I 

109TH CONGRESS 

1ST SESSION H. R. 3297 

To extend Federal funding for operation of State high risk health insurance 

pools, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 14, 2005 

Mr. FORD introduced the following bill; which was referred to the Committee 

on Energy and Commerce, and in addition to the Committee on Ways 

and Means, for a period to be subsequently determined by the Speaker, 

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To extend Federal funding for operation of State high risk 

health insurance pools, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State High Risk Pool 

5 Funding Extension Act of 2005’’. 
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1 SEC. 2. EXTENSION OF FUNDING FOR OPERATION OF 

2 STATE HIGH RISK HEALTH INSURANCE 

3 POOLS. 

4 (a) EXTENSION OF SEED GRANTS.—Section 2745 of 

5 the Public Health Service Act (42 U.S.C. 300gg–45) is 

6 amended— 

7 (1) in subsection (a), in the subsection heading 

8 by inserting ‘‘EXTENSION OF’’ before ‘‘SEED’’; and 

9 (2) in subsection (c)(1), by inserting ‘‘and 

10 $15,000,000 for the period of fiscal years 2005 and 

11 2006’’ after ‘‘$20,000,000 for fiscal year 2003’’. 

12 (b) FUNDS FOR OPERATIONS.—Section 2745 of the 

13 Public Health Service Act (42 U.S.C. 300gg–45) is 

14 amended— 

15 (1) in subsection (b)— 

16 (A) in the subsection heading by striking 

17 ‘‘MATCHING’’; and 

18 (B) by striking paragraph (2) and insert19 ing the following: 

20 ‘‘(2) ALLOTMENT.—The amounts appropriated 

21 under subsection (c)(2) for a fiscal year shall be 

22 made available to the States (or the entities that op23 erate the high risk pool under applicable State law) 

24 as follows: 

25 ‘‘(A) An amount equal to 50 percent of the 

26 appropriated amount for the fiscal year shall be 
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1 allocated in equal amounts among each eligible 

2 State that applies for assistance under this sub3 section. 

4 ‘‘(B) An amount equal to 25 percent of the 

5 appropriated amount for the fiscal year shall be 

6 allocated among the States so that the amount 

7 provided to a State bears the same ratio to 

8 such available amount as the number of unin9 sured individuals in the State bears to the total 

10 number of uninsured individuals in all States 

11 (as determined by the Secretary). 

12 ‘‘(C) An amount equal to 25 percent of the 

13 appropriated amount for the fiscal year shall be 

14 allocated among the States so that the amount 

15 provided to a State bears the same ratio to 

16 such available amount as the number of individ17 uals enrolled in health care coverage through 

18 the qualified high risk pool of the State bears 

19 to the total number of individuals so enrolled 

20 through qualified high risk pools in all States 

21 (as determined by the Secretary).’’; and 

22 (2) in subsection (c)(2), by striking 

23 ‘‘$40,000,000’’ and all that follows through the pe24 riod and inserting ‘‘$75,000,000 for each of fiscal 
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1 years 2005 through 2009 to make allotments under 

2 subsection (b)(2).’’. 

3 (c) DEFINITIONS.—Section 2745 of the Public 

4 Health Service Act (42 U.S.C. 300gg–45) is amended— 

5 (1) in subsection (d), by inserting after 

6 ‘‘2744(c)(2)’’ the following: ‘‘, except that with re7 spect to subparagraph (A) of such section a State 

8 may elect to provide for the enrollment of eligible in9 dividuals through an acceptable alternative mecha10 nism,’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(e) STANDARD RISK RATE.—In subsection 

13 (b)(1)(A), the term ‘standard risk rate’ means a rate— 

14 ‘‘(1) determined under the State high risk pool 

15 by considering the premium rates charged by other 

16 health insurers offering health insurance coverage to 

17 individuals in the insurance market served; 

18 ‘‘(2) that is established using reasonable actu19 arial techniques; and 

20 ‘‘(3) that reflects anticipated claims experience 

21 and expenses for the coverage involved.’’. 

22 SEC. 3. IOM STUDY OF DEVELOPING STANDARD MODEL 

23 FOR CERTIFICATION OF UNINSURABILITY. 

24 (a) IN GENERAL.—The Secretary of Health and 

25 Human Services shall enter into a contract with the Insti-
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1 tute of Medicine for a study on the development of a 

2 standard model for the certification, for purposes of State 

3 high risk health insurance pools, of individuals as being 

4 uninsurable and thereby eligible for health benefits cov5 erage through such a pool. 

6 (b) REPORT.—Under such contract, the Institute of 

7 Medicine shall submit a report on the study to the Sec8 retary and to the Congress. 

9 SEC. 4. INCREASE IN TRADE ADJUSTMENT ASSISTANCE RE10 FUNDABLE TAX CREDIT. 

11 (a) IN GENERAL.—Sections 35(a) and 7527(b) of the 

12 Internal Revenue Code of 1986 are each amended by 

13 striking ‘‘65 percent’’ and inserting ‘‘80 percent’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 subsection (a) shall apply with respect to taxable years be16 ginning after December 31, 2004. 

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