[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1916 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 1916

     To provide unemployed workers with health coverage assistance.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 7, 2002

  Mr. Dayton introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To provide unemployed workers with health coverage assistance.

    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 ``Health Care Assistance for America's 
Unemployed Workers Act of 2002''.

SEC. 2. 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 
                January 1, 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 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 is eligible for, and has elected 
        coverage under, COBRA continuation coverage shall be eligible 
        for premium assistance under the program established under this 
        section.
            (3) State option to elect administration of program.--
                    (A) In general.--A State may elect to administer 
                the premium assistance program established under this 
                section if the State submits to the Secretary of the 
                Treasury, not later than April 1, 2002, a plan that 
                describes how the State will administer such program on 
                behalf of the individuals described in paragraph (1) or 
                (2) who reside in the State beginning on that date.
                    (B) State entitlement.--In the case of a State that 
                submits a plan under subparagraph (A), the Secretary of 
                the Treasury shall pay to each such State an amount for 
                each quarter equal to the total amount of premium 
                subsidies provided in that quarter on behalf of such 
                individuals.
            (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 march 31, 2003.--No premium 
        assistance (including payment for such assistance) may be 
        provided under this section after March 31, 2003.
    (c) Payment Arrangements; Crediting of Assistance.--
            (1) Provision of assistance.--
                    (A) 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, 
                or an employer as appropriate with respect to the 
                individual provided such assistance.
                    (B) Additional option for state-run program.--In 
                the case of a State that elects to administer the 
                program established under this section, such assistance 
                may be provided through the State public employment 
                office or other agency responsible for administering 
                the State unemployment compensation program.
            (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.
    (d) Program Requirements.--Premium assistance shall be provided 
under the program established under this section consistent with the 
following:
            (1) All qualifying individuals may apply.--All individuals 
        described in paragraph (1) or (2) of subsection (a) may apply 
        for such assistance at any time during the period described in 
        subsection (a)(1)(A).
            (2) Selection on first-come, first-served basis.--Such 
        assistance shall be provided to such individuals who apply for 
        the assistance in the order in which they apply.
    (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) Change in COBRA Notice.--
            (1) General 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 4 for the remaining 
                portion of COBRA continuation premiums.
                    (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--
                    (A) the forms necessary for establishing 
                eligibility and enrollment in the premium assistance 
                program established under this section in connection 
                with the coverage with respect to each covered employee 
                or other qualified beneficiary;
                    (B) the name, address, and telephone number 
                necessary to contact the administrator and any other 
                person maintaining relevant information in connection 
                with the premium assistance; and
                    (C) the following statement displayed in a 
                prominent manner:
    ``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.''.
            (3) Notice relating to retroactive coverage.--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) who has elected (or is still eligible to elect, 
        including as a result of subsection (h)) COBRA continuation 
        coverage as of the date of enactment of this Act, the 
        administrator of the group health plan (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 60 days after the date of 
        enactment of this Act) for the additional notification required 
        to be provided under paragraph (1).
            (4) Model notices.--Not later than 30 days after the date 
        of enactment of this Act, the Secretary of the Treasury shall 
        prescribe models for the additional notification required under 
        this subsection.
    (h) Temporary Extension of Election Period for Certain Separated 
Individuals.--
            (1) In general.--Notwithstanding any other provision of 
        law, the election period for COBRA continuation coverage with 
        respect to any eligible worker for whom such period has expired 
        as of the date of enactment of this Act, shall not end before 
        the date that is 60 days after the date the individual receives 
        the additional notice required under subsection (g)(3).
            (2) Preexisting conditions.--If an individual is entitled 
        to an additional notice under subsection (g)(3), any period 
        before the receipt of such notice shall be disregarded for 
        purposes of determining the 63-day periods referred to in 
        section 701(c)(2) of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1181(c)(2)), section 2701(c)(2) of the 
        Public Health Service Act (42 U.S.C. 300gg(c)(2)), and section 
        9801(c)(2) of the Internal Revenue Code of 1986.
    (i) Reports.--Beginning on the date that is 3 months after the date 
of enactment of this Act, 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 number and identification of the States that have 
        elected to administer the program.
            (5) The total amount of expenditures incurred (with 
        administrative expenditures noted separately) under the program 
        as of the date of the report.
    (j) 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.
    (k) Sunset.--No premium assistance (including payment for such 
assistance) may be provided under this section after March 31, 2003.

SEC. 3. 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 
        January 1, 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 after March 31, 2003.

SEC. 4. 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 2 in the case of 
an individual--
                    (A) who at any time during the period that begins 
                on January 1, 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 2; 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 3 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 after March 31, 2003.

SEC. 5. DEFINITIONS.

    In this Act:
            (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 to employers in states requiring 
                such coverage.--Such term includes such coverage 
                provided by an employer in a State that has enacted a 
                law that requires the employer to provide such coverage 
                even though the employer would not otherwise be 
                required to provide such coverage 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) 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)).
            (5) 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)) and in section 
        607(1) of the Employee Retirement Income Security Act of 1974 
        (29 U.S.C. 1167(1)).
            (6) 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)).
            (7) 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)).
            (8) 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)).
            (9) Qualified beneficiary.--The term ``qualified 
        beneficiary'' has the meaning given that term in section 607(3) 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1167(3)).
            (10) 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.).
            (11) 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)).
            (12) 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 3).
                    (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)).
                                 <all>