Amends the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code, and the Public Health Service Act to remove all limitations on Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage that establish a period by which such coverage must end, and instead provides no deadline for discontinuing such coverage. Sets forth a formula to determine the maximum allowable premium that certain qualified disabled beneficiaries and individuals receiving extended coverage provided pursuant to this Act may be charged based on the average monthly actuarial cost of such continuation coverage.
Applies such provisions to continuation coverage provided pursuant to the Federal Employee Health Benefits Program (FEHBP).
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5740 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5740
To remove the 18 or 36 month limitation on the period of COBRA
continuation coverage.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. REMOVAL OF 18 OR 36 MONTH LIMITATION ON COBRA CONTINUATION
COVERAGE.
(a) Under ERISA.--
(1) 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:
``(A) No specified maximum required period.--Except
as otherwise provided, there is no specified deadline
for the continuation coverage provided under this
part.''.
(2) 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.''.
(b) Under IRC.--
(1) 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:
``(i) No specified maximum required
period.--Except as otherwise provided, there is
no specified deadline for the continuation
coverage provided under this section.''.
(2) 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.''.
(c) Under PHSA.--
(1) 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:
``(A) No specified maximum required period.--Except
as otherwise provided, there is no specified deadline
for the continuation coverage provided under this
part.''.
(2) 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.''.
(d) FEHBP.--
(1) In general.--Subsection (e) of section 8905a of title
5, United States Code, is amended to read as follows:
``(e) 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.''.
(2) Increased premium permitted for additional coverage.--
Section 8905a(d) of such title is amended--
(A) in paragraph (1)(A), by striking ``and (5)''
and inserting ``, (5), and (6)'';
(B) 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'';
(C) 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
(D) by adding at the end the following new
paragraph:
``(6) 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).''.
(e) Effective Date.--
(1) 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.
(2) 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--
(A) 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
(B) 2 years after the date of the enactment of this
Act.
For purposes of subparagraph (A), any plan amendment made
pursuant to a collective bargaining agreement relating to the
plan which amends the plan solely to conform to any requirement
added by this section shall not be treated as a termination of
such collective bargaining agreement.
<all>
Introduced in House
Introduced in House
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.
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.
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.
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.
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.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Referred to the Subcommittee on Health, for a period to be subsequently determined by the Chairman .
Referred to the Subcommittee on Employer-Employee Relations.