[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3584 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3584

 To amend the Public Health Service Act to require reinstatement upon 
  payment of all premiums due of group or individual health insurance 
        coverage terminated by reason of nonpayment of premiums.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 16, 2009

  Mr. Forbes introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
 To amend the Public Health Service Act to require reinstatement upon 
  payment of all premiums due of group or individual health insurance 
        coverage terminated by reason of nonpayment of premiums.

    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 Consumer Protection Act 
of 2009''.

SEC. 2. RIGHT OF REINSTATEMENT FOR HEALTH INSURANCE COVERAGE TERMINATED 
              BY REASON OF NONPAYMENT OF PREMIUMS.

    (a) Group Health Insurance Coverage.--Part 3 of subtitle A of title 
XXVII of the Public Health Service Act is amended by adding at the end 
the following new section:

``SEC. 2714. RIGHT OF REINSTATEMENT FOR GROUP HEALTH INSURANCE COVERAGE 
              TERMINATED BY REASON OF NONPAYMENT OF PREMIUMS.

    ``(a) In General.--If a health insurance issuer offering group 
health insurance coverage in connection with a group health plan 
cancels or does not renew the coverage by reason of nonpayment of 
premiums, the issuer--
            ``(1) shall provide, during the 14-day period beginning on 
        the date of such cancellation or non-renewal, written notice to 
        the administrator of the plan and to each participant receiving 
        such coverage under the plan of the cancellation or non-renewal 
        of the coverage, of the reason for such cancellation or non-
        renewal, and of the right of reinstatement provided under 
        paragraph (2); and
            ``(2) shall reinstate the coverage as if the coverage had 
        not lapsed if the premiums due, and such reasonable 
        administrative fee as the State regulating such coverage may 
        specify, are paid to the issuer by not later than 60 days after 
        the date the cancellation or non-renewal would otherwise have 
        become effective.
    ``(b) Relation to State Law.--Nothing in this title shall be 
construed as preventing a State from providing for--
            ``(1) reinstatement of lapsed group health insurance 
        coverage in a case not described in subsection (a); or
            ``(2) reinstatement of coverage after a period of 
        nonpayment of longer than that specified in such subsection.''.
    (b) Individual Health Insurance Coverage.--Such Act is amended by 
inserting after section 2753 the following new section:

``SEC. 2754. RIGHT OF REINSTATEMENT FOR HEALTH INSURANCE COVERAGE 
              TERMINATED BY REASON OF NONPAYMENT OF PREMIUMS.

    ``(a) Application of Rules.--The provisions of section 2714 shall 
apply to health insurance coverage offered by a health insurance issuer 
in the individual market in the same manner as they apply to health 
insurance coverage offered by a health insurance issuer in connection 
with a group health plan.
    ``(b) Application to Coverage Obtained Through an Association or 
Organization.--In applying subsection (a), if--
            ``(1) such health insurance coverage is offered through an 
        association or other organization;
            ``(2) the association or organization is responsible for 
        payment of the premium for such coverage; and
            ``(3) the association or organization fails to make payment 
        of such premium,
the issuer shall provide the required notice both to the association or 
organization and to the individuals whose coverage is affected by such 
non-payment and repayment of premiums owed may be made by either the 
association or such individuals.''.
    (c) Effective Dates.--
            (1) Group health insurance.--The amendment made by 
        subsection (a) shall apply to group health insurance coverage 
        offered for plans years beginning on or after 1 year after the 
        date of the enactment of this Act.
            (2) Individual health insurance.--The amendment made by 
        subsection (b) shall apply to individual health insurance 
        coverage as of the date that is 1 year after the date of the 
        enactment of this Act.
                                 <all>