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<bill bill-stage="Introduced-in-Senate" public-private="public"><!--                             Conversion Notes
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	<form>
		<distribution-code>II</distribution-code>
		<congress>109th CONGRESS</congress>
		<session>2d Session</session>
		<legis-num>S. 3776</legis-num>
		<current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber>
		<action>
			<action-date date="20060802">August 2, 2006</action-date>
			<action-desc><sponsor name-id="S230">Mr. Feingold</sponsor> introduced
			 the following bill; which was read twice and referred to the
			 <committee-name committee-id="SSHR00">Committee on Health, Education, Labor,
			 and Pensions</committee-name></action-desc>
		</action>
		<legis-type>A BILL</legis-type>
		<official-title>To ensure the provision of high-quality health care
		  coverage for uninsured individuals through State health care initiatives that
		  expand coverage and access and improve quality and efficiency in the health
		  care system.</official-title>
	</form>
	<legis-body>
		<section id="ID0A74B17325A14921BA5FDF1754448B7D" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the
			 <quote><short-title>State-Based Health Care Reform
			 Act</short-title></quote>.</text>
		</section><section id="id834BDD1D91A9474180956EBBD45276E1"><enum>2.</enum><header>Findings</header><text display-inline="no-display-inline">Congress makes the following
			 findings:</text>
			<paragraph id="ID3d38c7de4f194b719fec28188391ee96"><enum>(1)</enum><text>Health care
			 remains one of the most important domestic issues for Americans.</text>
			</paragraph><paragraph id="IDe156d8e6978549619e3e327310719e11"><enum>(2)</enum><text>According to the
			 Census Bureau, 45,800,000 Americans were uninsured in 2004. Over 8,000,000 of
			 these individuals were children. The number of uninsured has increased by
			 6,000,000 since 2000.</text>
			</paragraph><paragraph id="ID7bf588c6edd240829ba63c30b1e52607"><enum>(3)</enum><text>According to the
			 Commonwealth Fund, many of the uninsured are employed, and an increasing number
			 are from middle-income families:</text>
				<subparagraph id="IDdd28142affba4a7f82bc84ecb8e846c7"><enum>(A)</enum><text>Two in five
			 working-age Americans with annual incomes between $20,000 and $40,000 were
			 uninsured for at least part of 2005. In 2001, just over one-quarter of those
			 with moderate incomes were uninsured.</text>
				</subparagraph><subparagraph id="ID77c83f0bd4dc42b984146b1e054882f9"><enum>(B)</enum><text>Of the estimated
			 48,000,000 American adults who spent any time uninsured in 2005, two-thirds
			 were in families where at least one person was working full time.</text>
				</subparagraph></paragraph><paragraph id="IDee8749234dd5460f989e0d33363b0022"><enum>(4)</enum><text>The uninsured
			 face serious financial problems, and often have to choose between medical care
			 and other basic necessities. According to the Commonwealth Fund, more than half
			 of uninsured adults reported medical debt or problems paying bills. Of those,
			 nearly half used up all their savings to pay their bills. Two of five were
			 unable to pay for basic necessities like food, heat, or rent because of medical
			 bills.</text>
			</paragraph><paragraph id="ID64539abf95824d22862111eb8e001da5"><enum>(5)</enum><text>Health outcomes
			 for the uninsured are worse than health outcomes for those who are covered.
			 According to the Institute of Medicine, the number of excess deaths among
			 uninsured adults ages 25 to 64 is estimated at around 18,000 a year. Fifty-nine
			 percent of uninsured adults who had a chronic illness, such as diabetes or
			 asthma, did not fill a prescription or skipped their medications because they
			 could not afford them.</text>
			</paragraph><paragraph id="IDb6c05ae0b594497b8438a07b6cbe0efc"><enum>(6)</enum><text>The cost of
			 providing care to the uninsured weighs heavily on the United States economy.
			 The United States spends twice as much as any other industrialized nation on
			 health care, and more than the United Kingdom’s entire gross domestic product.
			 According to the Kaiser Family Foundation, $124,600,000,000 was spent on care
			 provided to individuals who were uninsured for all or part of 2004. Despite
			 this spending, the United States ranks second to last among industrialized
			 countries in infant mortality rates.</text>
			</paragraph></section><section id="IDBE8F1749783946B1A3AB5BC5FBD9134B"><enum>3.</enum><header>Purpose</header><text display-inline="no-display-inline">It is the purpose of this Act to establish a
			 program to award grants to States for the establishment of State-based projects
			 to—</text>
			<paragraph id="ID6D10AE57C58B47E8BC52A78D31ED29CB"><enum>(1)</enum><text>increase health
			 care coverage for uninsured individuals in selected States within the 5-year
			 period beginning on the date of enactment of this Act;</text>
			</paragraph><paragraph id="ID78F3F3F940504243833CC6645ACF61A7"><enum>(2)</enum><text>ensure
			 high-quality health care coverage that provides adequate access to providers,
			 services, and benefits;</text>
			</paragraph><paragraph id="IDD849D1DB10B841D5863F7E2C75A73D38"><enum>(3)</enum><text>improve the
			 efficiency of health care spending and lower the cost of health care for the
			 participating State; and</text>
			</paragraph><paragraph id="idD4F5C2352D354228B2341E49B4F1EB26"><enum>(4)</enum><text>encourage
			 universal health care coverage within States.</text>
			</paragraph></section><title id="id170E91C4A1874D40A714D999E4CD54A7"><enum>I</enum><header>Health care
			 coverage</header>
			<section id="IDF51F0EC40B9549BEB89DCDC3AEEDC122"><enum>101.</enum><header>State-based
			 health care coverage program</header>
				<subsection id="IDF2DDB30FF350432E9C2AC972B94A74DB"><enum>(a)</enum><header>Applications by
			 States, Multi-State Regions, Local Governments, and Tribes</header>
					<paragraph id="ID43B9AD6E318048F498E6E7CD3BB96C7B"><enum>(1)</enum><header>State
			 application</header><text>A State, in consultation with local governments,
			 Indian tribes, and Indian organizations involved in the provision of health
			 care (referred to in this Act as a <quote>State</quote>), may apply for a State
			 health care reform grant for the entire State (or for regions of two or more
			 States) under paragraph (2).</text>
					</paragraph><paragraph id="ID7AD49EE1E1EC4260A80B4706509FCC48"><enum>(2)</enum><header>Submission of
			 application</header><text>In accordance with this section, each State desiring
			 to implement a State health care reform program shall submit an application to
			 the Health Care Reform Task Force established under subsection (b) (referred to
			 in this section as the <quote>Task Force</quote>) for approval.</text>
					</paragraph><paragraph id="ID46843059085A4D9292C3D257E446D9CF"><enum>(3)</enum><header>Local
			 government and other applications</header>
						<subparagraph id="ID7F42CA8F4FD14655A71BFA114464F304"><enum>(A)</enum><header>In
			 general</header><text>Where a State fails to submit an application under this
			 section, a unit of local government of such State, or a consortium of such
			 units of local governments, may submit an application directly to the Task
			 Force for programs or projects under this section. Such an application shall be
			 subject to the requirements of this section.</text>
						</subparagraph><subparagraph id="ID5925FBF3339B4C6C82B788F72ED8A02B"><enum>(B)</enum><header>Other
			 applications</header><text>Subject to such additional regulations as the
			 Secretary may prescribe, a unit of local government, Indian tribe, or Indian
			 health organization may submit an application under this section, whether or
			 not the State submits such an application, if such unit, tribe, or organization
			 can demonstrate unique demographic needs or a significant population size that
			 warrants a substate program under this subsection.</text>
						</subparagraph></paragraph></subsection><subsection id="ID9B5F922626D740E588E029611CEEC162"><enum>(b)</enum><header>Health Care
			 Reform Task Force</header><text></text>
					<paragraph id="IDEF7ACA1665E24E4790C6C352EC7CD591"><enum>(1)</enum><header>Establishment</header><text>Not
			 later than 180 days after the date of the enactment of this Act, the Secretary
			 shall establish a Health Care Reform Task Force in accordance with this
			 subsection.</text>
					</paragraph><paragraph id="idCD3F0446A16D4E52B8F7C5E96927D9B8"><enum>(2)</enum><header>Membership</header><text></text>
						<subparagraph id="ID1E1EBCDEB585429DBC0BBF26FA9177B9"><enum>(A)</enum><header>In
			 general</header><text>The Task Force shall be comprised of not less than 20
			 members to be appointed by the Comptroller General in accordance with
			 subparagraph (B) and the Secretary.</text>
						</subparagraph><subparagraph id="idF2AB66EFD5904C59A743AC02B4692E12"><enum>(B)</enum><header>Appointed
			 members</header><text>With respect to the members appointed by the Comptroller
			 General under subparagraph (A)—</text>
							<clause id="id763B051B079A4C5BA1E1B1EDC46DFEA6"><enum>(i)</enum><text>such members
			 shall include consumers of health services who represent individuals who have
			 not had health insurance coverage during the 2-year period prior to the
			 appointment and who have had a chronic illness and are disabled;</text>
							</clause><clause id="id174B56B26C1F441CAD988B5954861533"><enum>(ii)</enum><text>such members
			 shall include individuals—</text>
								<subclause id="id8EE735C5589949C8AC9E38734ECCB7BC"><enum>(I)</enum><text>with expertise in
			 the financing of, and paying for, benefits and access to care;</text>
								</subclause><subclause id="id09734F5002974941B9FB5A099B5095A6"><enum>(II)</enum><text>representing
			 business and labor; and</text>
								</subclause><subclause id="id4909A175BEB146B9B00FBBBD967D6BBA"><enum>(III)</enum><text>who are health
			 care providers;</text>
								</subclause></clause><clause id="id7A19033989204F12ABCBBE49FC30D812"><enum>(iii)</enum><text>such members
			 shall include individuals with expertise and experience in State health policy,
			 State government, and local government;</text>
							</clause><clause id="idC3C55AB0F2B64EF99219CB9074752D24"><enum>(iv)</enum><text>such members
			 shall have a broad geographic representation and be balanced between urban and
			 rural areas; and</text>
							</clause><clause id="id07DB1D3D5BE64A7BA8EBAFCC9C81E62E"><enum>(v)</enum><text>such members
			 shall not include elected officials or paid employees or representatives of
			 associations or advocacy organizations involved in the health care
			 system.</text>
							</clause></subparagraph></paragraph><paragraph id="idB8ED6840C0F140F1BA5E5A3EE22E2642"><enum>(3)</enum><header>General
			 duties</header><text>The Task Force shall—</text>
						<subparagraph id="ID7DD73E9FB67C4800AAEBC4305FFA7873"><enum>(A)</enum><text>formally approve
			 the application of a State for a grant under this section and the
			 administration of a reform program within the State;</text>
						</subparagraph><subparagraph id="IDCAB312746C1847A787C1E6B5D43AEF91"><enum>(B)</enum><text>establish minimum
			 performance measures with respect to coverage, quality, and cost of State
			 programs, as described under subsection (c)(1);</text>
						</subparagraph><subparagraph id="ID3E52F135B696428B9C063BCA791248DF"><enum>(C)</enum><text>conduct a
			 thorough review of the grant application from a State and carry on a dialogue
			 with such State applicants concerning possible modifications and
			 adjustments;</text>
						</subparagraph><subparagraph id="ID465C46ECABC2498FB24B3A67A43D7AEC"><enum>(D)</enum><text>be responsible
			 for monitoring the status and progress achieved under programs and projects
			 granted under this section; and</text>
						</subparagraph><subparagraph id="IDDAC38D68D92A49E3BF3EA610ECC98465"><enum>(E)</enum><text>report to the
			 public concerning progress made by States with respect to the performance
			 measures and goals established under this Act, the periodic progress of the
			 State relative to its State performance measures and goals, and the State
			 program application procedures, by region and State jurisdiction.</text>
						</subparagraph></paragraph><paragraph id="ID16A3FC820FBA4E7690447C2B2A8D359F"><enum>(4)</enum><header>Period of
			 appointment; representation requirements; vacancies</header><text>Members shall
			 be appointed for the life of the Task Force. In appointing members under
			 paragraph (1)(A), the Comptroller General shall ensure the representation of
			 urban and rural areas and an appropriate geographic distribution of such
			 members. Any vacancy on the Task Force shall not affect its powers, but shall
			 be filled within a reasonable period of time and in the same manner as the
			 original appointment.</text>
					</paragraph><paragraph id="ID98188B23DD26443D9DFBEABE1F8E3AB2"><enum>(5)</enum><header>Chairperson,
			 meetings</header>
						<subparagraph id="IDFD6929C7B85A444A946AF3E43BFB2979"><enum>(A)</enum><header>Chairperson</header><text>The
			 Task Force shall select a Chairperson from among its members.</text>
						</subparagraph><subparagraph id="IDD7917791391A451AAFFE632DD45E9A43"><enum>(B)</enum><header>Quorum</header><text>A
			 majority of the members of the Task Force shall constitute a quorum, but a
			 lesser number of members may hold hearings.</text>
						</subparagraph><subparagraph id="IDAB0932A9D69942C38800F48488069AFF"><enum>(C)</enum><header>Meetings</header><text>Not
			 later than 30 days after the date on which all members of the Task Force have
			 been appointed, the Task Force shall hold its first meeting. The Task Force
			 shall meet at the call of the Chairperson.</text>
						</subparagraph></paragraph><paragraph id="IDA70161AB613B4F1DB97C05E1011E9001"><enum>(6)</enum><header>Powers of the
			 task force</header>
						<subparagraph id="ID33F6FF7C2C5941F3A4EE418598527E39"><enum>(A)</enum><header>Negotiations
			 with states</header><text>The Task Force may conduct detailed discussions and
			 negotiations with States submitting applications under this section, either
			 individually or in groups, to facilitate a final set of recommendations for
			 purposes of subsection (c)(4)(B). Such negotiations shall be conducted in a
			 public forum.</text>
						</subparagraph><subparagraph id="id13CC37CBD30F4266ACC885576F3B64F2"><enum>(B)</enum><header>Subcommittees</header><text>The
			 Task Force may establish such subcommittees as the Task Force determines are
			 necessary to increase the efficiency of the Task Force.</text>
						</subparagraph><subparagraph id="ID5A8C81B48ECE419D95861EDDC868A699"><enum>(C)</enum><header>Hearings</header><text>The
			 Task Force may hold hearings, so long as the Task Force determines such
			 meetings to be necessary in order to carry out the purposes of this Act, sit
			 and act at such times and places, take such testimony, and receive such
			 evidence as the Task Force considers advisable to carry out the purposes of
			 this subsection.</text>
						</subparagraph><subparagraph id="ID3C9E054E9A36445DB51310812FB3A2E6"><enum>(D)</enum><header>Annual
			 meeting</header><text>In addition to other meetings the Task Force may hold,
			 the Task Force shall hold an annual meeting with the participating States under
			 this section for the purpose of having States report progress toward the
			 purposes in section 3 and for an exchange of information.</text>
						</subparagraph><subparagraph id="ID4C441B98B9F742BAA00B4B8C20D76FFA"><enum>(E)</enum><header>Information</header><text>The
			 Task Force may obtain information directly from any Federal department or
			 agency as the Task Force considers necessary to carry out the provisions of
			 this subsection. Upon request of the Chairperson of the Task Force, the head of
			 such department or agency shall furnish such information to the Task
			 Force.</text>
						</subparagraph><subparagraph id="idFD90C9D951CB4D59A2D55C80FFF5BD87"><enum>(F)</enum><header>Contracting</header><text>The
			 Task Force may enter into contracts with qualified independent organizations
			 (such as Mathematica or the Institute of Medicine) to obtain necessary
			 information for the development of the performance standards, reporting
			 requirements, financing mechanisms, or any other matters determined by the Task
			 Force to be appropriate and reasonable.</text>
						</subparagraph><subparagraph id="ID1A209CFFCAAB4AC1BA318ABA5C833A24"><enum>(G)</enum><header>Postal
			 services</header><text>The Task Force may use the United States mails in the
			 same manner and under the same conditions as other departments and agencies of
			 the Federal Government.</text>
						</subparagraph></paragraph><paragraph id="IDFD1FA8A841674686BEDCB391BB51A4B1"><enum>(7)</enum><header>Personnel
			 matters</header>
						<subparagraph id="ID155D0DFBA7D84ED889CB6E561D89120D"><enum>(A)</enum><header>Compensation</header><text>Each
			 member of the Task Force who is not an officer or employee of the Federal
			 Government shall be compensated at a rate equal to the daily equivalent of the
			 annual rate of basic pay prescribed for level IV of the Executive Schedule
			 under section 5315 of title 5, United States Code, for each day (including
			 travel time) during which such member is engaged in the performance of the
			 duties of the Task Force. All members of the Task Force who are officers or
			 employees of the United States shall serve without compensation in addition to
			 that received for their services as officers or employees of the United
			 States.</text>
						</subparagraph><subparagraph id="IDCCD4DE2A64D04A5CBA06448695500C61"><enum>(B)</enum><header>Travel
			 expenses</header><text>The members of the Task Force shall be allowed travel
			 expenses, including per diem in lieu of subsistence, at rates authorized for
			 employees of agencies under subchapter I of chapter 57 of title 5, United
			 States Code, while away from their homes or regular places of business in the
			 performance of services for the Task Force.</text>
						</subparagraph><subparagraph id="ID4C10F582FB0A46549C26F6E55DEB5A13"><enum>(C)</enum><header>Staff</header><text>The
			 Chairperson of the Task Force may, without regard to the civil service laws and
			 regulations, appoint and terminate personnel as may be necessary to enable the
			 Task Force to perform its duties.</text>
						</subparagraph><subparagraph id="IDCDCC55593BE340529984D84E9B38226F"><enum>(D)</enum><header>Detail of
			 government employees</header><text>Any Federal Government employee may be
			 detailed to the Task Force without reimbursement, and such detail shall be
			 without interruption or loss of civil service status or privilege.</text>
						</subparagraph><subparagraph id="ID8C162C86FD0E45FCBB7A23A092E37609"><enum>(E)</enum><header>Temporary and
			 intermittent services</header><text>The Chairperson of the Task Force may
			 procure temporary and intermittent services under section 3109(b) of title 5,
			 United States Code, at rates for individuals which do not exceed the daily
			 equivalent of the annual rate of basic pay prescribed for level V of the
			 Executive Schedule under section 5316 of such title.</text>
						</subparagraph></paragraph><paragraph id="IDD075F6902A7549BC99AA18594D551396"><enum>(8)</enum><header>Funding</header><text>For
			 the purpose of carrying out this subsection, there are authorized to be
			 appropriated $4,000,000 for fiscal year 2007 and each fiscal year
			 thereafter.</text>
					</paragraph></subsection><subsection id="IDDDD256AF756D40E1A1E32D3258C28FD4"><enum>(c)</enum><header>State
			 Plan</header>
					<paragraph id="ID08F43B8FFAAC4C948271B488788145A3"><enum>(1)</enum><header>In
			 general</header><text>A State that seeks to receive a grant to operate a
			 program under this section shall prepare and submit to the Task Force, as part
			 of the application under subsection (a), a State health care plan that—</text>
						<subparagraph id="IDB1D8F38AF20043B0A4058CC3114021CB"><enum>(A)</enum><text>designates the
			 lead State entity that will be responsible for administering the State
			 program;</text>
						</subparagraph><subparagraph id="ID3825090079B04822BEBF497F6A8FE6B2"><enum>(B)</enum><text>contains a list
			 of the minimum benefits that will be provided to all individuals covered under
			 the State program, which shall, at a minimum, provide for coverage that is
			 comparable to the coverage provided for benefits under any of the plans offered
			 under the Federal Employees Health Benefits Program under chapter 89 of title
			 5, United States Code or the minimum benefits required under the program under
			 title XXI of the Social Security Act (42 U.S.C. 1397aa et seq.);</text>
						</subparagraph><subparagraph id="ID02B8E4A8B4B440279D34707668F06B79"><enum>(C)</enum><text>includes specific
			 target dates for decreasing the number of uninsured individuals in the State;
			 and</text>
						</subparagraph><subparagraph id="IDD49AB61FF3244FA4A24B772CC51846EA"><enum>(D)</enum><text>otherwise
			 complies with this subsection.</text>
						</subparagraph></paragraph><paragraph id="IDAF54668C8FD144418241E705DEE3A33C"><enum>(2)</enum><header>Coverage</header><text>With
			 respect to coverage for uninsured individuals in the State, the State plan
			 shall—</text>
						<subparagraph id="ID46637B245F2E451CB3DD5B087D92680F"><enum>(A)</enum><text>provide and
			 describe the manner in which the State will ensure that an increased number of
			 such individuals residing within the State will have expanded access to health
			 care coverage with a specific 5-year target for reduction in the number of
			 uninsured individuals through either private or public program expansion, or
			 both, such description to include the manner in which the State will ensure
			 expanded access to health care coverage for low-income individuals within the
			 5-year target period;</text>
						</subparagraph><subparagraph id="ID4F72E7BDC45243E4910932C4146E109E"><enum>(B)</enum><text>provide for
			 improvements in the availability of appropriate health care services that will
			 increase access to care in urban, rural, and frontier areas of the State with
			 medically underserved populations or where there is an inadequate supply of
			 health care providers; and</text>
						</subparagraph><subparagraph id="id67D41C6BF6F2428B8BF540880A9007A7"><enum>(C)</enum><text>describe the
			 minimum benefits package that will be provided to every beneficiary, including
			 information on affordability for beneficiaries.</text>
						</subparagraph></paragraph><paragraph id="ID803B34F86D9748CFB0807552DC341A5D"><enum>(3)</enum><header>Effectiveness
			 and efficiency</header><text>The State plan shall include provisions to improve
			 the effectiveness and efficiency of health care in the State, including
			 provisions to attempt to reduce the overall health care costs within the
			 State.</text>
					</paragraph><paragraph id="IDF7F51285F096473AB77978F36EE72143"><enum>(4)</enum><header>Costs</header>
						<subparagraph id="idE0EE02F444124955878EA8599E6588D4"><enum>(A)</enum><header>In
			 general</header><text>With respect to the costs of health care provided under
			 the program, the State plan shall—</text>
							<clause id="ID0481F613B293410199194E38702B6567"><enum>(i)</enum><text>describe the
			 public and private sector financing to be provided for the State health
			 program;</text>
							</clause><clause id="IDDD5F726CC4B04B4C83A69E310CBEC393"><enum>(ii)</enum><text>estimate the
			 amount of Federal, State, and local expenditures, as well as the costs to
			 business and individuals under the State health program;</text>
							</clause><clause id="ID08D477B9AFD74684843760E63D7DEF6D"><enum>(iii)</enum><text>describe how
			 the State plan will ensure the financial solvency of the State health program;
			 and</text>
							</clause><clause id="idA29F4B47F5A14E26A1F79197A8269D77"><enum>(iv)</enum><text>contain
			 assurances that the State will comply with the premium and cost sharing
			 limitations described in subparagraph (B).</text>
							</clause></subparagraph><subparagraph id="id28345D53D83048299704646676B8BB24"><enum>(B)</enum><header>Premium and
			 cost sharing limitations</header>
							<clause id="id820CC40EAFAA4F1DB4549307AEA2832B"><enum>(i)</enum><header>Premiums</header><text>In
			 providing health care coverage under a State program under this Act, the State
			 shall ensure that—</text>
								<subclause id="idBDF10B0BF5EF461895A79541CCE222F1"><enum>(I)</enum><text>with respect to
			 an individual whose family income is at or below 100 percent of the poverty
			 line, the State program shall not require—</text>
									<item id="idF49427356E944883940EF064DE592D7A"><enum>(aa)</enum><text>the
			 payment of premiums for such coverage; or</text>
									</item><item id="id088065A85BDE45F4ABEB1BDF8827ABE0"><enum>(bb)</enum><text>the
			 payment of cost sharing for such coverage in an amount that exceeds .5 percent
			 of the family's income for the year involved;</text>
									</item></subclause><subclause id="idF1C8988183944C018F6356477AB11159"><enum>(II)</enum><text>with respect to
			 an individual whose family income is greater than 100 percent, but at or below
			 200 percent, of the poverty line, the State program shall not require—</text>
									<item id="id27F1EBB989CA4F57ADE06FF312F6770A"><enum>(aa)</enum><text>the
			 payment of premiums for such coverage in excess of 20 percent of the average
			 cost of providing benefits to an individual or family or 3 percent of the
			 amount of the family's income for the year involved; or</text>
									</item><item commented="no" display-inline="no-display-inline" id="id38EF916EE684411B9962717B07A7F5BE"><enum>(bb)</enum><text>the payment of
			 cost sharing for such coverage in an amount that, together with the premium
			 amount, does not exceed 5 percent of the family's income for the year involved;
			 and</text>
									</item></subclause><subclause id="id15165A71769E43B382190C318F88DA5C"><enum>(III)</enum><text>with respect to
			 an individual whose family income is greater than 200 percent, but at or below
			 300 percent, of the poverty line, the State program shall not require—</text>
									<item id="idF39F2AB6D238456F8B8F15A2CF13F796"><enum>(aa)</enum><text>the
			 payment of premiums for such coverage in excess of 20 percent of the average
			 cost of providing benefits to an individual or family or 5 percent of the
			 amount of the family's income for the year involved; or</text>
									</item><item commented="no" display-inline="no-display-inline" id="id98FBE0F1B8D14BEAB114CE49FE259002"><enum>(bb)</enum><text>the payment of
			 cost sharing for such coverage in an amount that, together with the premium
			 amount, does not exceed 7 percent of the family's income for the year
			 involved.</text>
									</item></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id577D13841D184AC2AD0D4E305078F5B1"><enum>(ii)</enum><header>Definition</header><text>For
			 purposes of this subparagraph, the term <quote>poverty line</quote> has the
			 meaning given such term in section 2110(c)(5) of the Social Security Act (42
			 U.S.C. 1397jj(c)(5)).</text>
							</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8DD682D868804BD4AEF1A19E46A710B6"><enum>(5)</enum><header>Protection for
			 lower income individuals</header><text>The State plan may only vary premiums,
			 deductibles, coinsurance, and other cost sharing under the plan based on the
			 family income of the family involved in a manner that does not favor
			 individuals from families with higher income over individuals from families
			 with lower income.</text>
					</paragraph></subsection><subsection id="IDC2FC1DCDD76444118502ED59C7A7C622"><enum>(d)</enum><header>Review;
			 Determination; and Project Period</header>
					<paragraph id="IDF48307370578479DB8D61E6910124C31"><enum>(1)</enum><header>Initial
			 review</header><text>With respect to a State application for a grant under
			 subsection (a), the Secretary and the Task Force shall, not later than 90 days
			 after receipt of such application, complete an initial review of such State
			 application, an analysis of the scope of the proposal, and a determination of
			 whether additional information is needed from the State. The Task Force shall
			 advise the State within such 90-day period of the need to submit additional
			 information.</text>
					</paragraph><paragraph id="ID38AA967897FF4EF5A9EFAE66D0996C9B"><enum>(2)</enum><header>Final
			 determination</header><text>Not later than 90 days after completion of the
			 initial review under paragraph (1), the Task Force shall determine whether to
			 approve such application. Such application may be approved only if
			 <fraction>2/3</fraction> of the members of the Task Force vote to approve such
			 application.</text>
					</paragraph><paragraph id="ID3779B000B20742BFBFD1D6890213BE9C"><enum>(3)</enum><header>Program or
			 project period</header><text>A State program or project may be approved for a
			 period of not to exceed 5 years and may be extended for subsequent 5-year
			 periods upon approval by the Task Force and the Secretary, based upon
			 achievement of targets, except that a shorter period may be requested by a
			 State and granted by the Secretary.</text>
					</paragraph></subsection><subsection id="ID82AF3EC25E214712AC01BEAEB948B1B9"><enum>(e)</enum><header>Required
			 Congressional action</header><text>It is the sense of the Senate that, not
			 later than 45 days after receiving the report submitted under subsection
			 (g)(2), each committee to which such report is submitted should hold at least 1
			 hearing concerning such report and the recommendations contained in such
			 report.</text>
				</subsection><subsection id="ID994F8989A9D1444B876C18A472E3FD57"><enum>(f)</enum><header>Funding</header>
					<paragraph id="IDD4F0B81A4B4C4CBE9CEC01EF52F22A32"><enum>(1)</enum><header>In
			 general</header><text>The Secretary shall provide a grant to a State that has
			 an application approved under subsection (d)(2) to enable such State to carry
			 out the State health program under the grant.</text>
					</paragraph><paragraph id="ID6468534FA5344ECA9B244B08D773F09C"><enum>(2)</enum><header>Amount of
			 grant</header><text>The amount of a grant provided to a State under paragraph
			 (1) shall be determined based upon the recommendations of the Task Force,
			 subject to the amount appropriated under subsection (k).</text>
					</paragraph><paragraph id="ID7BD35E8C6DB541EDA4EEE43D88539BA8"><enum>(3)</enum><header>Matching
			 requirement</header><text>To be eligible to receive a grant under paragraph
			 (1), a State shall provide assurances to the Secretary that the State shall
			 contribute to the costs of carrying out activities under the grant an amount
			 equal to not less than the product of—</text>
						<subparagraph id="idFB9521EBC9C643E5AED24EA11DB6522E"><enum>(A)</enum><text>the amount of the
			 grant; and</text>
						</subparagraph><subparagraph id="id8443280149C84F32B87203CB03DE4E22"><enum>(B)</enum><text>the sum of the
			 enhanced FMAP for the State (as defined in section 2105(b) of the
			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
			 1397ee(b))) and 5 percent.</text>
						</subparagraph></paragraph><paragraph id="ID4C4D9FCFC9DD474E90C9388469B0FCA7"><enum>(4)</enum><header>Maintenance of
			 effort</header><text>A State, in utilizing the proceeds of a grant received
			 under paragraph (1), shall maintain the expenditures of the State for health
			 care coverage purposes for the support of direct health care delivery at a
			 level equal to not less than the level of such expenditures maintained by the
			 State for the fiscal year preceding the fiscal year for which the grant is
			 received.</text>
					</paragraph></subsection><subsection id="ID4B02C62BFE514B64A59CD4F079EBD4C1"><enum>(g)</enum><header>Reports</header>
					<paragraph id="ID9DFD003128EC4D14A52BA5EAA41B1FC5"><enum>(1)</enum><header>By
			 states</header><text>Each State that has received a grant under subsection
			 (f)(1) shall submit to the Task Force an annual report for the period
			 representing the respective State’s fiscal year, that shall contain a
			 description of the results, with respect to health care coverage, quality, and
			 costs, of the State program.</text>
					</paragraph><paragraph id="ID5BB9D1409E0540E18EFADB4C069629AE"><enum>(2)</enum><header>By task
			 force</header><text>At the end of the 5-year period beginning on the date on
			 which the Secretary awards the first grant under paragraph (1), the Task Force
			 established under subsection (b) shall prepare and submit to the appropriate
			 committees of Congress, a report on the progress made by States receiving
			 grants under paragraph (1) in meeting the goals of expanded coverage, improved
			 quality, and cost containment through performance measures established during
			 the 5-year period of the grant. Such report shall contain—</text>
						<subparagraph id="ID6B27BE0182314E509E623C6DE6F7331D"><enum>(A)</enum><text>the
			 recommendation of the Task Force concerning any future action that Congress
			 should take concerning health care reform, including whether or not to extend
			 the program established under this subsection;</text>
						</subparagraph><subparagraph id="ID76D711E310824EB8904923B2B2B2808B"><enum>(B)</enum><text>an evaluation of
			 the effectiveness of State health care coverage reforms in—</text>
							<clause id="ID74518046D2D74552B53FB0F9147BDE0F"><enum>(i)</enum><text>expanding health
			 care coverage for State residents;</text>
							</clause><clause id="ID79C38A3CDA4F46A085FC73C29E2D7D7E"><enum>(ii)</enum><text>improving the
			 quality of health care provided in the States; and</text>
							</clause><clause id="ID55143855041045F8803F9DF7BCDE3ED6"><enum>(iii)</enum><text>reducing or
			 containing health care costs in the States;</text>
							</clause></subparagraph><subparagraph id="ID1932F2108A284A07965D09FF93D1D82A"><enum>(C)</enum><text>recommendations
			 regarding the advisability of increasing Federal financial assistance for State
			 ongoing or future health program initiatives, including the amount and source
			 of such assistance; and</text>
						</subparagraph><subparagraph id="IDA51ED001E5144D188E6823390E21CE44"><enum>(D)</enum><text>recommendations
			 concerning whether any particular State program should serve as a model for
			 implementation as a national health care reform program.</text>
						</subparagraph></paragraph></subsection><subsection id="ID13E11DC37D8A427E89100E62265C0420"><enum>(h)</enum><header>Protections for
			 Federal Programs</header>
					<paragraph id="ID7EA269E569A24F4796EAC90C2A0FB79D"><enum>(1)</enum><header>In
			 general</header><text>Nothing in this Act, or in section 1115 of the
			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 1315)
			 shall be construed as authorizing the Secretary, the Task Force, a State, or
			 any other person or entity to alter or affect in any way the provisions of
			 titles XIX and XXI of such Act (42 U.S.C. 1396 et seq. and 1397 et seq.) or the
			 regulations implementing such titles.</text>
					</paragraph><paragraph id="IDCB7ED2692C96442888051AA16A891C9A"><enum>(2)</enum><header>Maintenance of
			 effort</header><text>No payment may be made under this section if the State
			 adopts criteria for benefits, income, and resource standards and methodologies
			 for purposes of determining an individual’s eligibility for medical assistance
			 under the State plan under title XIX that are more restrictive than those
			 applied as of the date of enactment of this Act.</text>
					</paragraph></subsection><subsection id="IDEE274AC1288F4BF5BF447C98CFF87D75"><enum>(i)</enum><header>Miscellaneous
			 Provisions</header>
					<paragraph id="IDDBED437F534D421E845459BEA3F63EF3"><enum>(1)</enum><header>Application of
			 certain requirements</header>
						<subparagraph id="ID97B79099420F4B62977AE2377996B192"><enum>(A)</enum><header>Restriction on
			 application of preexisting condition exclusions</header>
							<clause id="ID26FB8ABDC4724EC6AC9499347DBBED67"><enum>(i)</enum><header>In
			 general</header><text>Subject to subparagraph (B), a State shall not permit the
			 imposition of any preexisting condition exclusion for covered benefits under a
			 program or project under this section.</text>
							</clause><clause id="ID0CCD926181B940C4BFC8EC92A7CD713A"><enum>(ii)</enum><header>Group health
			 plans and group health insurance coverage</header><text>If the State program or
			 project provides for benefits through payment for, or a contract with, a group
			 health plan or group health insurance coverage, the program or project may
			 permit the imposition of a preexisting condition exclusion but only insofar and
			 to the extent that such exclusion is permitted under the applicable provisions
			 of part 7 of subtitle B of title I of the <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of
			 1974</act-name> and title XXVII of the <act-name parsable-cite="PHSA">Public
			 Health Service Act</act-name>.</text>
							</clause></subparagraph><subparagraph id="ID3A558FEC30D64E2AB977D1CC464AFD1F"><enum>(B)</enum><header>Compliance with
			 other requirements</header><text>Coverage offered under the program or project
			 shall comply with the requirements of subpart 2 of part A of title XXVII of the
			 <act-name parsable-cite="PHSA">Public Health Service Act</act-name> insofar as
			 such requirements apply with respect to a health insurance issuer that offers
			 group health insurance coverage.</text>
						</subparagraph></paragraph><paragraph id="IDB08D95B85EB4456E81D94286480286EB"><enum>(2)</enum><header>Prevention of
			 duplicative payments</header>
						<subparagraph id="ID271E23AD8FBE4A1098902D408BD668D8"><enum>(A)</enum><header>Other health
			 plans</header><text>No payment shall be made to a State under this section for
			 expenditures for health assistance provided for an individual to the extent
			 that a private insurer (as defined by the Secretary by regulation and including
			 a group health plan (as defined in section 607(1) of the
			 <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of
			 1974</act-name>), a service benefit plan, and a health maintenance
			 organization) would have been obligated to provide such assistance but for a
			 provision of its insurance contract which has the effect of limiting or
			 excluding such obligation because the individual is eligible for or is provided
			 health assistance under the plan.</text>
						</subparagraph><subparagraph id="IDD8F3DB008C4B466FBCE20EE3CB20E4A5"><enum>(B)</enum><header>Other federal
			 governmental programs</header><text>Except as provided in any other provision
			 of law, no payment shall be made to a State under this section for expenditures
			 for health assistance provided for an individual to the extent that payment has
			 been made or can reasonably be expected to be made promptly (as determined in
			 accordance with regulations) under any other federally operated or financed
			 health care insurance program, other than an insurance program operated or
			 financed by the Indian Health Service, as identified by the Secretary. For
			 purposes of this paragraph, rules similar to the rules for overpayments under
			 section 1903(d)(2) of the <act-name parsable-cite="SSA">Social Security
			 Act</act-name> shall apply.</text>
						</subparagraph></paragraph><paragraph id="ID213EC5C0420A4611B5A0B03FFBBAAE6C"><enum>(3)</enum><header>Application of
			 certain general provisions</header><text>The following sections of the
			 <act-name parsable-cite="SSA">Social Security Act</act-name> shall apply to
			 States under this section in the same manner as they apply to a State under
			 such title XIX:</text>
						<subparagraph id="ID40E64B85851E43749295A4FAAAA2F8C7"><enum>(A)</enum><header>Title xix
			 provisions</header>
							<clause id="ID5EBCD03BC19C4F25969774B11380F5EA"><enum>(i)</enum><text>Section
			 1902(a)(4)(C) (relating to conflict of interest standards).</text>
							</clause><clause id="ID7FFB6D88284D4D16BA9DC83A8E13CCCE"><enum>(ii)</enum><text>Paragraphs (2),
			 (16), and (17) of section 1903(i) (relating to limitations on payment).</text>
							</clause><clause id="ID855547EC31744DC2AFCB11ADC9F0E1A6"><enum>(iii)</enum><text>Section 1903(w)
			 (relating to limitations on provider taxes and donations).</text>
							</clause><clause id="ID6E51F59121CA4E849E432D442F2A14A9"><enum>(iv)</enum><text>Section 1920A
			 (relating to presumptive eligibility for children).</text>
							</clause></subparagraph><subparagraph id="IDD0D4D0148E5944D2A54E1E90EFD7F856"><enum>(B)</enum><header>Title xi
			 provisions</header>
							<clause id="ID56F04B4480424F43BB3708829DF41DC5"><enum>(i)</enum><text>Section 1116
			 (relating to administrative and judicial review), but only insofar as
			 consistent with this title.</text>
							</clause><clause id="IDC8A82C3D0693465F83AF423FE3BEE358"><enum>(ii)</enum><text>Section 1124
			 (relating to disclosure of ownership and related information).</text>
							</clause><clause id="IDADE7408D7D404F62B3D112737CE9C5D0"><enum>(iii)</enum><text>Section 1126
			 (relating to disclosure of information about certain convicted
			 individuals).</text>
							</clause><clause id="ID5DE76A031BA14FA98505BC735951D402"><enum>(iv)</enum><text>Section 1128A
			 (relating to civil monetary penalties).</text>
							</clause><clause id="IDD69D4FF0A8DC497498A6A2931E07D19F"><enum>(v)</enum><text>Section 1128B(d)
			 (relating to criminal penalties for certain additional charges).</text>
							</clause><clause id="ID4659B0E7BD0D441FBF04E55BD4EB3073"><enum>(vi)</enum><text>Section 1132
			 (relating to periods within which claims must be filed).</text>
							</clause></subparagraph></paragraph><paragraph id="IDCC47FA3C446747788D256FE34E83E0B7"><enum>(4)</enum><header>Relation to
			 other laws</header>
						<subparagraph id="ID804B033BF3FC4E169E83510F4A09F457"><enum>(A)</enum><header>HIPAA</header><text>Health
			 benefits coverage provided under a State program or project under this section
			 shall be treated as creditable coverage for purposes of part 7 of subtitle B of
			 title I of the <act-name parsable-cite="ERISA">Employee Retirement Income
			 Security Act of 1974</act-name>, title XXVII of the
			 <act-name parsable-cite="PHSA">Public Health Service Act</act-name>, and
			 subtitle K of the Internal Revenue Code of 1986.</text>
						</subparagraph><subparagraph id="ID9EE4C8DEDD7A4CB0AD579D65C52CA2FE"><enum>(B)</enum><header>ERISA</header><text>Nothing
			 in this section shall be construed as affecting or modifying section 514 of the
			 <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of
			 1974</act-name> (29 U.S.C. 1144) with respect to a group health plan (as
			 defined in section 2791(a)(1) of the <act-name parsable-cite="PHSA">Public
			 Health Service Act</act-name> (42 U.S.C. 300gg–91(a)(1))).</text>
						</subparagraph></paragraph></subsection><subsection id="ID0A4939F5BB14436C93748D667667B69C"><enum>(j)</enum><header>Authorizations</header>
					<paragraph id="idDB03B6DA8AAB46E59AB7ADB01A2EDBAA"><enum>(1)</enum><header>In
			 general</header><text>There are appropriated in each of fiscal years 2007
			 through 2016 to carry out this Act, an amount equal to the amount of savings to
			 the Federal Government in each such fiscal year as a result of the enactment of
			 the provisions of title II.</text>
					</paragraph><paragraph id="id391663D922C940CE9B00C83212C06076"><enum>(2)</enum><header>Use of
			 funds</header><text>Amounts appropriated for a fiscal year under paragraph (1)
			 and not expended may be used in subsequent fiscal years to carry out this
			 section.</text>
					</paragraph><paragraph id="id8EF645D66F584E2BB86E4FFA05B57262"><enum>(3)</enum><header>Limitation</header><text>Notwithstanding
			 any other provision of this Act, the total amount of funds appropriated to
			 carry out this Act through fiscal year 2016 shall not exceed
			 $32,000,000,000.</text>
					</paragraph></subsection></section></title><title id="idA3AF4A8022DE4C888C2C64717FFF35D7"><enum>II</enum><header>Offsets</header>
			<section id="ID84c3459435554ee9ace55af71bfe7686"><enum>201.</enum><header>Increase in
			 rebates for covered outpatient drugs</header><text display-inline="no-display-inline">Section 1927(c)(1)(B)(i) of the Social
			 Security Act (42 U.S.C. 1396r–8(c)(1)(B)(i)) is amended—</text>
				<paragraph id="IDf5d5f286b03a4030aebf634824c0f66e"><enum>(1)</enum><text>in subclause
			 (IV), by striking <quote>and</quote> after the semicolon;</text>
				</paragraph><paragraph id="ID4089f09b01764c099b7e078aa2cbda33"><enum>(2)</enum><text>in subclause
			 (V)—</text>
					<subparagraph id="ID2b5e3fb684ce418a95f6b7f73d924f36"><enum>(A)</enum><text>by inserting
			 <quote>and before January 1, 2007,</quote> after <quote>1995,</quote>;
			 and</text>
					</subparagraph><subparagraph id="IDd9273e1b83b142e1a72c97fd7d0949fd"><enum>(B)</enum><text>by striking the
			 period and inserting <quote>; and</quote>; and</text>
					</subparagraph></paragraph><paragraph id="IDe95bc14021944a1fa3dfbd64b813ab64"><enum>(3)</enum><text>by adding at the
			 end the following:</text>
					<quoted-block display-inline="no-display-inline" id="idD293413A9C9F4290829039EDDD0EF171" style="OLC">
						<subclause id="IDa63c8660f6244affafcd31482329cdb2"><enum>(VI)</enum><text>after December
				31, 2006, is 20
				percent.</text>
						</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></section><section id="HD3DF535144574910B854BCABE42D3141"><enum>202.</enum><header>Student Aid
			 Reward Program</header><text display-inline="no-display-inline">Part G of title
			 IV of the <act-name parsable-cite="HEA65">Higher Education Act of
			 1965</act-name> is amended by inserting after section 489 (20 U.S.C. 1096) the
			 end the following:</text>
				<quoted-block act-name="Higher" display-inline="no-display-inline" id="H2562A24334744052A0E5FDC5CFA9B13" style="OLC">
					<section id="H921BCAB80ACD4290A5A17119FD755367"><enum>489A.</enum><header>Student Aid
				Reward Program</header>
						<subsection id="H5C5801C7EB9B40279697C8690BAEB8B"><enum>(a)</enum><header>Program
				authorized</header><text>The Secretary shall carry out a Student Aid Reward
				Program to encourage institutions of higher education to participate in the
				student loan program under this title that is most cost-effective for
				taxpayers.</text>
						</subsection><subsection id="H13AFE86CF9C34593B7B7499F8500F5BF"><enum>(b)</enum><header>Program
				requirements</header><text>In carrying out the Student Aid Reward Program, the
				Secretary shall—</text>
							<paragraph id="H873D589E52B049E1BAB8F111DEF37C7F"><enum>(1)</enum><text display-inline="yes-display-inline">provide to each institution of higher
				education participating in the student loan program under this title that is
				most cost-effective for taxpayers a Student Aid Reward Payment, in an amount
				determined in accordance with
				<internal-xref idref="H43AF055D35724E42AAA155B11404C286" legis-path="460A.(c)">subsection (c)</internal-xref>, to encourage the
				institution to participate in that student loan program;</text>
							</paragraph><paragraph id="H2EEBB63174894B1EAF3F9F00BC88C5"><enum>(2)</enum><text>require each
				institution of higher education receiving a payment under this section to
				provide student loans under that student loan program for a period of 5 years
				from the date the payment is made;</text>
							</paragraph><paragraph id="H93DE04F816794108889CDFA8C63F0013"><enum>(3)</enum><text>where appropriate,
				require that funds paid to institutions of higher education under this section
				be used to award students a supplement to such students’ Pell Grants under
				subpart 1 of part A;</text>
							</paragraph><paragraph id="H06E0554A41B04479A4E528F6004D952C"><enum>(4)</enum><text>permit such funds
				to also be used to award lower and middle income graduate students need-based
				grants; and</text>
							</paragraph><paragraph id="H81362ADB6D6E4EB0A59939562BCED0C7"><enum>(5)</enum><text>encourage all
				institutions of higher education to participate in the Student Aid Reward
				Program.</text>
							</paragraph></subsection><subsection id="H43AF055D35724E42AAA155B11404C286"><enum>(c)</enum><header>Amount</header><text display-inline="yes-display-inline">The amount of a Student Aid Reward Payment
				under this section shall be not less than 50 percent, and not more than 75
				percent, of the savings to the Federal Government generated by the
				institution’s participation in the student loan program under this title that
				is most cost-effective for taxpayers instead of the institution’s participation
				in the student loan program not cost-effective for taxpayers.</text>
						</subsection><subsection id="H7C58466797624CE9B57B2F7C5969A855"><enum>(d)</enum><header>Trigger to
				ensure cost neutrality</header>
							<paragraph id="HB1A8243873114567A3339D096F61F82D"><enum>(1)</enum><header>Limit to ensure
				cost neutrality</header><text>Notwithstanding
				<internal-xref idref="H43AF055D35724E42AAA155B11404C286" legis-path="460A.(c)">subsection (c)</internal-xref>, the Secretary shall not
				distribute Student Aid Reward Payments under the Student Aid Reward Program
				that, in the aggregate, exceed the Federal savings resulting from
				implementation of the Student Aid Reward Program.</text>
							</paragraph><paragraph id="H86C5BD8AAE984688B5D527F5A5F1EAA6"><enum>(2)</enum><header>Federal
				savings</header><text display-inline="yes-display-inline">In calculating
				Federal savings, as used in
				<internal-xref idref="HB1A8243873114567A3339D096F61F82D" legis-path="460A.(d)(1)">paragraph (1)</internal-xref>, the Secretary shall
				determine Federal savings on loans made to students at institutions of higher
				education that participate the student loan program under this title that is
				most cost-effective for taxpayers and that, on the date of enactment of the
				Student Aid Reward Program, participated in the student loan program that is
				not the most cost-effective for taxpayers, resulting from the difference
				of—</text>
								<subparagraph id="HC8538B01AC0A4531899DE35B08F24F00"><enum>(A)</enum><text display-inline="yes-display-inline">the Federal cost of loan volume made under
				the student loan program under this title that is most cost-effective for
				taxpayers; and</text>
								</subparagraph><subparagraph id="HD95FFCEF0A5346CA877F592944A8B026"><enum>(B)</enum><text>the Federal cost
				of an equivalent type and amount of loan volume made, insured, or guaranteed
				under the student loan program under this title that is not the most
				cost-effective for taxpayers.</text>
								</subparagraph></paragraph><paragraph id="HB4371569B6BA47CAB157AC79D6B02EA"><enum>(3)</enum><header>Distribution
				rules</header><text>If the Federal savings determined under
				<internal-xref idref="H86C5BD8AAE984688B5D527F5A5F1EAA6" legis-path="460A.(d)(2)">paragraph (2)</internal-xref> is not sufficient to
				distribute full Student Aid Reward Payments under the Student Aid Reward
				Program, the Secretary shall—</text>
								<subparagraph id="HB8EDAB3045EE44A6B86FC1919D4381EC"><enum>(A)</enum><text display-inline="yes-display-inline">first make Student Aid Reward Payments to
				those institutions of higher education that participated in the student loan
				program under this title that is not the most cost-effective for taxpayers on
				the date of enactment of the Student Aid Reward Program; and</text>
								</subparagraph><subparagraph id="HF4776E38A9DC43C0985462005C82EB54"><enum>(B)</enum><text>with any remaining
				Federal savings after making Payments under
				<internal-xref idref="HB8EDAB3045EE44A6B86FC1919D4381EC" legis-path="460A.(d)(3)(A)">subparagraph (A)</internal-xref>, make Student Aid
				Reward Payments to the institutions of higher education not described in
				<internal-xref idref="HB8EDAB3045EE44A6B86FC1919D4381EC" legis-path="460A.(d)(3)(A)">subparagraph (A)</internal-xref> on a pro-rata
				basis.</text>
								</subparagraph></paragraph><paragraph id="H61546709FE1E47DEAA4F5266FFAF4350"><enum>(4)</enum><header>Distribution to
				students</header><text>Any institution of higher education that receives a
				Student Aid Reward Payment under this section—</text>
								<subparagraph id="H78461DAF042945198765572F654B3200"><enum>(A)</enum><text>shall distribute,
				where appropriate, part or all of such payment among the students of such
				institution who are Pell Grant recipients by awarding such students a
				supplemental grant; and</text>
								</subparagraph><subparagraph id="H7334BE2732C74F2FA540AAE5C6CCCB8F"><enum>(B)</enum><text>may distribute
				part of such payment as a supplemental grant to graduate students in financial
				need.</text>
								</subparagraph></paragraph><paragraph id="HA97890D2FC914FD2A37ECDD5AD13227E"><enum>(5)</enum><header>Estimates,
				adjustments, and carry over</header>
								<subparagraph id="H2864F23E8CA141CFA0F0F3534C0B138"><enum>(A)</enum><header>Estimates and
				adjustments</header><text display-inline="yes-display-inline">The Secretary may
				make Student Aid Reward Payments to institutions of higher education on the
				basis of estimates, using the best data available at the beginning of an
				academic/fiscal year. If the Secretary determines thereafter that loan program
				costs for that academic/fiscal year were different than such estimate, the
				Secretary shall adjust (reduce or increase) subsequent Student Aid Reward
				Payments rewards paid to such institutions of higher education to reflect such
				difference.</text>
								</subparagraph><subparagraph id="HA8E96940BF404EC5001CC3FACD456CF1"><enum>(B)</enum><header>Carry
				over</header><text>Any institution of higher education that receives a reduced
				Student Aid Reward Payment under
				<internal-xref idref="HF4776E38A9DC43C0985462005C82EB54" legis-path="460A.(d)(3)(B)">paragraph (3)(B)</internal-xref>, shall remain
				eligible for the unpaid portion of such institution’s financial reward payment,
				as well as any additional financial reward payments for which the institution
				is otherwise eligible, in subsequent academic or fiscal years.</text>
								</subparagraph></paragraph></subsection><subsection id="H9AEA1F05B738478294FBF6FC03AD4730"><enum>(e)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of this section—</text>
							<paragraph id="H328157866DBA46DDA9A54D91B85DEBEE"><enum>(1)</enum><text>the student loan
				program under this title that is most cost-effective for taxpayers is the loan
				program under part B or D of this title that has the lowest overall cost to the
				Federal Government (including administrative costs) for the loans authorized by
				such parts; and</text>
							</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFB8780E8596749FDA0D54453DCBBBEEA"><enum>(2)</enum><text display-inline="yes-display-inline">the student loan program under this title
				that is not most cost-effective for taxpayers is the loan program under part B
				or D of this title that does not have the lowest overall cost to the Federal
				Government (including administrative costs) for the loans authorized by such
				parts.</text>
							</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
			</section><section id="id437A66047A5E4FE5A03DA375AEA1A64D"><enum>203.</enum><header>Aviation
			 security service passenger fees</header><text display-inline="no-display-inline">Section 44940 of title 49, United States
			 Code, is amended—</text>
				<paragraph id="id62D33CE09E2B469BB5CD4E3F6118138F"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by inserting
			 <quote>in an amount equal to $5.00 per one-way trip</quote> after
			 <quote>uniform fee</quote>;</text>
				</paragraph><paragraph id="id3F15D4F2CA344E3CBCB209FA71DBD63C"><enum>(2)</enum><text>by striking
			 subsection (c); and</text>
				</paragraph><paragraph id="idD28A0F0A0EFB4609970134133C002D0B"><enum>(3)</enum><text>in subsection
			 (d)—</text>
					<subparagraph id="idB90896267C194A2B9E5962448F9C98F9"><enum>(A)</enum><text>in paragraph (2),
			 by striking <quote>subsection (d)</quote> each place it appears and inserting
			 <quote>this subsection</quote>; and</text>
					</subparagraph><subparagraph id="id41F5EF19C5A141F4B5D795F05CF7C42C"><enum>(B)</enum><text>in paragraph (3),
			 by striking <quote>in accordance with paragraph (1)</quote> and inserting
			 <quote>under subsection (a)(2)</quote>.</text>
					</subparagraph></paragraph></section><section id="idB943B019F65647F89F3B70BB52C0B9A4"><enum>204.</enum><header>Extension of
			 FCC spectrum auction authority</header><text display-inline="no-display-inline">Section 309(j)(11) of the Communications Act
			 of 1934 (47 U.S.C. 309(j)(11)) is amended by striking <quote>2011</quote> and
			 inserting <quote>2016</quote>.</text>
			</section><section id="id60861A616E064AE68CDF98E78E016516"><enum>205.</enum><header>Extension of
			 fees for certain customs services</header><text display-inline="no-display-inline">Section 13031(j)(3)(A) and (B) of the
			 Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A)
			 and (B)) is amended by striking <quote>2014</quote> each place it appears and
			 inserting <quote>2016</quote>.</text>
			</section></title></legis-body>
</bill>
