S.Amdt. 2515

SA 2515. Ms. McSALLY (for herself, Mr. Daines, Mr. Cornyn, and Mr.
Sullivan) submitted an amendment intended to be proposed to amendment
SA 2499 proposed by Mr. McConnell to the bill S. 178, to condemn gross
human rights violations of ethnic Turkic Muslims in Xinjiang, and
calling for an end to arbitrary detention, torture, and harassment of
these communities inside and outside China; which was ordered to lie on
the table; as follows:

At the appropriate place, insert the following:

Subtitle __--Continuous Health Coverage for Workers

SEC. 201. SHORT TITLE.

This subtitle may be cited as the ``Continuous Health
Coverage for Workers Act''.

SEC. 202. PRESERVING HEALTH BENEFITS FOR WORKERS.

(a) Provision of Premium Assistance.--
(1) Reduction of premiums payable.--
(A) COBRA continuation coverage.--In the case of any
premium for a period of coverage during the period beginning
on the first day of the first month that begins after the
date of enactment of this Act and ending on December 31,
2020, for COBRA continuation coverage with respect to any
assistance eligible individual described in subsection
(c)(1), such individual shall be treated for purposes of any
COBRA continuation provision as having paid the amount of
such premium if such individual pays (and any person other
than such individual's employer pays on behalf of such
individual) the greater of 15 percent of the amount of such
premium owed by such individual (as determined without regard
to this subsection) or the amount of the premium that a
similarly situated individual enrolled in the plan who is not
an assistance eligible individual is (or would be, if so
enrolled) required to pay with respect to the plan (after any
employer contribution).
(B) Church plans.--In the case of any premium for a period
of coverage during the period beginning on the first day of
the first month that begins after the date of enactment of
this Act and ending on December 31, 2020, for coverage under
a church plan with respect to any assistance eligible
individual described in subsection (c)(2), such individual
shall be treated for purposes of the individual's coverage
under such plan as having paid the amount of such premium if
such individual pays (and any person other than such
individual's employer pays on behalf of such individual) the
greater of 15 percent of the amount of such premium owed by
such individual (as determined without regard to this
subsection) or the amount of the premium that a similarly
situated individual enrolled in the plan who is not an
assistance eligible individual is (or would be, if so
enrolled) required to pay with respect to the plan (after any
employer contribution).
(C) Furloughed continuation coverage.--In the case of any
premium for a period of coverage during the period beginning
on the first day of the first month that begins after the
date of enactment of this Act and ending on December 31,
2020, for coverage under a group health plan with respect to
any assistance eligible individual described in subsection
(c)(3), such individual shall be treated for purposes of the
individual's coverage under such plan as having paid the
amount of such premium if such individual pays (and any
person other than such individual's employer pays on behalf
of such individual) the greater of 15 percent of the amount
of such premium owed by such individual (as determined
without regard to this subsection) or the amount of the
premium that a similarly situated individual enrolled in the
plan who is not an assistance eligible individual is (or
would be, if so enrolled) required to pay with respect to the
plan (after any employer contribution).
(2) Plan enrollment option.--
(A) In general.--Any assistance eligible individual who is
enrolled in a group health plan offered by a plan sponsor
may, not later than 90 days after the date of notice of the
plan enrollment option described in this paragraph, elect to
enroll in coverage under a plan offered by such plan sponsor
that is different than coverage under the plan in which such
individual was enrolled at the time--
(i) in the case of any assistance eligible individual
described in subsection (c)(1), the qualifying event
specified in section 603(2) of the Employee Retirement Income
Security Act of 1974, section 4980B(f)(3)(B) of the Internal
Revenue Code of 1986, section 2203(2) of the Public Health
Service Act, or section 8905a of title 5, United States Code
(except for the voluntary termination of such individual's
employment by such individual), occurred, and such coverage
shall be treated as COBRA continuation coverage for purposes
of the applicable COBRA continuation provision;
(ii) in the case of an assistance eligible individual
described in subsection (c)(2), the termination or reduction
of hours of employment of such individual occurred; or
(iii) in the case of any assistance eligible individual
described in subsection (c)(3), the furlough period began
with respect to such individual.
(B) Requirements.--Any assistance eligible individual may
elect to enroll in different coverage as described in
subparagraph (A) only if--
(i) the employer involved has made a determination that
such employer will permit such assistance eligible individual
to enroll in different coverage as provided under this
paragraph;
(ii) the premium for such different coverage does not
exceed the premium for coverage in which such individual was
enrolled at the time such qualifying event occurred or
immediately before such furlough began;
(iii) the different coverage in which the individual elects
to enroll is coverage that is also offered to the active
employees of the employer, who are not in a furlough period,
at the time at which such election is made; and
(iv) the different coverage in which the individual elects
to enroll is not--

(I) coverage that provides only dental, vision, counseling,
or referral services (or a combination of such services);
(II) a qualified small employer health reimbursement
arrangement (as defined in section 9831(d)(2) of the Internal
Revenue Code of 1986);
(III) a flexible spending arrangement (as defined in
section 106(c)(2) of the Internal Revenue Code of 1986); or
(IV) benefits that provide coverage for services or
treatments furnished in an on-site medical facility
maintained by the employer and that consists primarily of
first-aid services, prevention and wellness care, or similar
care (or a combination of such care).

(3) Premium reimbursement.--For provisions providing the
payment of such premium, see section 6432 of the Internal
Revenue Code of 1986, as added by section 203(a).
(b) Limitation of Period of Premium Assistance.--
(1) Eligibility for additional coverage.--Subsection (a)(1)
shall not apply with respect to--
(A) any assistance eligible individual described in
subsection (c)(1) for months of coverage beginning on or
after the earlier of--
(i) the first date that such individual is eligible for
coverage under any other group health plan (other than
coverage consisting of only dental, vision, counseling, or
referral services (or a combination thereof), coverage under
a flexible spending arrangement (as defined in section
106(c)(2) of the Internal Revenue Code of 1986), coverage of
treatment that is furnished in an on-site medical facility
maintained by the employer and that consists primarily of
first-aid services, prevention and wellness care, or similar
care (or a combination thereof)), or eligible for benefits
under the Medicare program under title XVIII of the Social
Security Act; or
(ii) the earlier of--

(I) the date following the expiration of the maximum period
of continuation coverage required under the applicable COBRA
continuation coverage provision; or
(II) the date following the expiration of the period of
continuation coverage allowed under subsection (d)(2)(B);

(B) any assistance eligible individual described in
subsection (c)(2) for months of coverage beginning on or
after the earlier of--
(i) the first date that such individual is eligible for
coverage under any other group health plan (other than
coverage consisting of only dental, vision, counseling, or
referral services (or a combination thereof), coverage under
a flexible spending arrangement (as defined in section
106(c)(2) of the Internal Revenue Code of 1986), coverage of
treatment that is furnished in an on-site medical facility
maintained by the employer and that consists primarily of
first-aid services, prevention and wellness care, or similar
care (or

[[Page S4771]]

a combination thereof)), or eligible for benefits under the
Medicare program under title XVIII of the Social Security
Act; or
(ii) the first date on which the church plan is no longer
available to such individual; or
(C) any assistance eligible individual described in
paragraph (3)(C) for months of coverage beginning on or after
the earlier of--
(i) the first date that such individual is eligible for
coverage under any other group health plan (other than
coverage consisting of only dental, vision, counseling, or
referral services (or a combination thereof), coverage under
a flexible spending arrangement (as defined in section
106(c)(2) of the Internal Revenue Code of 1986), coverage of
treatment that is furnished in an on-site medical facility
maintained by the employer and that consists primarily of
first-aid services, prevention and wellness care, or similar
care (or a combination thereof)), or eligible for benefits
under the Medicare program under title XVIII of the Social
Security Act; or
(ii) the first date that such individual is no longer in
the furlough period.
(2) Notification requirement.--Any assistance eligible
individual shall notify the group health plan with respect to
which subsection (a)(1) applies if such paragraph ceases to
apply by reason of subparagraph (A)(i), (B)(i), or (C)(i) of
paragraph (1) (as applicable). Such notice shall be provided
to the group health plan in such time and manner as may be
specified by the Secretary of Labor.
(3) Special enrollment period following expiration of
premium assistance.--Notwithstanding section 1311 of the
Patient Protection and Affordable Care Act (42 U.S.C. 18031),
the expiration of premium assistance pursuant to a limitation
specified under paragraph (1) shall be treated as a
qualifying event for which any assistance eligible individual
is eligible to enroll in a qualified health plan offered
through an Exchange under title I of such Act (42 U.S.C.
18001 et seq.) during a special enrollment period.
(c) Assistance Eligible Individual.--For purposes of this
section, the term ``assistance eligible individual'' means,
with respect to a period of coverage during the period
beginning on the first day of the first month that begins
after the date of enactment of this Act and ending on
December 31, 2020--
(1) any individual that is a qualified beneficiary that--
(A) is eligible for COBRA continuation coverage by reason
of a qualifying event specified in section 603(2) of the
Employee Retirement Income Security Act of 1974, section
4980B(f)(3)(B) of the Internal Revenue Code of 1986, section
2203(2) of the Public Health Service Act, or section 8905a of
title 5, United States Code (except for the voluntary
termination of such individual's employment by such
individual); and
(B) elects such coverage;
(2) any individual who--
(A) is terminated from (other than by reason of such
employee's gross misconduct or voluntary termination), or is
subject to a reduction in hours with respect to, employment
with an employer who offers a church plan, if the employer
voluntarily offers coverage under such plan to such
individual after the termination or reduction of hours, or is
a beneficiary of such an individual who is terminated or
subject to a reduction of hours, if the employer voluntarily
offers coverage under such plan to such beneficiary; and
(B) elects such coverage; or
(3) any covered employee that is in a furlough period that
remains eligible for coverage under a group health plan
offered by the employer of such covered employee.
(d) Extension of Election Period and Effect on Coverage.--
(1) In general.--For purposes of applying section 605(a) of
the Employee Retirement Income Security Act of 1974, section
4980B(f)(5)(A) of the Internal Revenue Code of 1986, section
2205(a) of the Public Health Service Act, and section
8905a(c)(2) of title 5, United States Code, in the case of--
(A) an individual who does not have an election of COBRA
continuation coverage in effect on the date of the enactment
of this Act but who would be an assistance eligible
individual described in subsection (c)(1) if such election
were so in effect; or
(B) an individual who elected COBRA continuation coverage
on or after March 1, 2020, and discontinued from such
coverage before the date of the enactment of this Act,
such individual may elect the COBRA continuation coverage
under the COBRA continuation coverage provisions containing
such provisions during the period beginning on the date of
the enactment of this Act and ending 60 days after the date
on which the notification required under subsection (g)(3) is
provided to such individual.
(2) Commencement of cobra continuation coverage.--Any COBRA
continuation coverage elected by a qualified beneficiary
during an extended election period under paragraph (1)--
(A) shall apply as if such qualified beneficiary had been
covered as of the date of a qualifying event specified in
section 603(2) of the Employee Retirement Income Security Act
of 1974, section 4980B(f)(3)(B) of the Internal Revenue Code
of 1986, section 2203(2) of the Public Health Service Act, or
section 8905a of title 5, United States Code, except for the
voluntary termination of such beneficiary's employment by
such beneficiary, that occurs no earlier than March 1, 2020
(including the treatment of premium payments under subsection
(a)(1) and any cost-sharing requirements for items and
services under a group health plan); and
(B) shall not extend beyond the period of COBRA
continuation coverage that would have been required under the
applicable COBRA continuation coverage provision if the
coverage had been elected as required under such provision.
(e) Expedited Review of Denials of Premium Assistance.--In
any case in which an individual requests treatment as an
assistance eligible individual described in paragraph (1),
(2), or (3) of subsection (c) and is denied such treatment by
the group health plan, the Secretary of Labor (or the
Secretary of Health and Human Services in connection with
COBRA continuation coverage or a church plan which is
provided other than pursuant to part 6 of subtitle B of title
I of the Employee Retirement Income Security Act of 1974), in
consultation with the Secretary of the Treasury, shall
provide for expedited review of such denial. An individual
shall be entitled to such review upon application to such
Secretary in such form and manner as shall be provided by
such Secretary, in consultation with the Secretary of
Treasury. Such Secretary shall make a determination regarding
such individual's eligibility within 15 business days after
receipt of such individual's application for review under
this subsection. Either Secretary's determination upon review
of the denial shall be de novo and shall be the final
determination of such Secretary. A reviewing court shall
grant deference to such Secretary's determination. The
provisions of this subsection, subsections (a) through (e),
and subsections (g) through (i) shall be treated as
provisions of title I of the Employee Retirement Income
Security Act of 1974 for purposes of part 5 of subtitle B of
such title.
(f) Disregard of Subsidies for Purposes of Federal and
State Programs.--Notwithstanding any other provision of law,
any premium assistance with respect to an assistance eligible
individual under this section shall not be considered income,
in-kind support, or resources for purposes of determining the
eligibility of the recipient (or the recipient's spouse or
family) for benefits or assistance, or the amount or extent
of benefits or assistance, or any other benefit provided
under any Federal program or any program of a State or
political subdivision thereof financed in whole or in part
with Federal funds.
(g) COBRA-specific Notice.--
(1) General notice.--
(A) In general.--In the case of notices provided under
section 606(a)(4) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1166(4)), section 4980B(f)(6)(D) of
the Internal Revenue Code of 1986, section 2206(4) of the
Public Health Service Act (42 U.S.C. 300bb-6(4)), or section
8905a(f)(2)(A) of title 5, United States Code, with respect
to individuals who, during the period described in subsection
(c), become entitled to elect COBRA continuation coverage,
the requirements of such provisions shall not be treated as
met unless such notices include an additional notification to
the recipient, in writing, in clear and understandable
language of--
(i) the availability of premium assistance with respect to
such coverage under this section; and
(ii) the option to enroll in different coverage if the
employer permits assistance eligible individuals described in
subsection (c)(1) to elect enrollment in different coverage
(as described in subsection (a)(2)).
(B) Alternative notice.--In the case of COBRA continuation
coverage to which the notice provision under such sections
does not apply, the Secretary of Labor, in consultation with
the Secretary of the Treasury and the Secretary of Health and
Human Services, shall, in consultation with administrators of
the group health plans (or other entities) that provide or
administer the COBRA continuation coverage involved, provide
rules requiring the provision of such notice.
(C) Form.--The requirement of the additional notification
under this paragraph may be met by amendment of existing
notice forms or by inclusion of a separate document with the
notice otherwise required.
(2) Specific requirements.--Each additional notification
under paragraph (1) shall include--
(A) the forms necessary for establishing eligibility for
premium assistance under this section;
(B) the name, address, and telephone number necessary to
contact the plan administrator and any other person
maintaining relevant information in connection with such
premium assistance;
(C) a description of the extended election period provided
for in subsection (d)(1);
(D) a description of the obligation of the qualified
beneficiary under subsection (b)(2) and the penalty provided
under section 6720C of the Internal Revenue Code of 1986 for
failure to carry out the obligation;
(E) a description, displayed in a prominent manner, of the
qualified beneficiary's right to a reduced premium and any
conditions on entitlement to the reduced premium;
(F) a description of the option of the qualified
beneficiary to enroll in different coverage if the employer
permits such beneficiary to elect to enroll in such different
coverage under subsection (a)(2); and
(G) information regarding any Exchange established under
title I of the Patient Protection and Affordable Care Act (42
U.S.C. 18001 et seq.) through which a qualified beneficiary
may be eligible to enroll in a qualified health plan,
including--
(i) the publicly accessible internet website address for
such Exchange;

[[Page S4772]]

(ii) the publicly accessible internet website address for
the Find Local Help directory maintained by the Department of
Health and Human Services on the healthcare.gov internet
website (or a successor website);
(iii) a clear explanation that--

(I) an individual who is eligible for continuation coverage
may also be eligible to enroll, with financial assistance, in
a qualified health plan offered through such Exchange, but,
in the case that such individual elects to enroll in such
continuation coverage and subsequently elects to terminate
such continuation coverage before the period of such
continuation coverage expires, such termination does not
initiate a special enrollment period (absent a qualifying
event specified in section 603(2) of the Employee Retirement
Income Security Act of 1974, section 4980B(f)(3)(B) of the
Internal Revenue Code of 1986, section 2203(2) of the Public
Health Service Act, or section 8905a of title 5, United
States Code, with respect to such individual); and
(II) an individual who elects to enroll in continuation
coverage will remain eligible to enroll in a qualified health
plan offered through such Exchange during an open enrollment
period and may be eligible for financial assistance with
respect to enrolling in such a qualified health plan;

(iv) information on consumer protections with respect to
enrolling in a qualified health plan offered through such
Exchange, including the requirement for such a qualified
health plan to provide coverage for essential health benefits
(as defined in section 1302(b) of such Act (42 U.S.C.
18022(b))) and the requirements applicable to such a
qualified health plan under part A of title XXVII of the
Public Health Service Act (42 U.S.C. 300gg et seq.);
(v) information on the availability of financial assistance
with respect to enrolling in a qualified health plan,
including the maximum income limit for eligibility for the
premium tax credit under section 36B of the Internal Revenue
Code of 1986; and
(vi) information on any special enrollment periods during
which any assistance eligible individual described in
subsection (c)(1)(A) may be eligible to enroll, with
financial assistance, in a qualified health plan offered
through such Exchange (including a special enrollment period
for which an individual may be eligible due to the expiration
of premium assistance pursuant to a limitation specified
under subsection (b)(1)); and
(H) information regarding compliance with the requirements
of subsection (n).
(3) Notice in connection with extended election periods.--
In the case of any assistance eligible individual described
in subsection (c)(1) (or any individual described in
subsection (d)(1)) who became entitled to elect COBRA
continuation coverage before the date of the enactment of
this Act, the administrator of the applicable group health
plan (or other entity) shall provide (within 60 days after
the date of enactment of this Act) for the additional
notification required to be provided under paragraph (1) and
failure to provide such notice shall be treated as a failure
to meet the notice requirements under the applicable COBRA
continuation provision.
(4) Model notices.--Not later than 30 days after the date
of enactment of this Act, with respect to any assistance
eligible individual described in subsection (c)(1)--
(A) the Secretary of Labor, in consultation with the
Secretary of the Treasury and the Secretary of Health and
Human Services, shall prescribe models for the additional
notification required under this paragraph (other than the
additional notification described in subparagraph (B)); and
(B) in the case of any additional notification provided
pursuant to paragraph (1) under section 8905a(f)(2)(A) of
title 5, United States Code, the Office of Personnel
Management shall prescribe a model for such additional
notification.
(h) Furlough-specific Notice.--
(1) In general.--With respect to any assistance eligible
individual described in subsection (c)(3) who, during the
period described in such paragraph, becomes eligible for
assistance pursuant to subsection (a)(1)(C), the requirements
of section 606(a)(4) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1166(4)), section
4980B(f)(6)(D) of the Internal Revenue Code of 1986, section
2206(4) of the Public Health Service Act (42 U.S.C. 300bb-
6(4)), or section 8905a(f)(2)(A) of title 5, United States
Code, shall not be treated as met unless the group health
plan administrator, in accordance with the timing requirement
specified under paragraph (2), provides to the individual a
written notice in clear and understandable language of--
(A) the availability of premium assistance with respect to
such coverage under this section;
(B) the option of the qualified beneficiary to enroll in
different coverage if the employer permits such beneficiary
to elect to enroll in such different coverage under
subsection (a)(2); and
(C) the information specified under subsection (g)(2) (as
applicable).
(2) Timing specified.--For purposes of paragraph (1), the
timing requirement specified in this paragraph is--
(A) with respect to such an individual who is within a
furlough period during the period beginning on March 1, 2020,
and ending on the date of the enactment of this Act, 30 days
after the date of such enactment; and
(B) with respect to such an individual who is within a
furlough period during the period beginning on the first day
after the date of the enactment of this Act and ending on
December 31, 2020, 30 days after the date of the beginning of
such furlough period.
(3) Model notices.--Not later than 30 days after the date
of enactment of this Act, with respect to any assistance
eligible individual described in subsection (c)(3)--
(A) the Secretary of Labor, in consultation with the
Secretary of the Treasury and the Secretary of Health and
Human Services, shall prescribe models for the notification
required under this paragraph (other than the notification
described in subparagraph (B)); and
(B) in the case of any notification provided pursuant to
paragraph (1) under section 8905a(f)(2)(A) of title 5, United
States Code, the Office of Personnel Management shall
prescribe a model for such notification.
(i) Notice of Expiration of Period of Premium Assistance.--
(1) In general.--With respect to any assistance eligible
individual (as applicable), subject to paragraph (2), the
requirements of section 606(a)(4) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1166(4)), section
4980B(f)(6)(D) of the Internal Revenue Code of 1986, section
2206(4) of the Public Health Service Act (42 U.S.C. 300bb-
6(4)), or section 8905a(f)(2)(A) of title 5, United States
Code, shall not be treated as met unless the employer of the
individual, during the period specified under paragraph (3),
provides to such individual a written notice in clear and
understandable language--
(A) that the premium assistance for such individual will
expire soon and the prominent identification of the date of
such expiration;
(B) that such individual may be eligible for coverage
without any premium assistance through--
(i) COBRA continuation coverage; or
(ii) coverage under a group health plan;
(C) that the expiration of premium assistance is treated as
a qualifying event for which any assistance eligible
individual is eligible to enroll in a qualified health plan
offered through an Exchange under title I of such Act (42
U.S.C. 18001 et seq.) during a special enrollment period; and
(D) the information specified in subsection (g)(2)(G).
(2) Exception.--The requirement for the group health plan
administrator to provide the written notice under paragraph
(1) shall be waived in the case the premium assistance for
such individual expires pursuant to subparagraph (A)(i) or
(C)(i) of subsection (b)(1).
(3) Period specified.--For purposes of paragraph (1), the
period specified in this paragraph is, with respect to the
date of expiration of premium assistance for any assistance
eligible individual pursuant to a limitation requiring a
notice under this subsection, the period beginning on the day
that is 45 days before the date of such expiration and ending
on the day that is 15 days before the date of such
expiration.
(4) Model notices.--Not later than 30 days after the date
of enactment of this Act, with respect to any assistance
eligible individual--
(A) the Secretary of Labor, in consultation with the
Secretary of the Treasury and the Secretary of Health and
Human Services, shall prescribe models for the notification
required under this subsection (other than the notification
described in subparagraph (B)); and
(B) in the case of any notification provided pursuant to
paragraph (1) under section 8905a(f)(2)(A) of title 5, United
States Code, the Office of Personnel Management shall
prescribe a model for such notification.
(j) Regulations.--The Secretary of the Treasury and the
Secretary of Labor may jointly prescribe such regulations or
other guidance as may be necessary or appropriate to carry
out the provisions of this section, including the prevention
of fraud and abuse under this section, except that the
Secretary of Labor and the Secretary of Health and Human
Services may prescribe such regulations (including interim
final regulations) or other guidance as may be necessary or
appropriate to carry out the provisions of subsections (e),
(g), (h), (i), and (k).
(k) Outreach.--
(1) In general.--The Secretary of Labor, in consultation
with the Secretary of the Treasury and the Secretary of
Health and Human Services, shall provide outreach consisting
of public education and enrollment assistance relating to
premium assistance provided under this section. Such outreach
shall target employers, group health plan administrators,
public assistance programs, States, insurers, and other
entities as determined appropriate by such Secretaries. Such
outreach shall include an initial focus on those individuals
electing continuation coverage who are referred to in
subsection (g)(3). Information on such premium assistance,
including enrollment, shall also be made available on
websites of the Departments of Labor, Treasury, and Health
and Human Services.
(2) Enrollment under medicare.--The Secretary of Health and
Human Services shall provide outreach consisting of public
education. Such outreach shall target individuals who lose
health insurance coverage. Such outreach shall include
information regarding enrollment for benefits under title
XVIII of the Social Security Act (42 U.S.C.

[[Page S4773]]

1395 et seq.) for purposes of preventing mistaken delays of
such enrollment by such individuals, including lifetime
penalties for failure of timely enrollment.
(l) Definitions.--For purposes of this section:
(1) Administrator.--The term ``administrator'' has the
meaning given such term in section 3(16)(A) of the Employee
Retirement Income Security Act of 1974.
(2) Church plan.--The term ``church plan'' means a plan, as
described in section 414(e) of the Internal Revenue Code of
1986, that provides medical care to employees or their
dependents.
(3) COBRA continuation coverage.--The term ``COBRA
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,
section 4980B of the Internal Revenue Code of 1986 (other
than subsection (f)(1) of such section insofar as it relates
to pediatric vaccines), or section 8905a of title 5, United
States Code, or under a State program that provides
comparable continuation coverage. Such term does not include
coverage under a health flexible spending arrangement under a
cafeteria plan within the meaning of section 125 of the
Internal Revenue Code of 1986.
(4) COBRA continuation provision.--The term ``COBRA
continuation provision'' means the provisions of law
described in paragraph (3).
(5) Covered employee.--The term ``covered employee'' has
the meaning given such term in section 607(2) of the Employee
Retirement Income Security Act of 1974.
(6) Qualified beneficiary.--The term ``qualified
beneficiary'' has the meaning given such term in section
607(3) of the Employee Retirement Income Security Act of
1974.
(7) Group health plan.--The term ``group health plan'' has
the meaning given such term in section 607(1) of the Employee
Retirement Income Security Act of 1974.
(8) State.--The term ``State'' includes the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands.
(9) Period of coverage.--Any reference in this section to a
period of coverage shall be treated as a reference to a
monthly or shorter period of coverage with respect to which
premiums are charged with respect to such coverage.
(10) Plan sponsor.--The term ``plan sponsor'' has the
meaning given such term in section 3(16)(B) of the Employee
Retirement Income Security Act of 1974.
(11) Furlough period.--
(A) In general.--The term ``furlough period'' means, with
respect to an individual and an employer of such individual,
a period--
(i) beginning with the first month beginning on or after
March 1, 2020, and before December 31, 2020, during which
such individual's employer reduces such individual's work
hours (due to a lack of work, funds, or other nondisciplinary
reason) to an amount that is less than 70 percent of the base
month amount; and
(ii) ending with the earlier of--

(I) the first month beginning after December 31, 2020; or
(II) the month following the first month during which work
hours of such employee are greater than 80 percent of work
hours of the base month amount.

(B) Base month amount.--For purposes of subparagraph (A),
the term ``base month amount'' means, with respect to an
individual and an employer of such individual, the greater
of--
(i) such individual's work hours in the month prior (or in
the case such individual had no work hours in the month prior
and had work hours in the 3 months prior, the last month with
work hours within the prior 3 months); and
(ii) such individual's work hours during the period
beginning January 1, 2020, and ending January 31, 2020.
(m) Reports.--
(1) Interim report.--The Secretary of the Treasury and the
Secretary of Labor shall jointly submit an interim report to
the Committee on Education and Labor, the Committee on Ways
and Means, and the Committee on Energy and Commerce of the
House of Representatives and the Committee on Health,
Education, Labor, and Pensions and the Committee on Finance
of the Senate regarding the premium assistance provided under
this section that includes--
(A) the number of individuals provided such assistance as
of the date of the report; and
(B) the total amount of expenditures incurred (with
administrative expenditures noted separately) in connection
with such assistance as of the date of the report.
(2) Final report.--As soon as practicable after the last
period of COBRA continuation coverage for which premium
assistance is provided under this section, the Secretary of
the Treasury and the Secretary of Labor shall jointly submit
a final report to each Committee referred to in paragraph (1)
that includes--
(A) the number of individuals provided premium assistance
under this section;
(B) the average dollar amount (monthly and annually) of
premium assistance provided to such individuals; and
(C) the total amount of expenditures incurred (with
administrative expenditures noted separately) in connection
with premium assistance under this section.
(n) Limitation.--
(1) In general.--Notwithstanding section 602(1) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1162(1)) or any other provision of part 6 of subtitle B of
title I of such Act of 1974 (29 U.S.C. 1161 et seq.), section
2202(1) of the Public Health Service Act (42 U.S.C. 300bb-2)
or any other provision of such Act (42 U.S.C. 201 et seq.),
section 4980B(f)(2)(A) of the Internal Revenue Code of 1986
or any other provision of such Code, section 8905a of title
5, United States Code, or any provision of State law, in the
case of coverage described in subsection (a)(1) for an
assistance eligible individual--
(A) such coverage shall exclude coverage of an abortion
(except to the extent described in section 507(a) of division
A of Public Law 116-94) for any period of coverage beginning
on or after the date of enactment of this Act, for which
subsection (a)(1) applies to the individual; and
(B) if such coverage would, but for the requirement under
subparagraph (A), include coverage of abortion (except to the
extent described in such subparagraph) for such individual,
the coverage shall be modified for such individual so that
the coverage excludes abortion (except to the extent
described in such subparagraph) for any period of coverage as
described in such subparagraph.
(2) Rule of construction.--Nothing in this subtitle, or any
amendment made by this subtitle, may be construed to require
a health plan, including any COBRA continuation coverage, to
provide coverage of any abortion.
(o) Deadlines With Respect to Notices.--Notwithstanding
section 518 of the Employee Retirement Income Security Act of
1974 and section 7508A of the Internal Revenue Code of 1986,
the Secretary of Labor and the Secretary of the Treasury,
respectively, may not waive or extend any deadline with
respect to the provision of notices described in subsections
(g), (h), and (i).

SEC. 203. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

(a) COBRA Premium Assistance.--
(1) In general.--Subchapter B of chapter 65 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new section:

``SEC. 6432. CONTINUATION COVERAGE PREMIUM ASSISTANCE.

``(a) In General.--The person to whom premiums are payable
for continuation coverage under section 202(a)(1) of the
Continuous Health Coverage for Workers Act shall be allowed
as a credit against the tax imposed by section 3111(a), or so
much of the taxes imposed under section 3221(a) as are
attributable to the rate in effect under section 3111(a), for
each calendar quarter an amount equal to the premiums not
paid by assistance eligible individuals for such coverage by
reason of such section 202(a)(1) with respect to such
calendar quarter.
``(b) Person to Whom Premiums Are Payable.--For purposes of
subsection (a), except as otherwise provided by the
Secretary, the person to whom premiums are payable under such
continuation coverage shall be treated as being--
``(1) in the case of any group health plan which is a
multiemployer plan (as defined in section 3(37) of the
Employee Retirement Income Security Act of 1974), the plan,
``(2) in the case of any group health plan not described in
paragraph (1)--
``(A) which provides church plan continuation coverage
described in section 202(a)(1)(A)(ii), furlough continuation
coverage described in section 202(a)(1)(A)(iii) of the
Continuous Health Coverage for Workers Act or subject to the
COBRA continuation provisions contained in--
``(i) this title,
``(ii) the Employee Retirement Income Security Act of 1974,
``(iii) the Public Health Service Act, or
``(iv) title 5, United States Code, or
``(B) under which some or all of the coverage is not
provided by insurance,
the employer maintaining the plan, and
``(3) in the case of any group health plan not described in
paragraph (1) or (2), the insurer providing the coverage
under the group health plan.
``(c) Limitations and Refundability.--
``(1) Credit limited to certain employment taxes.--The
credit allowed by subsection (a) with respect to any calendar
quarter shall not exceed the tax imposed by section 3111(a),
or so much of the taxes imposed under section 3221(a) as are
attributable to the rate in effect under section 3111(a), for
such calendar quarter (reduced by any credits allowed under
subsections (e) and (f) of section 3111, sections 7001 and
7003 of the Families First Coronavirus Response Act, section
2301 of the CARES Act, and sections 20204 and 20212 of the
COVID-19 Tax Relief Act of 2020 for such quarter) on the
wages paid with respect to the employment of all employees of
the employer.
``(2) Refundability of excess credit.--
``(A) Credit is refundable.--If the amount of the credit
under subsection (a) exceeds the limitation of paragraph (1)
for any calendar quarter, such excess shall be treated as an
overpayment that shall be refunded under sections 6402(a) and
6413(b).
``(B) Credit may be advanced.--In anticipation of the
credit, including the refundable portion under subparagraph
(A), the credit may be advanced, according to forms and
instructions provided by the Secretary, up to

[[Page S4774]]

an amount calculated under subsection (a) through the end of
the most recent payroll period in the quarter.
``(C) Treatment of deposits.--The Secretary shall waive any
penalty under section 6656 for any failure to make a deposit
of the tax imposed by section 3111(a), or so much of the
taxes imposed under section 3221(a) as are attributable to
the rate in effect under section 3111(a), if the Secretary
determines that such failure was due to the anticipation of
the credit allowed under this section.
``(D) Treatment of payments.--For purposes of section 1324
of title 31, United States Code, any amounts due to an
employer under this paragraph shall be treated in the same
manner as a refund due from a credit provision referred to in
subsection (b)(2) of such section.
``(3) Limitation on reimbursement for certain employees.--
In the case of an individual who for any month is an
assistance eligible individual described in subparagraph (B)
or (C) of section 202(a)(3) of the Continuous Health Coverage
for Workers Act with respect to any coverage, the credit
determined with respect to such individual under subsection
(a) for any such month ending during a calendar quarter shall
not exceed the amount of premium the individual would have
paid for a full month of such coverage for the month
preceding the first month for which an individual is such an
assistance eligible individual.
``(d) Governmental Entities.--For purposes of this section,
the term `person' includes any governmental entity or Indian
tribal government (as defined in section 139E(c)(1)).
``(e) Denial of Double Benefit.--For purposes of chapter 1,
the gross income of any person allowed a credit under this
section shall be increased for the taxable year which
includes the last day of any calendar quarter with respect to
which such credit is allowed by the amount of such credit. No
amount for which a credit is allowed under this section shall
be taken into account as qualified wages under section 2301
of the CARES Act or as qualified health plan expenses under
section 7001(d) or 7003(d) of the Families First Coronavirus
Response Act.
``(f) Reporting.--Each person entitled to reimbursement
under subsection (a) for any period shall submit such reports
(at such time and in such manner) as the Secretary may
require, including--
``(1) an attestation of involuntary termination of
employment, reduction of hours, or furloughing, for each
assistance eligible individual on the basis of whose
termination, reduction of hours, or furloughing entitlement
to reimbursement is claimed under subsection (a),
``(2) a report of the amount of payroll taxes offset under
subsection (a) for the reporting period, and
``(3) a report containing the TINs of all covered
employees, the amount of subsidy reimbursed with respect to
each employee, and a designation with respect to each
employee as to whether the subsidy reimbursement is for
coverage of 1 individual or 2 or more individuals.
``(g) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out this section, including--
``(1) the requirement to report information or the
establishment of other methods for verifying the correct
amounts of reimbursements under this section,
``(2) the application of this section to group health plans
that are multiemployer plans (as defined in section 3(37) of
the Employee Retirement Income Security Act of 1974),
``(3) to allow the advance payment of the credit determined
under subsection (a), subject to the limitations provided in
this section, based on such information as the Secretary
shall require,
``(4) to provide for the reconciliation of such advance
payment with the amount of the credit at the time of filing
the return of tax for the applicable quarter or taxable year,
and
``(5) with respect to the application of the credit to
third party payors (including professional employer
organizations, certified professional employer organizations,
or agents under section 3504).
``(h) Limitation.--In the case of any period of coverage
(as defined in section 202(l) of the Continuous Health
Coverage for Workers Act) beginning on or after the date of
enactment of this section, no credit shall be allowed under
this section with respect to any coverage that includes
coverage of an abortion (except as described in section
507(a) of division A of Public Law 116-94).''.
(2) Social security trust funds held harmless.--There are
hereby appropriated to the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance
Trust Fund established under section 201 of the Social
Security Act (42 U.S.C. 401) and the Social Security
Equivalent Benefit Account established under section 15A(a)
of the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a))
amounts equal to the reduction in revenues to the Treasury by
reason of this subsection (without regard to this paragraph).
Amounts appropriated by the preceding sentence shall be
transferred from the general fund at such times and in such
manner as to replicate to the extent possible the transfers
which would have occurred to such Trust Fund or Account had
this section not been enacted.
(3) Clerical amendment.--The table of sections for
subchapter B of chapter 65 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:

``Sec. 6432. Continuation coverage premium assistance.''.
(4) Effective date.--The amendments made by this subsection
shall apply to premiums to which section 202(a)(1)(A)
applies.
(5) Special rule in case of employee payment that is not
required under this section.--
(A) In general.--In the case of an assistance eligible
individual who pays, with respect any period of coverage to
which section 202(a)(1)(A) applies, the amount of the premium
for such coverage that the individual would have (but for
this subtitle) been required to pay, the person to whom such
payment is payable shall reimburse such individual for the
amount of such premium paid.
(B) Credit of reimbursement.--A person to which
subparagraph (A) applies shall be allowed a credit in the
manner provided under section 6432 of the Internal Revenue
Code of 1986 for any payment made to the employee under such
subparagraph.
(C) Payment of credits.--Any person to which subparagraph
(A) applies shall make the payment required under such clause
to the individual not later than 60 days after the date on
which such individual elects continuation coverage under
section 202(a)(1) of the Continuous Health Coverage for
Workers Act.
(b) Penalty for Failure to Notify Health Plan of Cessation
of Eligibility for Premium Assistance.--
(1) In general.--Part I of subchapter B of chapter 68 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new section:

``SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF
CESSATION OF ELIGIBILITY FOR CONTINUATION
COVERAGE PREMIUM ASSISTANCE.

``(a) In General.--Except in the case of failure described
in subsection (b) or (c), any person required to notify a
group health plan under section 202(a)(2)(B) of the
Continuous Health Coverage for Workers Act who fails to make
such a notification at such time and in such manner as the
Secretary of Labor may require shall pay a penalty of $250.
``(b) Intentional Failure.--In the case of any such failure
that is fraudulent, such person shall pay a penalty equal to
the greater of--
``(1) $250, or
``(2) 110 percent of the premium assistance provided under
section 202(a)(1)(A) of the Continuous Health Coverage for
Workers Act after termination of eligibility under such
section.
``(c) Reasonable Cause Exception.--No penalty shall be
imposed under this section with respect to any failure if it
is shown that such failure is due to reasonable cause and not
to willful neglect.''.
(2) Clerical amendment.--The table of sections of part I of
subchapter B of chapter 68 of such Code is amended by adding
at the end the following new item:

``Sec. 6720C. Penalty for failure to notify health plan of cessation of
eligibility for continuation coverage premium
assistance.''.
(c) Coordination With HCTC.--
(1) In general.--Section 35(g)(9) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(9) Continuation coverage premium assistance.--In the
case of an assistance eligible individual who receives
premium assistance for continuation coverage under section
202(a)(1) of the Continuous Health Coverage for Workers Act
for any month during the taxable year, such individual shall
not be treated as an eligible individual, a certified
individual, or a qualifying family member for purposes of
this section or section 7527 with respect to such month.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to taxable years ending after the date of the
enactment of this Act.
(d) Exclusion of Continuation Coverage Premium Assistance
From Gross Income.--
(1) In general.--Part III of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 is amended by inserting
after section 139H the following new section:

``SEC. 139I. CONTINUATION COVERAGE PREMIUM ASSISTANCE.

``In the case of an assistance eligible individual (as
defined in subsection (a)(3) of section 202 of the Continuous
Health Coverage for Workers Act), gross income does not
include any premium assistance provided under subsection
(a)(1) of such section.''.
(2) Clerical amendment.--The table of sections for part III
of subchapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 139H the
following new item:

``Sec. 139I. Continuation coverage premium assistance.''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years ending after the date of the
enactment of this Act.

SEC. 204. RULE OF CONSTRUCTION.

In all matters of interpretation, rules, and operational
procedures, the language of this subtitle shall be
interpreted broadly for the benefit of workers and their
families.
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