I

106TH CONGRESS

1ST SESSION H. R. 2238

To authorize the provision of waivers to allow welfare-to-work funds to be

used to cover the start-up costs of forming alliances designed to enable

small businesses to purchase discounted health insurance for their employees among whom are individuals eligible for assistance under a welfare-to-work program.

IN THE HOUSE OF REPRESENTATIVES

JUNE 16, 1999

Mr. BALDACCI introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To authorize the provision of waivers to allow welfare-towork funds to be used to cover the start-up costs of

forming alliances designed to enable small businesses

to purchase discounted health insurance for their employees among whom are individuals eligible for assistance

under a welfare-to-work program.

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 ‘‘Affordable Health Care

5 For Working Families Act’’.
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1 SEC. 2. AUTHORITY TO PROVIDE WAIVERS TO ALLOW

2 STATES TO USE WELFARE-TO-WORK FUNDS

3 TO COVER THE START-UP COSTS OF SMALL

4 BUSINESS HEALTH INSURANCE PURCHASING

5 ALLIANCES.

6 Section 415 of the Social Security Act (42 U.S.C.

7 615) is amended by adding at the end the following:

8 ‘‘(e) WAIVERS TO ALLOW WELFARE-TO-WORK

9 FUNDS TO BE USED TO COVER THE START-UP COSTS

10 OF SMALL BUSINESS HEALTH INSURANCE PURCHASING

11 ALLIANCES.—

12 ‘‘(1) WAIVER AUTHORITY.—

13 ‘‘(A) IN GENERAL.—The Secretary may

14 waive section 408(a)(6)(A) to the extent nec15 essary to enable approved entities receiving

16 funds provided under section 403(a)(5) to use

17 such funds, subject to subparagraph (B), to

18 cover the start-up costs of forming alliances de19 signed to enable small businesses to purchase

20 discounted health insurance for their employees,

21 and any use of funds pursuant to such a waiver

22 shall be considered an allowable activity for

23 purposes of section 403(a)(5)(C).

24 ‘‘(B) LIMITATION.—The Secretary, under

25 subparagraph (A), shall allow not more than

26 $2,000,000 of the funds provided with respect
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1 to a single State under section 403(a)(5) to be

2 used in accordance with subparagraph (A) of

3 this paragraph.

4 ‘‘(2) APPROVED ENTITY.—An entity shall be

5 considered an approved entity for purposes of para6 graph (1) if the Secretary determines that the State

7 in which the entity is located—

8 ‘‘(A) has developed a plan to establish a

9 nonprofit health insurance purchasing alliance

10 consisting of small businesses, each of which—

11 ‘‘(i) employs at least 1 individual who

12 is receiving assistance or benefits provided

13 under section 403(a)(5);

14 ‘‘(ii) has not less than 2 and not more

15 than 50 employees;

16 ‘‘(iii) is able to obtain health insur17 ance through the alliance at the same pre18 mium rates for all employees; and

19 ‘‘(iv) has not obtained health insur20 ance for any employee during the 365-day

21 period ending with the establishment of the

22 alliance;

23 ‘‘(B) will regulate any insurance plan of24 fered through the alliance.
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1 ‘‘(3) START-UP COSTS.—For purposes of para2 graph (1), the term ‘start-up costs’ includes the

3 costs of providing administrative staff and facilities,

4 and the costs of activities in developing the range

5 and scope of an alliance’s operations.’’.

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