SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Congressional Contractor Health 
Insurance Equity Act''.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) Contract.--The term ``contract'' means any contract for 
        items or services or any lease of Government property 
        (including any subcontract of such contract or any sublease of 
        such lease)--
                    (A) the consideration with respect to which is 
                greater than $75,000 per year,
                    ``(B) with respect to a contract for services, 
                requires at least 1000 hours of services, and
                    (B) entered into between any entity or 
                instrumentality of the legislative branch of the 
                Federal Government and any individual or entity 
                employing at least 15 full-time employees.
            (2) Employee.--The term ``employee'' has the meaning given 
        such term under section 3(6) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1002(6)).
            (3) Entity of the legislative branch.--The term ``entity of 
        the legislative branch'' includes the following:
                    (A) The House of Representatives.
                    (B) The Senate.
                    (C) The Capitol Guide Service.
                    (D) The Capitol Police.
                    (E) The Congressional Budget Office.
                    (F) The Office of the Architect of the Capitol.
                    (G) The Office of the Attending Physician.
                    (H) The Office of Compliance.
            (4) Group health plan.--The term ``group health plan'' 
        means any plan or arrangement which provides, or pays the cost 
        of, health benefits that are actuarially equivalent to the 
        benefits provided under the standard option service benefit 
        plan offered under chapter 89 of title 5, United States Code.
            (5) Instrumentality of the legislative branch.--The term 
        ``instrumentality of the legislative branch'' means the 
        following:
                    (A) The General Accounting Office.
                    (B) The Government Printing Office.
                    (C) The Library of Congress.

SEC. 3. GENERAL REQUIREMENTS CONCERNING CONTRACTS COVERED UNDER THIS 
              ACT.

    (a) In General.--Any contract made or entered into by any entity or 
instrumentality of the legislative branch of the Federal Government 
shall contain provisions that require that--
            (1) all persons employed by the contractor in the 
        performance of the contract or at the location of the leasehold 
        be offered health insurance coverage under a group health plan; 
        and
            (2) with respect to the premiums for such plan with respect 
        to each employee--
                    (A) the contractor pay a percentage equal to the 
                average Government contribution required under section 
                8906 of title 5, United States Code, for health 
                insurance coverage provided under chapter 89 of such 
                title; and
                    (B) the employee pay the remainder of such 
                premiums.
    (b) Option To Purchase.--
            (1) In general.--Notwithstanding section 8914 of title 5, 
        United States Code, a contractor to which subsection (a) 
        applies that does not offer health insurance coverage under a 
        group health plan to its employees on the date on which the 
        contract is to take effect, may obtain any health benefits plan 
        offered under chapter 89 of title 5, United States Code, for 
        all persons employed by the contractor in the performance of 
        the contract or at the location of the leasehold. Any 
        contractor that exercises the option to purchase such coverage 
        shall make any Government contributions required for such 
        coverage under section 8906 of title 5, United States Code, 
        with the employee paying the contribution required for such 
        coverage for Federal employees.
            (2) Calculation of amount of premiums.--Subject to 
        paragraph (3)(B), the Director of the Office of Personnel 
        Management shall calculate the amount of premiums for health 
        benefits plans made available to contractor employees under 
        paragraph (1) separately from Federal employees and annuitants 
        enrolled in such plans.
            (3) Review by office of personnel management.--
                    (A) Annual review.--The Director of the Office of 
                Personnel Management shall review at the end of each 
                calendar year whether the nonapplication of paragraph 
                (2) would result in higher adverse selection, risk 
                segmentation in, or a substantial increase in premiums 
                for such health benefits plans. Such review shall 
                include a study by the Director of the health care 
                utilization and risks of contractor employees. The 
                Director shall submit a report to the President, the 
                Speaker of the House of Representatives, and the 
                President pro tempore of the Senate which shall contain 
                the results of such review.
                    (B) Nonapplication of paragraph (2).--Beginning in 
                the calendar year following a certification by the 
                Director of the Office of Personnel Management under 
                subparagraph (A) that the nonapplication of paragraph 
                (2) will not result in higher adverse selection, risk 
                segmentation in, or a substantial increase in premiums 
                for such health benefits plans, paragraph (2) shall not 
                apply.
            (4) Requirement of opm.--The Director of the Office of 
        Personnel Management shall take such actions as are appropriate 
        to enable a contractor described in paragraph (1) to obtain the 
        health insurance described in such paragraph.
    (c) Administrative Functions.--
            (1) In general.--The office within the entity or 
        instrumentality of the legislative branch of the Federal 
        Government which administers the health benefits plans for 
        Federal employees of such entity or instrumentality shall 
        perform such tasks with respect to plan coverage purchased 
        under subsection (b) by contractors with contracts with such 
        entity or instrumentality.
            (2) Waiver authority.--Waiver of the requirements of this 
        Act may be made by such office upon application.

SEC. 4. EFFECTIVE DATE.

    (a) In General.--This Act shall apply with respect to contracts 
executed, modified, or renewed on or after January 1, 1998.
    (b) Termination.--
            (1) In general.--This Act shall not apply on and after 
        October 1, 2002.
            (2) Transition rule.--In the case of any contract under 
        which, pursuant to this Act, health insurance coverage is 
        provided for calendar year 2002, the contractor and the 
        employees shall, notwithstanding section 3(a)(2), pay 1\1/3\ of 
        the otherwise required monthly premium for such coverage in 
        monthly installments during the period beginning on January 1, 
        2002, and ending before October 1, 2002.
Congressional Contractor Health Insurance Equity Act - Requires contracts made or entered into by any entity or instrumentality of the legislative branch of the Federal Government to require that employees of certain contractors be offered group health insurance coverage.
Congressional Contractor Health Insurance Equity Act