I

104TH CONGRESS

1ST SESSION H. R. 2168

To extend COBRA continuation coverage to retirees and their dependents,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 2, 1995

Mr. JOHNSON of South Dakota introduced the following bill; which was referred to the Committee on Commerce, and in addition to the Committees

on Ways and Means, and Economic and Educational Opportunities, 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 COBRA continuation coverage to retirees and

their dependents, 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 ‘‘Retiree Continuation

5 Coverage Act of 1995.’’

6 SEC. 2. EXTENSION OF COBRA CONTINUATION COVERAGE.

7 (a) PUBLIC HEALTH SERVICE ACT.—
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1 (1) PERIOD OF COVERAGE.—Section

2 2202(2)(A) of the Public Health Service Act (42

3 U.S.C. 300bb–2(2)(A)) is amended by adding at the

4 end thereof the following new clause:

5 ‘‘(v) QUALIFYING EVENT INVOLVING

6 SUBSTANTIAL REDUCTION OR ELIMI7 NATION OF A RETIREE GROUP HEALTH

8 PLAN.—In the case of an event described

9 in section 2203(6), the date on which such

10 covered qualified beneficiary becomes enti11 tled to benefits under title XVIII of the

12 Social Security Act.’’.

13 (2) QUALIFYING EVENT.—Section 2203 of the

14 Public Health Service Act (42 U.S.C. 300bb–3) is

15 amended by adding at the end thereof the following

16 new paragraph:

17 ‘‘(6) The substantial reduction or elimination of

18 group health coverage as a result of plan changes or

19 termination with respect to a qualified beneficiary

20 described in section 2208(3)(A).’’.

21 (3) NOTICE.—Section 2206 of the Public

22 Health Service Act (42 U.S.C. 300bb–6) is amend23 ed—

24 (A) in paragraph (2), by striking ‘‘or (4)’’

25 and inserting ‘‘(4), or (6)’’; and
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1 (B) in paragraph (4)(A), by striking ‘‘or

2 (4)’’ and inserting ‘‘(4), or (6)’’.

3 (4) DEFINITION.—Section 2208(3) of the Pub4 lic Health Service Act (42 U.S.C. 300bb–8(3)) is

5 amended by adding at the end thereof the following

6 new subparagraph:

7 ‘‘(C) SPECIAL RULE FOR RETIREES.—In

8 the case of a qualifying event described in sec9 tion 2203(6), the term ‘qualified beneficiary’ in10 cludes a covered employee who had retired on

11 or before the date of substantial reduction or

12 elimination of coverage and any other individual

13 who, on the day before such qualifying event, is

14 a beneficiary under the plan—

15 ‘‘(i) as the spouse of the covered em16 ployee;

17 ‘‘(ii) as the dependent child of the

18 covered employee; or

19 ‘‘(iii) as the surviving spouse of the

20 covered employee.’’.

21 (b) EMPLOYEE RETIREMENT INCOME SECURITY ACT

22 OF 1974.—

23 (1) PERIOD OF COVERAGE.—Section 602(2)(A)

24 of the Employee Retirement Income Security Act of
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1 1974 (29 U.S.C. 1162(2)(A)) is amended by adding

2 at the end thereof the following new clause:

3 ‘‘(vi) QUALIFYING EVENT INVOLVING

4 SUBSTANTIAL REDUCTION OR ELIMI5 NATION OF A GROUP HEALTH COVERING

6 RETIREES, SPOUSES, AND DEPENDENTS.—

7 In the case of an event described in section

8 603(7), the date on which such covered

9 qualified beneficiary becomes entitled to

10 benefits under title XVIII of the Social Se11 curity Act.’’.

12 (2) QUALIFYING EVENT.—Section 603 of the

13 Employee Retirement Income Security Act of 1974

14 (29 U.S.C. 1163) is amended by adding at the end

15 thereof the following new paragraph:

16 ‘‘(7) The substantial reduction or elimination of

17 group health plan coverage as a result of plan

18 changes or termination with respect to a qualified

19 beneficiary described in section 607(3)(C).’’.

20 (3) NOTICE.—Section 606(a) of the Employee

21 Retirement Income Security Act of 1974 (29 U.S.C.

22 1166) is amended—

23 (A) in paragraph (2), by striking ‘‘or (6)’’

24 and inserting ‘‘(6), or (7)’’; and
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1 (B) in paragraph (4)(A), by striking ‘‘or

2 (6)’’ and inserting ‘‘(6), or (7)’’.

3 (4) DEFINITION.—Section 607(3)(C) of the

4 Employee Retirement Income Security Act of 1974

5 (29 U.S.C. 1167(2)) is amended by striking

6 ‘‘603(6)’’ and inserting ‘‘603(6) or 603(7)’’.

7 (c) INTERNAL REVENUE CODE OF 1986.—

8 (1) PERIOD OF COVERAGE.—Section

9 4980B(f)(2)(B)(i) of the Internal Revenue Code of

10 1986 is amended by adding at the end thereof the

11 following new subclause:

12 ‘‘(VI) QUALIFYING EVENT IN13 VOLVING SUBSTANTIAL REDUCTION

14 OR ELIMINATION OF A RETIREE

15 GROUP HEALTH PLAN.—In the case of

16 an event described in paragraph

17 (3)(G), the date on which such cov18 ered qualified beneficiary becomes en19 titled to benefits under title XVIII of

20 the Social Security Act.’’

21 (2) QUALIFYING EVENT.—Section 4980B(f)(3)

22 of the Internal Revenue Code of 1986 is amended by

23 adding at the end thereof the following new subpara24 graph:
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1 ‘‘(G) The substantial reduction of elimi2 nation of group health coverage as a result of

3 plan changes or termination with respect to a

4 qualified beneficiary described in subsection

5 (g)(1)(D).’’

6 (3) NOTICE.—Section 4980B(f)(6) of the Inter7 nal Revenue Code of 1986 is amended—

8 (A) in subparagraph (B), by striking ‘‘or

9 (F)’’ and inserting ‘‘(F), or (G)’’; and

10 (B) in subparagraph (D)(i), by striking

11 ‘‘or (F)’’ and inserting ‘‘(F), or (G)’’.

12 (4) DEFINITION.—Section 4980B(g)(1)(D) of

13 the Internal Revenue Code of 1986 is amended by

14 striking ‘‘(f)(3)(F)’’ and inserting ‘‘(f)(3)(F) or

15 (f)(3)(G)’’.

16 SEC. 3. EFFECTIVE DATE.

17 This Act shall take effect as if enacted on January

18 1, 1995.

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