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Home Source documents Congressional Record, Senate, August 4, 2020 — Continuous Health Coverage for Workers Act Amendment

Congressional Record, Senate, August 4, 2020 — Continuous Health Coverage for Workers Act Amendment

Summary

Page S4770 of the Senate section of the Congressional Record for August 4, 2020, headed Continuous Health Coverage for Workers Act Amendment, in interleaved columns, carrying amendment text. Provisions set premium assistance at a share of the premium owed, with 15 percent in one formula, and let an employer permit an assistance eligible individual to enroll in different coverage. Tax text adds a new section to the Internal Revenue Code and allows advance payment of a credit. SA 2516 is submitted by Ms. McSally, and a funds provision refers to a 1999 defense authorization Act.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Congressional Record, Senate, August 4, 2020 — Continuous Health Coverage for Workers Act Amendment.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crec-crec-2020-08-04-crec-2020-08-04-pt1-pgs4770-44479f3edb/, SHA-256 b7371efaf7dd86dc5e1806ffed36591d4e4d9f4bbb96e30321260de117d4582d.

Full text

                                               S4770                                             CONGRESSIONAL RECORD — SENATE                                                          August 4, 2020
                                               1237(b) of the Strom Thurmond National De-              of 15 percent of the amount of such premium            ferent coverage as described in subparagraph
                                               fense Authorization Act for Fiscal Year 1999            owed by such individual (as determined with-           (A) only if—
                                               (Public Law 105–261; 50 U.S.C. 1701 note).              out regard to this subsection) or the amount             (i) the employer involved has made a deter-
                                                 (b) FUNDS DESCRIBED.—Funds described in               of the premium that a similarly situated in-           mination that such employer will permit
                                               this subsection are—                                    dividual enrolled in the plan who is not an            such assistance eligible individual to enroll
                                                 (1) funds made available under this Act;              assistance eligible individual is (or would be,        in different coverage as provided under this
                                                 (2) funds made available, and available for           if so enrolled) required to pay with respect to        paragraph;
                                               obligation as of the date of the enactment of           the plan (after any employer contribution).              (ii) the premium for such different cov-
                                               this Act, under—                                           (B) CHURCH PLANS.—In the case of any pre-           erage does not exceed the premium for cov-
                                                 (A) the Coronavirus Preparedness and Re-              mium for a period of coverage during the pe-           erage in which such individual was enrolled
                                               sponse Supplemental Appropriations Act,                 riod beginning on the first day of the first           at the time such qualifying event occurred
                                               2020 (Public Law 116–123; 134 Stat. 146);               month that begins after the date of enact-             or immediately before such furlough began;
                                                 (B) the Families First Coronavirus Re-                ment of this Act and ending on December 31,              (iii) the different coverage in which the in-
                                               sponse Act (Public Law 116–127; 134 Stat. 177);         2020, for coverage under a church plan with            dividual elects to enroll is coverage that is
                                                 (C) the Coronavirus Aid, Relief, and Eco-             respect to any assistance eligible individual          also offered to the active employees of the
                                               nomic Security Act (Public Law 116–136); or             described in subsection (c)(2), such individual        employer, who are not in a furlough period,
                                                 (D) the Paycheck Protection Program and               shall be treated for purposes of the individ-          at the time at which such election is made;
                                               Health Care Enhancement Act (Public Law                 ual’s coverage under such plan as having               and
                                               116–139; 134 Stat. 620); or                             paid the amount of such premium if such in-              (iv) the different coverage in which the in-
                                                 (3) funds made available under any Act en-            dividual pays (and any person other than               dividual elects to enroll is not—
                                               acted after the date of the enactment of this           such individual’s employer pays on behalf of             (I) coverage that provides only dental, vi-
                                               Act to provide additional funding relating to           such individual) the greater of 15 percent of          sion, counseling, or referral services (or a
                                               the COVID–19 pandemic.                                  the amount of such premium owed by such                combination of such services);
                                                 (c) APPLICATION TO PRIVATE ENTITIES AND               individual (as determined without regard to              (II) a qualified small employer health re-
                                               STATE AND LOCAL GOVERNMENTS.—                           this subsection) or the amount of the pre-             imbursement arrangement (as defined in sec-
                                                 (1) IN GENERAL.—The prohibition under                 mium that a similarly situated individual              tion 9831(d)(2) of the Internal Revenue Code
                                               subsection (a) includes a prohibition on the            enrolled in the plan who is not an assistance          of 1986);
                                               obligation or expenditure of funds described            eligible individual is (or would be, if so en-           (III) a flexible spending arrangement (as
                                               in subsection (b) for the purchase of goods or          rolled) required to pay with respect to the            defined in section 106(c)(2) of the Internal
                                               services from persons described in subsection           plan (after any employer contribution).                Revenue Code of 1986); or
                                               (a) by a private entity or a State or local                (C) FURLOUGHED CONTINUATION COVERAGE.—                (IV) benefits that provide coverage for
                                               government that received such funds                     In the case of any premium for a period of             services or treatments furnished in an on-
                                               through a grant or any other means.                     coverage during the period beginning on the            site medical facility maintained by the em-
                                                 (2) CERTIFICATION REQUIRED TO RECEIVE FU-             first day of the first month that begins after         ployer and that consists primarily of first-
                                               TURE FUNDS.—On and after the date of the
                                                                                                       the date of enactment of this Act and ending           aid services, prevention and wellness care, or
                                               enactment of this Act, the head of an execu-            on December 31, 2020, for coverage under a             similar care (or a combination of such care).
                                               tive agency may not provide funds described             group health plan with respect to any assist-            (3) PREMIUM REIMBURSEMENT.—For provi-
                                               in subsection (b) to a private entity or a              ance eligible individual described in sub-             sions providing the payment of such pre-
                                               State or local government unless the entity             section (c)(3), such individual shall be treat-        mium, see section 6432 of the Internal Rev-
                                                                                                       ed for purposes of the individual’s coverage           enue Code of 1986, as added by section 203(a).
                                               or government certifies that the entity or
                                                                                                       under such plan as having paid the amount                (b) LIMITATION OF PERIOD OF PREMIUM AS-
                                               government, as the case may be, is not pur-                                                                    SISTANCE.—
                                                                                                       of such premium if such individual pays (and
                                               chasing goods or services from a person de-                                                                      (1) ELIGIBILITY FOR ADDITIONAL COVERAGE.—
                                                                                                       any person other than such individual’s em-
                                               scribed in subsection (a).                                                                                     Subsection (a)(1) shall not apply with respect
                                                                                                       ployer pays on behalf of such individual) the
                                                 (d) EXECUTIVE AGENCY DEFINED.—In this                                                                        to—
                                                                                                       greater of 15 percent of the amount of such
                                               section, the term ‘‘executive agency’’ has the                                                                   (A) any assistance eligible individual de-
                                                                                                       premium owed by such individual (as deter-
                                               meaning given that term in section 133 of                                                                      scribed in subsection (c)(1) for months of
                                                                                                       mined without regard to this subsection) or
                                               title 41, United States Code.                                                                                  coverage beginning on or after the earlier
                                                                                                       the amount of the premium that a similarly
                                                                                                       situated individual enrolled in the plan who           of—
                                                 SA 2515. Ms. MCSALLY (for herself,                    is not an assistance eligible individual is (or          (i) the first date that such individual is eli-
                                               Mr. DAINES, Mr. CORNYN, and Mr. SUL-                    would be, if so enrolled) required to pay with         gible for coverage under any other group
                                               LIVAN) submitted an amendment in-                       respect to the plan (after any employer con-           health plan (other than coverage consisting
                                               tended to be proposed to amendment                      tribution).                                            of only dental, vision, counseling, or referral
                                               SA 2499 proposed by Mr. MCCONNELL to                       (2) PLAN ENROLLMENT OPTION.—                        services (or a combination thereof), coverage
                                               the bill S. 178, to condemn gross human                    (A) IN GENERAL.—Any assistance eligible             under a flexible spending arrangement (as
                                                                                                       individual who is enrolled in a group health           defined in section 106(c)(2) of the Internal
                                               rights violations of ethnic Turkic Mus-
                                                                                                       plan offered by a plan sponsor may, not later          Revenue Code of 1986), coverage of treatment
                                               lims in Xinjiang, and calling for an end                than 90 days after the date of notice of the           that is furnished in an on-site medical facil-
                                               to arbitrary detention, torture, and                    plan enrollment option described in this               ity maintained by the employer and that
                                               harassment of these communities in-                     paragraph, elect to enroll in coverage under           consists primarily of first-aid services, pre-
                                               side and outside China; which was or-                   a plan offered by such plan sponsor that is            vention and wellness care, or similar care (or
                                               dered to lie on the table; as follows:                  different than coverage under the plan in              a combination thereof)), or eligible for bene-
                                                 At the appropriate place, insert the fol-             which such individual was enrolled at the              fits under the Medicare program under title
                                               lowing:                                                 time—                                                  XVIII of the Social Security Act; or
                                                                                                          (i) in the case of any assistance eligible in-        (ii) the earlier of—
                                                 Subtitle ll—Continuous Health Coverage
                                                                                                       dividual described in subsection (c)(1), the             (I) the date following the expiration of the
                                                              for Workers
                                                                                                       qualifying event specified in section 603(2) of        maximum period of continuation coverage
                                               SEC. 201. SHORT TITLE.                                  the Employee Retirement Income Security                required under the applicable COBRA con-
                                                 This subtitle may be cited as the ‘‘Contin-           Act of 1974, section 4980B(f)(3)(B) of the Inter-      tinuation coverage provision; or
                                               uous Health Coverage for Workers Act’’.                 nal Revenue Code of 1986, section 2203(2) of             (II) the date following the expiration of the
                                               SEC. 202. PRESERVING HEALTH BENEFITS FOR                the Public Health Service Act, or section              period of continuation coverage allowed
                                                           WORKERS.                                    8905a of title 5, United States Code (except           under subsection (d)(2)(B);
                                                 (a) PROVISION OF PREMIUM ASSISTANCE.—                 for the voluntary termination of such indi-              (B) any assistance eligible individual de-
                                                 (1) REDUCTION OF PREMIUMS PAYABLE.—                   vidual’s employment by such individual), oc-           scribed in subsection (c)(2) for months of
                                                 (A) COBRA CONTINUATION COVERAGE.—In                   curred, and such coverage shall be treated as          coverage beginning on or after the earlier
                                               the case of any premium for a period of cov-            COBRA continuation coverage for purposes               of—
                                               erage during the period beginning on the                of the applicable COBRA continuation provi-              (i) the first date that such individual is eli-
                                               first day of the first month that begins after          sion;                                                  gible for coverage under any other group
                                               the date of enactment of this Act and ending               (ii) in the case of an assistance eligible in-      health plan (other than coverage consisting
                                               on December 31, 2020, for COBRA continu-                dividual described in subsection (c)(2), the           of only dental, vision, counseling, or referral




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                                               ation coverage with respect to any assist-              termination or reduction of hours of employ-           services (or a combination thereof), coverage
                                               ance eligible individual described in sub-              ment of such individual occurred; or                   under a flexible spending arrangement (as
                                               section (c)(1), such individual shall be treat-            (iii) in the case of any assistance eligible        defined in section 106(c)(2) of the Internal
                                               ed for purposes of any COBRA continuation               individual described in subsection (c)(3), the         Revenue Code of 1986), coverage of treatment
                                               provision as having paid the amount of such             furlough period began with respect to such             that is furnished in an on-site medical facil-
                                               premium if such individual pays (and any                individual.                                            ity maintained by the employer and that
                                               person other than such individual’s employer               (B) REQUIREMENTS.—Any assistance eligi-             consists primarily of first-aid services, pre-
                                               pays on behalf of such individual) the greater          ble individual may elect to enroll in dif-             vention and wellness care, or similar care (or




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                                               August 4, 2020                                    CONGRESSIONAL RECORD — SENATE                                                                       S4771
                                               a combination thereof)), or eligible for bene-            (1) IN GENERAL.—For purposes of applying             premium assistance with respect to an as-
                                               fits under the Medicare program under title             section 605(a) of the Employee Retirement              sistance eligible individual under this sec-
                                               XVIII of the Social Security Act; or                    Income Security Act of 1974, section                   tion shall not be considered income, in-kind
                                                 (ii) the first date on which the church plan          4980B(f)(5)(A) of the Internal Revenue Code of         support, or resources for purposes of deter-
                                               is no longer available to such individual; or           1986, section 2205(a) of the Public Health             mining the eligibility of the recipient (or the
                                                 (C) any assistance eligible individual de-            Service Act, and section 8905a(c)(2) of title 5,       recipient’s spouse or family) for benefits or
                                               scribed in paragraph (3)(C) for months of cov-          United States Code, in the case of—                    assistance, or the amount or extent of bene-
                                               erage beginning on or after the earlier of—               (A) an individual who does not have an               fits or assistance, or any other benefit pro-
                                                 (i) the first date that such individual is eli-       election of COBRA continuation coverage in             vided under any Federal program or any pro-
                                               gible for coverage under any other group                effect on the date of the enactment of this            gram of a State or political subdivision
                                               health plan (other than coverage consisting             Act but who would be an assistance eligible            thereof financed in whole or in part with
                                               of only dental, vision, counseling, or referral         individual described in subsection (c)(1) if           Federal funds.
                                               services (or a combination thereof), coverage           such election were so in effect; or                      (g) COBRA-SPECIFIC NOTICE.—
                                               under a flexible spending arrangement (as                 (B) an individual who elected COBRA con-               (1) GENERAL NOTICE.—
                                               defined in section 106(c)(2) of the Internal            tinuation coverage on or after March 1, 2020,            (A) IN GENERAL.—In the case of notices pro-
                                               Revenue Code of 1986), coverage of treatment            and discontinued from such coverage before             vided under section 606(a)(4) of the Employee
                                               that is furnished in an on-site medical facil-          the date of the enactment of this Act,                 Retirement Income Security Act of 1974 (29
                                               ity maintained by the employer and that                                                                        U.S.C. 1166(4)), section 4980B(f)(6)(D) of the
                                                                                                       such individual may elect the COBRA con-
                                               consists primarily of first-aid services, pre-                                                                 Internal Revenue Code of 1986, section 2206(4)
                                                                                                       tinuation coverage under the COBRA con-
                                               vention and wellness care, or similar care (or                                                                 of the Public Health Service Act (42 U.S.C.
                                                                                                       tinuation coverage provisions containing
                                               a combination thereof)), or eligible for bene-                                                                 300bb–6(4)), or section 8905a(f)(2)(A) of title 5,
                                                                                                       such provisions during the period beginning
                                               fits under the Medicare program under title                                                                    United States Code, with respect to individ-
                                                                                                       on the date of the enactment of this Act and
                                               XVIII of the Social Security Act; or                                                                           uals who, during the period described in sub-
                                                                                                       ending 60 days after the date on which the
                                                 (ii) the first date that such individual is no                                                               section (c), become entitled to elect COBRA
                                                                                                       notification required under subsection (g)(3)
                                               longer in the furlough period.                                                                                 continuation coverage, the requirements of
                                                                                                       is provided to such individual.
                                                 (2) NOTIFICATION REQUIREMENT.—Any as-                                                                        such provisions shall not be treated as met
                                                                                                         (2) COMMENCEMENT OF COBRA CONTINUATION
                                               sistance eligible individual shall notify the                                                                  unless such notices include an additional no-
                                                                                                       COVERAGE.—Any COBRA continuation cov-
                                               group health plan with respect to which sub-                                                                   tification to the recipient, in writing, in
                                                                                                       erage elected by a qualified beneficiary dur-          clear and understandable language of—
                                               section (a)(1) applies if such paragraph                ing an extended election period under para-
                                               ceases to apply by reason of subparagraph                                                                        (i) the availability of premium assistance
                                                                                                       graph (1)—                                             with respect to such coverage under this sec-
                                               (A)(i), (B)(i), or (C)(i) of paragraph (1) (as ap-        (A) shall apply as if such qualified bene-
                                               plicable). Such notice shall be provided to                                                                    tion; and
                                                                                                       ficiary had been covered as of the date of a             (ii) the option to enroll in different cov-
                                               the group health plan in such time and man-             qualifying event specified in section 603(2) of
                                               ner as may be specified by the Secretary of                                                                    erage if the employer permits assistance eli-
                                                                                                       the Employee Retirement Income Security                gible individuals described in subsection
                                               Labor.                                                  Act of 1974, section 4980B(f)(3)(B) of the Inter-
                                                 (3) SPECIAL ENROLLMENT PERIOD FOLLOWING                                                                      (c)(1) to elect enrollment in different cov-
                                                                                                       nal Revenue Code of 1986, section 2203(2) of           erage (as described in subsection (a)(2)).
                                               EXPIRATION OF PREMIUM ASSISTANCE.—Not-
                                                                                                       the Public Health Service Act, or section                (B) ALTERNATIVE NOTICE.—In the case of
                                               withstanding section 1311 of the Patient Pro-           8905a of title 5, United States Code, except
                                               tection and Affordable Care Act (42 U.S.C.                                                                     COBRA continuation coverage to which the
                                                                                                       for the voluntary termination of such bene-            notice provision under such sections does not
                                               18031), the expiration of premium assistance            ficiary’s employment by such beneficiary,
                                               pursuant to a limitation specified under                                                                       apply, the Secretary of Labor, in consulta-
                                                                                                       that occurs no earlier than March 1, 2020 (in-         tion with the Secretary of the Treasury and
                                               paragraph (1) shall be treated as a qualifying          cluding the treatment of premium payments
                                               event for which any assistance eligible indi-                                                                  the Secretary of Health and Human Services,
                                                                                                       under subsection (a)(1) and any cost-sharing           shall, in consultation with administrators of
                                               vidual is eligible to enroll in a qualified             requirements for items and services under a
                                               health plan offered through an Exchange                                                                        the group health plans (or other entities)
                                                                                                       group health plan); and                                that provide or administer the COBRA con-
                                               under title I of such Act (42 U.S.C. 18001 et             (B) shall not extend beyond the period of
                                               seq.) during a special enrollment period.                                                                      tinuation coverage involved, provide rules
                                                                                                       COBRA continuation coverage that would                 requiring the provision of such notice.
                                                 (c) ASSISTANCE ELIGIBLE INDIVIDUAL.—For
                                                                                                       have been required under the applicable                  (C) FORM.—The requirement of the addi-
                                               purposes of this section, the term ‘‘assist-
                                                                                                       COBRA continuation coverage provision if               tional notification under this paragraph may
                                               ance eligible individual’’ means, with respect
                                                                                                       the coverage had been elected as required              be met by amendment of existing notice
                                               to a period of coverage during the period be-
                                               ginning on the first day of the first month             under such provision.                                  forms or by inclusion of a separate document
                                                                                                         (e) EXPEDITED REVIEW OF DENIALS OF PRE-              with the notice otherwise required.
                                               that begins after the date of enactment of
                                                                                                       MIUM ASSISTANCE.—In any case in which an
                                               this Act and ending on December 31, 2020—                                                                        (2) SPECIFIC REQUIREMENTS.—Each addi-
                                                                                                       individual requests treatment as an assist-            tional notification under paragraph (1) shall
                                                 (1) any individual that is a qualified bene-
                                                                                                       ance eligible individual described in para-            include—
                                               ficiary that—                                           graph (1), (2), or (3) of subsection (c) and is
                                                 (A) is eligible for COBRA continuation cov-                                                                    (A) the forms necessary for establishing
                                                                                                       denied such treatment by the group health
                                               erage by reason of a qualifying event speci-                                                                   eligibility for premium assistance under this
                                                                                                       plan, the Secretary of Labor (or the Sec-
                                               fied in section 603(2) of the Employee Retire-                                                                 section;
                                                                                                       retary of Health and Human Services in con-
                                               ment Income Security Act of 1974, section                                                                        (B) the name, address, and telephone num-
                                                                                                       nection with COBRA continuation coverage
                                               4980B(f)(3)(B) of the Internal Revenue Code of          or a church plan which is provided other               ber necessary to contact the plan adminis-
                                               1986, section 2203(2) of the Public Health              than pursuant to part 6 of subtitle B of title         trator and any other person maintaining rel-
                                               Service Act, or section 8905a of title 5,               I of the Employee Retirement Income Secu-              evant information in connection with such
                                               United States Code (except for the voluntary            rity Act of 1974), in consultation with the            premium assistance;
                                               termination of such individual’s employment             Secretary of the Treasury, shall provide for             (C) a description of the extended election
                                               by such individual); and                                expedited review of such denial. An indi-              period provided for in subsection (d)(1);
                                                 (B) elects such coverage;                             vidual shall be entitled to such review upon             (D) a description of the obligation of the
                                                 (2) any individual who—                               application to such Secretary in such form             qualified beneficiary under subsection (b)(2)
                                                 (A) is terminated from (other than by rea-            and manner as shall be provided by such Sec-           and the penalty provided under section 6720C
                                               son of such employee’s gross misconduct or              retary, in consultation with the Secretary of          of the Internal Revenue Code of 1986 for fail-
                                               voluntary termination), or is subject to a re-          Treasury. Such Secretary shall make a de-              ure to carry out the obligation;
                                               duction in hours with respect to, employ-               termination regarding such individual’s eli-             (E) a description, displayed in a prominent
                                               ment with an employer who offers a church               gibility within 15 business days after receipt         manner, of the qualified beneficiary’s right
                                               plan, if the employer voluntarily offers cov-           of such individual’s application for review            to a reduced premium and any conditions on
                                               erage under such plan to such individual                under this subsection. Either Secretary’s de-          entitlement to the reduced premium;
                                               after the termination or reduction of hours,            termination upon review of the denial shall              (F) a description of the option of the quali-
                                               or is a beneficiary of such an individual who           be de novo and shall be the final determina-           fied beneficiary to enroll in different cov-
                                               is terminated or subject to a reduction of              tion of such Secretary. A reviewing court              erage if the employer permits such bene-
                                               hours, if the employer voluntarily offers cov-          shall grant deference to such Secretary’s de-          ficiary to elect to enroll in such different
                                                                                                                                                              coverage under subsection (a)(2); and




SSpencer on DSK126QN23PROD with SENATE
                                               erage under such plan to such beneficiary;              termination. The provisions of this sub-
                                               and                                                     section, subsections (a) through (e), and sub-           (G) information regarding any Exchange
                                                 (B) elects such coverage; or                          sections (g) through (i) shall be treated as           established under title I of the Patient Pro-
                                                 (3) any covered employee that is in a fur-            provisions of title I of the Employee Retire-          tection and Affordable Care Act (42 U.S.C.
                                               lough period that remains eligible for cov-             ment Income Security Act of 1974 for pur-              18001 et seq.) through which a qualified bene-
                                               erage under a group health plan offered by              poses of part 5 of subtitle B of such title.           ficiary may be eligible to enroll in a quali-
                                               the employer of such covered employee.                    (f) DISREGARD OF SUBSIDIES FOR PURPOSES              fied health plan, including—
                                                 (d) EXTENSION OF ELECTION PERIOD AND EF-              OF FEDERAL AND STATE PROGRAMS.—Not-                      (i) the publicly accessible internet website
                                               FECT ON COVERAGE.—                                      withstanding any other provision of law, any           address for such Exchange;




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                                               S4772                                             CONGRESSIONAL RECORD — SENATE                                                         August 4, 2020
                                                 (ii) the publicly accessible internet website           (B) in the case of any additional notifica-            (i) COBRA continuation coverage; or
                                               address for the Find Local Help directory               tion provided pursuant to paragraph (1)                  (ii) coverage under a group health plan;
                                               maintained by the Department of Health and              under section 8905a(f)(2)(A) of title 5, United          (C) that the expiration of premium assist-
                                               Human Services on the healthcare.gov inter-             States Code, the Office of Personnel Manage-           ance is treated as a qualifying event for
                                               net website (or a successor website);                   ment shall prescribe a model for such addi-            which any assistance eligible individual is
                                                 (iii) a clear explanation that—                       tional notification.                                   eligible to enroll in a qualified health plan
                                                 (I) an individual who is eligible for con-              (h) FURLOUGH-SPECIFIC NOTICE.—                       offered through an Exchange under title I of
                                               tinuation coverage may also be eligible to                (1) IN GENERAL.—With respect to any as-              such Act (42 U.S.C. 18001 et seq.) during a
                                               enroll, with financial assistance, in a quali-          sistance eligible individual described in sub-         special enrollment period; and
                                               fied health plan offered through such Ex-               section (c)(3) who, during the period de-                (D) the information specified in subsection
                                               change, but, in the case that such individual           scribed in such paragraph, becomes eligible            (g)(2)(G).
                                               elects to enroll in such continuation cov-              for assistance pursuant to subsection                    (2) EXCEPTION.—The requirement for the
                                               erage and subsequently elects to terminate              (a)(1)(C), the requirements of section 606(a)(4)       group health plan administrator to provide
                                               such continuation coverage before the period            of the Employee Retirement Income Secu-                the written notice under paragraph (1) shall
                                               of such continuation coverage expires, such             rity Act of 1974 (29 U.S.C. 1166(4)), section          be waived in the case the premium assist-
                                                                                                       4980B(f)(6)(D) of the Internal Revenue Code of
                                               termination does not initiate a special en-                                                                    ance for such individual expires pursuant to
                                                                                                       1986, section 2206(4) of the Public Health
                                               rollment period (absent a qualifying event                                                                     subparagraph (A)(i) or (C)(i) of subsection
                                                                                                       Service Act (42 U.S.C. 300bb–6(4)), or section
                                               specified in section 603(2) of the Employee                                                                    (b)(1).
                                                                                                       8905a(f)(2)(A) of title 5, United States Code,
                                               Retirement Income Security Act of 1974, sec-                                                                     (3) PERIOD SPECIFIED.—For purposes of
                                                                                                       shall not be treated as met unless the group
                                               tion 4980B(f)(3)(B) of the Internal Revenue             health plan administrator, in accordance               paragraph (1), the period specified in this
                                               Code of 1986, section 2203(2) of the Public             with the timing requirement specified under            paragraph is, with respect to the date of ex-
                                               Health Service Act, or section 8905a of title           paragraph (2), provides to the individual a            piration of premium assistance for any as-
                                               5, United States Code, with respect to such             written notice in clear and understandable             sistance eligible individual pursuant to a
                                               individual); and                                        language of—                                           limitation requiring a notice under this sub-
                                                 (II) an individual who elects to enroll in              (A) the availability of premium assistance           section, the period beginning on the day that
                                               continuation coverage will remain eligible to           with respect to such coverage under this sec-          is 45 days before the date of such expiration
                                               enroll in a qualified health plan offered               tion;                                                  and ending on the day that is 15 days before
                                               through such Exchange during an open en-                  (B) the option of the qualified beneficiary          the date of such expiration.
                                               rollment period and may be eligible for fi-             to enroll in different coverage if the em-               (4) MODEL NOTICES.—Not later than 30 days
                                               nancial assistance with respect to enrolling            ployer permits such beneficiary to elect to            after the date of enactment of this Act, with
                                               in such a qualified health plan;                        enroll in such different coverage under sub-           respect to any assistance eligible indi-
                                                 (iv) information on consumer protections              section (a)(2); and                                    vidual—
                                               with respect to enrolling in a qualified                  (C) the information specified under sub-               (A) the Secretary of Labor, in consultation
                                               health plan offered through such Exchange,              section (g)(2) (as applicable).                        with the Secretary of the Treasury and the
                                               including the requirement for such a quali-               (2) TIMING SPECIFIED.—For purposes of                Secretary of Health and Human Services,
                                               fied health plan to provide coverage for es-            paragraph (1), the timing requirement speci-           shall prescribe models for the notification
                                               sential health benefits (as defined in section          fied in this paragraph is—                             required under this subsection (other than
                                               1302(b) of such Act (42 U.S.C. 18022(b))) and             (A) with respect to such an individual who           the notification described in subparagraph
                                               the requirements applicable to such a quali-            is within a furlough period during the period          (B)); and
                                               fied health plan under part A of title XXVII            beginning on March 1, 2020, and ending on                (B) in the case of any notification provided
                                               of the Public Health Service Act (42 U.S.C.             the date of the enactment of this Act, 30              pursuant to paragraph (1) under section
                                               300gg et seq.);                                         days after the date of such enactment; and             8905a(f)(2)(A) of title 5, United States Code,
                                                 (v) information on the availability of fi-              (B) with respect to such an individual who           the Office of Personnel Management shall
                                               nancial assistance with respect to enrolling            is within a furlough period during the period          prescribe a model for such notification.
                                               in a qualified health plan, including the               beginning on the first day after the date of             (j) REGULATIONS.—The Secretary of the
                                               maximum income limit for eligibility for the            the enactment of this Act and ending on De-            Treasury and the Secretary of Labor may
                                               premium tax credit under section 36B of the             cember 31, 2020, 30 days after the date of the
                                               Internal Revenue Code of 1986; and                                                                             jointly prescribe such regulations or other
                                                                                                       beginning of such furlough period.
                                                 (vi) information on any special enrollment              (3) MODEL NOTICES.—Not later than 30 days            guidance as may be necessary or appropriate
                                               periods during which any assistance eligible            after the date of enactment of this Act, with          to carry out the provisions of this section,
                                               individual described in subsection (c)(1)(A)            respect to any assistance eligible individual          including the prevention of fraud and abuse
                                               may be eligible to enroll, with financial as-           described in subsection (c)(3)—                        under this section, except that the Secretary
                                               sistance, in a qualified health plan offered              (A) the Secretary of Labor, in consultation          of Labor and the Secretary of Health and
                                               through such Exchange (including a special              with the Secretary of the Treasury and the             Human Services may prescribe such regula-
                                               enrollment period for which an individual               Secretary of Health and Human Services,                tions (including interim final regulations) or
                                               may be eligible due to the expiration of pre-           shall prescribe models for the notification            other guidance as may be necessary or ap-
                                               mium assistance pursuant to a limitation                required under this paragraph (other than              propriate to carry out the provisions of sub-
                                               specified under subsection (b)(1)); and                 the notification described in subparagraph
                                                 (H) information regarding compliance with                                                                    sections (e), (g), (h), (i), and (k).
                                                                                                       (B)); and
                                               the requirements of subsection (n).                       (B) in the case of any notification provided           (k) OUTREACH.—
                                                 (3) NOTICE IN CONNECTION WITH EXTENDED                pursuant to paragraph (1) under section                  (1) IN GENERAL.—The Secretary of Labor, in
                                               ELECTION PERIODS.—In the case of any assist-            8905a(f)(2)(A) of title 5, United States Code,         consultation with the Secretary of the
                                               ance eligible individual described in sub-              the Office of Personnel Management shall               Treasury and the Secretary of Health and
                                               section (c)(1) (or any individual described in          prescribe a model for such notification.               Human Services, shall provide outreach con-
                                               subsection (d)(1)) who became entitled to                 (i) NOTICE OF EXPIRATION OF PERIOD OF                sisting of public education and enrollment
                                               elect COBRA continuation coverage before                PREMIUM ASSISTANCE.—                                   assistance relating to premium assistance
                                               the date of the enactment of this Act, the                (1) IN GENERAL.—With respect to any as-              provided under this section. Such outreach
                                               administrator of the applicable group health            sistance eligible individual (as applicable),          shall target employers, group health plan ad-
                                               plan (or other entity) shall provide (within 60         subject to paragraph (2), the requirements of          ministrators, public assistance programs,
                                               days after the date of enactment of this Act)           section 606(a)(4) of the Employee Retirement           States, insurers, and other entities as deter-
                                               for the additional notification required to be          Income Security Act of 1974 (29 U.S.C.                 mined appropriate by such Secretaries. Such
                                               provided under paragraph (1) and failure to             1166(4)), section 4980B(f)(6)(D) of the Internal       outreach shall include an initial focus on
                                               provide such notice shall be treated as a fail-         Revenue Code of 1986, section 2206(4) of the           those individuals electing continuation cov-
                                               ure to meet the notice requirements under               Public Health Service Act (42 U.S.C. 300bb–            erage who are referred to in subsection (g)(3).
                                               the applicable COBRA continuation provi-                6(4)), or section 8905a(f)(2)(A) of title 5,           Information on such premium assistance, in-
                                               sion.                                                   United States Code, shall not be treated as            cluding enrollment, shall also be made avail-
                                                 (4) MODEL NOTICES.—Not later than 30 days             met unless the employer of the individual,             able on websites of the Departments of
                                               after the date of enactment of this Act, with           during the period specified under paragraph            Labor, Treasury, and Health and Human
                                               respect to any assistance eligible individual           (3), provides to such individual a written no-         Services.




SSpencer on DSK126QN23PROD with SENATE
                                               described in subsection (c)(1)—                         tice in clear and understandable language—               (2) ENROLLMENT UNDER MEDICARE.—The
                                                 (A) the Secretary of Labor, in consultation             (A) that the premium assistance for such             Secretary of Health and Human Services
                                               with the Secretary of the Treasury and the              individual will expire soon and the promi-             shall provide outreach consisting of public
                                               Secretary of Health and Human Services,                 nent identification of the date of such expi-          education. Such outreach shall target indi-
                                               shall prescribe models for the additional no-           ration;                                                viduals who lose health insurance coverage.
                                               tification required under this paragraph                  (B) that such individual may be eligible for         Such outreach shall include information re-
                                               (other than the additional notification de-             coverage without any premium assistance                garding enrollment for benefits under title
                                               scribed in subparagraph (B)); and                       through—                                               XVIII of the Social Security Act (42 U.S.C.




                                         VerDate Sep 11 2014   08:41 Aug 05, 2020   Jkt 099060   PO 00000   Frm 00094   Fmt 4624   Sfmt 0634   E:\CR\FM\A04AU6.041   S04AUPT1
                                               August 4, 2020                                    CONGRESSIONAL RECORD — SENATE                                                                      S4773
                                               1395 et seq.) for purposes of preventing mis-           vidual and an employer of such individual,             of 1986, the Secretary of Labor and the Sec-
                                               taken delays of such enrollment by such in-             the greater of—                                        retary of the Treasury, respectively, may
                                               dividuals, including lifetime penalties for               (i) such individual’s work hours in the              not waive or extend any deadline with re-
                                               failure of timely enrollment.                           month prior (or in the case such individual            spect to the provision of notices described in
                                                  (l) DEFINITIONS.—For purposes of this sec-           had no work hours in the month prior and               subsections (g), (h), and (i).
                                               tion:                                                   had work hours in the 3 months prior, the              SEC. 203. AMENDMENTS TO THE INTERNAL REV-
                                                  (1) ADMINISTRATOR.—The term ‘‘adminis-               last month with work hours within the prior                        ENUE CODE OF 1986.
                                               trator’’ has the meaning given such term in             3 months); and                                           (a) COBRA PREMIUM ASSISTANCE.—
                                               section 3(16)(A) of the Employee Retirement               (ii) such individual’s work hours during the           (1) IN GENERAL.—Subchapter B of chapter
                                               Income Security Act of 1974.                            period beginning January 1, 2020, and ending           65 of the Internal Revenue Code of 1986 is
                                                  (2) CHURCH PLAN.—The term ‘‘church plan’’            January 31, 2020.                                      amended by adding at the end the following
                                                                                                         (m) REPORTS.—                                        new section:
                                               means a plan, as described in section 414(e) of
                                                                                                         (1) INTERIM REPORT.—The Secretary of the
                                               the Internal Revenue Code of 1986, that pro-                                                                   ‘‘SEC. 6432. CONTINUATION COVERAGE PREMIUM
                                                                                                       Treasury and the Secretary of Labor shall                            ASSISTANCE.
                                               vides medical care to employees or their de-
                                                                                                       jointly submit an interim report to the Com-
                                               pendents.                                                                                                         ‘‘(a) IN GENERAL.—The person to whom pre-
                                                                                                       mittee on Education and Labor, the Com-
                                                  (3) COBRA CONTINUATION COVERAGE.—The                                                                        miums are payable for continuation cov-
                                                                                                       mittee on Ways and Means, and the Com-
                                               term      ‘‘COBRA    continuation    coverage’’                                                                erage under section 202(a)(1) of the Contin-
                                                                                                       mittee on Energy and Commerce of the
                                               means continuation coverage provided pur-                                                                      uous Health Coverage for Workers Act shall
                                                                                                       House of Representatives and the Committee
                                               suant to part 6 of subtitle B of title I of the         on Health, Education, Labor, and Pensions              be allowed as a credit against the tax im-
                                               Employee Retirement Income Security Act                 and the Committee on Finance of the Senate             posed by section 3111(a), or so much of the
                                               of 1974 (other than under section 609), title           regarding the premium assistance provided              taxes imposed under section 3221(a) as are at-
                                               XXII of the Public Health Service Act, sec-             under this section that includes—                      tributable to the rate in effect under section
                                               tion 4980B of the Internal Revenue Code of                (A) the number of individuals provided               3111(a), for each calendar quarter an amount
                                               1986 (other than subsection (f)(1) of such sec-         such assistance as of the date of the report;          equal to the premiums not paid by assistance
                                               tion insofar as it relates to pediatric vac-            and                                                    eligible individuals for such coverage by rea-
                                               cines), or section 8905a of title 5, United               (B) the total amount of expenditures in-             son of such section 202(a)(1) with respect to
                                               States Code, or under a State program that              curred (with administrative expenditures               such calendar quarter.
                                               provides comparable continuation coverage.              noted separately) in connection with such                 ‘‘(b) PERSON TO WHOM PREMIUMS ARE PAY-
                                               Such term does not include coverage under a             assistance as of the date of the report.               ABLE.—For purposes of subsection (a), except
                                               health flexible spending arrangement under                (2) FINAL REPORT.—As soon as practicable             as otherwise provided by the Secretary, the
                                               a cafeteria plan within the meaning of sec-             after the last period of COBRA continuation            person to whom premiums are payable under
                                               tion 125 of the Internal Revenue Code of 1986.          coverage for which premium assistance is               such continuation coverage shall be treated
                                                  (4) COBRA CONTINUATION PROVISION.—The                provided under this section, the Secretary of          as being—
                                               term ‘‘COBRA continuation provision’’                   the Treasury and the Secretary of Labor                   ‘‘(1) in the case of any group health plan
                                               means the provisions of law described in                shall jointly submit a final report to each            which is a multiemployer plan (as defined in
                                               paragraph (3).                                          Committee referred to in paragraph (1) that            section 3(37) of the Employee Retirement In-
                                                  (5) COVERED EMPLOYEE.—The term ‘‘cov-                includes—                                              come Security Act of 1974), the plan,
                                               ered employee’’ has the meaning given such                (A) the number of individuals provided pre-             ‘‘(2) in the case of any group health plan
                                               term in section 607(2) of the Employee Re-              mium assistance under this section;                    not described in paragraph (1)—
                                               tirement Income Security Act of 1974.                     (B) the average dollar amount (monthly                  ‘‘(A) which provides church plan continu-
                                                  (6) QUALIFIED BENEFICIARY.—The term                  and annually) of premium assistance pro-               ation       coverage    described   in    section
                                               ‘‘qualified beneficiary’’ has the meaning               vided to such individuals; and                         202(a)(1)(A)(ii), furlough continuation cov-
                                               given such term in section 607(3) of the Em-              (C) the total amount of expenditures in-             erage described in section 202(a)(1)(A)(iii) of
                                               ployee Retirement Income Security Act of                curred (with administrative expenditures               the Continuous Health Coverage for Workers
                                               1974.                                                   noted separately) in connection with pre-              Act or subject to the COBRA continuation
                                                  (7) GROUP HEALTH PLAN.—The term ‘‘group              mium assistance under this section.                    provisions contained in—
                                               health plan’’ has the meaning given such                  (n) LIMITATION.—                                        ‘‘(i) this title,
                                               term in section 607(1) of the Employee Re-                (1) IN GENERAL.—Notwithstanding section                 ‘‘(ii) the Employee Retirement Income Se-
                                               tirement Income Security Act of 1974.                   602(1) of the Employee Retirement Income               curity Act of 1974,
                                                  (8) STATE.—The term ‘‘State’’ includes the           Security Act of 1974 (29 U.S.C. 1162(1)) or any           ‘‘(iii) the Public Health Service Act, or
                                               District of Columbia, the Commonwealth of               other provision of part 6 of subtitle B of title          ‘‘(iv) title 5, United States Code, or
                                               Puerto Rico, the Virgin Islands, Guam,                  I of such Act of 1974 (29 U.S.C. 1161 et seq.),           ‘‘(B) under which some or all of the cov-
                                               American Samoa, and the Commonwealth of                 section 2202(1) of the Public Health Service           erage is not provided by insurance,
                                               the Northern Mariana Islands.                           Act (42 U.S.C. 300bb–2) or any other provision         the employer maintaining the plan, and
                                                  (9) PERIOD OF COVERAGE.—Any reference in             of such Act (42 U.S.C. 201 et seq.), section              ‘‘(3) in the case of any group health plan
                                               this section to a period of coverage shall be           4980B(f)(2)(A) of the Internal Revenue Code of         not described in paragraph (1) or (2), the in-
                                               treated as a reference to a monthly or short-           1986 or any other provision of such Code, sec-         surer providing the coverage under the group
                                               er period of coverage with respect to which             tion 8905a of title 5, United States Code, or          health plan.
                                               premiums are charged with respect to such               any provision of State law, in the case of                ‘‘(c) LIMITATIONS AND REFUNDABILITY.—
                                               coverage.                                               coverage described in subsection (a)(1) for an            ‘‘(1) CREDIT LIMITED TO CERTAIN EMPLOY-
                                                  (10) PLAN SPONSOR.—The term ‘‘plan spon-             assistance eligible individual—                        MENT TAXES.—The credit allowed by sub-
                                               sor’’ has the meaning given such term in sec-             (A) such coverage shall exclude coverage of          section (a) with respect to any calendar
                                               tion 3(16)(B) of the Employee Retirement In-            an abortion (except to the extent described            quarter shall not exceed the tax imposed by
                                               come Security Act of 1974.                              in section 507(a) of division A of Public Law          section 3111(a), or so much of the taxes im-
                                                  (11) FURLOUGH PERIOD.—                               116–94) for any period of coverage beginning           posed under section 3221(a) as are attrib-
                                                  (A) IN GENERAL.—The term ‘‘furlough pe-              on or after the date of enactment of this Act,         utable to the rate in effect under section
                                               riod’’ means, with respect to an individual             for which subsection (a)(1) applies to the in-         3111(a), for such calendar quarter (reduced by
                                               and an employer of such individual, a pe-               dividual; and                                          any credits allowed under subsections (e) and
                                               riod—                                                     (B) if such coverage would, but for the re-          (f) of section 3111, sections 7001 and 7003 of
                                                  (i) beginning with the first month begin-            quirement under subparagraph (A), include              the Families First Coronavirus Response
                                               ning on or after March 1, 2020, and before De-          coverage of abortion (except to the extent             Act, section 2301 of the CARES Act, and sec-
                                               cember 31, 2020, during which such individ-             described in such subparagraph) for such in-           tions 20204 and 20212 of the COVID–19 Tax Re-
                                               ual’s employer reduces such individual’s                dividual, the coverage shall be modified for           lief Act of 2020 for such quarter) on the wages
                                               work hours (due to a lack of work, funds, or            such individual so that the coverage excludes          paid with respect to the employment of all
                                               other nondisciplinary reason) to an amount              abortion (except to the extent described in            employees of the employer.
                                               that is less than 70 percent of the base month          such subparagraph) for any period of cov-                 ‘‘(2) REFUNDABILITY OF EXCESS CREDIT.—
                                               amount; and                                             erage as described in such subparagraph.                  ‘‘(A) CREDIT IS REFUNDABLE.—If the amount
                                                  (ii) ending with the earlier of—                       (2) RULE OF CONSTRUCTION.—Nothing in this            of the credit under subsection (a) exceeds the
                                                  (I) the first month beginning after Decem-                                                                  limitation of paragraph (1) for any calendar




SSpencer on DSK126QN23PROD with SENATE
                                                                                                       subtitle, or any amendment made by this
                                               ber 31, 2020; or                                        subtitle, may be construed to require a                quarter, such excess shall be treated as an
                                                  (II) the month following the first month             health plan, including any COBRA continu-              overpayment that shall be refunded under
                                               during which work hours of such employee                ation coverage, to provide coverage of any             sections 6402(a) and 6413(b).
                                               are greater than 80 percent of work hours of            abortion.                                                 ‘‘(B) CREDIT MAY BE ADVANCED.—In antici-
                                               the base month amount.                                    (o) DEADLINES WITH RESPECT TO NOTICES.—              pation of the credit, including the refundable
                                                  (B) BASE MONTH AMOUNT.—For purposes of               Notwithstanding section 518 of the Employee            portion under subparagraph (A), the credit
                                               subparagraph (A), the term ‘‘base month                 Retirement Income Security Act of 1974 and             may be advanced, according to forms and in-
                                               amount’’ means, with respect to an indi-                section 7508A of the Internal Revenue Code             structions provided by the Secretary, up to




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                                               S4774                                             CONGRESSIONAL RECORD — SENATE                                                           August 4, 2020
                                               an amount calculated under subsection (a)               ject to the limitations provided in this sec-           ‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY
                                               through the end of the most recent payroll              tion, based on such information as the Sec-                          HEALTH PLAN OF CESSATION OF
                                                                                                                                                                            ELIGIBILITY FOR CONTINUATION
                                               period in the quarter.                                  retary shall require,                                                COVERAGE PREMIUM ASSISTANCE.
                                                 ‘‘(C) TREATMENT OF DEPOSITS.—The Sec-                   ‘‘(4) to provide for the reconciliation of
                                               retary shall waive any penalty under section                                                                       ‘‘(a) IN GENERAL.—Except in the case of
                                                                                                       such advance payment with the amount of                 failure described in subsection (b) or (c), any
                                               6656 for any failure to make a deposit of the           the credit at the time of filing the return of
                                               tax imposed by section 3111(a), or so much of                                                                   person required to notify a group health plan
                                                                                                       tax for the applicable quarter or taxable               under section 202(a)(2)(B) of the Continuous
                                               the taxes imposed under section 3221(a) as              year, and
                                               are attributable to the rate in effect under                                                                    Health Coverage for Workers Act who fails
                                                                                                         ‘‘(5) with respect to the application of the          to make such a notification at such time and
                                               section 3111(a), if the Secretary determines            credit to third party payors (including pro-
                                               that such failure was due to the anticipation                                                                   in such manner as the Secretary of Labor
                                                                                                       fessional employer organizations, certified             may require shall pay a penalty of $250.
                                               of the credit allowed under this section.               professional employer organizations, or                   ‘‘(b) INTENTIONAL FAILURE.—In the case of
                                                 ‘‘(D) TREATMENT OF PAYMENTS.—For pur-                 agents under section 3504).                             any such failure that is fraudulent, such per-
                                               poses of section 1324 of title 31, United States
                                                                                                         ‘‘(h) LIMITATION.—In the case of any period           son shall pay a penalty equal to the greater
                                               Code, any amounts due to an employer under
                                                                                                       of coverage (as defined in section 202(l) of the        of—
                                               this paragraph shall be treated in the same
                                                                                                                                                                 ‘‘(1) $250, or
                                               manner as a refund due from a credit provi-             Continuous Health Coverage for Workers
                                                                                                                                                                 ‘‘(2) 110 percent of the premium assistance
                                               sion referred to in subsection (b)(2) of such           Act) beginning on or after the date of enact-
                                                                                                                                                               provided under section 202(a)(1)(A) of the
                                               section.                                                ment of this section, no credit shall be al-            Continuous Health Coverage for Workers Act
                                                 ‘‘(3) LIMITATION ON REIMBURSEMENT FOR                 lowed under this section with respect to any            after termination of eligibility under such
                                               CERTAIN EMPLOYEES.—In the case of an indi-
                                                                                                       coverage that includes coverage of an abor-             section.
                                               vidual who for any month is an assistance el-
                                                                                                       tion (except as described in section 507(a) of            ‘‘(c) REASONABLE CAUSE EXCEPTION.—No
                                               igible individual described in subparagraph
                                                                                                       division A of Public Law 116–94).’’.                    penalty shall be imposed under this section
                                               (B) or (C) of section 202(a)(3) of the Contin-
                                                                                                         (2) SOCIAL SECURITY TRUST FUNDS HELD                  with respect to any failure if it is shown that
                                               uous Health Coverage for Workers Act with
                                                                                                       HARMLESS.—There are hereby appropriated                 such failure is due to reasonable cause and
                                               respect to any coverage, the credit deter-
                                                                                                       to the Federal Old-Age and Survivors Insur-             not to willful neglect.’’.
                                               mined with respect to such individual under
                                                                                                       ance Trust Fund and the Federal Disability                (2) CLERICAL AMENDMENT.—The table of
                                               subsection (a) for any such month ending
                                                                                                       Insurance Trust Fund established under sec-             sections of part I of subchapter B of chapter
                                               during a calendar quarter shall not exceed
                                                                                                       tion 201 of the Social Security Act (42 U.S.C.          68 of such Code is amended by adding at the
                                               the amount of premium the individual would
                                                                                                       401) and the Social Security Equivalent Ben-            end the following new item:
                                               have paid for a full month of such coverage
                                               for the month preceding the first month for             efit Account established under section 15A(a)           ‘‘Sec. 6720C. Penalty for failure to notify
                                               which an individual is such an assistance eli-          of the Railroad Retirement Act of 1974 (45                              health plan of cessation of eli-
                                               gible individual.                                       U.S.C. 231n–1(a)) amounts equal to the reduc-                           gibility for continuation cov-
                                                 ‘‘(d) GOVERNMENTAL ENTITIES.—For pur-                 tion in revenues to the Treasury by reason of                           erage premium assistance.’’.
                                               poses of this section, the term ‘person’ in-            this subsection (without regard to this para-             (c) COORDINATION WITH HCTC.—
                                               cludes any governmental entity or Indian                graph). Amounts appropriated by the pre-                  (1) IN GENERAL.—Section 35(g)(9) of the In-
                                               tribal government (as defined in section                ceding sentence shall be transferred from the           ternal Revenue Code of 1986 is amended to
                                               139E(c)(1)).                                            general fund at such times and in such man-             read as follows:
                                                 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—For pur-              ner as to replicate to the extent possible the            ‘‘(9) CONTINUATION COVERAGE PREMIUM AS-
                                               poses of chapter 1, the gross income of any             transfers which would have occurred to such             SISTANCE.—In the case of an assistance eligi-
                                               person allowed a credit under this section              Trust Fund or Account had this section not              ble individual who receives premium assist-
                                               shall be increased for the taxable year which           been enacted.                                           ance for continuation coverage under section
                                               includes the last day of any calendar quarter                                                                   202(a)(1) of the Continuous Health Coverage
                                                                                                         (3) CLERICAL AMENDMENT.—The table of
                                               with respect to which such credit is allowed                                                                    for Workers Act for any month during the
                                                                                                       sections for subchapter B of chapter 65 of the
                                               by the amount of such credit. No amount for                                                                     taxable year, such individual shall not be
                                                                                                       Internal Revenue Code of 1986 is amended by
                                               which a credit is allowed under this section                                                                    treated as an eligible individual, a certified
                                               shall be taken into account as qualified                adding at the end the following new item:
                                                                                                                                                               individual, or a qualifying family member
                                               wages under section 2301 of the CARES Act               ‘‘Sec. 6432. Continuation coverage premium              for purposes of this section or section 7527
                                               or as qualified health plan expenses under                            assistance.’’.                            with respect to such month.’’.
                                               section 7001(d) or 7003(d) of the Families                (4) EFFECTIVE DATE.—The amendments                      (2) EFFECTIVE DATE.—The amendment
                                               First Coronavirus Response Act.                         made by this subsection shall apply to pre-             made by paragraph (1) shall apply to taxable
                                                 ‘‘(f) REPORTING.—Each person entitled to                                                                      years ending after the date of the enactment
                                                                                                       miums to which section 202(a)(1)(A) applies.
                                               reimbursement under subsection (a) for any                                                                      of this Act.
                                                                                                         (5) SPECIAL RULE IN CASE OF EMPLOYEE PAY-
                                               period shall submit such reports (at such                                                                         (d) EXCLUSION OF CONTINUATION COVERAGE
                                                                                                       MENT THAT IS NOT REQUIRED UNDER THIS SEC-
                                               time and in such manner) as the Secretary                                                                       PREMIUM ASSISTANCE FROM GROSS INCOME.—
                                                                                                       TION.—
                                               may require, including—                                                                                           (1) IN GENERAL.—Part III of subchapter B of
                                                 ‘‘(1) an attestation of involuntary termi-              (A) IN GENERAL.—In the case of an assist-
                                                                                                       ance eligible individual who pays, with re-             chapter 1 of the Internal Revenue Code of
                                               nation of employment, reduction of hours, or                                                                    1986 is amended by inserting after section
                                               furloughing, for each assistance eligible indi-         spect any period of coverage to which section
                                                                                                       202(a)(1)(A) applies, the amount of the pre-            139H the following new section:
                                               vidual on the basis of whose termination, re-                                                                   ‘‘SEC. 139I. CONTINUATION COVERAGE PREMIUM
                                               duction of hours, or furloughing entitlement            mium for such coverage that the individual
                                                                                                                                                                             ASSISTANCE.
                                               to reimbursement is claimed under sub-                  would have (but for this subtitle) been re-
                                                                                                                                                                 ‘‘In the case of an assistance eligible indi-
                                               section (a),                                            quired to pay, the person to whom such pay-
                                                                                                                                                               vidual (as defined in subsection (a)(3) of sec-
                                                 ‘‘(2) a report of the amount of payroll taxes         ment is payable shall reimburse such indi-
                                                                                                                                                               tion 202 of the Continuous Health Coverage
                                               offset under subsection (a) for the reporting           vidual for the amount of such premium paid.
                                                                                                                                                               for Workers Act), gross income does not in-
                                               period, and                                               (B) CREDIT OF REIMBURSEMENT.—A person
                                                                                                                                                               clude any premium assistance provided
                                                 ‘‘(3) a report containing the TINs of all             to which subparagraph (A) applies shall be
                                                                                                                                                               under subsection (a)(1) of such section.’’.
                                               covered employees, the amount of subsidy                allowed a credit in the manner provided                   (2) CLERICAL AMENDMENT.—The table of
                                               reimbursed with respect to each employee,               under section 6432 of the Internal Revenue              sections for part III of subchapter B of chap-
                                               and a designation with respect to each em-              Code of 1986 for any payment made to the                ter 1 of such Code is amended by inserting
                                               ployee as to whether the subsidy reimburse-             employee under such subparagraph.                       after the item relating to section 139H the
                                               ment is for coverage of 1 individual or 2 or              (C) PAYMENT OF CREDITS.—Any person to                 following new item:
                                               more individuals.                                       which subparagraph (A) applies shall make
                                                 ‘‘(g) REGULATIONS.—The Secretary shall                                                                        ‘‘Sec. 139I. Continuation coverage premium
                                                                                                       the payment required under such clause to
                                               issue such regulations or other guidance as                                                                                   assistance.’’.
                                                                                                       the individual not later than 60 days after
                                               may be necessary or appropriate to carry out                                                                      (3) EFFECTIVE DATE.—The amendments
                                                                                                       the date on which such individual elects con-
                                               this section, including—                                                                                        made by this subsection shall apply to tax-
                                                                                                       tinuation coverage under section 202(a)(1) of           able years ending after the date of the enact-
                                                 ‘‘(1) the requirement to report information           the Continuous Health Coverage for Workers
                                               or the establishment of other methods for                                                                       ment of this Act.




SSpencer on DSK126QN23PROD with SENATE
                                                                                                       Act.
                                               verifying the correct amounts of reimburse-                                                                     SEC. 204. RULE OF CONSTRUCTION.
                                               ments under this section,                                    (b)PENALTY FOR FAILURE TO NOTIFY                     In all matters of interpretation, rules, and
                                                 ‘‘(2) the application of this section to group        HEALTH PLAN OF CESSATION OF ELIGIBILITY                 operational procedures, the language of this
                                               health plans that are multiemployer plans               FOR PREMIUM ASSISTANCE.—                                subtitle shall be interpreted broadly for the
                                               (as defined in section 3(37) of the Employee              (1) IN GENERAL.—Part I of subchapter B of             benefit of workers and their families.
                                               Retirement Income Security Act of 1974),                chapter 68 of the Internal Revenue Code of
                                                 ‘‘(3) to allow the advance payment of the             1986 is amended by adding at the end the fol-            SA 2516. Ms. MCSALLY submitted an
                                               credit determined under subsection (a), sub-            lowing new section:                                     amendment intended to be proposed by



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