[Congressional Record Volume 150, Number 37 (Tuesday, March 23, 2004)]
[Senate]
[Page S3001]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CORZINE:
  S. 2226. A bill to extend the period for COBRA coverage for 
recipients of trade adjustment assistance; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. CORZINE. Mr. President, I rise today to introduce legislation to 
ensure that displaced workers whose jobs have moved overseas have 
access to affordable health care coverage.
  Under the Trade Assistance Adjustment Act, unemployed workers who 
have seen their manufacturing jobs shipped overseas are eligible for 
Federal subsidies to help them maintain their employer-based health 
coverage through COBRA. Unfortunately, while these workers have access 
to these Federal subsidies for 24 months, they only have access to 
COBRA coverage for 18 months. This discrepancy means that displaced 
workers are unable to fully utilize these subsidies. Indeed, the 
discrepancy creates the anomalous situation in which displaced workers 
can remain in their COBRA plan for 18 months, using the Federal subsidy 
to help defray their costs, but once their COBRA coverage runs out, 
they have six additional months of Federal subsidy available but lose 
their existing health coverage. This leaves them no choice but to seek 
coverage in the expensive individual market where they are not 
guaranteed coverage and where their subsidy may not be sufficient to 
help them afford coverage.
  My legislation would fix this problem by making COBRA coverage 
available for the full 24 months that the subsidy is available. This 
will ensure that displaced workers can take full advantage of the 
assistance that Congress made available to them in 2002.
  As more and more Americans see their jobs outsourced overseas, many 
struggle to provide health insurance for their families. We have lost 
3,000 manufacturing jobs in February alone and have lost a total of 2.8 
million since 2000. Congress took a critical step in authorizing 
Federal assistance for those who have lost these jobs. Now we must 
ensure that displaced workers have access to health coverage so that 
they can utilize this assistance. My legislation will ensure this.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows.

                                S. 2226

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

     SECTION 1. EXTENSION OF COBRA COVERAGE PERIOD FOR TAA-
                   ELIGIBLE INDIVIDUALS.

       (a) ERISA.--Section 605(b) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1165(b)) is amended--
       (1) in the subsection heading, by inserting ``and 
     Coverage'' after ``Election''; and
       (2) in paragraph (2)--
       (A) in the paragraph heading, by inserting ``and period'' 
     after ``Commencement'';
       (B) by striking ``and shall'' and inserting ``, shall''; 
     and
       (C) by inserting ``, and in no event shall the maximum 
     period required under section 602(2)(A) be less than the 
     period during which the individual is a TAA-eligible 
     individual'' before the period at the end.
       (b) Internal Revenue Code of 1986.--Section 4980B(f)(5)(C) 
     of the Internal Revenue Code of 1986 is amended--
       (1) in the subparagraph heading, by inserting ``and 
     coverage'' after ``election''; and
       (2) in clause (ii)--
       (A) in the clause heading, by inserting ``and period'' 
     after ``Commencement'';
       (B) by striking ``and shall'' and inserting ``, shall''; 
     and
       (C) by inserting ``, and in no event shall the maximum 
     period required under paragraph (2)(B)(i) be less than the 
     period during which the individual is a TAA-eligible 
     individual'' before the period at the end.
       (c) Public Health Service Act.--Section 2205(b) of the 
     Public Health Service Act (42 U.S.C. 300bb-5(b)) is amended--
       (1) in the subsection heading, by inserting ``and 
     Coverage'' after ``Election''; and
       (2) in paragraph (2)--
       (A) in the paragraph heading, by inserting ``and period'' 
     after ``Commencement'';
       (B) by striking ``and shall'' and inserting ``, shall''; 
     and
       (C) by inserting ``, and in no event shall the maximum 
     period required under section 2202(2)(A) be less than the 
     period during which the individual is a TAA-eligible 
     individual'' before the period at the end.
       (d) Retroactive Effective Date.--The amendments made by 
     this section shall take effect as if included in the 
     enactment of the Trade Act of 2002 (Public Law 107-210; 116 
     Stat. 933).
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