,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #fhaj  ,,in ,,the ,,house ,,of  
,,representatives  ,may #ab1 #bjbj,mr4  
,rodney ,davis of ,illinois 7for        
himself1 ,mr4 ,schrader1 ,mrs4 ,wagner1 
,ms4 ,kendra ,s4 ,horn of ,oklahoma1    
,mr4 ,gonzalez of ,ohio1 and ,ms4       
,torres ,small of ,new ,mexico7         
introduced the following bill2 which was
 referred to the ,committee on          
,education and ,labor1 and in addition  
to the ,committees on ,energy and       
,commerce1 and ,ways and ,means1 for a  
period to be subsequently determined by 
the ,speaker1 in each case for          
consideration of such provisions as fall
 within the jurisdiction of the         
committee concerned  ,a ,,bill  ,to     
establish a ,health ,care ,protection   
,program ,fund to provide grants to     
employers to ensure continuity of       
coverage under a group health plan      
through the ,,covid-#ai pandemic1 to    
provide for premium assistance for      
,,cobra benefits1 and for other         

purposes4  #a4 ,short title ,this ,act  
may be cited as the ,health ,care       
,protection ,act4  #b4 ,sense of        
,congress ,it is the sense of ,congress 
that-- 7#a7 the ,,covid-#ai pandemic has
 caused many individuals to lose access 
to employer-sponsored health insurance  
at no fault of their own2  7#b7         
individuals should not be forced to     
cover additional costs associated with  
healthcare due to a loss of access to   
employer-sponsored health insurance2    
7#c7 employers should utilize all tools 
provided to them by the ,federal        
,government to bring individuals back   
onto payroll so that they may receive   
benefits such as employer-sponsored     
health insurance2 and  7#d7 individuals 
unable to rejoin the workforce should   
receive assistance equal to that        
received while employed so that when an 
employer makes an offer of employment1  
the individual does not have an         
incentive to reject4  #c4 ,american     
,health ,exchanges special enrollment   

period ,section #acaa7;c77#f7 of the    
,patient ,protection and ,affordable    
,care ,act 7#db ,u4,s4,c4               
#ahjca7;c77#f77 is amended-- 7#a7 in    
subparagraph 7,c71 by striking at the   
end and2  7#b7 in subparagraph 7,d71 by 
striking at the end the period and      
inserting 2 and2 and  7#c7 by adding at 
the end the following new subparagraph3 
7,e7 a special enrollment period during 
the #cj-;day period following the date  
of the enactment of this subparagraph   
during which any individual who is      
otherwise eligible to enroll in a       
qualified health plan through the       
,exchange and who is not otherwise      
enrolled in such a plan may enroll in   
such a qualified health plan4  4  #d4   
,premium assistance for ,,cobra benefits
  7a7 ,premium assistance for ,,cobra   
continuation coverage for individuals   
and their families  7#a7 ,provision of  
premium assistance  7,a7 ,reduction of  
premiums payable ,in the case of any    
premium for a period of coverage 7not to

 exceed #f months7 beginning on or after
 the date of the enactment of this ,act 
and on or before ,january #a1 #bjba1 for
 ,,cobra continuation coverage with     
respect to any assistance eligible      
individual1 such individual shall be    
treated for purposes of any ,,cobra     
continuation provision as having paid   
the amount of such premium if such      
individual pays 7or a person other than 
such individual's employer pays on      
behalf of such individual7 a percent of 
such premium such that the amount of    
such premium so paid is equal to the    
amount the covered employee with respect
 to such coverage would have paid with  
respect to such individual for such     
period for coverage under the group     
health plan under which such employee   
was enrolled at the time of the         
qualifying event had such event not     
occurred 7as determined without regard  
to this subsection74  7,b7 ,plan        
enrollment option  7i7 ,in general      
,notwithstanding the ,,cobra            

continuation provisions1 an assistance  
eligible individual may1 not later than 
#ij days after the date of notice of the
 plan enrollment option described in    
this subparagraph1 elect to enroll in   
coverage under a plan offered by the    
employer involved1 or the employee      
organization involved 7including1 for   
this purpose1 a joint board of trustees 
of a multiemployer trust affiliated with
 one or more multiemployer plans71 that 
is different than coverage under the    
plan in which such individual was       
enrolled at the time the qualifying     
event occurred1 and such coverage shall 
be treated as ,,cobra continuation      
coverage for purposes of the applicable 
,,cobra continuation coverage provision4
  7ii7 ,requirements ,an assistance     
eligible individual may elect to enroll 
in different coverage as described in   
clause 7i7 only if-- 7,i7 the employer  
involved has made a determination that  
such employer will permit assistance    
eligible individuals to enroll in       

different coverage as provided for this 
subparagraph2  7,,ii7 the premium for   
such different coverage does not exceed 
the premium for coverage in which the   
individual was enrolled at the time the 
qualifying event occurred2  7,,iii7 the 
different coverage in which the         
individual elects to enroll is coverage 
that is also offered to the active      
employees of the employer at the time at
 which such election is made2 and       
7,,iv7 the different coverage is not--  
7aa7 coverage that provides only dental1
 vision1 counseling1 or referral        
services 7or a combination of such      
services72  7bb7 a flexible spending    
arrangement 7as defined in section      
#ajf7;c77#b7 of the ,internal ,revenue  
,code of #aihf72 or  7cc7 coverage that 
provides coverage for services or       
treatments furnished in an on-site      
medical facility maintained by the      
employer and that consists primarily of 
first-aid services1 prevention and      
wellness care1 or similar care 7or a    

combination of such care74  7,c7        
,premium reimbursement ,for provisions  
providing the balance of such premium1  
see section #fdca of the ,internal      
,revenue ,code of #aihf1 as added by    
paragraph 7#ab74  7#b7 ,limitation of   
period of premium assistance  7,a7 ,in  
general ,paragraph 7#a77;,a7 shall not  
apply with respect to any assistance    
eligible individual for months of       
coverage beginning on or after the      
earlier of-- 7i7 the first date that    
such individual is eligible for coverage
 under any other group health plan      
7other than coverage consisting of only 
dental1 vision1 counseling1 or referral 
services 7or a combination thereof71    
coverage under a flexible spending      
arrangement 7as defined in section      
#ajf7;c77#b7 of the ,internal ,revenue  
,code of #aihf71 or coverage of         
treatment that is furnished in an       
on-site medical facility maintained by  
the employer and that consists primarily
 of first-aid services1 prevention and  

wellness care1 or similar care 7or a    
combination thereof77 or is eligible for
 benefits under title ,,xviii of the    
,social ,security ,act1 or  7ii7 the    
earliest of-- 7,i7 ,july #a1 #bjba1     
7,,ii7 the date following the expiration
 of the maximum period of continuation  
coverage required under the applicable  
,,cobra continuation coverage provision1
 or  7,,iii7 the date following the     
expiration of the period of continuation
 coverage allowed under paragraph       
7#d77;,b77ii74  7,b7 ,timing of         
eligibility for additional coverage ,for
 purposes of subparagraph 7,a77i71 an   
individual shall not be treated as      
eligible for coverage under a group     
health plan before the first date on    
which such individual could be covered  
under such plan4  7,c7 ,notification    
requirement ,an assistance eligible     
individual shall notify in writing the  
group health plan with respect to which 
paragraph 7#a77;,a7 applies if such     
paragraph ceases to apply by reason of  

subparagraph 7,a77i74 ,such notice shall
 be provided to the group health plan in
 such time and manner as may be         
specified by the ,secretary of ,labor4  
7#c7 ,assistance eligible individual    
,for purposes of this section1 the term 
assistance eligible individual means any
 qualified beneficiary if-- 7,a7 at any 
time during the period that begins with 
,march #a1 #bjbj1 and ends with         
,december #ca1 #bjbj1 such qualified    
beneficiary is eligible for ,,cobra     
continuation coverage1  7,b7 such       
qualified beneficiary elects such       
coverage1 and  7,c7 the qualifying event
 with respect to the ,,cobra            
continuation coverage consists of the   
involuntary termination of the covered  
employee's employment and occurred      
during such period4  7#d7 ,extension of 
election period and effect on coverage  
7,a7 ,in general ,for purposes of       
applying section #fje7;a7 of the        
,employee ,retirement ,income ,security 
,act of #aigd1 section                  

#dihj;,b7f77#e77;,a7 of the ,internal   
,revenue ,code of #aihf1 section        
#bbje7;a7 of the ,public ,health        
,service ,act1 and section              
#hije;a7c77#b7 of title #e1 ,united     
,states ,code1 in the case of an        
individual who does not have an election
 of ,,cobra continuation coverage in    
effect on the date of the enactment of  
this ,act but who would be an assistance
 eligible individual if such election   
were so in effect1 such individual may  
elect the ,,cobra continuation coverage 
under the ,,cobra continuation coverage 
provisions containing such sections     
during the period beginning on the date 
of the enactment of this ,act and ending
 #fj days after the date on which the   
notification required under paragraph   
7#g77;,c7 is provided to such           
individual4  7,b7 ,commencement of      
coverage2 no reach-back ,any ,,cobra    
continuation coverage elected by a      
qualified beneficiary during an extended
 election period under subparagraph     

7,a7-- 7i7 shall commence with the first
 period of coverage beginning on or     
after the date of the enactment of this 
,act1 and  7ii7 shall not extend beyond 
the period of ,,cobra continuation      
coverage that would have been required  
under the applicable ,,cobra            
continuation coverage provision if the  
coverage had been elected as required   
under such provision4  7#e7 ,expedited  
review of denials of premium assistance 
,in any case in which an individual     
requests treatment as an assistance     
eligible individual and is denied such  
treatment by the group health plan1 the 
,secretary of ,labor 7or the ,secretary 
of ,health and ,human ,services in      
connection with ,,cobra continuation    
coverage which is provided other than   
pursuant to part #f of subtitle ,b of   
title ,i of the ,employee ,retirement   
,income ,security ,act of #aigd71 in    
consultation with the ,secretary of the 
,treasury1 shall provide for expedited  
review of such denial4 ,an individual   

shall be entitled to such review upon   
application to such ,secretary in such  
form and manner as shall be provided by 
such ,secretary4 ,such ,secretary shall 
make a determination regarding such     
individual's eligibility within #ae     
business days after receipt of such     
individual's application for review     
under this paragraph4 ,either           
,secretary's determination upon review  
of the denial shall be de novo and shall
 be the final determination of such     
,secretary4 ,a reviewing court shall    
grant deference to such ,secretary's    
determination4 ,the provisions of this  
paragraph1 paragraphs 7#a7 through 7#d71
 and paragraph 7#g7 shall be treated as 
provisions of title ,i of the ,employee 
,retirement ,income ,security ,act of   
#aigd for purposes of part #e of        
subtitle ,b of such title4  7#f7        
,disregard of subsidies for purposes of 
federal and state programs              
,notwithstanding any other provision of 
law1 any premium reduction with respect 

to an assistance eligible individual    
under this subsection shall not be      
considered income or resources in       
determining eligibility for1 or the     
amount of assistance or benefits        
provided under1 any other public benefit
 provided under ,federal law or the law 
of any ,state or political subdivision  
thereof4  7#g7 ,notices to individuals  
7,a7 ,general notice  7i7 ,in general   
,in the case of notices provided under  
section #fjf7;a77#d7 of the ,employee   
,retirement ,income ,security ,act of   
#aigd 7#bi ,u4,s4,c4 #aaff7d771 section 
#dihj;,b7f77#f77;,d7 of the ,internal   
,revenue ,code of #aihf1 section        
#bbjf7d7 of the ,public ,health ,service
 ,act 7#db ,u4,s4,c4 #cjj;bb-#f7d771 or 
section #hije;a7f77#b77;,a7 of title #e1
 ,united ,states ,code1 with respect to 
individuals who1 during the period      
described in paragraph 7#c77;,a71 become
 entitled to elect ,,cobra continuation 
coverage1 the requirements of such      
sections shall not be treated as met    

unless such notices include an          
additional notification to the recipient
 of-- 7,i7 the availability of premium  
reduction with respect to such coverage 
under this subsection1 and  7,,ii7 the  
option to enroll in different coverage  
if the employer permits assistance      
eligible individuals to elect enrollment
 in different coverage 7as described in 
paragraph 7#a77;,b774  7ii7 ,alternative
 notice ,in the case of ,,cobra         
continuation coverage to which the      
notice provision under such sections    
does not apply1 the ,secretary of       
,labor1 in consultation with the        
,secretary of the ,treasury and the     
,secretary of ,health and ,human        
,services1 shall1 in consultation with  
administrators of the group health plans
 7or other entities7 that provide or    
administer the ,,cobra continuation     
coverage involved1 provide rules        
requiring the provision of such notice4 
7iii7 ,form ,the requirement of the     
additional notification under this      

subparagraph may be met by amendment of 
existing notice forms or by inclusion of
 a separate document with the notice    
otherwise required4  7,b7 ,specific     
requirements ,each additional           
notification under subparagraph 7,a7    
shall include-- 7i7 the forms necessary 
for establishing eligibility for premium
 reduction under this subsection1  7ii7 
the name1 address1 and telephone number 
necessary to contact the plan           
administrator and any other person      
maintaining relevant information in     
connection with such premium reduction1 
7iii7 a description of the extended     
election period provided for in         
paragraph 7#d77;,a71  7iv7 a description
 of the obligation of the qualified     
beneficiary under paragraph 7#b77;,c7 to
 notify the plan providing continuation 
coverage of eligibility for subsequent  
coverage under another group health plan
 or eligibility for benefits under title
 ,,xviii of the ,social ,security ,act  
and the penalty provided under section  

#fgbj;,c of the ,internal ,revenue ,code
 of #aihf for failure to so notify the  
plan1  7v7 a description1 displayed in a
 prominent manner1 of the qualified     
beneficiary's right to a reduced premium
 and any conditions on entitlement to   
the reduced premium1 and  7vi7 a        
description of the option of the        
qualified beneficiary to enroll in      
different coverage if the employer      
permits such beneficiary to elect to    
enroll in such different coverage under 
paragraph 7#a77;,b74  7,c7 ,notice in   
connection with extended election       
periods ,in the case of any assistance  
eligible individual 7or any individual  
described in paragraph 7#d77;,a77 who   
became entitled to elect ,,cobra        
continuation coverage before the date of
 the enactment of this ,act1 the        
administrator of the group health plan  
7or other entity7 involved shall provide
 7within #fj days after the date of     
enactment of this ,act7 for the         
additional notification required to be  

provided under subparagraph 7,a7 and    
failure to provide such notice shall be 
treated as a failure to meet the notice 
requirements under the applicable       
,,cobra continuation provision4  7,d7   
,model notices ,not later than #cj days 
after the date of enactment of this     
,act-- 7i7 the ,secretary of ,labor1 in 
consultation with the ,secretary of the 
,treasury and the ,secretary of ,health 
and ,human ,services1 shall prescribe   
models for the additional notification  
required under this paragraph 7other    
than the additional notification        
described in clause 7ii771 and  7ii7 in 
the case of any additional notification 
provided pursuant to subparagraph 7,a7  
under section #hije;a7f77#b77;,a7 of    
title #e1 ,united ,states ,code1 the    
,office of ,personnel ,management shall 
prescribe a model for such additional   
notification4  7#h7 ,regulations ,the   
,secretary of the ,treasury may         
prescribe such regulations or other     
guidance as may be necessary or         

appropriate to carry out the provisions 
of this subsection1 including the       
prevention of fraud and abuse under this
 subsection1 except that the ,secretary 
of ,labor and the ,secretary of ,health 
and ,human ,services may prescribe such 
regulations 7including interim final    
regulations7 or other guidance as may be
 necessary or appropriate to carry out  
the provisions of paragraphs 7#e71 7#g71
 and 7#i74  7#i7 ,outreach ,the         
,secretary of ,labor1 in consultation   
with the ,secretary of the ,treasury and
 the ,secretary of ,health and ,human   
,services1 shall provide outreach       
consisting of public education and      
enrollment assistance relating to       
premium reduction provided under this   
subsection4 ,such outreach shall target 
employers1 group health plan            
administrators1 public assistance       
programs1 ,states1 insurers1 and other  
entities as determined appropriate by   
such ,secretaries4 ,such outreach shall 
include an initial focus on those       

individuals electing continuation       
coverage who are referred to in         
paragraph 7#g77;,c74 ,information on    
such premium reduction1 including       
enrollment1 shall also be made available
 on websites of the ,departments of     
,labor1 ,treasury1 and ,health and      
,human ,services4  7#aj7 ,definitions   
,for purposes of this section-- 7,a7    
,administrator ,the term administrator  
has the meaning given such term in      
section #c7af77;,a7 of the ,employee    
,retirement ,income ,security ,act of   
#aigd4  7,b7 ,,cobra continuation       
coverage ,the term ,,cobra continuation 
coverage means continuation coverage    
provided pursuant to part #f of subtitle
 ,b of title ,i of the ,employee        
,retirement ,income ,security ,act of   
#aigd 7other than under section #fji71  
title ,,xxii of the ,public ,health     
,service ,act1 section #dihj;,b of the  
,internal ,revenue ,code of #aihf 7other
 than subsection 7f77#a7 of such section
 insofar as it relates to pediatric     

vaccines71 or section #hije;a of title  
#e1 ,united ,states ,code1 or under a   
,state program that provides comparable 
continuation coverage4 ,such term does  
not include coverage under a health     
flexible spending arrangement under a   
cafeteria plan within the meaning of    
section #abe of the ,internal ,revenue  
,code of #aihf4  7,c7 ,,cobra           
continuation provision ,the term ,,cobra
 continuation provision means the       
provisions of law described in          
subparagraph 7,b74  7,d7 ,covered       
employee ,the term covered employee has 
the meaning given such term in section  
#fjg7b7 of the ,employee ,retirement    
,income ,security ,act of #aigd4  7,e7  
,qualified beneficiary ,the term        
qualified beneficiary has the meaning   
given such term in section #fjg7c7 of   
the ,employee ,retirement ,income       
,security ,act of #aigd4  7,f7 ,group   
health plan ,the term group health plan 
has the meaning given such term in      
section #fjg7a7 of the ,employee        

,retirement ,income ,security ,act of   
#aigd4  7,g7 ,state ,the term ,state    
includes the ,district of ,columbia1 the
 ,commonwealth of ,puerto ,rico1 the    
,virgin ,islands1 ,guam1 ,american      
,samoa1 and the ,commonwealth of the    
,northern ,mariana ,islands4  7,h7      
,period of coverage ,any reference in   
this subsection to a period of coverage 
shall be treated as a reference to a    
monthly or shorter period of coverage   
with respect to which premiums are      
charged with respect to such coverage4  
7#aa7 ,reports  7,a7 ,interim report    
,the ,secretary of the ,treasury shall  
submit an interim report to the         
,committee on ,education and ,labor1 the
 ,committee on ,ways and ,means1 and the
 ,committee on ,energy and ,commerce of 
the ,house of ,representatives and the  
,committee on ,health1 ,education1      
,labor1 and ,pensions and the ,committee
 on ,finance of the ,senate regarding   
the premium reduction provided under    
this subsection that includes-- 7i7 the 

number of individuals provided such     
assistance as of the date of the report2
 and  7ii7 the total amount of          
expenditures incurred 7with             
administrative expenditures noted       
separately7 in connection with such     
assistance as of the date of the report4
  7,b7 ,final report ,as soon as        
practicable after the last period of    
,,cobra continuation coverage for which 
premium reduction is provided under this
 section1 the ,secretary of the         
,treasury shall submit a final report to
 each committee referred to in          
subparagraph 7,a7 that includes-- 7i7   
the number of individuals provided      
premium reduction under this section2   
7ii7 the average dollar amount 7monthly 
and annually7 of premium reductions     
provided to such individuals2 and  7iii7
 the total amount of expenditures       
incurred 7with administrative           
expenditures noted separately7 in       
connection with premium reduction under 
this section4  7#ab7 ,,cobra premium    

assistance  7,a7 ,in general ,subchapter
 ,b of chapter #fe of the ,internal     
,revenue ,code of #aihf is amended by   
adding at the end the following new     
section3  #fdca4 ,,cobra premium        
assistance  7a7 ,in general ,the person 
to whom premiums are payable under      
,,cobra continuation coverage shall be  
reimbursed as provided in subsection 7c7
 for the amount of premiums not paid by 
assistance eligible individuals by      
reason of section #d of the ,health     
,care ,protection ,act4  7b7 ,person    
entitled to reimbursement ,for purposes 
of subsection 7a71 except as otherwise  
provided by the ,secretary1 the person  
to whom premiums are payable under      
,,cobra continuation coverage shall be  
treated as being-- 7#a7 in the case of  
any group health plan which is a        
multiemployer plan 7as defined in       
section #c7cg7 of the ,employee         
,retirement ,income ,security ,act of   
#aigd71 the plan1  7#b7 in the case of  
any group health plan not described in  

paragraph 7#a7-- 7,a7 which is subject  
to the ,,cobra continuation provisions  
contained in-- 7i7 the ,internal        
,revenue ,code of #aihf1  7ii7 the      
,employee ,retirement ,income ,security 
,act of #aigd1  7iii7 the ,public       
,health ,service ,act1 or  7iv7 title   
#e1 ,united ,states ,code1 or  7,b7     
under which some or all of the coverage 
is not provided by insurance1  the      
employer maintaining the plan1 and  7#c7
 in the case of any group health plan   
not described in paragraph 7#a7 or 7#b71
 the insurer providing the coverage     
under the group health plan4  7c7       
,method of reimbursement ,except as     
otherwise provided by the ,secretary--  
7#a7 ,treatment as payment of payroll   
taxes ,each person entitled to          
reimbursement under subsection 7a7 7and 
filing a claim for such reimbursement at
 such time and in such manner as the    
,secretary may require7 shall be treated
 for purposes of this title and section 
#acbd7;b77#b7 of title #ca1 ,united     

,states ,code1 as having paid to the    
,secretary1 on the date that the        
assistance eligible individual's premium
 payment is received1 payroll taxes in  
an amount equal to the portion of such  
reimbursement which relates to such     
premium4 ,to the extent that the amount 
treated as paid under the preceding     
sentence exceeds the amount of such     
person's liability for such taxes1 the  
,secretary shall credit or refund such  
excess in the same manner as if it were 
an overpayment of such taxes4  7#b7     
,overstatements ,any overstatement of   
the reimbursement to which a person is  
entitled under this section 7and any    
amount paid by the ,secretary as a      
result of such overstatement7 shall be  
treated as an underpayment of payroll   
taxes by such person and may be assessed
 and collected by the ,secretary in the 
same manner as payroll taxes4  7#c7     
,reimbursement contingent on payment of 
remaining premium ,no reimbursement may 
be made under this section to a person  

with respect to any assistance eligible 
individual until after the reduced      
premium required under section          
#d7;a77#a77;,a7 of the ,health ,care    
,protection ,act with respect to such   
individual has been received4  7d7      
,definitions ,for purposes of this      
section-- 7#a7 ,payroll taxes ,the term 
payroll taxes means-- 7,a7 amounts      
required to be deducted and withheld for
 the payroll period under section #cdjb 
7relating to wage withholding71  7,b7   
amounts required to be deducted for the 
payroll period under section #cajb      
7relating to ,,fica employee taxes71 and
  7,c7 amounts of the taxes imposed for 
the payroll period under section #caaa  
7relating to ,,fica employer taxes74    
7#b7 ,person ,the term person includes  
any governmental entity4  7e7 ,reporting
 ,each person entitled to reimbursement 
under subsection 7a7 for any period     
shall submit such reports 7at such time 
and in such manner7 as the ,secretary   
may require1 including-- 7#a7 an        

attestation of involuntary termination  
of employment for each covered employee 
on the basis of whose termination       
entitlement to reimbursement is claimed 
under subsection 7a71  7#b7 a report of 
the amount of payroll taxes offset under
 subsection 7a7 for the reporting period
 and the estimated offsets of such taxes
 for the subsequent reporting period in 
connection with reimbursements under    
subsection 7a71 and  7#c7 a report      
containing the ,t,i,ns of all covered   
employees1 the amount of subsidy        
reimbursed with respect to each covered 
employee and qualified beneficiaries1   
and a designation with respect to each  
covered employee as to whether the      
subsidy reimbursement is for coverage of
 #a individual or #b or more            
individuals4  7f7 ,regulations ,the     
,secretary shall issue such regulations 
or other guidance as may be necessary or
 appropriate to carry out this section1 
including-- 7#a7 the requirement to     
report information or the establishment 

of other methods for verifying the      
correct amounts of reimbursements under 
this section1 and  7#b7 the application 
of this section to group health plans   
that are multiemployer plans 7as defined
 in section #c7cg7 of the ,employee     
,retirement ,income ,security ,act of   
#aigd74  4  7,b7 ,social security trust 
funds held harmless ,in determining any 
amount transferred or appropriated to   
any fund under the ,social ,security    
,act1 section #fdca of the ,internal    
,revenue ,code of #aihf shall not be    
taken into account4  7,c7 ,clerical     
amendment ,the table of sections for    
subchapter ,b of chapter #fe of the     
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new item3  ,sec4 #fdca4       
,,cobra premium assistance4  4  7,d7    
,effective date ,the amendments made by 
this paragraph shall apply to premiums  
to which subsection 7a77#a77;,a7        
applies4  7,e7 ,special rule  7i7 ,in   
general ,in the case of an assistance   

eligible individual who pays1 with      
respect to the first period of ,,cobra  
continuation coverage to which          
subsection 7a77#a77;,a7 applies or the  
immediately subsequent period1 the full 
premium amount for such coverage1 the   
person to whom such payment is payable  
shall-- 7,i7 make a reimbursement       
payment to such individual for the      
amount of such premium paid in excess of
 the amount required to be paid under   
subsection 7a77#a77;,a72 or  7,,ii7     
provide credit to the individual for    
such amount in a manner that reduces one
 or more subsequent premium payments    
that the individual is required to pay  
under such subsection for the coverage  
involved4  7ii7 ,reimbursing employer ,a
 person to which clause 7i7 applies     
shall be reimbursed as provided for in  
section #fdca of the ,internal ,revenue 
,code of #aihf for any payment made1 or 
credit provided1 to the employee under  
such clause4  7iii7 ,payment or credits 
,unless it is reasonable to believe that

 the credit for the excess payment in   
clause 7i77,,ii7 will be used by the    
assistance eligible individual within   
#ahj days of the date on which the      
person receives from the individual the 
payment of the full premium amount1 a   
person to which clause 7i7 applies shall
 make the payment required under such   
clause to the individual within #fj days
 of such payment of the full premium    
amount4 ,if1 as of any day within the   
#ahj-;day period1 it is no longer       
reasonable to believe that the credit   
will be used during that period1 payment
 equal to the remainder of the credit   
outstanding shall be made to the        
individual within #fj days of such day4 
7#ac7 ,penalty for failure to notify    
health plan of cessation of eligibility 
for premium assistance  7,a7 ,in general
 ,part ,i of subchapter ,b of chapter   
#fh of the ,internal ,revenue ,code of  
#aihf is amended by adding at the end   
the following new section3  #fgbj;,c4   
,penalty for failure to notify health   

plan of cessation of eligibility for    
,,cobra premium assistance  7a7 ,in     
general ,any person required to notify a
 group health plan under section        
#d7;a77#b77;,c7 of the ,health ,care    
,protection ,act who fails to make such 
a notification at such time and in such 
manner as the ,secretary of ,labor may  
require shall pay a penalty of #aaj     
percent of the premium reduction        
provided under such section after       
termination of eligibility under such   
subsection4  7b7 ,reasonable cause      
exception ,no penalty shall be imposed  
under subsection 7a7 with respect to any
 failure if it is shown that such       
failure is due to reasonable cause and  
not to willful neglect4  4  7,b7        
,clerical amendment ,the table of       
sections of part ,i of subchapter ,b of 
chapter #fh of such ,code is amended by 
adding at the end the following new     
item3  ,sec4 #fgbj;,c4 ,penalty for     
failure to notify health plan of        
cessation of eligibility for ,,cobra    

premium assistance4  4  7,c7 ,effective 
date ,the amendments made by this       
paragraph shall apply to failures       
occurring after the date of the         
enactment of this ,act4  7#ad7          
,coordination with hctc  7,a7 ,in       
general ,subsection 7g7 of section #ce  
of the ,internal ,revenue ,code of #aihf
 is amended by redesignating paragraph  
7#i7 as paragraph 7#aj7 and inserting   
after paragraph 7#h7 the following new  
paragraph3  7#i7 ,,cobra premium        
assistance ,in the case of an assistance
 eligible individual who receives       
premium reduction for ,,cobra           
continuation coverage under section     
#d7;a7 of the ,health ,care ,protection 
,act for any month during the taxable   
year1 such individual shall not be      
treated as an eligible individual1 a    
certified individual1 or a qualifying   
family member for purposes of this      
section or section #gebg with respect to
 such month4  4  7,b7 ,effective date   
,the amendment made by subparagraph 7,a7

 shall apply to taxable years ending    
after the date of the enactment of this 
,act4  7#ae7 ,exclusion of cobra premium
 assistance from gross income  7,a7 ,in 
general ,part ,,iii of subchapter ,b of 
chapter #a of the ,internal ,revenue    
,code of #aihf is amended by inserting  
after section #aci;,b the following new 
section3  #aci;,c4 ,,cobra premium      
assistance ,in the case of an assistance
 eligible individual 7as defined in     
section #d of the ,health ,care         
,protection ,act71 gross income does not
 include any premium reduction provided 
under subsection 7a7 of such section4  4
  7,b7 ,clerical amendment ,the table of
 sections for part ,,iii of subchapter  
,b of chapter #a of such ,code is       
amended by inserting after the item     
relating to section #aci;,b the         
following new item3  ,sec4 #aci;,c4     
,,cobra premium assistance4  4  7,c7    
,effective date ,the amendments made by 
this paragraph shall apply to taxable   
years ending after the date of the      

enactment of this ,act4  7b7            
,elimination of premium subsidy for     
high-,income individuals  7#a7          
,recapture of subsidy for high-income   
individuals ,if-- 7,a7 premium          
assistance is provided under this       
section with respect to any ,,cobra     
continuation coverage which covers the  
taxpayer1 the taxpayer's spouse1 or any 
dependent 7within the meaning of section
 #aeb of the ,internal ,revenue ,code of
 #aihf1 determined without regard to    
subsections 7b77#a71 7b77#b71 and       
7d77#a77;,b7 thereof7 of the taxpayer   
during any portion of the taxable year1 
and  7,b7 the taxpayer's modified       
adjusted gross income for such taxable  
year exceeds #abe1jjj 7#bej1jjj in the  
case of a joint return71  then the tax  
imposed by chapter #a of such ,code with
 respect to the taxpayer for such       
taxable year shall be increased by the  
amount of such assistance4  7#b7        
,phase-in of recapture  7,a7 ,in general
 ,in the case of a taxpayer whose       

modified adjusted gross income for the  
taxable year does not exceed #ade1jjj   
7#bij1jjj in the case of a joint        
return71 the increase in the tax imposed
 under paragraph 7#a7 shall not exceed  
the phase-in percentage of such increase
 7determined without regard to this     
paragraph74  7,b7 ,phase-in percentage  
,for purposes of this subsection1 the   
term phase-in percentage means the ratio
 7expressed as a percentage7 obtained by
 dividing-- 7i7 the excess of described 
in subparagraph 7,b7 of paragraph 7#a71 
by  7ii7 #bj1jjj 7#dj1jjj in the case of
 a joint return74  7#c7 ,option for     
high-income individuals to waive        
assistance and avoid recapture          
,notwithstanding subsection 7a77#c71 an 
individual shall not be treated as an   
assistance eligible individual for      
purposes of this section and section    
#fdca of the ,internal ,revenue ,code of
 #aihf if such individual-- 7,a7 makes a
 permanent election 7at such time and in
 such form and manner as the ,secretary 

of the ,treasury may prescribe7 to waive
 the right to the premium assistance    
provided under this section1 and  7,b7  
notifies the entity to whom premiums are
 reimbursed under section #fdca7;a7 of  
such ,code of such election4  7#d7      
,modified adjusted gross income ,for    
purposes of this subsection1 the term   
modified adjusted gross income means the
 adjusted gross income 7as defined in   
section #fb of the ,internal ,revenue   
,code of #aihf7 of the taxpayer for the 
taxable year increased by any amount    
excluded from gross income under section
 #iaa1 #ica1 or #icc of such ,code4     
7#e7 ,credits not allowed against tax1  
etc ,for purposes determining regular   
tax liability under section #bf7;b7 of  
such ,code1 the increase in tax under   
this subsection shall not be treated as 
a tax imposed under chapter #a of such  
,code4  7#f7 ,regulations ,the          
,secretary of the ,treasury shall issue 
such regulations or other guidance as   
are necessary or appropriate to carry   

out this subsection1 including          
requirements that the entity to whom    
premiums are reimbursed under section   
#fdca7;a7 of the ,internal ,revenue     
,code of #aihf report to the ,secretary1
 and to each assistance eligible        
individual1 the amount of premium       
assistance provided under subsection 7a7
 with respect to each such individual4  
7#g7 ,effective date ,the provisions of 
this subsection shall apply to taxable  
years ending after the date of the      
enactment of this ,act4