[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5740 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5740

    To remove the 18 or 36 month limitation on the period of COBRA 
                         continuation coverage.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 29, 2006

Ms. Pryce of Ohio (for herself, Mr. Kirk, Mrs. Johnson of Connecticut, 
Mr. McCaul of Texas, Mr. Cole of Oklahoma, Mr. Duncan, Mrs. Drake, and 
Mr. Marchant) introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
   Committees on Energy and Commerce, Ways and Means, and Government 
 Reform, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To remove the 18 or 36 month limitation on the period of COBRA 
                         continuation coverage.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REMOVAL OF 18 OR 36 MONTH LIMITATION ON COBRA CONTINUATION 
              COVERAGE.

    (a) Under ERISA.--
            (1) In general.--Subparagraph (A) of section 602(2) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1162(2)) is amended to read as follows:
                    ``(A) No specified maximum required period.--Except 
                as otherwise provided, there is no specified deadline 
                for the continuation coverage provided under this 
                part.''.
            (2) Increased premium permitted for additional coverage.--
        The last sentence of section 602(3) of such Act is amended to 
        read as follows: ``In the case of an individual who was 
        described in the last sentence of paragraph (2)(A), as in 
        effect before the amendment made by section 2(a)(1) of the 
        Health Insurance For Life Act of 2006, for any month after the 
        18th month of continuation coverage described in clause (i) or 
        (ii) of such paragraph and in the case of an individual whose 
        continuation coverage is only required under this part due to 
        such amendment, any reference in subparagraph (A) of this 
        paragraph to `102 percent' is deemed a reference to such 
        percentage as the Secretary of Health and Human Services 
        determines (from time to time and after consultation with the 
        Secretary of Labor and the Secretary of the Treasury) that if 
        were applied during the period of the first 18 months of 
        continuation coverage under this part would have resulted in a 
        premium equal to the average monthly actuarial cost of such 
        continuation coverage.''.
    (b) Under IRC.--
            (1) In general.--Clause (i) of section 4980B(f)(2)(B) of 
        the Internal Revenue Code of 1986 (relating to maximum required 
        period of continuation coverage) is amended to read as follows:
                            ``(i) No specified maximum required 
                        period.--Except as otherwise provided, there is 
                        no specified deadline for the continuation 
                        coverage provided under this section.''.
            (2) Increased premium permitted for additional coverage.--
        The last sentence of section 4980B(f)(2)(C) of such Code is 
        amended to read as follows: ``In the case of an individual who 
        was described in the last sentence of subparagraph (B)(i), as 
        in effect before the amendment made by section 2(b)(1) of the 
        Health Insurance For Life Act of 2006, for any month after the 
        18th month of continuation coverage described in subclause (I) 
        or (II) of such subparagraph and in the case of an individual 
        whose continuation coverage is only required under this section 
        due to such amendment, any reference in clause (i) of this 
        subparagraph to `102 percent' is deemed a reference to such 
        percentage as the Secretary of Health and Human Services 
        determines from time to time under the last sentence of section 
        602(e) of the Employee Retirement Income Security Act of 
        1974.''.
    (c) Under PHSA.--
            (1) In general.--Subparagraph (A) of section 2202(2) of the 
        Public Health Service Act (42 U.S.C. 300bb-2(2)) is amended to 
        read as follows:
                    ``(A) No specified maximum required period.--Except 
                as otherwise provided, there is no specified deadline 
                for the continuation coverage provided under this 
                part.''.
            (2) Increased premium permitted for additional coverage.--
        The last sentence of section 2202(3) of such Act is amended to 
        read as follows: ``In the case of an individual who was 
        described in the last sentence of paragraph (2)(A), as in 
        effect before the amendment made by section 2(c)(1) of the 
        Health Insurance For Life Act of 2006, for any month after the 
        18th month of continuation coverage described in clause (i) or 
        (ii) of such paragraph and in the case of an individual whose 
        continuation coverage is only required under this part due to 
        such amendment, any reference in subparagraph (A) of this 
        paragraph to `102 percent' is deemed a reference to such 
        percentage as the Secretary of Health and Human Services 
        determines from time to time under the last sentence of section 
        602(e) of the Employee Retirement Income Security Act of 
        1974.''.
    (d) FEHBP.--
            (1) In general.--Subsection (e) of section 8905a of title 
        5, United States Code, is amended to read as follows:
    ``(e) Continuation coverage under this section shall not extend 
beyond the period of continuation required under section 602(2) of the 
Employee Retirement Income Security Act of 1974 for a group health plan 
covered under such section.''.
            (2) Increased premium permitted for additional coverage.--
        Section 8905a(d) of such title is amended--
                    (A) in paragraph (1)(A), by striking ``and (5)'' 
                and inserting ``, (5), and (6)'';
                    (B) in paragraph (4)(A), in the matter before 
                clause (i), by inserting ``for periods of continuation 
                coverage not resulting from the amendment made by 
                section 2(d)(1) of the Health Insurance For Life Act of 
                2006'' after ``National Nuclear Security 
                Administration'';
                    (C) in paragraph (5)(A), in the matter before 
                clause (i), by inserting ``for periods of continuation 
                coverage not resulting from the amendment made by 
                section 2(d)(1) of the Health Insurance For Life Act of 
                2006'' after ``Atomic Energy Defense Act''; and
                    (D) by adding at the end the following new 
                paragraph:
    ``(6) In the case of any period of continuation coverage under this 
section resulting from the amendment made by section 2(d)(1) of the 
Health Insurance For Life Act of 2006, the amount required to be paid 
under this subsection shall be equal to a percentage (equal to such 
percentage as the Secretary of Health and Human Services determines 
from time to time under the last sentence of section 602(e) of the 
Employee Retirement Income Security Act of 1974) applied to the amount 
described in paragraph (1)(A)(i).''.
    (e) Effective Date.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by subsections (a) through (c) shall apply with respect to 
        group health plans, and health insurance coverage offered in 
        connection with group health plans, for plan years beginning 
        after the date of the enactment of this Act and the amendments 
        made by subsection (d) shall apply to contract years beginning 
        after the date of the enactment of this Act.
            (2)  Treatment of collective bargaining agreements.--In the 
        case of a group health plan maintained pursuant to 1 or more 
        collective bargaining agreements between employee 
        representatives and 1 or more employers ratified before the 
        date of enactment of this Act, the amendments made by 
        subsections (a) through (c) shall not apply to plan years 
        beginning before the later of--
                    (A) the date on which the last collective 
                bargaining agreements relating to the plan terminates 
                (determined without regard to any extension thereof 
                agreed to after the date of enactment of this Act); or
                    (B) 2 years after the date of the enactment of this 
                Act.
        For purposes of subparagraph (A), any plan amendment made 
        pursuant to a collective bargaining agreement relating to the 
        plan which amends the plan solely to conform to any requirement 
        added by this section shall not be treated as a termination of 
        such collective bargaining agreement.
                                 <all>