To provide for extension of COBRA continuation coverage until coverage is available otherwise under either an employment-based health plan or through an American Health Benefit Exchange under the Patient Protection and Affordable Care Act.

Summary: COBRA Health Benefits Extension Act of 2010 - Extends COBRA coverage (health insurance continuation benefits) until the earlier of: (1) the first date in which an individual is eligible for coverage under an employment-based health plan; or (2) the date on which such individual becomes eligible for health insurance coverage through an American Health Benefit Exchange under the Patient Protection and Affordable Care Act (PPACA).

Directs the Secretary of Labor to provide rules setting forth the form and manner in which prompt notice to individuals of such continued coverage shall be made.

Allows a state to enforce the provisions of this Act with respect to COBRA continuation coverage provided under a state program.

Provides that this Act shall: (1) have no effect on termination of continuation coverage for any reason other than expiration of a period of a specified number of months; and (2) supersede any provision of the law of a state or political subdivision that limits or precludes access by a qualified beneficiary, whose COBRA continuation coverage has been extended under this Act, to a state high risk pool established under PPACA solely by reason of such extension.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``COBRA Health Benefits Extension Act 
of 2010''.

SEC. 2. EXTENSION OF COBRA CONTINUATION COVERAGE.

    (a) Extension of Current Periods of Continuation Coverage.--
            (1) In general.--In the case of any individual who is, 
        under a COBRA continuation coverage provision, covered under 
        COBRA continuation coverage on or after the date of the 
        enactment of this Act, the required period of any such coverage 
        which has not subsequently terminated under the terms of such 
        provision for any reason other than the expiration of a period 
        of a specified number of months shall, notwithstanding such 
        provision and subject to subsection (b), extend to the earlier 
        of--
                    (A) the first date, occurring after the date of the 
                expiration of a period of months specified as a 
                terminating event in the applicable continuation 
                coverage provision, as of which the individual is 
                eligible for coverage under an employment-based health 
                plan, or
                    (B) the date on which such individual becomes 
                eligible for health insurance coverage through an 
                American Health Benefit Exchange operating in a State 
                or group of States under subtitle D of title I of the 
                Patient Protection and Affordable Care Act.
            (2) Notice.--As soon as practicable after the date of the 
        enactment of this Act, the Secretary of Labor, in consultation 
        with the Secretary of the Treasury and the Secretary of Health 
        and Human Services, shall provide rules setting forth the form 
        and manner in which prompt notice to individuals of the 
        continued availability of COBRA continuation coverage to such 
        individuals under paragraph (1).
            (3) Enforcement of extended continuation coverage under 
        state programs.--A State may enforce the provisions of this 
        section with respect to COBRA continuation coverage provided 
        under a State program of such State. Nothing in this paragraph 
        shall be construed to affect or modify section 514 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1144).
    (b) Continued Effect of Other Terminating Events.--Notwithstanding 
subsection (a), any required period of COBRA continuation coverage 
which is extended under such subsection shall terminate upon the 
occurrence, prior to the date of termination otherwise provided in such 
subsection, of any terminating event specified in the applicable 
continuation coverage provision other than the expiration of a period 
of a specified number of months.
    (c) Access to State High Risk Pools.--This section shall supersede 
any provision of the law of a State or political subdivision thereof to 
the extent that such provision has the effect of limiting or precluding 
access by a qualified beneficiary, whose COBRA continuation coverage 
has been extended under this section, to a State high risk pool 
established under section 1101 of the Patient Protection and Affordable 
Care Act solely by reason of the extension of such coverage beyond the 
date on which such coverage otherwise would have expired.
    (d) Definitions.--For purposes of this section--
            (1) COBRA continuation coverage.--The term ``COBRA 
        continuation coverage'' means continuation coverage provided 
        pursuant to part 6 of subtitle B of title I of the Employee 
        Retirement Income Security Act of 1974 (other than under 
        section 609), title XXII of the Public Health Service Act, 
        section 4980B of the Internal Revenue Code of 1986 (other than 
        subsection (f)(1) of such section insofar as it relates to 
        pediatric vaccines), or section 905a of title 5, United States 
        Code, or under a State program that provides comparable 
        continuation coverage. Such term does not include coverage 
        under a health flexible spending arrangement under a cafeteria 
        plan within the meaning of section 125 of the Internal Revenue 
        Code of 1986.
            (2) COBRA continuation provision.--The term ``COBRA 
        continuation provision'' means the provisions of law described 
        in paragraph (1).
            (3) Employment-based health plan.--The term ``employment-
        based health plan''--
                    (A) means a group health plan (as defined in 
                section 733(a)(1) of the Employee Retirement Income 
                Security Act of 1974), excluding coverage consisting of 
                only dental, vision, counseling, or referral services 
                (or a combination thereof), coverage under a flexible 
                spending arrangement (as defined in section 106(c)(2) 
                of the Internal Revenue Code of 1986), or coverage of 
                treatment that is furnished in an on-site medical 
                facility maintained by the employer and that consists 
                primarily of first-aid services, prevention and 
                wellness care, or similar care (or a combination 
                thereof); and
                    (B) includes such a plan that is the following:
                            (i) Federal, state, and tribal governmental 
                        plans.--A governmental plan (as defined in 
                        section 3(32) of the Employee Retirement Income 
                        Security Act of 1974), including a health 
                        benefits plan offered under chapter 89 of title 
                        5, United States Code.
                            (ii) Church plans.--A church plan (as 
                        defined in section 3(33) of the Employee 
                        Retirement Income Security Act of 1974).
            (4) State.--The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.