HSA Accessibility and Portability Act of 2006 - Amends the Public Health Service Act to authorize a health insurance issuer to elect, instead of complying with the guaranteed issue requirements (that require a health insurance issuer offering coverage in the small group market in a state to accept every small employer that applies and to accept all eligible individuals without certain restrictions), to: (1) guarantee continuation of coverage through individual health insurance for an individual who no longer qualifies as an eligible individual of the employer at a rate that does not exceed 150% of the standard individual rate applicable to individual coverage in the state; and (2) furnish information for the Secretary of Health and Human Services to monitor the impact of such election on access to, and affordability of, health insurance coverage in the small group market and in the individual market.
Requires such an election to apply to all eligible individuals of that small employer at the time of such election, but does not require applicability to an individual who becomes eligible after such election. Allows an election under this Act to be made only with respect to coverage of a small employer under health insurance coverage that consists of a high deductible health plan and a contribution to a health savings account.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5475 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5475
To amend title XXVII of the Public Health Service Act to permit a
health insurance issuer an alternative to guaranteed issue of health
insurance coverage in the small group market in order to promote
affordable access to portable health insurance coverage.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 24, 2006
Mr. Rogers of Michigan (for himself, Mr. Miller of Florida, Ms. Ginny
Brown-Waite of Florida, Mr. Souder, Mr. Wicker, and Mrs. Capito)
introduced the following bill; which was referred to the Committee on
Energy and Commerce
_______________________________________________________________________
A BILL
To amend title XXVII of the Public Health Service Act to permit a
health insurance issuer an alternative to guaranteed issue of health
insurance coverage in the small group market in order to promote
affordable access to portable health insurance coverage.
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 ``HSA Accessibility and Portability
Act of 2006''.
SEC. 2. PROMOTING ACCESSIBILITY AND AFFORDABILITY OF COVERAGE IN THE
SMALL GROUP MARKET.
Section 2711 of the Public Health Service Act (42 U.S.C. 300gg-11)
is amended--
(1) in subsection (a)(1), by striking ``(f)'' and inserting
``(g)''; and
(2) by adding at the end the following new subsection:
``(g) Election of Alternative to Guaranteed Issue Requirement.--
``(1) Election.--
``(A) In general.--A health insurance issuer may
elect, with respect to any small employer (as defined
in section 2791(e)(4)), to meet the requirements of
paragraphs (2) and (3) instead of complying with the
guaranteed issue requirement of subsection (a).
``(B) Requirement of accepting or rejecting all
eligible individuals within entire group at time of
election.--An election made under subparagraph (A) with
respect to a small employer shall apply with respect to
all eligible individuals of that small employer at the
time of such election.
``(C) Subsequent eligible individuals.--In the case
of an individual who becomes an eligible individual
with respect to a small employer after an election has
been made under subparagraph (A), the health insurance
issuer is not required to provide group health
insurance coverage for such individual.
``(2) Portability for individuals covered.--If an election
is made under paragraph (1)(A) and under such election group
health insurance coverage is provided by a health insurance
issuer for an eligible individual of a small employer, the
health insurance issuer shall guarantee continuation of
coverage to the individual (and to covered dependents), through
issuance of individual health insurance coverage, after the
date the individual no longer qualifies as an eligible
individual of such employer, at a rate that does not exceed 150
percent of the standard individual rate applicable to such
individual coverage in the State in which the policy was
initially issued.
``(3) Information on elections.--Any health insurance
issuer making an election under paragraph (1)(A) shall furnish
to the Secretary such information as the Secretary may require
in order to monitor the impact of such election on access to,
and affordability, of health insurance coverage in the small
group market and in the individual market. Such information
shall include at least information relating to the following:
``(A) Rejection rate.--The characteristics of small
employers denied health insurance coverage because of
this subsection.
``(B) Premium rates.--The rates charged for
coverage offered under an election made under this
subsection (in comparison to rates that are otherwise
charged if this subsection were not in effect).
``(4) Limitation.--An election under paragraph (1)(A) may
only be made with respect to coverage of a small employer under
health insurance coverage that consists of a high deductible
health plan (as defined in section 223(c)(2) of the Internal
Revenue Code of 1986) and a contribution to a health savings
account (as defined in section 223(d) of such Code).
``(5) Report.--At least 6 months before the end of the 5-
year period beginning on the date of the enactment of this
subsection, the Secretary shall submit to Congress a report on
the impact of this subsection on the availability and
affordability of health insurance coverage in the small group
market and in the individual market. Such report shall include
recommendations on whether this subsection should be extended
beyond such period and whether it should be expanded to cover
health insurance coverage in addition to the coverage described
in paragraph (4).
``(6) Contingent sunset.--This subsection shall not apply
to elections for small employers made by a health insurance
issuer after the end of the 5-year period described in
paragraph (5) if the Secretary, in the report to Congress under
such paragraph, recommends that this subsection should not be
extended beyond such period. If the Secretary makes such a
recommendation, this subsection shall still continue to apply
to elections made before the end of such 5-year period.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Health.
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