[Congressional Bills 111th Congress]
[From the U.S. Government Printing 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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