[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 29 Introduced in Senate (IS)]







111th CONGRESS
  1st Session
                                 S. 29

 To amend the Internal Revenue Code of 1986 to increase the credit for 
  the health insurance costs of eligible individuals, to expand such 
credit to individuals covered under COBRA, and to extend the period of 
          COBRA continuation coverage for certain individuals.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 7, 2009

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

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the credit for 
  the health insurance costs of eligible individuals, to expand such 
credit to individuals covered under COBRA, and to extend the period of 
          COBRA continuation coverage for certain individuals.

    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 ``Coverage Continuity Act''.

SEC. 2. INCREASE IN AMOUNT OF HEALTH CARE COVERAGE TAX CREDIT.

    (a) In General.--Section 35(a) of the Internal Revenue Code of 1986 
(relating to credit for health insurance costs of eligible individuals) 
is amended by striking ``65'' and inserting ``85''.
    (b) Conforming Amendment.--Section 7527(b) of such Code (relating 
to advance payment of credit for health insurance costs of eligible 
individuals) is amended by striking ``65'' and inserting ``85''.
    (c) Effective Date.--The amendments made by this section apply to 
taxable years beginning after December 31, 2008.

SEC. 3. EXPANSION OF HEALTH CARE COVERAGE TAX CREDIT TO INDIVIDUALS 
              ENROLLED IN COBRA.

    (a) In General.--Paragraph (1) of section 35(c) of the Internal 
Revenue Code of 1986 is amended by striking ``and'' at the end of 
subparagraph (B), by striking the period at the end of subparagraph (C) 
and inserting ``, and'', and by adding at the end the following new 
subparagraph:
                    ``(D) an eligible COBRA continuation individual.''.
    (b) Eligible COBRA Continuation Individual.--Section 35(c) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(5) Eligible cobra continuation individual.--
                    ``(A) In general.--The term `eligible COBRA 
                continuation individual' means--
                            ``(i) any individual who is covered under a 
                        COBRA continuation provision (as defined in 
                        section 9832(d)) on January 1, 2009,
                            ``(ii) any individual who enrolls in 
                        coverage under a COBRA continuation provision 
                        (as so defined) at any time after January 1, 
                        2009, and before January 1, 2011, or
                            ``(iii) any individual with respect to whom 
                        there is a qualifying event (as defined in 
                        section 4980B(f)(3)) at any time after January 
                        1, 2009, and before January 1, 2011.
                    ``(B) Exception.--Such term does not include any 
                individual described in subparagraph (A) after the 
                earlier of--
                            ``(i) the date on which such individual is 
                        no longer eligible to be covered under a COBRA 
                        continuation provision, or
                            ``(ii) the date which is 18 months after 
                        the date on which the qualifying event (as 
                        defined in section 4980B(f)(3)) occurred with 
                        respect to such individual.
                In the case of an individual who is eligible for 
                extended coverage under a COBRA continuation provision 
                pursuant to section 4 of the Coverage Continuity Act, 
                clause (ii) shall not apply.''.

SEC. 4. EXTENSION OF CONTINUATION COVERAGE.

    (a) Extension of Continuation Coverage.--
            (1) In general.--Notwithstanding section 602 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1162), section 2202 of the Public Health Service Act (42 U.S.C. 
        300bb-2), and section 4980B(f)(2)(B) of the Internal Revenue 
        Code of 1986, a qualified beneficiary who is covered under 
        continuation coverage and whose eligibility for such 
        continuation coverage would terminate during the period 
        beginning January 1, 2009 and ending December 31, 2009, may 
        elect to extend such continuation coverage for an additional 12 
        months.
            (2) Limitation.--Paragraph (1) shall apply only to a 
        qualified beneficiary who does not terminate such continuation 
        coverage prior to the election of the 12-month extension under 
        such paragraph.
    (b) Definitions.--In this section--
            (1) the term ``continuation coverage'' means continuation 
        coverage provided pursuant to part 6 of subtitle B of title I 
        of the Employee Retirement Income Security Act of 1974 (other 
        than under section 609), title XXII of the Public Health 
        Service Act, and section 4980B of the Internal Revenue Code of 
        1986 (other than subsection (f)(1) of such section insofar as 
        it relates to pediatric vaccines), as applicable; and
            (2) the term ``qualified beneficiary'' has the meaning 
        given such term in section 607(3) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1167(3)), section 
        2208(3) of the Public Health Service Act (42 U.S.C. 300bb-
        8(3)), and section 4980B(g) of the Internal Revenue Code of 
        1986, as applicable.
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