To amend title 5, United States Code, to establish a national health program administered by the Office of Personnel Management to offer Federal employee health benefits plans to certain individuals affected by an incident of national significance, and for other purposes.

Summary: Emergency Coverage During an Incident of National Significance Act of 2006 - Directs the Office of Personnel Management (OPM) to administer a health insurance program for certain individuals affected by an incident of national significance.

Requires OPM to contract with three or more carriers to make available five or more federal health benefits plans (subject to the provisions of this Act) to eligible individuals.

Allows an income-related tax credit for amounts paid by eligible individuals for coverage under the health insurance plan established by this Act. Directs the Secretary of the Treasury to establish a program for making payments on behalf of certain individuals to such plan.

Requires the Secretary of Homeland Security, other federal officers, and the Director of OPM to submit a plan that: (1) provides for the orderly implementation of the amendments made by this Act; and (2) includes a schedule of actions to be taken to provide for that implementation.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Coverage During an 
Incident of National Significance Act of 2006''.

SEC. 2. EXTENSION OF FEDERAL EMPLOYEE HEALTH INSURANCE TO CERTAIN 
              INDIVIDUALS AFFECTED BY AN INCIDENT OF NATIONAL 
              SIGNIFICANCE.

    (a) In General.--Subpart G of part III of title 5, United States 
Code, is amended by redesignating chapters 89A and 89B as chapters 89B 
and 89C, respectively, and by inserting after chapter 89 the following:

   ``CHAPTER 89A--EMERGENCY HEALTH INSURANCE FOR CERTAIN INDIVIDUALS 
            AFFECTED BY AN INCIDENT OF NATIONAL SIGNIFICANCE

``Sec. 8921. Definitions.
``Sec. 8922. Health insurance for eligible individuals.
``Sec. 8923. Contract requirement.
``Sec. 8924. Eligibility and identification of individuals.
``Sec. 8925. Alternative conditions to Federal employee health benefits 
                            plans.

``SEC. 8921. DEFINITIONS.

    ``In this chapter--
            ``(1) the terms defined under section 8901 shall have the 
        meanings given such terms under that section;
            ``(2) the term `eligible individual' means any individual 
        who, at the time of an incident of national significance, 
        resides or is employed in the area identified under section 
        8954 with respect to such incident;
            ``(3) the term `incident of national significance' means a 
        domestic catastrophic incident which is designated as an 
        incident of national significance by the President pursuant to 
        the national response plan referred to in section 502(6) of the 
        Homeland Security Act of 2002; and
            ``(4) the term `Office' means the Office of Personnel 
        Management.

``SEC. 8922. HEALTH INSURANCE FOR ELIGIBLE INDIVIDUALS.

    ``(a) The Office of Personnel Management shall administer a health 
insurance program for eligible individuals in accordance with this 
chapter.
    ``(b) Except as provided under this chapter, the Office shall 
prescribe regulations to apply the provisions of chapter 89 to the 
greatest extent practicable to eligible individuals covered under this 
chapter.

``SEC. 8923. CONTRACT REQUIREMENT.

    ``(a) In each calendar year, the Office shall enter into a contract 
with 3 or more carriers to make available 5 or more health benefits 
plans (subject to the provisions of this chapter) to eligible 
individuals under this chapter.
    ``(b) In carrying out this section, the Office may require 5 or 
more carriers to enter into a contract described in subsection (a), as 
a condition of entering into a contract under section 8902.

``SEC. 8924. ELIGIBILITY AND IDENTIFICATION OF INDIVIDUALS.

    ``(a) Except as provided in subsection (b), any eligible individual 
may enroll in a health benefits plan under this chapter.
    ``(b) An individual may not enroll in a health benefits plan under 
this chapter, if the individual--
            ``(1) is 65 years of age or older;
            ``(2) is enrolled or eligible to enroll for coverage under 
        a public health insurance program, including coverage under 
        title XVIII of the Social Security Act, coverage under a State 
        plan under title XIX of such Act, coverage under a State plan 
        under title XX of such Act, or coverage under any other program 
        determined by the Office;
            ``(3) is enrolled or eligible to enroll in a plan under 
        chapter 89; or
            ``(4) is a member of the uniformed services as defined 
        under section 101(a)(5) of title 10.
    ``(c) With respect to each incident of national significance, the 
Secretary of Homeland Security shall, consistent with the President's 
designation of such incident, identify the area affected by such 
incident and shall, in consulation with the Office, carry out a program 
to identify eligible individuals with respect to such incident.
    ``(d) The period of an individual's enrollment in a health benefits 
plan under this chapter shall not exceed 24 months with respect to any 
incident of national significance. Such period may be extended by the 
Office if the Secretary of Homeland Security determines that the area 
identified under subsection (c) remains affected by the incident.

``SEC. 8925. ALTERNATIVE CONDITIONS TO FEDERAL EMPLOYEE HEALTH BENEFITS 
              PLANS.

    ``(a) Rates charged and premiums paid for a health benefits plan 
under this chapter may differ between or among geographic regions.
    ``(b) No Government contribution shall be made for any individual 
under this chapter.
    ``(c) In the administration of this chapter, the Office shall 
ensure that individuals covered under this chapter shall be in a risk 
pool that is separate from the risk pool maintained for individuals 
covered under chapter 89.''.
    (b) Technical and Conforming Amendments.--
            (1) Contract requirement under chapter 89.--Section 8902 of 
        title 5, United States Code, is amended by adding after 
        subsection (o) the following:
    ``(p) Each contract under this chapter may include, at the 
discretion of the Office, a provision that the carrier shall enter into 
a contract to provide 1 or more health benefits plans as described 
under chapter 89A.''.
            (2) Table of chapters.--The table of chapters for part III 
        of title 5, United States Code, is amended--
                    (A) by redesignating the items relating to chapters 
                89A and 89B as items relating to chapters 89B and 89C, 
                respectively; and
                    (B) by inserting after the item relating to chapter 
                89 the following:

   ``Chapter 89A--Emergency Health Insurance for Certain Individuals 
            Affected by an Incident of National Significance

``Sec. 8921. Definitions.
``Sec. 8922. Health insurance for eligible individuals.
``Sec. 8923. Contract requirement.
``Sec. 8924. Eligibility and identification of individuals.
``Sec. 8925. Alternative conditions to Federal employee health benefits 
                            plans.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and shall apply to 
contracts that take effect with respect to the calendar year following 
such date of enactment.

SEC. 3. CREDIT FOR EMERGENCY HEALTH INSURANCE COSTS OF CERTAIN 
              INDIVIDUALS AFFECTED BY AN INCIDENT OF NATIONAL 
              SIGNIFICANCE.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 36 as section 37 and inserting 
after section 35 the following new section:

``SEC. 36. EMERGENCY HEALTH INSURANCE COSTS OF CERTAIN INDIVIDUALS 
              AFFECTED BY AN INCIDENT OF NATIONAL SIGNIFICANCE.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by subtitle A for the 
taxable year an amount equal to the applicable percentage of the amount 
paid during such taxable year by the taxpayer for coverage of the 
taxpayer and family members under the health insurance plan established 
under chapter 89A of title 5, United States Code.
    ``(b) Applicable Percentage.--
            ``(1) In general.--For purposes of subsection (a), the 
        applicable percentage shall be determined in accordance with 
        the following table:


 
 
 
``In the case of any taxpayer whose      The applicable percentage is:
 family income is the following
 percentage of the poverty line:
  Not more than 100 percent............  100 percent
  More than 100 percent, but not more    65 percent
   than 300 percent.
  More than 300 percent, but not more    40 percent
   than 500 percent.
  More than 500 percent, but not more    30 percent
   than 600 percent.
  More than 600 percent................  0 percent.

            ``(2) Family income.--For purposes of this subsection, the 
        term `family income' means the aggregate adjusted gross income 
        of the taxpayer and the taxpayer's spouse and dependents.
            ``(3) Poverty line.--For purposes of this subsection, the 
        term `poverty line' means the poverty line as defined in 
        section 673(2) of the Community Services Block Grant Act, for a 
        family of the size involved.
    ``(c) Special Rules.--
            ``(1) Coordination with advance payments of credit.--With 
        respect to any taxable year, the amount which would (but for 
        this paragraph) be allowed as a credit to the taxpayer under 
        subsection (a) shall be reduced (but not below zero) by the 
        aggregate amount paid on behalf of such taxpayer under section 
        7529 for such taxable year.
            ``(2) Coordination with other deductions.--Amounts taken 
        into account under subsection (a) shall not be taken into 
        account in determining any deduction allowed under section 
        162(l) or 213.
            ``(3) Treatment of payments.--For purposes of this section, 
        payments made by the Secretary on behalf of any individual 
        under section 7529 (relating to advance payment of credit for 
        emergency health insurance costs of certain individuals 
        affected by an incident of national significance) shall be 
        treated as having been made by the taxpayer.
            ``(4) Regulations.--The Secretary may prescribe such 
        regulations and other guidance as may be necessary or 
        appropriate to carry out this section and section 7529.''.
    (b) Advance Payment of Credit.--Chapter 77 of the Internal Revenue 
Code of 1986 (relating to miscellaneous provisions) is amended by 
adding at the end the following new section:

``SEC. 7529. ADVANCE PAYMENT OF CREDIT FOR EMERGENCY HEALTH INSURANCE 
              COSTS OF CERTAIN INDIVIDUALS AFFECTED BY AN INCIDENT OF 
              NATIONAL SIGNIFICANCE.

    ``Not later than August 1, 2007, the Secretary shall establish a 
program for making payments on behalf of individuals described in 
section 36(a) to the health insurance plan established under chapter 
89A of title 5, United States Code.''.
    (c) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``or 36'' after ``section 
        35''.
            (2) The table of sections for subpart C of part IV of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        redesignating the item relating to section 36 as an item 
        relating to section 37 and by inserting after the item relating 
        to section 35 the following new item:

``Sec. 36. Emergency health insurance costs of certain individuals 
                            affected by an incident of national 
                            significance.''.
            (3) The table of sections for chapter 77 of such Code is 
        amended by adding at the end the following new item:

``Sec. 7529.  Advance payment of credit for emergency health insurance 
                            costs of certain individuals affected by an 
                            incident of national significance.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 4. PLAN FOR EXTENSION OF FEDERAL EMPLOYEE HEALTH BENEFITS PROGRAM 
              TO CERTAIN INDIVIDUALS AFFECTED BY AN INCIDENT OF 
              NATIONAL SIGNIFICANCE.

    Not later than 3 months after the date of enactment of this Act and 
after consultation with appropriate experts, the Secretary of Homeland 
Security, and other Federal officers, the Director of the Office of 
Personnel Management shall submit a comprehensive plan to Congress 
that--
            (1) provides for the orderly implementation of the 
        amendments made by this Act; and
            (2) includes a schedule of actions to be taken to provide 
        for that implementation.