular
compensation, temporary enhanced regular unemployment
compensation, or temporary supplemental unemployment
compensation payable to such individual under this title or
from any unemployment compensation payable to such individual
under any Federal unemployment compensation law administered by
the State agency or under any other Federal law administered by
the State agency which provides for the payment of any
assistance or allowance with respect to any week of unemployment,
during the 3-year period after the date such individuals received the
payment of the temporary enhanced regular unemployment compensation or
temporary supplemental unemployment compensation to which such
individuals were not entitled, except that no single deduction may
exceed 50 percent of the weekly benefit amount from which such
deduction is made.
(2) Opportunity for hearing.--No repayment shall be
required, and no deduction shall be made, until a determination
has been made, notice thereof and an opportunity for a fair
hearing has been given to the individual, and the determination
has become final.
(d) Review.--Any determination by a State agency under this section
shall be subject to review in the same manner and to the same extent as
determinations under the State unemployment compensation law, and only
in that manner and to that extent.
SEC. 107. DEFINITIONS.
In this title the terms ``compensation'', ``regular compensation'',
``extended compensation'', ``additional compensation'', ``benefit
year'', ``base period'', ``State'', ``State agency'', ``State law'',
and ``week'' have the respective meanings given such terms under
section 205 of the Federal-State Extended Unemployment Compensation Act
of 1970.
SEC. 108. APPLICABILITY.
(a) In General.--An agreement entered into under this title shall
apply to weeks of unemployment--
(1) beginning after the date on which such agreement is
entered into; and
(2) ending before January 1, 2003.
(b) Specific Rules.--
(1) In general.--Under such an agreement, the following
rules shall apply:
(A) Alternative base periods.--
(i) Applicability.--The payment of
temporary enhanced regular unemployment
compensation by reason of the condition
described in section 102(b)(2)(A) (relating to
alternative base periods) shall not apply
except in the case of initial claims filed on
or after the first day of the week that
includes September 11, 2001.
(ii) Nonretroactivity.--The weekly benefit
amount payable with respect to weeks of regular
compensation and temporary supplemental
unemployment compensation shall not be
recalculated as a result of the application of
the condition described in clause (i) with
respect to an individual who was receiving any
unemployment compensation as of the date on
which the State enters into such an agreement.
(B) Part-time employment and increased benefits.--
The payment of temporary enhanced regular unemployment
compensation by reason of the conditions described in
subparagraphs (B) and (C) of section 102(b)(2)
(relating to part-time employment and increased
benefits, respectively) shall apply to weeks of
unemployment described in subsection (a), regardless of
the date on which an individual's initial claim for
benefits is filed.
(C) Eligibility for temporary supplemental
unemployment compensation.--The payment of temporary
supplemental unemployment compensation pursuant to
section 102(b)(1)(B) shall not apply except in the case
of individuals who meet either the condition described
in subclause (I) or subclause (II) of clause (i) of
such section on or after the first day of the week that
includes September 11, 2001.
(2) Reapplication process.--
(A) Alternative base periods.--In the case of an
individual who filed an initial claim for regular
compensation on or after the first day of the week that
includes September 11, 2001, and before the date that
the State entered into an agreement under subsection
(a)(1) that was denied as a result of the application
of the base period that applied under the State law
prior to the date on which the State entered into the
such agreement, such individual--
(i) may refile a claim for temporary
enhanced regular unemployment compensation
based on the condition described in section
102(b)(2)(A) (relating to alternative base
periods) on or after the date on which the
State enters into such agreement and before the
date on which such agreement terminates; and
(ii) if eligible, shall be entitled to such
compensation only for weeks of unemployment
described in subsection (a) beginning on or
after the date on which the individual files
such claim.
(B) Part-time employment.--In the case of an
individual who before the date that the State entered
into an agreement under subsection (a)(1) was denied
regular compensation under the State law's provisions
relating to availability for work, active search for
work, or refusal to accept work, solely by virtue of
the fact that such individual is seeking, or available
for, only part-time (and not full-time) work, such
individual--
(i) may refile a claim for temporary
enhanced regular unemployment compensation
based on the condition described in section
102(b)(2)(B) (relating to part-time employment)
on or after the date on which the State enters
into the agreement under subsection (a)(1) and
before the date on which such agreement
terminates; and
(ii) if eligible, shall be entitled to such
compensation only for weeks of unemployment
described in subsection (a) beginning on or
after the date on which the individual files
such claim.
(3) No retroactive payments for weeks prior to agreement.--
No amounts shall be payable to an individual under an agreement
entered into under this title for any week of unemployment
prior to the week beginning after the date on which such
agreement is entered into.
SEC. 109. RULE OF CONSTRUCTION REGARDING CHANGES TO STATE LAW.
Nothing in this title shall be construed as requiring a State to
modify the laws of such State in order to enter into an agreement under
this title or to comply with the provisions of the agreement described
in section 102(b).
TITLE II--HEALTH INSURANCE COVERAGE OPTIONS FOR RECENTLY UNEMPLOYED
INDIVIDUALS AND THEIR FAMILIES
SEC. 201. PREMIUM ASSISTANCE FOR COBRA CONTINUATION COVERAGE FOR
INDIVIDUALS AND THEIR FAMILIES.
(a) Establishment.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Secretary of the Treasury, in
consultation with the Secretary of Labor, shall establish a
program under which 75 percent of the premium for COBRA
continuation coverage shall be provided for an individual who--
(A) at any time during the period that begins on
September 11, 2001, and ends on December 31, 2002, is
separated from employment; and
(B) is eligible for, and has elected coverage
under, COBRA continuation coverage.
(2) Inclusion of certain other individuals.--
(A) In general.--For purposes of paragraph (1), the
spouse, child, or other individual who was an insured
under health insurance coverage of an individual who
was killed as a result of the terrorist-related
aircraft crashes on September 11, 2001, or as a result
of any other terrorist-related event occurring during
the period described in that paragraph, and who is
eligible for, and has elected coverage under, COBRA
continuation coverage shall be eligible for premium
assistance under the program established under this
section.
(B) Other individuals.--For purposes of paragraph
(1), an individual who, at any time during the period
described in paragraph (1)(A)--
(i) elects to take a voluntary leave
program offered by their employer after the
employer has announced that employee
separations will occur as a result of the
terrorist-related aircraft crashes on September
11, 2001, or as a result of any other
terrorist-related event occurring during the
period described in that paragraph;
(ii) is eligible under such voluntary leave
program, and has elected, to continue their
health insurance coverage under a group health
plan through payment of 100 percent of the
premium for such coverage; and
(iii) is not eligible for COBRA
continuation coverage,
shall be eligible for premium assistance for 75 percent
of the premium for such health insurance coverage under
the program established under this section in the same
manner as an individual who is eligible for premium
assistance under this section for COBRA continuation
coverage.
(3) Temporary extension of election period for certain
separated individuals.--Notwithstanding any other provision of
law, the election period for COBRA continuation coverage with
respect to any individual who meets the requirements of
paragraph (1)(A), but for whom such period has expired as of
the date of the enactment of this Act, shall not end before the
date that is 60 days after the date the individual receives the
supplemental notice required under subsection (g)(3).
(4) Immediate implementation.--The program established
under this section shall be implemented without regard to
whether or not final regulations to carry out such program have
been promulgated by the date described in paragraph (1).
(b) Limitation of Period of Premium Assistance.--
(1) In general.--Premium assistance provided in accordance
with this section shall end with respect to an individual on
the earlier of--
(A) the date the individual is no longer covered
under COBRA continuation coverage; or
(B) 12 months after the date the individual is
first enrolled in the premium assistance program
established under this section.
(2) No assistance after december 31, 2002.--No premium
assistance may be provided under this section for any month
beginning after December 31, 2002.
(c) Payment Arrangements; Crediting of Assistance.--
(1) Provision of assistance.--
(A) Direct payment arrangements.--
(i) In general.--Premium assistance shall
be provided under the program established under
this section through direct payment
arrangements with a group health plan
(including a multiemployer plan), an issuer of
health insurance coverage, an administrator, an
employer, or other entity, that collects the
monthly premium for the COBRA continuation
coverage for such individual, as appropriate
with respect to the individual provided such
assistance.
(ii) Immediate, provisional payment of
assistance.--Payment of such assistance shall
commence beginning with the month in which the
Secretary of the Treasury receives a copy of the eligibility and
enrollment forms completed by the individual in accordance with
subsection (g). The payment of such assistance shall be subject to
verification by the Secretary of the Treasury or the Secretary of Labor
of the individual's eligibility for such assistance.
(B) Advance payment; retrospective adjustment.--The
Secretary of the Treasury may make payments under this
section for each month on the basis of advance
estimates of the assistance to be provided under this
section and such other investigation as the Secretary
of the Treasury may find necessary, and may reduce or
increase the payments as necessary to adjust for any
overpayment or underpayment for prior months.
(2) Premiums payable by individual reduced by amount of
assistance.--Premium assistance provided under this section
shall be credited by the group health plan, issuer of health
insurance coverage, or an administrator against the premium
otherwise owed by the individual involved for COBRA
continuation coverage. Such coverage shall not be terminated
based on a failure to pay the full amount of the monthly
premium owed for the coverage if an individual is current with
the non-subsidized portion of the monthly premium for the
coverage.
(d) Application of Fraud Prevention Provisions.--Sections 1128A and
1128B of the Social Security Act (42 U.S.C. 1320a-7a, 1320a-7b) shall
apply to the provision of premium assistance under this section.
(e) Limitation on Entitlement.--Nothing in this section shall be
construed as establishing any entitlement of individuals described in
paragraph (1) or (2) of subsection (a) to premium assistance under this
section.
(f) Disregard of Subsidies for Purposes of Federal and State
Programs.--Notwithstanding any other provision of law, any premium
assistance provided to, or on behalf of, an individual under this
section, shall not be considered income or resources in determining
eligibility for, or the amount of assistance or benefits provided
under, any other Federal public benefit or State or local public
benefit.
(g) Implementation Requirements.--
(1) Change in cobra notice.--
(A) In general.--In the case of notices provided
under section 4980B(f)(6) of the Internal Revenue Code
of 1986, section 2206 of the Public Health Service Act
(42 U.S.C. 300bb-6), section 606 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1166), or section 8905a(f)(2)(A) of title 5, United
States Code, with respect to individuals who, during
the period described in subsection (a)(1)(A), become
entitled to elect COBRA continuation coverage, such
notices shall include an additional notification to the
recipient of the availability of premium assistance for
such coverage under this section and for temporary
medicaid assistance under section 203 for the remaining
portion of COBRA continuation premiums, in accordance
with the requirements of this subsection.
(B) Alternative notice.--In the case of COBRA
continuation coverage to which the notice provision
under such sections does not apply, the Secretary of
the Treasury, in consultation with the Secretary of
Labor, shall, in coordination with administrators of
the group health plans (or other entities) that provide
or administer the COBRA continuation coverage involved,
assure the provision of such notice.
(C) Form.--The requirement of the additional
notification under this paragraph may be met by
amendment of existing notice forms or by inclusion of a
separate document with the notice otherwise required.
(2) Specific requirements.--Each additional notification
under paragraph (1) shall include the following:
(A) The forms necessary for establishing
eligibility and enrollment in the premium assistance
program established under this section in connection
with the COBRA continuation coverage with respect to
individuals described in paragraph (1) or (2) of
subsection (a).
(B) The following displayed in a prominent manner:
(i) The name, address, and telephone number
necessary to contact the
employer, administrator, and any other person maintaining relevant
information in connection with how to enroll for the premium
assistance.
(ii) The toll-free telephone number and
Internet website address established under
paragraph (4)(A)(i).
(iii) The name, address, and telephone
number for the group health plan (including a
multiemployer plan), issuer of health insurance
coverage, administrator, an employer, or other
entity (as appropriate with respect to the
individual) that will collect the monthly
premium for such coverage, specifying that the
eligibility and enrollment forms are to be
completed by the individual and sent to such
entity.
(iv) The following statement:
``You may be eligible to receive assistance with payment of 75
percent of your COBRA continuation coverage premiums and with temporary
medicaid coverage for the remaining premium portion for a duration of
not to exceed 12 months. This assistance will not be available after
December 31, 2002. Return the enclosed eligibility and enrollment forms
as soon as possible to the address specified.''.
(C) The dollar amount equal to 25 percent of the
monthly 2002 premium that would be owed during 2002 by
each the individual for the coverage if the individual
is eligible for, and enrolls in, the program
established under this section.
(3) Supplemental notice for individuals previously provided
notice or whose election period is temporarily extended.--In
the case of such notices previously transmitted before the date
of enactment of this Act in the case of an individual described
in paragraph (1) or subsection (a)(2) who has elected (or is
still eligible to elect, including as a result of subsection
(a)(3)) COBRA continuation coverage as of the date of enactment
of this Act, the employer, administrator, or other entity
involved, or the Secretary of the Treasury, in consultation
with the Secretary of Labor, (in the case described in the
paragraph (1)(B)) shall provide (within the period required
under paragraph (4)(C)(i)) for the additional notification
required to be provided under this subsection.
(4) Required timeline.--
(A) Secretary of labor.--Not later than 15 days
after the date of enactment of this Act, the Secretary
of Labor shall--
(i) establish a toll-free telephone number
and an Internet website to provide information
and answer inquiries about the program
established under this section;
(ii) prescribe models for the additional
notification required under this subsection and
the forms necessary for establishing
eligibility and enrollment in the program, in
accordance with the requirements of this
subsection; and
(iii) consult with the Secretary of the
Treasury regarding the additional notification
required for individuals described in paragraph
(1)(B).
(B) Secretary of the treasury.--Not later than 15
days after the date of enactment of this Act, the
Secretary of the Treasury shall--
(i) notify each covered employer of the
program established under this section and the
additional notification required under this
subsection;
(ii) make the model notification, and
eligibility and enrollment forms prescribed by
the Secretary of Labor under subparagraph
(A)(ii) available to each such covered
employer; and
(iii) provide, in consultation with the
Secretary of Labor, the additional notification
required for individuals described in paragraph
(1)(B).
(C) Covered employers.--Not later than 15 days
after the model notification and eligibility and
enrollment forms are made available under subparagraph
(B)(ii), each covered employer or their designee
shall--
(i) provide the additional notification
required under this subsection to the
individuals described in paragraph (3) (other
than such individuals who are also described in
paragraph (1)(B)); and
(ii) be able to comply with such additional
notification requirement in the case of any
individual described in paragraph (1)(A).
(D) Definition of covered employer.--For purposes
of this section, the term ``covered employer'' means,
for any calendar year, any person on whom an excise tax is imposed
under section 3111 or 1401 of the Internal Revenue Code of 1986 with
respect to having an individual in the person's employ to whom wages
are paid by such person during such calendar year.
(h) Reports.--Beginning on January 1, 2002, and every 3 months
thereafter until January 1, 2003, the Secretary of the Treasury shall
submit a report to Congress regarding the premium assistance program
established under this section that includes the following:
(1) The status of the implementation of the program.
(2) The number of individuals provided assistance under the
program as of the date of the report.
(3) The average dollar amount (monthly and annually) of the
premium assistance provided under the program.
(4) The total amount of expenditures incurred (with
administrative expenditures noted separately) under the program
as of the date of the report.
(i) Appropriation.--
(1) In general.--Out of any funds in the Treasury not
otherwise appropriated, there is appropriated to carry out this
section, such sums as are necessary for each of fiscal years
2002 and 2003.
(2) Obligation of funds.--This section constitutes budget
authority in advance of appropriations Acts and represents the
obligation of the Federal Government to provide for the payment
of premium assistance under this section.
(j) Sunset.--No premium assistance may be provided under this
section for any month beginning after December 31, 2002.
SEC. 202. STATE OPTION TO PROVIDE TEMPORARY MEDICAID COVERAGE FOR
CERTAIN UNINSURED INDIVIDUALS.
(a) State Option.--Notwithstanding any other provision of law, a
State may elect to provide under its medicaid program under title XIX
of the Social Security Act medical assistance in the case of an
individual--
(1) who at any time during the period that begins on
September 11, 2001, and ends on December 31, 2002, is separated
from employment;
(2) who is not eligible for COBRA continuation coverage;
(3) who is uninsured; and
(4) whose assets, resources, and earned or unearned income
(or both) do not exceed such limitations (if any) as the State
may establish.
(b) Limitation of Period of Coverage.--Medical assistance provided
in accordance with this section shall end with respect to an individual
on the earlier of--
(1) the date the individual is no longer uninsured; or
(2) subject to subsection (c)(4), 12 months after the date
the individual first receives such assistance.
(c) Special Rules.--In the case of medical assistance provided
under this section--
(1) the Federal medical assistance percentage under section
1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) shall
be the enhanced FMAP (as defined in section 2105(b) of such Act
(42 U.S.C. 1397ee(b)));
(2) a State may elect to apply any income, asset, or
resource limitation permitted under the State medicaid plan or
under title XIX of such Act;
(3) the provisions of section 1916(g) of the Social
Security Act (42 U.S.C. 1396o) shall apply to the provision of
such assistance in the same manner as the provisions of such
section apply with respect to individuals provided medical
assistance only under subclause (XV) or (XVI) of section
1902(a)(10)(A)(ii) of such Act (42 U.S.C. 1396a(a)(10)(A)(ii));
(4) a State may elect to provide such assistance in
accordance with section 1902(a)(34) of the Social Security Act
(42 U.S.C. 1396a(a)(34)) and any assistance provided with
respect to a month described in that section shall not be
included in the determination of the 12-month period under
subsection (b)(2);
(5) a State may elect to make eligible for such medical
assistance a dependent spouse or children of an individual
eligible for medical assistance under subsection (a), if such
spouse or children are uninsured;
(6) individuals eligible for medical assistance under this
section shall be deemed to be described in the list of
individuals described in the matter preceding paragraph (1) of
section 1905(a) of such Act (42 U.S.C. 1396d(a));
(7) a State may elect to provide such medical assistance
without regard to any limitation under sections 401(a), 402(b),
403, and 421 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(a),
1612(b), 1613, and 1631) and no debt shall accrue under an
affidavit of support against any sponsor of an individual who
is an alien who is provided such assistance, and the cost of
such assistance shall not be considered as an unreimbursed
cost; and
(8) the Secretary of Health and Human Services shall not
count, for purposes of section 1108(f) of the Social Security
Act (42 U.S.C. 1308(f)), such amount of payments under this
section as bears a reasonable relationship to the average
national proportion of payments made under this section for the
50 States and the District of Columbia to the payments
otherwise made under title XIX for such States and District.
(d) Sunset.--No medical assistance may be provided under this
section for any month beginning after December 31, 2002.
SEC. 203. STATE OPTION TO PROVIDE TEMPORARY COVERAGE UNDER MEDICAID FOR
THE UNSUBSIDIZED PORTION OF COBRA CONTINUATION PREMIUMS.
(a) State Option.--
(1) In general.--Notwithstanding any other provision of
law, a State may elect to provide under its medicaid program
under title XIX of the Social Security Act medical assistance
in the form of payment for the portion of the premium for COBRA
continuation coverage for which an individual does not receive
a subsidy under the premium assistance program established
under section 201 in the case of an individual--
(A) who at any time during the period that begins
on September 11, 2001, and ends on December 31, 2002,
is separated from employment;
(B) who is eligible for, and has elected coverage
under, COBRA continuation coverage;
(C) who is receiving premium assistance under the
program established under section 201; and
(D) whose family income does not exceed 200 percent
of the poverty line.
(2) Inclusion of certain individuals.--For purposes of
paragraph (1), the spouse, child, or other individual who was
an insured under health insurance coverage of an individual who
was killed as a result of the terrorist-related aircraft
crashes on September 11, 2001, or as a result of any other
terrorist-related event occurring during the period described
in that paragraph, and who satisfies the requirements of
subparagraphs (B), (C), and (D) of paragraph (1) shall be
eligible for medical assistance under this section.
(b) Limitation of Period of Coverage.--Medical assistance provided
in accordance with this section shall end with respect to an individual
on the earlier of--
(1) the date the individual is no longer covered under
COBRA continuation coverage; or
(2) 12 months after the date the individual first receives
such assistance under this section.
(c) Special Rules.--In the case of medical assistance provided
under this section--
(1) such assistance may be provided without regard to--
(A) whether the State otherwise has elected to make
medical assistance available for COBRA premiums under
section 1902(a)(10)(F) of the Social Security Act (42
U.S.C. 1396a(a)(10)(F)); or
(B) the conditions otherwise imposed for the
provision of medical assistance for such COBRA premiums
under clause (XII) of the matter following section
1902(a)(10)(G) of the Social Security Act (42 U.S.C.
1396a(a)(10)(G)), or paragraphs (1)(B), (1)(C), (1)(D),
and (4) of section 1902(u) of such Act (42 U.S.C.
1396a(u)); and
(2) paragraphs (1), (2), (4), (5), (7), and (8) of
subsection (c) of section 202 apply to such assistance in the
same manner as such paragraphs apply to the provision of
medical assistance under that section.
(d) Sunset.--No medical assistance may be provided under this
section for any month beginning after December 31, 2002.
SEC. 204. TEMPORARY INCREASES OF MEDICAID FMAP FOR FISCAL YEAR 2002.
(a) Permitting Maintenance of Fiscal Year 2001 FMAP.--
Notwithstanding any other provision of law, but subject to subsection
(d), if the FMAP determined without regard to this section for a State
for fiscal year 2002 is less than the FMAP as so determined for fiscal
year 2001, the FMAP for the State for fiscal year 2001 shall be
substituted for the State's FMAP for fiscal year 2002, before the
application of this section.
(b) General 1.50 Percentage Points Increase.--Notwithstanding any
other provision of law, but subject to subsections (d) and (e), for
each State for each calendar quarter in fiscal year 2002, the FMAP
(taking into account the application of subsection (a)) shall be
increased by 1.50 percentage points.
(c) Further Increase for States With High Unemployment Rates.--
(1) In general.--Notwithstanding any other provision of
law, but subject to subsections (d) and (e), the FMAP for a
high unemployment State for a calendar quarter in fiscal year
2002 (and any subsequent calendar quarter in such fiscal year
regardless of whether the State continues to be a high
unemployment State for a calendar quarter in such fiscal year)
shall be increased (after the application of subsections (a)
and (b)) by 1.50 percentage points.
(2) High unemployment state.--For purposes of this
subsection, a State is a high unemployment State for a calendar
quarter if, for any 3 consecutive months beginning on or after
June 2001 and ending with the second month before the beginning
of the calendar quarter, the State has an unemployment rate
that exceeds the national average unemployment rate. Such
unemployment rates for such months shall be determined based on
publications of the Bureau of Labor Statistics of the
Department of Labor.
(d) 1-Year Increase in Cap On Medicaid Payments To Territories.--
Notwithstanding any other provision of law, with respect to fiscal year
2002, the amounts otherwise determined for Puerto Rico, the Virgin
Islands, Guam, the Northern Mariana Islands, and American Samoa under
section 1108 of the Social Security Act (42 U.S.C. 1308) shall each be
increased by an amount equal to 3.093 percentage points of such
amounts.
(e) Scope of Application.--The increases in the FMAP for a State
under this section shall apply only for purposes of title XIX of the
Social Security Act and shall not apply with respect to--
(1) disproportionate share hospital payments described in
section 1923 of such Act (42 U.S.C. 1396r-4); and
(2) payments under titles IV and XXI of such Act (42 U.S.C.
601 et seq. and 1397aa et seq.).
(f) State Eligibility.--A State is eligible for an increase in its
FMAP under subsection (b) or (c) only if the eligibility under its
State plan under title XIX of the Social Security Act (including any
waiver under such title or under section 1115 of such Act (42 U.S.C.
1315)) is no more restrictive than the eligibility under such plan (or
waiver) as in effect on October 1, 2001.
SEC. 205. DEFINITIONS.
In this title:
(1) Administrator.--The term ``administrator'' has the
meaning given that term in section 3(16)(A) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1002(16)(A)).
(2) COBRA continuation coverage.--
(A) In general.--The term ``COBRA continuation
coverage'' means coverage under a group health plan
provided by an employer pursuant to title XXII of the
Public Health Service Act, section 4980B of the
Internal Revenue Code of 1986, part 6 of subtitle B of
title I of the Employee Retirement Income Security Act
of 1974, or section 8905a of title 5, United States
Code.
(B) Application in states requiring such
coverage.--Such term includes such continuation
coverage provided in a State that has enacted a law
that requires such continuation coverage even though
the continuation coverage would not otherwise be
required under the provisions of law referred to in
subparagraph (A).
(3) Covered employee.--The term ``covered employee'' has
the meaning given that term in section 607(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1167(2)).
(4) Election period.--The term ``election period'' has the
meaning given that term in section 605(1) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1165(1)).
(5) Federal public benefit.--The term ``Federal public
benefit'' has the meaning given that term in section 401(c) of
the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (8 U.S.C. 1611(c)).
(6) FMAP.--The term ``FMAP'' means the Federal medical
assistance percentage, as defined in section 1905(b) of the
Social Security Act (42 U.S.C. 1396d(b)).
(7) Group health plan.--The term ``group health plan'' has
the meaning given that term in section 2791(a) of the Public
Health Service Act (42 U.S.C. 300gg-91(a)), section 607(1) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1167(1)), and section 4980B(g)(2) of the Internal Revenue Code
of 1986.
(8) Health insurance coverage.--The term ``health insurance
coverage'' has the meaning given that term in section
2791(b)(1) of the Public Health Service Act (42 U.S.C. 300gg-
91(b)(1)).
(9) Multiemployer plan.--The term ``multiemployer plan''
has the meaning given that term in section 3(37) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1002(37)).
(10) Poverty line.--The term ``poverty line'' has the
meaning given that term in section 2110(c)(5) of the Social
Security Act (42 U.S.C. 1397jj(c)(5)).
(11) State.--The term ``State'' has the meaning given such
term for purposes of title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).
(12) State or local public benefit.--The term ``State or
local public benefit'' has the meaning given that term in
section 411(c) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1621(c)).
(13) Uninsured.--
(A) In general.--The term ``uninsured'' means, with
respect to an individual, that the individual is not
covered under--
(i) a group health plan;
(ii) health insurance coverage; or
(iii) a program under title XVIII, XIX, or
XXI of the Social Security Act (other than
under such title XIX pursuant to section 202).
(B) Exclusion.--Such coverage under clause (i) or
(ii) shall not include coverage consisting solely of
coverage of excepted benefits (as defined in section
2791(c) of the Public Health Service Act (42 U.S.C.
300gg-91(c)).
Calendar No. 238
107th CONGRESS
1st Session
S. 1732
_______________________________________________________________________
A BILL
To provide incentives for an economic recovery and relief for victims
of terrorism, and for other purposes.
_______________________________________________________________________
November 28, 2001
Read the second time and placed on the calendar