I

106TH CONGRESS

1ST SESSION H. R. 2227

To amend the Internal Revenue Code of 1986, the Employee Retirement

Income Security Act of 1974, and the Public Health Service Act to

permit extension of COBRA continuation coverage for individuals age

55 or older.

IN THE HOUSE OF REPRESENTATIVES

JUNE 15, 1999

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

on Education and the Workforce, and in addition to the Committees on

Commerce, and 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 amend the Internal Revenue Code of 1986, the Employee

Retirement Income Security Act of 1974, and the Public

Health Service Act to permit extension of COBRA continuation coverage for individuals age 55 or older.

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

3 SECTION 1. EXTENSION OF COBRA CONTINUATION COV4 ERAGE FOR INDIVIDUALS AGE 55 OR OLDER.

5 This Act may be cited as the ‘‘COBRA Extension Act

6 for 55 to 65 Year Olds’’.
2

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1 (a) INTERNAL REVENUE CODE AMENDMENTS.—Sec2 tion 4980B(f)(2) of the Internal Revenue Code of 1986

3 is amended—

4 (1) in subparagraph (B)(i), by inserting ‘‘.—

5 Subject to subparagraph (F)(i)—’’ after ‘‘PERIOD’’;

6 (2) in subparagraph (C)(i), by inserting ‘‘sub7 ject to subparagraph (F)(ii),’’ after ‘‘(i)’’; and

8 (3) by adding at the end the following new sub9 paragraph:

10 ‘‘(F) EXTENSION OF COVERAGE FOR INDI11 VIDUALS AGE 55 OR OLDER.—In the case of an

12 individual who attains the age of 55 on the date

13 the period of extended coverage under this sec14 tion would otherwise end by virtue of the appli15 cation of a durational limitation in subpara16 graph (B)(i)—

17 ‘‘(i) such durational limitations shall

18 no longer apply to the individual; and

19 ‘‘(ii) during the period of any ex20 tended coverage solely by reason of the ap21 plication of clause (i), in applying subpara22 graph (C)(i) any reference in such sub23 paragraph to ‘102 percent’ is deemed a

24 reference to ‘125 percent’.’’.
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1 (b) ERISA AMENDMENTS.—Section 602 of the Em2 ployee Retirement Income Security Act of 1974 (29

3 U.S.C. 1162) is amended—

4 (1) in paragraph (2)(A), by inserting ‘‘Subject

5 to paragraph (6)(A)—’’ after ‘‘PERIOD.—’’;

6 (2) in paragraph (3)(A), by inserting ‘‘subject

7 to paragraph (6)(B),’’ after ‘‘(A)’’; and

8 (3) by adding at the end the following new

9 paragraph:

10 ‘‘(6) EXTENSION OF COVERAGE FOR INDIVID11 UALS AGE 55 OR OLDER.—In the case of an indi12 vidual who attains the age of 55 on the date the pe13 riod of extended coverage under this section would

14 otherwise end by virtue of the application of a

15 durational limitation in paragraph (2)(A)—

16 ‘‘(A) such durational limitations shall no

17 longer apply to the individual; and

18 ‘‘(B) during the period of any extended

19 coverage solely by reason of the application of

20 subparagraph (A), in applying paragraph

21 (3)(A) any reference in such paragraph to ‘102

22 percent’ is deemed a reference to ‘125 per23 cent’.’’.

24 (c) PHSA AMENDMENTS.—Section 2202 of the Pub25 lic Health Service Act (42 U.S.C. 300bb–2) is amended—
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•HR 2227 IH

1 (1) in paragraph (2)(A), by inserting ‘‘Subject

2 to paragraph (6)(A)—’’ after ‘‘PERIOD.—’’;

3 (2) in paragraph (3)(A), by inserting ‘‘subject

4 to paragraph (6)(B),’’ after ‘‘(A)’’; and

5 (3) by adding at the end the following new

6 paragraph:

7 ‘‘(6) EXTENSION OF COVERAGE FOR INDIVID8 UALS AGE 55 OR OLDER.—In the case of an indi9 vidual who attains the age of 55 on the date the pe10 riod of extended coverage under this section would

11 otherwise end by virtue of the application of a

12 durational limitation in paragraph (2)(A)—

13 ‘‘(A) such durational limitations shall no

14 longer apply to the individual; and

15 ‘‘(B) during the period of any extended

16 coverage solely by reason of the application of

17 subparagraph (A), in applying paragraph

18 (3)(A) any reference in such paragraph to ‘102

19 percent’ is deemed a reference to ‘125 per20 cent’.’’.

21 (d) EFFECTIVE DATE.—The amendments made by

22 this section apply with respect to plan years beginning on

23 or after January 1, 2000.

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