I 111th CONGRESS 1st Session H. R. 3741 IN THE HOUSE OF REPRESENTATIVES October 7, 2009 Mr. Hoekstra introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To provide Federal matching funding for State insurance expenditures for high-risk pools.

1.

Short title

This Act may be cited as the Assuring Coverage for Americans with Pre-existing Conditions Act of 2009.

2.

Federal matching funding for State insurance expenditures

(a)

In General

Subject to the succeeding provisions of this section, each State shall receive from the Secretary of Health and Human Services an amount equal to 50 percent of the funds expended by the State in providing for the use, in connection with providing health benefits coverage, of a high-risk pool, a reinsurance pool, or other risk-adjustment mechanism used for the purpose of subsidizing the purchase of private health insurance. (b)

Funding limitation

A State shall not receive under this section for a fiscal year more than a total of 50 cents multiplied by the average number of residents (as estimated by the Secretary) in the State in the fiscal year. (c)

Administration

The Secretary of Health and Human Services shall provide for the administration of this section and may establish such terms and conditions, including the requirement of an application, as may be appropriate to carry out this section. (d)

Construction

Nothing in this section shall be construed as requiring a State to operate a reinsurance pool (or other risk-adjustment mechanism) under this section or as preventing a State from operating such a pool or mechanism through one or more private entities. (e)

High-Risk pool

For purposes of this section, the term high-risk pool means any qualified high risk pool (as defined in section 2744(c)(2) of the Public Health Service Act). (f)

Reinsurance pool or other risk-Adjustment mechanism defined

For purposes of this section, the term reinsurance pool or other risk-adjustment mechanism means any State-based risk spreading mechanism to subsidize the purchase of private health insurance for the high-risk population. (g)

High-Risk population

For purposes of this section, the term high-risk population means— (1)individuals who, by reason of the existence or history of a medical condition, are able to acquire health coverage only at rates which are at least 150 percent of the standard risk rates for such coverage, and (2)individuals who are provided health coverage by a high-risk pool. (h)

State defined

For purposes of this section, the term State includes the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.