II 

116TH CONGRESS 

2D SESSION S. 4329 

To provide premium assistance for COBRA continuation coverage, church 

plan continuation coverage, and furloughed continuation coverage for 

individuals and their families. 

IN THE SENATE OF THE UNITED STATES 

JULY 27, 2020 

Ms. MCSALLY (for herself, Mr. DAINES, Mr. CORNYN, and Mr. SULLIVAN) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To provide premium assistance for COBRA continuation coverage, church plan continuation coverage, and furloughed 

continuation coverage for individuals and their families. 

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 ‘‘Continuous Health 

5 Coverage for Workers Act’’. 

6 SEC. 2. PRESERVING HEALTH BENEFITS FOR WORKERS. 

7 (a) PROVISION OF PREMIUM ASSISTANCE.— 

8 (1) REDUCTION OF PREMIUMS PAYABLE.— 


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1 (A) COBRA CONTINUATION COVERAGE.— 

2 In the case of any premium for a period of cov3 erage during the period beginning on the first 

4 day of the first month that begins after the 

5 date of enactment of this Act and ending on 

6 December 31, 2020, for COBRA continuation 

7 coverage with respect to any assistance eligible 

8 individual described in subsection (c)(1), such 

9 individual shall be treated for purposes of any 

10 COBRA continuation provision as having paid 

11 the amount of such premium if such individual 

12 pays (and any person other than such individ13 ual’s employer pays on behalf of such indi14 vidual) the greater of 15 percent of the amount 

15 of such premium owed by such individual (as 

16 determined without regard to this subsection) 

17 or the amount of the premium that a similarly 

18 situated individual enrolled in the plan who is 

19 not an assistance eligible individual is (or would 

20 be, if so enrolled) required to pay with respect 

21 to the plan (after any employer contribution). 

22 (B) CHURCH PLANS.—In the case of any 

23 premium for a period of coverage during the pe24 riod beginning on the first day of the first 

25 month that begins after the date of enactment 


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1 of this Act and ending on December 31, 2020, 

2 for coverage under a church plan with respect 

3 to any assistance eligible individual described in 

4 subsection (c)(2), such individual shall be treat5 ed for purposes of the individual’s coverage 

6 under such plan as having paid the amount of 

7 such premium if such individual pays (and any 

8 person other than such individual’s employer 

9 pays on behalf of such individual) the greater of 

10 15 percent of the amount of such premium 

11 owed by such individual (as determined without 

12 regard to this subsection) or the amount of the 

13 premium that a similarly situated individual en14 rolled in the plan who is not an assistance eligi15 ble individual is (or would be, if so enrolled) re16 quired to pay with respect to the plan (after 

17 any employer contribution). 

18 (C) FURLOUGHED CONTINUATION COV19 ERAGE.—In the case of any premium for a pe20 riod of coverage during the period beginning on 

21 the first day of the first month that begins 

22 after the date of enactment of this Act and end23 ing on December 31, 2020, for coverage under 

24 a group health plan with respect to any assist25 ance eligible individual described in subsection 


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1 (c)(3), such individual shall be treated for pur2 poses of the individual’s coverage under such 

3 plan as having paid the amount of such pre4 mium if such individual pays (and any person 

5 other than such individual’s employer pays on 

6 behalf of such individual) the greater of 15 per7 cent of the amount of such premium owed by 

8 such individual (as determined without regard 

9 to this subsection) or the amount of the pre10 mium that a similarly situated individual en11 rolled in the plan who is not an assistance eligi12 ble individual is (or would be, if so enrolled) re13 quired to pay with respect to the plan (after 

14 any employer contribution). 

15 (2) PLAN ENROLLMENT OPTION.— 

16 (A) IN GENERAL.—Any assistance eligible 

17 individual who is enrolled in a group health 

18 plan offered by a plan sponsor may, not later 

19 than 90 days after the date of notice of the 

20 plan enrollment option described in this para21 graph, elect to enroll in coverage under a plan 

22 offered by such plan sponsor that is different 

23 than coverage under the plan in which such in24 dividual was enrolled at the time— 


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1 (i) in the case of any assistance eligi2 ble individual described in subsection 

3 (c)(1), the qualifying event specified in sec4 tion 603(2) of the Employee Retirement 

5 Income Security Act of 1974, section 

6 4980B(f)(3)(B) of the Internal Revenue 

7 Code of 1986, section 2203(2) of the Pub8 lic Health Service Act, or section 8905a of 

9 title 5, United States Code (except for the 

10 voluntary termination of such individual’s 

11 employment by such individual), occurred, 

12 and such coverage shall be treated as 

13 COBRA continuation coverage for pur14 poses of the applicable COBRA continu15 ation provision; 

16 (ii) in the case of an assistance eligi17 ble individual described in subsection 

18 (c)(2), the termination or reduction of 

19 hours of employment of such individual oc20 curred; or 

21 (iii) in the case of any assistance eligi22 ble individual described in subsection 

23 (c)(3), the furlough period began with re24 spect to such individual. 


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1 (B) REQUIREMENTS.—Any assistance eli2 gible individual may elect to enroll in different 

3 coverage as described in subparagraph (A) only 

4 if— 

5 (i) the employer involved has made a 

6 determination that such employer will per7 mit such assistance eligible individual to 

8 enroll in different coverage as provided 

9 under this paragraph; 

10 (ii) the premium for such different 

11 coverage does not exceed the premium for 

12 coverage in which such individual was en13 rolled at the time such qualifying event oc14 curred or immediately before such furlough 

15 began; 

16 (iii) the different coverage in which 

17 the individual elects to enroll is coverage 

18 that is also offered to the active employees 

19 of the employer, who are not in a furlough 

20 period, at the time at which such election 

21 is made; and 

22 (iv) the different coverage in which 

23 the individual elects to enroll is not— 

24 (I) coverage that provides only 

25 dental, vision, counseling, or referral 


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1 services (or a combination of such 

2 services); 

3 (II) a qualified small employer 

4 health reimbursement arrangement 

5 (as defined in section 9831(d)(2) of 

6 the Internal Revenue Code of 1986); 

7 (III) a flexible spending arrange8 ment (as defined in section 106(c)(2) 

9 of the Internal Revenue Code of 

10 1986); or 

11 (IV) benefits that provide cov12 erage for services or treatments fur13 nished in an on-site medical facility 

14 maintained by the employer and that 

15 consists primarily of first-aid services, 

16 prevention and wellness care, or simi17 lar care (or a combination of such 

18 care). 

19 (3) PREMIUM REIMBURSEMENT.—For provi20 sions providing the payment of such premium, see 

21 section 6432 of the Internal Revenue Code of 1986, 

22 as added by section 3(a). 

23 (b) LIMITATION OF PERIOD OF PREMIUM ASSIST24 ANCE.— 


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1 (1) ELIGIBILITY FOR ADDITIONAL COV2 ERAGE.—Subsection (a)(1) shall not apply with re3 spect to— 

4 (A) any assistance eligible individual de5 scribed in subsection (c)(1) for months of cov6 erage beginning on or after the earlier of— 

7 (i) the first date that such individual 

8 is eligible for coverage under any other 

9 group health plan (other than coverage 

10 consisting of only dental, vision, coun11 seling, or referral services (or a combina12 tion thereof), coverage under a flexible 

13 spending arrangement (as defined in sec14 tion 106(c)(2) of the Internal Revenue 

15 Code of 1986), coverage of treatment that 

16 is furnished in an on-site medical facility 

17 maintained by the employer and that con18 sists primarily of first-aid services, preven19 tion and wellness care, or similar care (or 

20 a combination thereof)), or eligible for ben21 efits under the Medicare program under 

22 title XVIII of the Social Security Act; or 

23 (ii) the earlier of— 

24 (I) the date following the expira25 tion of the maximum period of conVerDate Sep 11 2014 17:59 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4329.IS S4329

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1 tinuation coverage required under the 

2 applicable COBRA continuation cov3 erage provision; or 

4 (II) the date following the expira5 tion of the period of continuation cov6 erage allowed under subsection 

7 (d)(2)(B); 

8 (B) any assistance eligible individual de9 scribed in subsection (c)(2) for months of cov10 erage beginning on or after the earlier of— 

11 (i) the first date that such individual 

12 is eligible for coverage under any other 

13 group health plan (other than coverage 

14 consisting of only dental, vision, coun15 seling, or referral services (or a combina16 tion thereof), coverage under a flexible 

17 spending arrangement (as defined in sec18 tion 106(c)(2) of the Internal Revenue 

19 Code of 1986), coverage of treatment that 

20 is furnished in an on-site medical facility 

21 maintained by the employer and that con22 sists primarily of first-aid services, preven23 tion and wellness care, or similar care (or 

24 a combination thereof)), or eligible for benVerDate Sep 11 2014 17:59 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4329.IS S4329

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1 efits under the Medicare program under 

2 title XVIII of the Social Security Act; or 

3 (ii) the first date on which the church 

4 plan is no longer available to such indi5 vidual; or 

6 (C) any assistance eligible individual de7 scribed in paragraph (3)(C) for months of cov8 erage beginning on or after the earlier of— 

9 (i) the first date that such individual 

10 is eligible for coverage under any other 

11 group health plan (other than coverage 

12 consisting of only dental, vision, coun13 seling, or referral services (or a combina14 tion thereof), coverage under a flexible 

15 spending arrangement (as defined in sec16 tion 106(c)(2) of the Internal Revenue 

17 Code of 1986), coverage of treatment that 

18 is furnished in an on-site medical facility 

19 maintained by the employer and that con20 sists primarily of first-aid services, preven21 tion and wellness care, or similar care (or 

22 a combination thereof)), or eligible for ben23 efits under the Medicare program under 

24 title XVIII of the Social Security Act; or 


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1 (ii) the first date that such individual 

2 is no longer in the furlough period. 

3 (2) NOTIFICATION REQUIREMENT.—Any assist4 ance eligible individual shall notify the group health 

5 plan with respect to which subsection (a)(1) applies 

6 if such paragraph ceases to apply by reason of sub7 paragraph (A)(i), (B)(i), or (C)(i) of paragraph (1) 

8 (as applicable). Such notice shall be provided to the 

9 group health plan in such time and manner as may 

10 be specified by the Secretary of Labor. 

11 (3) SPECIAL ENROLLMENT PERIOD FOLLOWING

12 EXPIRATION OF PREMIUM ASSISTANCE.—Notwith13 standing section 1311 of the Patient Protection and 

14 Affordable Care Act (42 U.S.C. 18031), the expira15 tion of premium assistance pursuant to a limitation 

16 specified under paragraph (1) shall be treated as a 

17 qualifying event for which any assistance eligible in18 dividual is eligible to enroll in a qualified health plan 

19 offered through an Exchange under title I of such 

20 Act (42 U.S.C. 18001 et seq.) during a special en21 rollment period. 

22 (c) ASSISTANCE ELIGIBLE INDIVIDUAL.—For pur23 poses of this section, the term ‘‘assistance eligible indi24 vidual’’ means, with respect to a period of coverage during 

25 the period beginning on the first day of the first month 


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1 that begins after the date of enactment of this Act and 

2 ending on December 31, 2020— 

3 (1) any individual that is a qualified beneficiary 

4 that— 

5 (A) is eligible for COBRA continuation 

6 coverage by reason of a qualifying event speci7 fied in section 603(2) of the Employee Retire8 ment Income Security Act of 1974, section 

9 4980B(f)(3)(B) of the Internal Revenue Code 

10 of 1986, section 2203(2) of the Public Health 

11 Service Act, or section 8905a of title 5, United 

12 States Code (except for the voluntary termi13 nation of such individual’s employment by such 

14 individual); and 

15 (B) elects such coverage; 

16 (2) any individual who— 

17 (A) is terminated from (other than by rea18 son of such employee’s gross misconduct or vol19 untary termination), or is subject to a reduction 

20 in hours with respect to, employment with an 

21 employer who offers a church plan, if the em22 ployer voluntarily offers coverage under such 

23 plan to such individual after the termination or 

24 reduction of hours, or is a beneficiary of such 

25 an individual who is terminated or subject to a 


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1 reduction of hours, if the employer voluntarily 

2 offers coverage under such plan to such bene3 ficiary; and 

4 (B) elects such coverage; or 

5 (3) any covered employee that is in a furlough 

6 period that remains eligible for coverage under a 

7 group health plan offered by the employer of such 

8 covered employee. 

9 (d) EXTENSION OF ELECTION PERIOD AND EFFECT

10 ON COVERAGE.— 

11 (1) IN GENERAL.—For purposes of applying 

12 section 605(a) of the Employee Retirement Income 

13 Security Act of 1974, section 4980B(f)(5)(A) of the 

14 Internal Revenue Code of 1986, section 2205(a) of 

15 the Public Health Service Act, and section 

16 8905a(c)(2) of title 5, United States Code, in the 

17 case of— 

18 (A) an individual who does not have an 

19 election of COBRA continuation coverage in ef20 fect on the date of the enactment of this Act 

21 but who would be an assistance eligible indi22 vidual described in subsection (c)(1) if such 

23 election were so in effect; or 

24 (B) an individual who elected COBRA con25 tinuation coverage on or after March 1, 2020, 


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1 and discontinued from such coverage before the 

2 date of the enactment of this Act, 

3 such individual may elect the COBRA continuation 

4 coverage under the COBRA continuation coverage 

5 provisions containing such provisions during the pe6 riod beginning on the date of the enactment of this 

7 Act and ending 60 days after the date on which the 

8 notification required under subsection (g)(3) is pro9 vided to such individual. 

10 (2) COMMENCEMENT OF COBRA CONTINUATION

11 COVERAGE.—Any COBRA continuation coverage 

12 elected by a qualified beneficiary during an extended 

13 election period under paragraph (1)— 

14 (A) shall apply as if such qualified bene15 ficiary had been covered as of the date of a 

16 qualifying event specified in section 603(2) of 

17 the Employee Retirement Income Security Act 

18 of 1974, section 4980B(f)(3)(B) of the Internal 

19 Revenue Code of 1986, section 2203(2) of the 

20 Public Health Service Act, or section 8905a of 

21 title 5, United States Code, except for the vol22 untary termination of such beneficiary’s em23 ployment by such beneficiary, that occurs no 

24 earlier than March 1, 2020 (including the treat25 ment of premium payments under subsection 


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1 (a)(1) and any cost-sharing requirements for 

2 items and services under a group health plan); 

3 and 

4 (B) shall not extend beyond the period of 

5 COBRA continuation coverage that would have 

6 been required under the applicable COBRA 

7 continuation coverage provision if the coverage 

8 had been elected as required under such provi9 sion. 

10 (e) EXPEDITED REVIEW OF DENIALS OF PREMIUM

11 ASSISTANCE.—In any case in which an individual requests 

12 treatment as an assistance eligible individual described in 

13 paragraph (1), (2), or (3) of subsection (c) and is denied 

14 such treatment by the group health plan, the Secretary 

15 of Labor (or the Secretary of Health and Human Services 

16 in connection with COBRA continuation coverage or a 

17 church plan which is provided other than pursuant to part 

18 6 of subtitle B of title I of the Employee Retirement In19 come Security Act of 1974), in consultation with the Sec20 retary of the Treasury, shall provide for expedited review 

21 of such denial. An individual shall be entitled to such re22 view upon application to such Secretary in such form and 

23 manner as shall be provided by such Secretary, in con24 sultation with the Secretary of the Treasury. Such Sec25 retary shall make a determination regarding such individVerDate Sep 11 2014 17:59 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S4329.IS S4329

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1 ual’s eligibility within 15 business days after receipt of 

2 such individual’s application for review under this sub3 section. Either Secretary’s determination upon review of 

4 the denial shall be de novo and shall be the final deter5 mination of such Secretary. A reviewing court shall grant 

6 deference to such Secretary’s determination. The provi7 sions of this subsection, subsections (a) through (e), and 

8 subsections (g) through (i) shall be treated as provisions 

9 of title I of the Employee Retirement Income Security Act 

10 of 1974 for purposes of part 5 of subtitle B of such title. 

11 (f) DISREGARD OF SUBSIDIES FOR PURPOSES OF

12 FEDERAL AND STATE PROGRAMS.—Notwithstanding any 

13 other provision of law, any premium assistance with re14 spect to an assistance eligible individual under this section 

15 shall not be considered income, in-kind support, or re16 sources for purposes of determining the eligibility of the 

17 recipient (or the recipient’s spouse or family) for benefits 

18 or assistance, or the amount or extent of benefits or assist19 ance, or any other benefit provided under any Federal pro20 gram or any program of a State or political subdivision 

21 thereof financed in whole or in part with Federal funds. 

22 (g) COBRA-SPECIFIC NOTICE.— 

23 (1) GENERAL NOTICE.— 

24 (A) IN GENERAL.—In the case of notices 

25 provided under section 606(a)(4) of the EmVerDate Sep 11 2014 17:59 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S4329.IS S4329

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1 ployee Retirement Income Security Act of 1974 

2 (29 U.S.C. 1166(4)), section 4980B(f)(6)(D) of 

3 the Internal Revenue Code of 1986, section 

4 2206(4) of the Public Health Service Act (42 

5 U.S.C. 300bb–6(4)), or section 8905a(f)(2)(A) 

6 of title 5, United States Code, with respect to 

7 individuals who, during the period described in 

8 subsection (c), become entitled to elect COBRA 

9 continuation coverage, the requirements of such 

10 provisions shall not be treated as met unless 

11 such notices include an additional notification 

12 to the recipient, in writing, in clear and under13 standable language of— 

14 (i) the availability of premium assist15 ance with respect to such coverage under 

16 this section; and 

17 (ii) the option to enroll in different 

18 coverage if the employer permits assistance 

19 eligible individuals described in subsection 

20 (c)(1) to elect enrollment in different cov21 erage (as described in subsection (a)(2)). 

22 (B) ALTERNATIVE NOTICE.—In the case of 

23 COBRA continuation coverage to which the no24 tice provision under such sections does not 

25 apply, the Secretary of Labor, in consultation 


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1 with the Secretary of the Treasury and the Sec2 retary of Health and Human Services, shall, in 

3 consultation with administrators of the group 

4 health plans (or other entities) that provide or 

5 administer the COBRA continuation coverage 

6 involved, provide rules requiring the provision of 

7 such notice. 

8 (C) FORM.—The requirement of the addi9 tional notification under this paragraph may be 

10 met by amendment of existing notice forms or 

11 by inclusion of a separate document with the 

12 notice otherwise required. 

13 (2) SPECIFIC REQUIREMENTS.—Each additional 

14 notification under paragraph (1) shall include— 

15 (A) the forms necessary for establishing 

16 eligibility for premium assistance under this 

17 section; 

18 (B) the name, address, and telephone num19 ber necessary to contact the plan administrator 

20 and any other person maintaining relevant in21 formation in connection with such premium as22 sistance; 

23 (C) a description of the extended election 

24 period provided for in subsection (d)(1); 


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1 (D) a description of the obligation of the 

2 qualified beneficiary under subsection (b)(2) 

3 and the penalty provided under section 6720C 

4 of the Internal Revenue Code of 1986 for fail5 ure to carry out the obligation; 

6 (E) a description, displayed in a prominent 

7 manner, of the qualified beneficiary’s right to a 

8 reduced premium and any conditions on entitle9 ment to the reduced premium; 

10 (F) a description of the option of the quali11 fied beneficiary to enroll in different coverage if 

12 the employer permits such beneficiary to elect 

13 to enroll in such different coverage under sub14 section (a)(2); and 

15 (G) information regarding any Exchange 

16 established under title I of the Patient Protec17 tion and Affordable Care Act (42 U.S.C. 18001 

18 et seq.) through which a qualified beneficiary 

19 may be eligible to enroll in a qualified health 

20 plan, including— 

21 (i) the publicly accessible internet 

22 website address for such Exchange; 

23 (ii) the publicly accessible internet 

24 website address for the Find Local Help 

25 directory maintained by the Department of 


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1 Health and Human Services on the 

2 healthcare.gov internet website (or a suc3 cessor website); 

4 (iii) a clear explanation that— 

5 (I) an individual who is eligible 

6 for continuation coverage may also be 

7 eligible to enroll, with financial assist8 ance, in a qualified health plan offered 

9 through such Exchange, but, in the 

10 case that such individual elects to en11 roll in such continuation coverage and 

12 subsequently elects to terminate such 

13 continuation coverage before the pe14 riod of such continuation coverage ex15 pires, such termination does not ini16 tiate a special enrollment period (ab17 sent a qualifying event specified in 

18 section 603(2) of the Employee Re19 tirement Income Security Act of 

20 1974, section 4980B(f)(3)(B) of the 

21 Internal Revenue Code of 1986, sec22 tion 2203(2) of the Public Health 

23 Service Act, or section 8905a of title 

24 5, United States Code, with respect to 

25 such individual); and 


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1 (II) an individual who elects to 

2 enroll in continuation coverage will re3 main eligible to enroll in a qualified 

4 health plan offered through such Ex5 change during an open enrollment pe6 riod and may be eligible for financial 

7 assistance with respect to enrolling in 

8 such a qualified health plan; 

9 (iv) information on consumer protec10 tions with respect to enrolling in a quali11 fied health plan offered through such Ex12 change, including the requirement for such 

13 a qualified health plan to provide coverage 

14 for essential health benefits (as defined in 

15 section 1302(b) of such Act (42 U.S.C. 

16 18022(b))) and the requirements applica17 ble to such a qualified health plan under 

18 part A of title XXVII of the Public Health 

19 Service Act (42 U.S.C. 300gg et seq.); 

20 (v) information on the availability of 

21 financial assistance with respect to enroll22 ing in a qualified health plan, including the 

23 maximum income limit for eligibility for 

24 the premium tax credit under section 36B 

25 of the Internal Revenue Code of 1986; and 


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1 (vi) information on any special enroll2 ment periods during which any assistance 

3 eligible individual described in subsection 

4 (c)(1)(A) may be eligible to enroll, with fi5 nancial assistance, in a qualified health 

6 plan offered through such Exchange (in7 cluding a special enrollment period for 

8 which an individual may be eligible due to 

9 the expiration of premium assistance pur10 suant to a limitation specified under sub11 section (b)(1)); and 

12 (H) information regarding compliance with 

13 the requirements of subsection (n). 

14 (3) NOTICE IN CONNECTION WITH EXTENDED

15 ELECTION PERIODS.—In the case of any assistance 

16 eligible individual described in subsection (c)(1) (or 

17 any individual described in subsection (d)(1)) who 

18 became entitled to elect COBRA continuation cov19 erage before the date of the enactment of this Act, 

20 the administrator of the applicable group health plan 

21 (or other entity) shall provide (within 60 days after 

22 the date of enactment of this Act) for the additional 

23 notification required to be provided under paragraph 

24 (1) and failure to provide such notice shall be treatVerDate Sep 11 2014 17:59 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S4329.IS S4329

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1 ed as a failure to meet the notice requirements 

2 under the applicable COBRA continuation provision. 

3 (4) MODEL NOTICES.—Not later than 30 days 

4 after the date of enactment of this Act, with respect 

5 to any assistance eligible individual described in sub6 section (c)(1)— 

7 (A) the Secretary of Labor, in consultation 

8 with the Secretary of the Treasury and the Sec9 retary of Health and Human Services, shall 

10 prescribe models for the additional notification 

11 required under this paragraph (other than the 

12 additional notification described in subpara13 graph (B)); and 

14 (B) in the case of any additional notifica15 tion provided pursuant to paragraph (1) under 

16 section 8905a(f)(2)(A) of title 5, United States 

17 Code, the Office of Personnel Management shall 

18 prescribe a model for such additional notifica19 tion. 

20 (h) FURLOUGH-SPECIFIC NOTICE.— 

21 (1) IN GENERAL.—With respect to any assist22 ance eligible individual described in subsection (c)(3) 

23 who, during the period described in such paragraph, 

24 becomes eligible for assistance pursuant to sub25 section (a)(1)(C), the requirements of section 


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1 606(a)(4) of the Employee Retirement Income Secu2 rity Act of 1974 (29 U.S.C. 1166(4)), section 

3 4980B(f)(6)(D) of the Internal Revenue Code of 

4 1986, section 2206(4) of the Public Health Service 

5 Act (42 U.S.C. 300bb–6(4)), or section 

6 8905a(f)(2)(A) of title 5, United States Code, shall 

7 not be treated as met unless the group health plan 

8 administrator, in accordance with the timing re9 quirement specified under paragraph (2), provides to 

10 the individual a written notice in clear and under11 standable language of— 

12 (A) the availability of premium assistance 

13 with respect to such coverage under this sec14 tion; 

15 (B) the option of the qualified beneficiary 

16 to enroll in different coverage if the employer 

17 permits such beneficiary to elect to enroll in 

18 such different coverage under subsection (a)(2); 

19 and 

20 (C) the information specified under sub21 section (g)(2) (as applicable). 

22 (2) TIMING SPECIFIED.—For purposes of para23 graph (1), the timing requirement specified in this 

24 paragraph is— 


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1 (A) with respect to such an individual who 

2 is within a furlough period during the period 

3 beginning on March 1, 2020, and ending on the 

4 date of the enactment of this Act, 30 days after 

5 the date of such enactment; and 

6 (B) with respect to such an individual who 

7 is within a furlough period during the period 

8 beginning on the first day after the date of the 

9 enactment of this Act and ending on December 

10 31, 2020, 30 days after the date of the begin11 ning of such furlough period. 

12 (3) MODEL NOTICES.—Not later than 30 days 

13 after the date of enactment of this Act, with respect 

14 to any assistance eligible individual described in sub15 section (c)(3)— 

16 (A) the Secretary of Labor, in consultation 

17 with the Secretary of the Treasury and the Sec18 retary of Health and Human Services, shall 

19 prescribe models for the notification required 

20 under this paragraph (other than the notifica21 tion described in subparagraph (B)); and 

22 (B) in the case of any notification provided 

23 pursuant to paragraph (1) under section 

24 8905a(f)(2)(A) of title 5, United States Code, 


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1 the Office of Personnel Management shall pre2 scribe a model for such notification. 

3 (i) NOTICE OF EXPIRATION OF PERIOD OF PREMIUM

4 ASSISTANCE.— 

5 (1) IN GENERAL.—With respect to any assist6 ance eligible individual (as applicable), subject to 

7 paragraph (2), the requirements of section 606(a)(4) 

8 of the Employee Retirement Income Security Act of 

9 1974 (29 U.S.C. 1166(4)), section 4980B(f)(6)(D) 

10 of the Internal Revenue Code of 1986, section 

11 2206(4) of the Public Health Service Act (42 U.S.C. 

12 300bb–6(4)), or section 8905a(f)(2)(A) of title 5, 

13 United States Code, shall not be treated as met un14 less the employer of the individual, during the period 

15 specified under paragraph (3), provides to such indi16 vidual a written notice in clear and understandable 

17 language— 

18 (A) that the premium assistance for such 

19 individual will expire soon and the prominent 

20 identification of the date of such expiration; 

21 (B) that such individual may be eligible for 

22 coverage without any premium assistance 

23 through— 

24 (i) COBRA continuation coverage; or 


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•S 4329 IS

1 (ii) coverage under a group health 

2 plan; 

3 (C) that the expiration of premium assist4 ance is treated as a qualifying event for which 

5 any assistance eligible individual is eligible to 

6 enroll in a qualified health plan offered through 

7 an Exchange under title I of such Act (42 

8 U.S.C. 18001 et seq.) during a special enroll9 ment period; and 

10 (D) the information specified in subsection 

11 (g)(2)(G). 

12 (2) EXCEPTION.—The requirement for the 

13 group health plan administrator to provide the writ14 ten notice under paragraph (1) shall be waived in 

15 the case the premium assistance for such individual 

16 expires pursuant to subparagraph (A)(i) or (C)(i) of 

17 subsection (b)(1). 

18 (3) PERIOD SPECIFIED.—For purposes of para19 graph (1), the period specified in this paragraph is, 

20 with respect to the date of expiration of premium as21 sistance for any assistance eligible individual pursu22 ant to a limitation requiring a notice under this sub23 section, the period beginning on the day that is 45 

24 days before the date of such expiration and ending 


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•S 4329 IS

1 on the day that is 15 days before the date of such 

2 expiration. 

3 (4) MODEL NOTICES.—Not later than 30 days 

4 after the date of enactment of this Act, with respect 

5 to any assistance eligible individual— 

6 (A) the Secretary of Labor, in consultation 

7 with the Secretary of the Treasury and the Sec8 retary of Health and Human Services, shall 

9 prescribe models for the notification required 

10 under this subsection (other than the notifica11 tion described in subparagraph (B)); and 

12 (B) in the case of any notification provided 

13 pursuant to paragraph (1) under section 

14 8905a(f)(2)(A) of title 5, United States Code, 

15 the Office of Personnel Management shall pre16 scribe a model for such notification. 

17 (j) REGULATIONS.—The Secretary of the Treasury 

18 and the Secretary of Labor may jointly prescribe such reg19 ulations or other guidance as may be necessary or appro20 priate to carry out the provisions of this section, including 

21 the prevention of fraud and abuse under this section, ex22 cept that the Secretary of Labor and the Secretary of 

23 Health and Human Services may prescribe such regula24 tions (including interim final regulations) or other guidVerDate Sep 11 2014 17:59 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S4329.IS S4329

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1 ance as may be necessary or appropriate to carry out the 

2 provisions of subsections (e), (g), (h), (i), and (k). 

3 (k) OUTREACH.— 

4 (1) IN GENERAL.—The Secretary of Labor, in 

5 consultation with the Secretary of the Treasury and 

6 the Secretary of Health and Human Services, shall 

7 provide outreach consisting of public education and 

8 enrollment assistance relating to premium assistance 

9 provided under this section. Such outreach shall tar10 get employers, group health plan administrators, 

11 public assistance programs, States, insurers, and 

12 other entities as determined appropriate by such 

13 Secretaries. Such outreach shall include an initial 

14 focus on those individuals electing continuation cov15 erage who are referred to in subsection (g)(3). Infor16 mation on such premium assistance, including en17 rollment, shall also be made available on websites of 

18 the Departments of Labor, Treasury, and Health 

19 and Human Services. 

20 (2) ENROLLMENT UNDER MEDICARE.—The 

21 Secretary of Health and Human Services shall pro22 vide outreach consisting of public education. Such 

23 outreach shall target individuals who lose health in24 surance coverage. Such outreach shall include infor25 mation regarding enrollment for benefits under title 


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•S 4329 IS

1 XVIII of the Social Security Act (42 U.S.C. 1395 et 

2 seq.) for purposes of preventing mistaken delays of 

3 such enrollment by such individuals, including life4 time penalties for failure of timely enrollment. 

5 (l) DEFINITIONS.—For purposes of this section: 

6 (1) ADMINISTRATOR.—The term ‘‘adminis7 trator’’ has the meaning given such term in section 

8 3(16)(A) of the Employee Retirement Income Secu9 rity Act of 1974. 

10 (2) CHURCH PLAN.—The term ‘‘church plan’’ 

11 means a plan, as described in section 414(e) of the 

12 Internal Revenue Code of 1986, that provides med13 ical care to employees or their dependents. 

14 (3) COBRA CONTINUATION COVERAGE.—The 

15 term ‘‘COBRA continuation coverage’’ means con16 tinuation coverage provided pursuant to part 6 of 

17 subtitle B of title I of the Employee Retirement In18 come Security Act of 1974 (other than under section 

19 609), title XXII of the Public Health Service Act, 

20 section 4980B of the Internal Revenue Code of 1986 

21 (other than subsection (f)(1) of such section insofar 

22 as it relates to pediatric vaccines), or section 8905a 

23 of title 5, United States Code, or under a State pro24 gram that provides comparable continuation cov25 erage. Such term does not include coverage under a 


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•S 4329 IS

1 health flexible spending arrangement under a cafe2 teria plan within the meaning of section 125 of the 

3 Internal Revenue Code of 1986. 

4 (4) COBRA CONTINUATION PROVISION.—The 

5 term ‘‘COBRA continuation provision’’ means the 

6 provisions of law described in paragraph (3). 

7 (5) COVERED EMPLOYEE.—The term ‘‘covered 

8 employee’’ has the meaning given such term in sec9 tion 607(2) of the Employee Retirement Income Se10 curity Act of 1974. 

11 (6) QUALIFIED BENEFICIARY.—The term 

12 ‘‘qualified beneficiary’’ has the meaning given such 

13 term in section 607(3) of the Employee Retirement 

14 Income Security Act of 1974. 

15 (7) GROUP HEALTH PLAN.—The term ‘‘group 

16 health plan’’ has the meaning given such term in 

17 section 607(1) of the Employee Retirement Income 

18 Security Act of 1974. 

19 (8) STATE.—The term ‘‘State’’ includes the 

20 District of Columbia, the Commonwealth of Puerto 

21 Rico, the Virgin Islands, Guam, American Samoa, 

22 and the Commonwealth of the Northern Mariana Is23 lands. 

24 (9) PERIOD OF COVERAGE.—Any reference in 

25 this section to a period of coverage shall be treated 


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•S 4329 IS

1 as a reference to a monthly or shorter period of cov2 erage with respect to which premiums are charged 

3 with respect to such coverage. 

4 (10) PLAN SPONSOR.—The term ‘‘plan spon5 sor’’ has the meaning given such term in section 

6 3(16)(B) of the Employee Retirement Income Secu7 rity Act of 1974. 

8 (11) FURLOUGH PERIOD.— 

9 (A) IN GENERAL.—The term ‘‘furlough pe10 riod’’ means, with respect to an individual and 

11 an employer of such individual, a period— 

12 (i) beginning with the first month be13 ginning on or after March 1, 2020, and be14 fore December 31, 2020, during which 

15 such individual’s employer reduces such in16 dividual’s work hours (due to a lack of 

17 work, funds, or other nondisciplinary rea18 son) to an amount that is less than 70 per19 cent of the base month amount; and 

20 (ii) ending with the earlier of— 

21 (I) the first month beginning 

22 after December 31, 2020; or 

23 (II) the month following the first 

24 month during which work hours of 

25 such employee are greater than 80 


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•S 4329 IS

1 percent of work hours of the base 

2 month amount. 

3 (B) BASE MONTH AMOUNT.—For purposes 

4 of subparagraph (A), the term ‘‘base month 

5 amount’’ means, with respect to an individual 

6 and an employer of such individual, the greater 

7 of— 

8 (i) such individual’s work hours in the 

9 month prior (or in the case such individual 

10 had no work hours in the month prior and 

11 had work hours in the 3 months prior, the 

12 last month with work hours within the 

13 prior 3 months); and 

14 (ii) such individual’s work hours dur15 ing the period beginning January 1, 2020, 

16 and ending January 31, 2020. 

17 (m) REPORTS.— 

18 (1) INTERIM REPORT.—The Secretary of the 

19 Treasury and the Secretary of Labor shall jointly 

20 submit an interim report to the Committee on Edu21 cation and Labor, the Committee on Ways and 

22 Means, and the Committee on Energy and Com23 merce of the House of Representatives and the Com24 mittee on Health, Education, Labor, and Pensions 

25 and the Committee on Finance of the Senate regardVerDate Sep 11 2014 17:59 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S4329.IS S4329

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•S 4329 IS

1 ing the premium assistance provided under this sec2 tion that includes— 

3 (A) the number of individuals provided 

4 such assistance as of the date of the report; and 

5 (B) the total amount of expenditures in6 curred (with administrative expenditures noted 

7 separately) in connection with such assistance 

8 as of the date of the report. 

9 (2) FINAL REPORT.—As soon as practicable 

10 after the last period of COBRA continuation cov11 erage for which premium assistance is provided 

12 under this section, the Secretary of the Treasury 

13 and the Secretary of Labor shall jointly submit a 

14 final report to each Committee referred to in para15 graph (1) that includes— 

16 (A) the number of individuals provided 

17 premium assistance under this section; 

18 (B) the average dollar amount (monthly 

19 and annually) of premium assistance provided 

20 to such individuals; and 

21 (C) the total amount of expenditures in22 curred (with administrative expenditures noted 

23 separately) in connection with premium assist24 ance under this section. 

25 (n) LIMITATION.— 


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•S 4329 IS

1 (1) IN GENERAL.—Notwithstanding section 

2 602(1) of the Employee Retirement Income Security 

3 Act of 1974 (29 U.S.C. 1162(1)) or any other provi4 sion of part 6 of subtitle B of title I of such Act of 

5 1974 (29 U.S.C. 1161 et seq.), section 2202(1) of 

6 the Public Health Service Act (42 U.S.C. 300bb–2) 

7 or any other provision of such Act (42 U.S.C. 201 

8 et seq.), section 4980B(f)(2)(A) of the Internal Rev9 enue Code of 1986 or any other provision of such 

10 Code, section 8905a of title 5, United States Code, 

11 or any provision of State law, in the case of coverage 

12 described in subsection (a)(1) for an assistance eligi13 ble individual— 

14 (A) such coverage shall exclude coverage of 

15 an abortion (except to the extent described in 

16 section 507(a) of division A of Public Law 116– 

17 94) for any period of coverage beginning on or 

18 after the date of enactment of this Act, for 

19 which subsection (a)(1) applies to the indi20 vidual; and 

21 (B) if such coverage would, but for the re22 quirement under subparagraph (A), include cov23 erage of abortion (except to the extent de24 scribed in such subparagraph) for such indi25 vidual, the coverage shall be modified for such 


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•S 4329 IS

1 individual so that the coverage excludes abor2 tion (except to the extent described in such sub3 paragraph) for any period of coverage as de4 scribed in such subparagraph. 

5 (2) RULE OF CONSTRUCTION.—Nothing in this 

6 Act, or any amendment made by this Act, may be 

7 construed to require a health plan, including any 

8 COBRA continuation coverage, to provide coverage 

9 of any abortion. 

10 (o) DEADLINES WITH RESPECT TO NOTICES.—Not11 withstanding section 518 of the Employee Retirement In12 come Security Act of 1974 and section 7508A of the Inter13 nal Revenue Code of 1986, the Secretary of Labor and 

14 the Secretary of the Treasury, respectively, may not waive 

15 or extend any deadline with respect to the provision of 

16 notices described in subsections (g), (h), and (i). 

17 SEC. 3. AMENDMENTS TO THE INTERNAL REVENUE CODE 

18 OF 1986. 

19 (a) COBRA PREMIUM ASSISTANCE.— 

20 (1) IN GENERAL.—Subchapter B of chapter 65 

21 of the Internal Revenue Code of 1986 is amended by 

22 adding at the end the following new section: 


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•S 4329 IS

1 ‘‘SEC. 6432. CONTINUATION COVERAGE PREMIUM ASSIST2 ANCE. 

3 ‘‘(a) IN GENERAL.—The person to whom premiums 

4 are payable for continuation coverage under section 

5 2(a)(1) of the Continuous Health Coverage for Workers 

6 Act shall be allowed as a credit against the tax imposed 

7 by section 3111(a), or so much of the taxes imposed under 

8 section 3221(a) as are attributable to the rate in effect 

9 under section 3111(a), for each calendar quarter an 

10 amount equal to the premiums not paid by assistance eligi11 ble individuals for such coverage by reason of such section 

12 2(a)(1) with respect to such calendar quarter. 

13 ‘‘(b) PERSON TO WHOM PREMIUMS ARE PAYABLE.— 

14 For purposes of subsection (a), except as otherwise pro15 vided by the Secretary, the person to whom premiums are 

16 payable under such continuation coverage shall be treated 

17 as being— 

18 ‘‘(1) in the case of any group health plan which 

19 is a multiemployer plan (as defined in section 3(37) 

20 of the Employee Retirement Income Security Act of 

21 1974), the plan, 

22 ‘‘(2) in the case of any group health plan not 

23 described in paragraph (1)— 

24 ‘‘(A) which provides church plan continu25 ation coverage described in section 

26 2(a)(1)(A)(ii), furlough continuation coverage 


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•S 4329 IS

1 described in section 2(a)(1)(A)(iii) of the Con2 tinuous Health Coverage for Workers Act or 

3 subject to the COBRA continuation provisions 

4 contained in— 

5 ‘‘(i) this title, 

6 ‘‘(ii) the Employee Retirement Income 

7 Security Act of 1974, 

8 ‘‘(iii) the Public Health Service Act, 

9 or 

10 ‘‘(iv) title 5, United States Code, or 

11 ‘‘(B) under which some or all of the cov12 erage is not provided by insurance, 

13 the employer maintaining the plan, and 

14 ‘‘(3) in the case of any group health plan not 

15 described in paragraph (1) or (2), the insurer pro16 viding the coverage under the group health plan. 

17 ‘‘(c) LIMITATIONS AND REFUNDABILITY.— 

18 ‘‘(1) CREDIT LIMITED TO CERTAIN EMPLOY19 MENT TAXES.—The credit allowed by subsection (a) 

20 with respect to any calendar quarter shall not exceed 

21 the tax imposed by section 3111(a), or so much of 

22 the taxes imposed under section 3221(a) as are at23 tributable to the rate in effect under section 

24 3111(a), for such calendar quarter (reduced by any 

25 credits allowed under subsections (e) and (f) of secVerDate Sep 11 2014 17:59 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\S4329.IS S4329

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•S 4329 IS

1 tion 3111, sections 7001 and 7003 of the Families 

2 First Coronavirus Response Act, section 2301 of the 

3 CARES Act, and sections 20204 and 20212 of the 

4 COVID–19 Tax Relief Act of 2020 for such quarter) 

5 on the wages paid with respect to the employment 

6 of all employees of the employer. 

7 ‘‘(2) REFUNDABILITY OF EXCESS CREDIT.— 

8 ‘‘(A) CREDIT IS REFUNDABLE.—If the 

9 amount of the credit under subsection (a) ex10 ceeds the limitation of paragraph (1) for any 

11 calendar quarter, such excess shall be treated 

12 as an overpayment that shall be refunded under 

13 sections 6402(a) and 6413(b). 

14 ‘‘(B) CREDIT MAY BE ADVANCED.—In an15 ticipation of the credit, including the refundable 

16 portion under subparagraph (A), the credit may 

17 be advanced, according to forms and instruc18 tions provided by the Secretary, up to an 

19 amount calculated under subsection (a) through 

20 the end of the most recent payroll period in the 

21 quarter. 

22 ‘‘(C) TREATMENT OF DEPOSITS.—The 

23 Secretary shall waive any penalty under section 

24 6656 for any failure to make a deposit of the 

25 tax imposed by section 3111(a), or so much of 


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•S 4329 IS

1 the taxes imposed under section 3221(a) as are 

2 attributable to the rate in effect under section 

3 3111(a), if the Secretary determines that such 

4 failure was due to the anticipation of the credit 

5 allowed under this section. 

6 ‘‘(D) TREATMENT OF PAYMENTS.—For 

7 purposes of section 1324 of title 31, United 

8 States Code, any amounts due to an employer 

9 under this paragraph shall be treated in the 

10 same manner as a refund due from a credit 

11 provision referred to in subsection (b)(2) of 

12 such section. 

13 ‘‘(3) LIMITATION ON REIMBURSEMENT FOR

14 CERTAIN EMPLOYEES.—In the case of an individual 

15 who for any month is an assistance eligible indi16 vidual described in subparagraph (B) or (C) of sec17 tion 2(a)(3) of the Continuous Health Coverage for 

18 Workers Act with respect to any coverage, the credit 

19 determined with respect to such individual under 

20 subsection (a) for any such month ending during a 

21 calendar quarter shall not exceed the amount of pre22 mium the individual would have paid for a full 

23 month of such coverage for the month preceding the 

24 first month for which an individual is such an assist25 ance eligible individual. 


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•S 4329 IS

1 ‘‘(d) GOVERNMENTAL ENTITIES.—For purposes of 

2 this section, the term ‘person’ includes any governmental 

3 entity or Indian tribal government (as defined in section 

4 139E(c)(1)). 

5 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—For purposes 

6 of chapter 1, the gross income of any person allowed a 

7 credit under this section shall be increased for the taxable 

8 year which includes the last day of any calendar quarter 

9 with respect to which such credit is allowed by the amount 

10 of such credit. No amount for which a credit is allowed 

11 under this section shall be taken into account as qualified 

12 wages under section 2301 of the CARES Act or as quali13 fied health plan expenses under section 7001(d) or 

14 7003(d) of the Families First Coronavirus Response Act. 

15 ‘‘(f) REPORTING.—Each person entitled to reim16 bursement under subsection (a) for any period shall sub17 mit such reports (at such time and in such manner) as 

18 the Secretary may require, including— 

19 ‘‘(1) an attestation of involuntary termination 

20 of employment, reduction of hours, or furloughing, 

21 for each assistance eligible individual on the basis of 

22 whose termination, reduction of hours, or fur23 loughing entitlement to reimbursement is claimed 

24 under subsection (a), 


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•S 4329 IS

1 ‘‘(2) a report of the amount of payroll taxes off2 set under subsection (a) for the reporting period, 

3 and 

4 ‘‘(3) a report containing the TINs of all covered 

5 employees, the amount of subsidy reimbursed with 

6 respect to each employee, and a designation with re7 spect to each employee as to whether the subsidy re8 imbursement is for coverage of 1 individual or 2 or 

9 more individuals. 

10 ‘‘(g) REGULATIONS.—The Secretary shall issue such 

11 regulations or other guidance as may be necessary or ap12 propriate to carry out this section, including— 

13 ‘‘(1) the requirement to report information or 

14 the establishment of other methods for verifying the 

15 correct amounts of reimbursements under this sec16 tion, 

17 ‘‘(2) the application of this section to group 

18 health plans that are multiemployer plans (as de19 fined in section 3(37) of the Employee Retirement 

20 Income Security Act of 1974), 

21 ‘‘(3) to allow the advance payment of the credit 

22 determined under subsection (a), subject to the limi23 tations provided in this section, based on such infor24 mation as the Secretary shall require, 


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•S 4329 IS

1 ‘‘(4) to provide for the reconciliation of such 

2 advance payment with the amount of the credit at 

3 the time of filing the return of tax for the applicable 

4 quarter or taxable year, and 

5 ‘‘(5) with respect to the application of the cred6 it to third-party payors (including professional em7 ployer organizations, certified professional employer 

8 organizations, or agents under section 3504). 

9 ‘‘(h) LIMITATION.—In the case of any period of cov10 erage (as defined in section 2(l) of the Continuous Health 

11 Coverage for Workers Act) beginning on or after the date 

12 of enactment of this section, no credit shall be allowed 

13 under this section with respect to any coverage that in14 cludes coverage of an abortion (except as described in sec15 tion 507(a) of division A of Public Law 116–94).’’. 

16 (2) SOCIAL SECURITY TRUST FUNDS HELD

17 HARMLESS.—There are hereby appropriated to the 

18 Federal Old-Age and Survivors Insurance Trust 

19 Fund and the Federal Disability Insurance Trust 

20 Fund established under section 201 of the Social Se21 curity Act (42 U.S.C. 401) and the Social Security 

22 Equivalent Benefit Account established under sec23 tion 15A(a) of the Railroad Retirement Act of 1974 

24 (45 U.S.C. 231n–1(a)) amounts equal to the reduc25 tion in revenues to the Treasury by reason of this 


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•S 4329 IS

1 subsection (without regard to this paragraph). 

2 Amounts appropriated by the preceding sentence 

3 shall be transferred from the general fund at such 

4 times and in such manner as to replicate to the ex5 tent possible the transfers which would have oc6 curred to such Trust Fund or Account had this sec7 tion not been enacted. 

8 (3) CLERICAL AMENDMENT.—The table of sec9 tions for subchapter B of chapter 65 of the Internal 

10 Revenue Code of 1986 is amended by adding at the 

11 end the following new item: 

‘‘Sec. 6432. Continuation coverage premium assistance.’’. 

12 (4) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to premiums to which 

14 section 2(a)(1)(A) applies. 

15 (5) SPECIAL RULE IN CASE OF EMPLOYEE PAY16 MENT THAT IS NOT REQUIRED UNDER THIS SEC17 TION.— 

18 (A) IN GENERAL.—In the case of an as19 sistance eligible individual who pays, with re20 spect any period of coverage to which section 

21 2(a)(1)(A) applies, the amount of the premium 

22 for such coverage that the individual would 

23 have (but for this Act) been required to pay, 

24 the person to whom such payment is payable 


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•S 4329 IS

1 shall reimburse such individual for the amount 

2 of such premium paid. 

3 (B) CREDIT OF REIMBURSEMENT.—A per4 son to which subparagraph (A) applies shall be 

5 allowed a credit in the manner provided under 

6 section 6432 of the Internal Revenue Code of 

7 1986 for any payment made to the employee 

8 under such subparagraph. 

9 (C) PAYMENT OF CREDITS.—Any person 

10 to which subparagraph (A) applies shall make 

11 the payment required under such clause to the 

12 individual not later than 60 days after the date 

13 on which such individual elects continuation 

14 coverage under section 2(a)(1) of the Contin15 uous Health Coverage for Workers Act. 

16 (b) PENALTY FOR FAILURE TO NOTIFY HEALTH

17 PLAN OF CESSATION OF ELIGIBILITY FOR PREMIUM AS18 SISTANCE.— 

19 (1) IN GENERAL.—Part I of subchapter B of 

20 chapter 68 of the Internal Revenue Code of 1986 is 

21 amended by adding at the end the following new sec22 tion: 


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•S 4329 IS

1 ‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH 

2 PLAN OF CESSATION OF ELIGIBILITY FOR 

3 CONTINUATION COVERAGE PREMIUM ASSIST4 ANCE. 

5 ‘‘(a) IN GENERAL.—Except in the case of failure de6 scribed in subsection (b) or (c), any person required to 

7 notify a group health plan under section 2(a)(2)(B) of the 

8 Continuous Health Coverage for Workers Act who fails 

9 to make such a notification at such time and in such man10 ner as the Secretary of Labor may require shall pay a 

11 penalty of $250. 

12 ‘‘(b) INTENTIONAL FAILURE.—In the case of any 

13 such failure that is fraudulent, such person shall pay a 

14 penalty equal to the greater of— 

15 ‘‘(1) $250, or 

16 ‘‘(2) 110 percent of the premium assistance 

17 provided under section 2(a)(1)(A) of the Continuous 

18 Health Coverage for Workers Act after termination 

19 of eligibility under such section. 

20 ‘‘(c) REASONABLE CAUSE EXCEPTION.—No penalty 

21 shall be imposed under this section with respect to any 

22 failure if it is shown that such failure is due to reasonable 

23 cause and not to willful neglect.’’. 

24 (2) CLERICAL AMENDMENT.—The table of sec25 tions of part I of subchapter B of chapter 68 of such 


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•S 4329 IS

1 Code is amended by adding at the end the following 

2 new item: 

‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility 

for continuation coverage premium assistance.’’. 

3 (c) COORDINATION WITH HCTC.— 

4 (1) IN GENERAL.—Section 35(g)(9) of the In5 ternal Revenue Code of 1986 is amended to read as 

6 follows: 

7 ‘‘(9) CONTINUATION COVERAGE PREMIUM AS8 SISTANCE.—In the case of an assistance eligible in9 dividual who receives premium assistance for con10 tinuation coverage under section 2(a)(1) of the Con11 tinuous Health Coverage for Workers Act for any 

12 month during the taxable year, such individual shall 

13 not be treated as an eligible individual, a certified 

14 individual, or a qualifying family member for pur15 poses of this section or section 7527 with respect to 

16 such month.’’. 

17 (2) EFFECTIVE DATE.—The amendment made 

18 by paragraph (1) shall apply to taxable years ending 

19 after the date of the enactment of this Act. 

20 (d) EXCLUSION OF CONTINUATION COVERAGE PRE21 MIUM ASSISTANCE FROM GROSS INCOME.— 

22 (1) IN GENERAL.—Part III of subchapter B of 

23 chapter 1 of the Internal Revenue Code of 1986 is 


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•S 4329 IS

1 amended by inserting after section 139H the fol2 lowing new section: 

3 ‘‘SEC. 139I. CONTINUATION COVERAGE PREMIUM ASSIST4 ANCE. 

5 ‘‘In the case of an assistance eligible individual (as 

6 defined in subsection (a)(3) of section 2 of the Continuous 

7 Health Coverage for Workers Act), gross income does not 

8 include any premium assistance provided under subsection 

9 (a)(1) of such section.’’. 

10 (2) CLERICAL AMENDMENT.—The table of sec11 tions for part III of subchapter B of chapter 1 of 

12 such Code is amended by inserting after the item re13 lating to section 139H the following new item: 

‘‘Sec. 139I. Continuation coverage premium assistance.’’. 

14 (3) EFFECTIVE DATE.—The amendments made 

15 by this subsection shall apply to taxable years end16 ing after the date of the enactment of this Act. 

17 SEC. 4. RULE OF CONSTRUCTION. 

18 In all matters of interpretation, rules, and oper19 ational procedures, the language of this Act shall be inter20 preted broadly for the benefit of workers and their fami21 lies. 

Æ 


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