I
109th CONGRESS
2d Session
H. R. 5740
IN THE HOUSE OF REPRESENTATIVES
June 29, 2006
Ms. Pryce of Ohio (for herself, Mr. Kirk, Mrs. Johnson of Connecticut, Mr. McCaul of Texas, Mr. Cole of Oklahoma, Mr. Duncan, Mrs. Drake, and Mr. Marchant) introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committees on Energy and Commerce, Ways and Means, and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To remove the 18 or 36 month limitation on the period of COBRA continuation coverage.
Removal of 18 or 36 month limitation on COBRA continuation coverage
Under ERISA
In general
Subparagraph (A) of section 602(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)) is amended to read as follows:
No specified maximum required period
Except as otherwise provided, there is no specified deadline for the continuation coverage provided under this part.
.
Increased premium permitted for additional coverage
The last sentence of
section 602(3) of such Act is amended to read as follows: In the case of
an individual who was described in the last sentence of paragraph (2)(A), as in
effect before the amendment made by section 2(a)(1) of the
Health Insurance For Life Act of
2006, for any month after the 18th month of continuation coverage
described in clause (i) or (ii) of such paragraph and in the case of an
individual whose continuation coverage is only required under this part due to
such amendment, any reference in subparagraph (A) of this paragraph to
.102 percent
is deemed a reference to such percentage as the
Secretary of Health and Human Services determines (from time to time and after
consultation with the Secretary of Labor and the Secretary of the Treasury)
that if were applied during the period of the first 18 months of continuation
coverage under this part would have resulted in a premium equal to the average
monthly actuarial cost of such continuation coverage.
Under IRC
In general
Clause (i) of section 4980B(f)(2)(B) of the Internal Revenue Code of 1986 (relating to maximum required period of continuation coverage) is amended to read as follows:
No specified maximum required period
Except as otherwise provided, there is no specified deadline for the continuation coverage provided under this section.
.
Increased premium permitted for additional coverage
The last sentence of section 4980B(f)(2)(C)
of such Code is amended to read as follows: In the case of an individual
who was described in the last sentence of subparagraph (B)(i), as in effect
before the amendment made by section 2(b)(1) of the
Health Insurance For Life Act of
2006, for any month after the 18th month of continuation coverage
described in subclause (I) or (II) of such subparagraph and in the case of an
individual whose continuation coverage is only required under this section due
to such amendment, any reference in clause (i) of this subparagraph to
.102 percent
is deemed a reference to such percentage as the
Secretary of Health and Human Services determines from time to time under the
last sentence of section 602(e) of the Employee Retirement Income Security Act
of 1974.
Under PHSA
In general
Subparagraph (A) of section 2202(2) of the Public Health Service Act (42 U.S.C. 300bb–2(2)) is amended to read as follows:
No specified maximum required period
Except as otherwise provided, there is no specified deadline for the continuation coverage provided under this part.
.
Increased premium permitted for additional coverage
The last sentence of section 2202(3) of
such Act is amended to read as follows: In the case of an individual who
was described in the last sentence of paragraph (2)(A), as in effect before the
amendment made by section 2(c)(1) of the Health Insurance For Life Act of 2006, for
any month after the 18th month of continuation coverage described in clause (i)
or (ii) of such paragraph and in the case of an individual whose continuation
coverage is only required under this part due to such amendment, any reference
in subparagraph (A) of this paragraph to
.102 percent
is deemed a
reference to such percentage as the Secretary of Health and Human Services
determines from time to time under the last sentence of section 602(e) of the
Employee Retirement Income Security Act of 1974.
FEHBP
In general
Subsection (e) of section 8905a of title 5, United States Code, is amended to read as follows:
Continuation coverage under this section shall not extend beyond the period of continuation required under section 602(2) of the Employee Retirement Income Security Act of 1974 for a group health plan covered under such section.
.
Increased premium permitted for additional coverage
Section 8905a(d) of such title is amended—
in paragraph
(1)(A), by striking and (5)
and inserting , (5), and
(6)
;
in paragraph
(4)(A), in the matter before clause (i), by inserting for periods of
continuation coverage not resulting from the amendment made by section 2(d)(1)
of the Health Insurance For Life Act of
2006
after National Nuclear Security
Administration
;
in paragraph (5)(A), in the matter before
clause (i), by inserting for periods of continuation coverage not
resulting from the amendment made by section 2(d)(1) of the
Health Insurance For Life Act of
2006
after Atomic Energy Defense Act
;
and
by adding at the end the following new paragraph:
In the case of any period of continuation coverage under this section resulting from the amendment made by section 2(d)(1) of the Health Insurance For Life Act of 2006, the amount required to be paid under this subsection shall be equal to a percentage (equal to such percentage as the Secretary of Health and Human Services determines from time to time under the last sentence of section 602(e) of the Employee Retirement Income Security Act of 1974) applied to the amount described in paragraph (1)(A)(i).
.
Effective date
In general
Subject to paragraph (2), the amendments made by subsections (a) through (c) shall apply with respect to group health plans, and health insurance coverage offered in connection with group health plans, for plan years beginning after the date of the enactment of this Act and the amendments made by subsection (d) shall apply to contract years beginning after the date of the enactment of this Act.
Treatment of collective bargaining agreements
In the case of a group health plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before the date of enactment of this Act, the amendments made by subsections (a) through (c) shall not apply to plan years beginning before the later of—
the date on which the last collective bargaining agreements relating to the plan terminates (determined without regard to any extension thereof agreed to after the date of enactment of this Act); or
2 years after the date of the enactment of this Act.