I

106TH CONGRESS

1ST SESSION H. R. 1169

To amend the Employee Retirement Income Security Act of 1974 to require

the offering of children-only coverage to dependents of participants under

group health plans, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 17, 1999

Mr. SABO (for himself, Mr. OBERSTAR, Mr. SHOWS, Mr. SANDLIN, and Mr.

FROST) introduced the following bill; which was referred to the Committee on Education and the Workforce

A BILL

To amend the Employee Retirement Income Security Act

of 1974 to require the offering of children-only coverage

to dependents of participants under group health plans,

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 ‘‘Children’s Health Cov5 erage Improvement Act of 1999’’.
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1 SEC. 2. REQUIRING OFFER OF CHILDREN’S-ONLY COV2 ERAGE UNDER GROUP HEALTH PLANS.

3 (a) IN GENERAL.—Part 7 of subtitle B of title I of

4 the Employee Retirement Income Security Act of 1974 is

5 amended by inserting after section 713 the following new

6 section:

7 ‘‘SEC. 714. PROVIDING OPTION OF CHILDREN’S ONLY COV8 ERAGE.

9 ‘‘(a) REQUIREMENT FOR OPTION.—Each group

10 health plan shall provide, as at least one benefit option

11 under the plan, health benefits coverage for qualified chil12 dren (as defined in subsection (b)).

13 ‘‘(b) QUALIFIED CHILD DEFINED.—For purposes of

14 this section, the term ‘qualified child’ means, with respect

15 to a group health plan, an individual who is under 19

16 years of age and is a dependent of a participant who is

17 enrolled for benefits under such plan. A group health plan

18 may treat other individuals as qualified children under the

19 plan.

20 ‘‘(c) TERMS OF OPTION.—

21 ‘‘(1) TIMING.—

22 ‘‘(A) IN GENERAL.—Subject to subpara23 graph (B), the option under subsection (a) by

24 a group health plan shall be made at such times

25 as the person (of whom the qualified child is a
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1 dependent) is permitted to elect coverage under

2 the plan.

3 ‘‘(B) TRANSITION.—A group health plan

4 shall also make such offer available at the time

5 this section first becomes effective.

6 ‘‘(2) MAY REQUIRE ENROLLMENT OF ALL

7 QUALIFIED CHILDREN IN A FAMILY.—The offer

8 under this section, made with respect to an indi9 vidual who is the qualified child of a participant,

10 may be conditioned upon the election of the option

11 by all qualified children of the participant.’’.

12 (b) CLERICAL AMENDMENT.—The table of contents

13 in section 1 of such Act is amended by inserting after the

14 item relating to section 713 the following new item:

‘‘Sec. 714. Providing option of children’s only coverage.’’.

15 SEC. 3. PROVISIONS OF CHILDREN-ONLY COVERAGE

16 UNDER COBRA CONTINUATION PROVISIONS.

17 (a) IN GENERAL.—Part 6 of subtitle B of title I of

18 the Employee Retirement Income Security Act of 1974 is

19 amended by inserting after section 609 the following new

20 section:

21 ‘‘SEC. 610. SPECIAL RULES FOR CHILDREN ONLY COV22 ERAGE.

23 ‘‘In carrying out sections 601 through 608, the fol24 lowing additional rules shall apply:
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1 ‘‘(1) The term ‘continuation coverage’ shall in2 clude, in addition to the coverage otherwise required,

3 at least one option of benefits coverage that meets

4 the terms and conditions of section 714.

5 ‘‘(2) The premium for the continuation cov6 erage described in paragraph (1) shall be established

7 only with regard to such coverage.

8 ‘‘(3) The election of continuation coverage de9 scribed in paragraph (1) shall be available with re10 spect to qualified beneficiaries who previously had

11 such coverage before the date of the qualifying event

12 or were covered under family coverage before such

13 date.’’.

14 (b) CLERICAL AMENDMENT.—The table of contents

15 in section 1 of such Act is amended by inserting after the

16 item relating to section 609 the following new item:

‘‘Sec. 610. Special rules for children only coverage.

17 SEC. 4. EFFECTIVE DATE.

18 (a) IN GENERAL.—Except as provided in this section,

19 the amendments made by this Act shall apply with respect

20 to group health plans for plan years beginning after the

21 first day of the first month that begins more than 9

22 months after the date of the enactment of this Act.

23 (b) SPECIAL RULE FOR COLLECTIVE BARGAINING

24 AGREEMENTS.—In the case of a group health plan main25 tained pursuant to 1 or more collective bargaining agree-
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1 ments between employee representatives and one or more

2 employers ratified before the date of the enactment of this

3 Act, section 714 of the Employee Retirement Income Se4 curity Act of 1974 shall not apply to plan years beginning

5 before the later of—

6 (1) the date on which the last of the collective

7 bargaining agreements relating to the plan termi8 nates (determined without regard to any extension

9 thereof agreed to after the date of the enactment of

10 this Act), or

11 (2) the effective date provided under subsection

12 (a),

13 For purposes of paragraph (1), any plan amendment made

14 pursuant to a collective bargaining agreement relating to

15 the plan which amends the plan solely to conform to any

16 requirement of such part shall not be treated as a termi17 nation of such collective bargaining agreement.

18 (c) TIMELY REGULATIONS.—The Secretary of Labor

19 shall first issue by not later than 3 months before the ef20 fective date provided under subsection (a), such regula21 tions as may be necessary to carry out the amendments

22 made by this Act.

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