A bill to extend the period for COBRA coverage for victims of the terrorist attacks of September 11, 2001.

Summary: Continuing Care for Recovering Families Act - Amends the Employee Retirement Income Security Act of 1974 (ERISA), the Public Health Service Act, and the Internal Revenue Code to allow an eligible individual to elect continuation coverage for group health benefits as provided for in the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) during the 120-day period that begins on the later of the date of enactment of this Act or the date on which the individual experiences a terrorism-related loss of coverage. Provides that: (1) the maximum period required for such coverage shall not be less than the period during which the individual is an eligible individual; and (2) the period between the loss of coverage and the first day of the election period shall be disregarded for purposes of determining the waiting period for coverage of preexisting conditions.

Defines an "eligible individual" as an individual who: (1) is a child or spouse of an individual who suffered physical harm or death as a result of the September 11, 2001, terrorist attacks; (2) that has experienced a terrorism-related loss of health benefits coverage associated with the death, injury, or loss of employment of such an individual; and (3) is not otherwise covered under a health benefits plan or entitled to Medicare benefits.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Continuing Care for Recovering 
Families Act''.

SEC. 2. EXTENSION OF COBRA COVERAGE PERIOD FOR CERTAIN INDIVIDUALS.

    (a) ERISA Amendment.--Section 605 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1165) is amended by adding at the end 
the following:
    ``(c) Temporary Extension of COBRA Election and Coverage Period for 
Victims of Terrorist Attacks.--
            ``(1) In general.--In the case of an eligible individual 
        and notwithstanding subsection (a), such individual may elect 
        continuation coverage under this part during the 120-day period 
        that begins on the later of--
                    ``(A) the date of enactment of the Continuing Care 
                for Recovering Families Act; or
                    ``(B) the date on which the individual experiences 
                the terrorism-related loss of coverage.
            ``(2) Commencement of coverage; no reach-back.--Any 
        continuation coverage elected by an eligible individual under 
        paragraph (1) shall commence at the beginning of the 120-day 
        election period described in such paragraph and shall not 
        include any period prior to such 120-day election period. In no 
        event shall the maximum period required under section 602(2)(A) 
        be less than the period during which the individual is an 
        eligible individual.
            ``(3) Preexisting conditions.--With respect to an 
        individual who elects continuation coverage pursuant to 
        paragraph (1), the period--
                    ``(A) beginning on the date of the terrorism-
                related loss of coverage, and
                    ``(B) ending on the first day of the 120-day 
                election period described in paragraph (1),
        shall be disregarded for purposes of determining the 63-day 
        periods referred to in section 701(c)(2), section 2701(c)(2) of 
        the Public Health Service Act, and section 9801(c)(2) of the 
        Internal Revenue Code of 1986.
            ``(4) Definitions.--For purposes of this subsection:
                    ``(A) Eligible individual.--The term `eligible 
                individual' means an individual who--
                            ``(i)(I) is the child of an individual 
                        described in section 405(c)(2) of the September 
                        11th Victim Compensation Fund of 2001; or
                            ``(II) was the spouse of an individual 
                        described in section 405(c)(2) of the September 
                        11th Victim Compensation Fund of 2001, on 
                        September 11, 2001;
                            ``(ii) has experienced a terrorism-related 
                        loss of coverage; and
                            ``(iii) is not otherwise covered under a 
                        health benefits plan or entitled to benefits, 
                        or enrolled, under part A of title XVIII of the 
                        Social Security Act or enrolled under part B of 
                        such title.
                    ``(B) Terrorism-related loss of coverage.--The term 
                `terrorism-related loss of coverage' means, with 
                respect to an eligible individual, the loss of health 
                benefits coverage associated with the death, injury, or 
                loss of employment of an individual described in 
                section 405(c)(2) of the September 11th Victim 
                Compensation Fund of 2001.''.
    (b) PHSA Amendment.--Section 2205 of the Public Health Service Act 
(42 U.S.C. 300bb-5) is amended by adding at the end the following:
    ``(c) Temporary Extension of COBRA Election and Coverage Period for 
Victims of Terrorist Attacks.--
            ``(1) In general.--In the case of an eligible individual 
        and notwithstanding subsection (a), such individual may elect 
        continuation coverage under this title during the 120-day 
        period that begins on the later of--
                    ``(A) the date of enactment of the Continuing Care 
                for Recovering Families Act; or
                    ``(B) the date on which the individual experiences 
                the terrorism-related loss of coverage.
            ``(2) Commencement of coverage; no reach-back.--Any 
        continuation coverage elected by an eligible individual under 
        paragraph (1) shall commence at the beginning of the 120-day 
        election period described in such paragraph and shall not 
        include any period prior to such 120-day election period. In no 
        event shall the maximum period required under section 
        2202(2)(A) be less than the period during which the individual 
        is an eligible individual.
            ``(3) Preexisting conditions.--With respect to an 
        individual who elects continuation coverage pursuant to 
        paragraph (1), the period--
                    ``(A) beginning on the date of the terrorism-
                related loss of coverage, and
                    ``(B) ending on the first day of the 120-day 
                election period described in paragraph (1),
        shall be disregarded for purposes of determining the 63-day 
        periods referred to in section 2701(c)(2), section 701(c)(2) of 
        the Employee Retirement Income Security Act of 1974, and 
        section 9801(c)(2) of the Internal Revenue Code of 1986.
            ``(4) Definitions.--For purposes of this subsection:
                    ``(A) Eligible individual.--The term `eligible 
                individual' means an individual who--
                            ``(i)(I) is the child of an individual 
                        described in section 405(c)(2) of the September 
                        11th Victim Compensation Fund of 2001; or
                            ``(II) was the spouse of an individual 
                        described in section 405(c)(2) of the September 
                        11th Victim Compensation Fund of 2001, on 
                        September 11, 2001;
                            ``(ii) has experienced a terrorism-related 
                        loss of coverage; and
                            ``(iii) is not otherwise covered under a 
                        health benefits plan or entitled to benefits, 
                        or enrolled, under part A of title XVIII of the 
                        Social Security Act or enrolled under part B of 
                        such title.
                    ``(B) Terrorism-related loss of coverage.--The term 
                `terrorism-related loss of coverage' means, with 
                respect to an eligible individual, the loss of health 
                benefits coverage associated with the death, injury, or 
                loss of employment of an individual described in 
                section 405(c)(2) of the September 11th Victim 
                Compensation Fund of 2001.''.
    (c) IRC Amendments.--Paragraph (5) of section 4980B(f) of the 
Internal Revenue Code of 1986 (relating to election) is amended by 
adding at the end the following:
                    ``(D) Temporary extension of cobra election and 
                coverage period for victims of terrorist attacks.--
                            ``(i) In general.--In the case of an 
                        eligible individual and notwithstanding 
                        paragraph (1), such individual may elect 
                        continuation coverage under this title during 
                        the 120-day period that begins on the later 
                        of--
                                    ``(I) the date of enactment of the 
                                Continuing Care for Recovering Families 
                                Act; or
                                    ``(II) the date on which the 
                                individual experiences the terrorism-
                                related loss of coverage.
                            ``(ii) Commencement of coverage; no reach-
                        back.--Any continuation coverage elected by an 
                        eligible individual under clause (i) shall 
                        commence at the beginning of the 120-day 
                        election period described in such clause and 
                        shall not include any period prior to such 120-
                        day election period. In no event shall the 
                        maximum period required under paragraph 
                        (2)(B)(i) be less than the period during which 
                        the individual is an eligible individual.
                            ``(iii) Preexisting conditions.--With 
                        respect to an individual who elects 
                        continuation coverage pursuant to clause (i), 
                        the period--
                                    ``(I) beginning on the date of the 
                                terrorism-related loss of coverage, and
                                    ``(II) ending on the first day of 
                                the 120-day election period described 
                                in clause (i),
                        shall be disregarded for purposes of 
                        determining the 63-day periods referred to in 
                        section 9801(c)(2), section 701(c)(2) of the 
                        Employee Retirement Income Security Act of 
                        1974, and section 2701(c)(2) of the Public 
                        Health Service Act.
                            ``(iv) Definitions.--For purposes of this 
                        subparagraph:
                                    ``(I) Eligible individual.--The 
                                term `eligible individual' means an 
                                individual who--
                                            ``(aa)(AA) is the child of 
                                        an individual described in 
                                        section 405(c)(2) of the 
                                        September 11th Victim 
                                        Compensation Fund of 2001; or
                                            ``(BB) was the spouse of an 
                                        individual described in section 
                                        405(c)(2) of the September 11th 
                                        Victim Compensation Fund of 
                                        2001, on September 11, 2001;
                                            ``(bb) has experienced a 
                                        terrorism-related loss of 
                                        coverage; and
                                            ``(cc) is not otherwise 
                                        covered under a health benefits 
                                        plan or entitled to benefits, 
                                        or enrolled, under part A of 
                                        title XVIII of the Social 
                                        Security Act or enrolled under 
                                        part B of such title.
                                    ``(II) Terrorism-related loss of 
                                coverage.--The term `terrorism-related 
                                loss of coverage' means, with respect 
                                to an eligible individual, the loss of 
                                health benefits coverage associated 
                                with the death, injury, or loss of 
                                employment of an individual described 
                                in section 405(c)(2) of the September 
                                11th Victim Compensation Fund of 
                                2001.''.