II 

110TH CONGRESS 

1ST SESSION S. 1739 

To amend section 35 of the Internal Revenue Code of 1986 to improve 

the health coverage tax credit, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 28, 2007 

Mr. ROCKEFELLER (for himself and Mr. BROWN) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend section 35 of the Internal Revenue Code of 1986 

to improve the health coverage tax credit, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘TAA Health Coverage Improvement Act of 2007’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Improvement of the affordability of the credit. 

Sec. 3. 100 percent credit and payment for monthly premiums paid prior to 

certification of eligibility for the credit. 

Sec. 4. Eligibility for certain pension plan participants; presumptive eligibility. 


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Sec. 5. Clarification of 3-month creditable coverage requirement. 

Sec. 6. TAA pre-certification period rule for purposes of determining whether 

there is a 63-day lapse in creditable coverage. 

Sec. 7. Continued qualification of family members after certain events. 

Sec. 8. Offering of Federal group coverage. 

Sec. 9. Additional requirements for individual health insurance costs. 

Sec. 10. Alignment of COBRA coverage with TAA period for TAA-eligible individuals. 

Sec. 11. Notice requirements. 

Sec. 12. Annual report on enhanced TAA benefits. 

Sec. 13. Extension of national emergency grants. 

1 SEC. 2. IMPROVEMENT OF THE AFFORDABILITY OF THE 

2 CREDIT. 

3 (a) IMPROVEMENT OF AFFORDABILITY.— 

4 (1) IN GENERAL.—Section 35(a) of the Internal 

5 Revenue Code of 1986 (relating to credit for health 

6 insurance costs of eligible individuals) is amended by 

7 striking ‘‘65’’ and inserting ‘‘95’’. 

8 (2) CONFORMING AMENDMENT.—Section 

9 7527(b) of such Code (relating to advance payment 

10 of credit for health insurance costs of eligible indi11 viduals) is amended by striking ‘‘65’’ and inserting 

12 ‘‘95’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section apply to taxable years beginning after Decem15 ber 31, 2007. 


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1 SEC. 3. 100 PERCENT CREDIT AND PAYMENT FOR MONTHLY 

2 PREMIUMS PAID PRIOR TO CERTIFICATION 

3 OF ELIGIBILITY FOR THE CREDIT. 

4 (a) IN GENERAL.—Subsection (a) of section 35 of the 

5 Internal Revenue Code of 1986, as amended by section 

6 2(a)(1), is amended— 

7 (1) by striking the subsection heading and all 

8 that follows through ‘‘In case’’ and inserting 

9 ‘‘AMOUNT OF CREDIT.— 

10 ‘‘(1) IN GENERAL.—In case’’; and 

11 (2) by adding at the end the following new 

12 paragraph: 

13 ‘‘(2) 100 PERCENT CREDIT FOR MONTHS PRIOR

14 TO ISSUANCE OF ELIGIBILITY CERTIFICATE.—The 

15 amount allowed as a credit against the tax imposed 

16 by subtitle A shall be equal to 100 percent in the 

17 case of the taxpayer’s first eligible coverage months 

18 occurring prior to the issuance of a qualified health 

19 insurance costs credit eligibility certificate.’’. 

20 (b) PAYMENT FOR PREMIUMS DUE PRIOR TO CER21 TIFICATION OF ELIGIBILITY FOR THE CREDIT.—Section 

22 7527 of the Internal Revenue Code of 1986 (relating to 

23 advance payment of credit for health insurance costs of 

24 eligible individuals) is amended by adding at the end the 

25 following new subsection: 


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1 ‘‘(e) PAYMENT FOR PREMIUMS DUE PRIOR TO

2 ISSUANCE OF CERTIFICATE.—The program established 

3 under subsection (a) shall provide— 

4 ‘‘(1) that the Secretary shall make payments on 

5 behalf of a certified individual of an amount equal 

6 to 100 percent of the premiums for coverage of the 

7 taxpayer and qualifying family members under quali8 fied health insurance for eligible coverage months 

9 (as defined in section 35(b)) occurring prior to the 

10 issuance of a qualified health insurance costs credit 

11 eligibility certificate; and 

12 ‘‘(2) that any payments made under paragraph 

13 (1) shall not be included in the gross income of the 

14 taxpayer on whose behalf such payments were 

15 made.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to months beginning after the date 

18 of the enactment of this Act in taxable years ending after 

19 such date. 

20 SEC. 4. ELIGIBILITY FOR CERTAIN PENSION PLAN RECIPI21 ENTS; PRESUMPTIVE ELIGIBILITY. 

22 (a) ELIGIBILITY FOR CERTAIN PENSION PLAN RE23 CIPIENTS.—Subsection (c) of section 35 of the Internal 

24 Revenue Code of 1986 is amended— 

25 (1) in paragraph (1)— 


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1 (A) in subparagraph (B), by striking 

2 ‘‘and’’ at the end; 

3 (B) in subparagraph (C), by striking the 

4 period and inserting ‘‘, and’’; and 

5 (C) by adding at the end the following: 

6 ‘‘(D) an eligible multiemployer pension 

7 participant.’’; and 

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

9 paragraph: 

10 ‘‘(5) ELIGIBLE MULTIEMPLOYER PENSION RE11 CIPIENT.—The term ‘eligible multiemployer pension 

12 recipient’ means, with respect to any month, any in13 dividual— 

14 ‘‘(A) who has attained age 55 as of the 

15 first day of such month, 

16 ‘‘(B) who is receiving a benefit from a 

17 multiemployer plan (as defined in section 

18 3(37)(A) of the Employee Retirement Income 

19 Security Act of 1974), and 

20 ‘‘(C) whose former employer has with21 drawn from such multiemployer plan pursuant 

22 to section 4203(a) of such Act.’’. 

23 (b) PRESUMPTIVE ELIGIBILITY FOR PETITIONERS

24 FOR TRADE ADJUSTMENT ASSISTANCE.—Subsection (c) 

25 of section 35 of the Internal Revenue Code of 1986, as 


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1 amended by subsection (a), is amended by adding at the 

2 end the following new paragraph: 

3 ‘‘(6) PRESUMPTIVE STATUS AS A TAA RECIPI4 ENT.—The term ‘eligible individual’ shall include 

5 any individual who is covered by a petition filed with 

6 the Secretary of Labor under section 221 of the 

7 Trade Act of 1974. This paragraph shall apply to 

8 any individual only with respect to months which— 

9 ‘‘(A) end after the date that such petition 

10 is so filed, and 

11 ‘‘(B) begin before the earlier of— 

12 ‘‘(i) the 90th day after the date of fil13 ing of such petition, or 

14 ‘‘(ii) the date on which the Secretary 

15 of Labor makes a final determination with 

16 respect to such petition.’’. 

17 (c) CONFORMING AMENDMENTS.— 

18 (1) Paragraph (1) of section 7527(d) of such 

19 Code is amended by striking ‘‘or an eligible alter20 native TAA recipient (as defined in section 

21 35(c)(3))’’ and inserting ‘‘, an eligible alternative 

22 TAA recipient (as defined in section 35(c)(3)), an el23 igible multiemployer pension recipient (as defined in 

24 section 35(c)(5), or an individual who is an eligible 

25 individual by reason of section 35(c)(6)’’. 


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1 (2) Section 173(f)(4) of the Workforce Invest2 ment Act of 1998 (29 U.S.C. 2918(f)(4)) is amend3 ed— 

4 (A) in subparagraph (B), by striking 

5 ‘‘and’’ at the end; 

6 (B) in subparagraph (C), by striking the 

7 period and inserting a comma; and 

8 (C) by inserting after subparagraph (C), 

9 the following new subparagraphs: 

10 ‘‘(D) an eligible multiemployer pension re11 cipient (as defined in section 35(c)(5) of the In12 ternal Revenue Code of 1986), and 

13 ‘‘(E) an individual who is an eligible indi14 vidual by reason of section 35(c)(6) of the In15 ternal Revenue Code of 1986.’’. 

16 (d) TECHNICAL AMENDMENT CLARIFYING ELIGI17 BILITY OF CERTAIN DISPLACED WORKERS RECEIVING A

18 BENEFIT UNDER A DEFINED BENEFIT PENSION

19 PLAN.—The first sentence of section 35(c)(2) of the Inter20 nal Revenue Code of 1986 is amended by inserting before 

21 the period the following: ‘‘, and shall include any such in22 dividual who would be eligible to receive such an allowance 

23 but for the fact that the individual is receiving a benefit 

24 under a defined benefit plan (as defined in section 3(35) 


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1 of the Employee Retirement Income Security Act of 

2 1974).’’. 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to months beginning after the date 

5 of the enactment of this Act in taxable years ending after 

6 such date. 

7 SEC. 5. CLARIFICATION OF 3-MONTH CREDITABLE COV8 ERAGE REQUIREMENT. 

9 (a) IN GENERAL.—Clause (i) of section 35(e)(2)(B) 

10 of the Internal Revenue Code of 1986 (defining qualifying 

11 individual) is amended by inserting ‘‘(prior to the employ12 ment separation necessary to attain the status of an eligi13 ble individual)’’ after ‘‘9801(c)’’. 

14 (b) CONFORMING AMENDMENT.—Section 

15 173(f)(2)(B)(ii)(I) of the Workforce Investment Act of 

16 1998 (29 U.S.C. 2918(f)(2)(B)(ii)(I)) is amended by in17 serting ‘‘(prior to the employment separation necessary to 

18 attain the status of an eligible individual)’’ after ‘‘1986’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to months beginning after the date 

21 of the enactment of this Act in taxable years ending after 

22 such date. 


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1 SEC. 6. TAA PRE-CERTIFICATION PERIOD RULE FOR PUR2 POSES OF DETERMINING WHETHER THERE IS 

3 A 63-DAY LAPSE IN CREDITABLE COVERAGE. 

4 (a) ERISA AMENDMENT.—Section 701(c)(2) of the 

5 Employee Retirement Income Security Act of 1974 (29 

6 U.S.C. 1181(c)(2)) is amended by adding at the end the 

7 following new subparagraph: 

8 ‘‘(C) TAA-ELIGIBLE INDIVIDUALS.— 

9 ‘‘(i) TAA PRE-CERTIFICATION PERIOD

10 RULE.—In the case of a TAA-eligible indi11 vidual, the period beginning on the date 

12 the individual has a TAA-related loss of 

13 coverage and ending on the date that is 5 

14 days after the postmark date of the notice 

15 by the Secretary (or by any person or enti16 ty designated by the Secretary) that the 

17 individual is eligible for a qualified health 

18 insurance costs credit eligibility certificate 

19 for purposes of section 7527 of the Inter20 nal Revenue Code of 1986 shall not be 

21 taken into account in determining the con22 tinuous period under subparagraph (A). 

23 ‘‘(ii) DEFINITIONS.—The terms ‘TAA24 eligible individual’, and ‘TAA-related loss 

25 of coverage’ have the meanings given such 

26 terms in section 605(b)(4)(C).’’. 


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1 (b) PHSA AMENDMENT.—Section 2701(c)(2) of the 

2 Public Health Service Act (42 U.S.C. 300gg(c)(2)) is 

3 amended by adding at the end the following new subpara4 graph: 

5 ‘‘(C) TAA-ELIGIBLE INDIVIDUALS.— 

6 ‘‘(i) TAA PRE-CERTIFICATION PERIOD

7 RULE.—In the case of a TAA-eligible indi8 vidual, the period beginning on the date 

9 the individual has a TAA-related loss of 

10 coverage and ending on the date that is 5 

11 days after the postmark date of the notice 

12 by the Secretary (or by any person or enti13 ty designated by the Secretary) that the 

14 individual is eligible for a qualified health 

15 insurance costs credit eligibility certificate 

16 for purposes of section 7527 of the Inter17 nal Revenue Code of 1986 shall not be 

18 taken into account in determining the con19 tinuous period under subparagraph (A). 

20 ‘‘(ii) DEFINITIONS.—The terms ‘TAA21 eligible individual’, and ‘TAA-related loss 

22 of coverage’ have the meanings given such 

23 terms in section 2205(b)(4)(C).’’. 

24 (c) IRC AMENDMENT.—Section 9801(c)(2) of the In25 ternal Revenue Code of 1986 (relating to not counting peVerDate Aug 31 2005 00:30 Jun 30, 2007 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1739.IS S1739

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1 riods before significant breaks in creditable coverage) is 

2 amended by adding at the end the following new subpara3 graph: 

4 ‘‘(D) TAA-ELIGIBLE INDIVIDUALS.— 

5 ‘‘(i) TAA PRE-CERTIFICATION PERIOD

6 RULE.—In the case of a TAA-eligible indi7 vidual, the period beginning on the date 

8 the individual has a TAA-related loss of 

9 coverage and ending on the date which is 

10 5 days after the postmark date of the no11 tice by the Secretary (or by any person or 

12 entity designated by the Secretary) that 

13 the individual is eligible for a qualified 

14 health insurance costs credit eligibility cer15 tificate for purposes of section 7527 shall 

16 not be taken into account in determining 

17 the continuous period under subparagraph 

18 (A). 

19 ‘‘(ii) DEFINITIONS.—The terms ‘TAA20 eligible individual’, and ‘TAA-related loss 

21 of coverage’ have the meanings given such 

22 terms in section 4980B(f)(5)(C)(iv).’’. 

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

24 this section shall apply to months beginning after the date 


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1 of the enactment of this Act in taxable years ending after 

2 such date. 

3 SEC. 7. CONTINUED QUALIFICATION OF FAMILY MEMBERS 

4 AFTER CERTAIN EVENTS. 

5 (a) IN GENERAL.—Subsection (g) of section 35 of the 

6 Internal Revenue Code of 1986 is amended by redesig7 nating paragraph (9) as paragraph (10) and inserting 

8 after paragraph (8) the following new paragraph: 

9 ‘‘(9) CONTINUED QUALIFICATION OF FAMILY

10 MEMBERS AFTER CERTAIN EVENTS.— 

11 ‘‘(A) ELIGIBLE INDIVIDUAL BECOMES

12 MEDICARE ELIGIBLE.—In the case of a month 

13 which would be an eligible coverage month with 

14 respect to an eligible individual but for sub15 section (f)(2)(A), such month shall be treated 

16 as an eligible coverage month with respect to 

17 any qualifying family member of such eligible 

18 individual (but not with respect to such eligible 

19 individual). 

20 ‘‘(B) DIVORCE.—In the case of a month 

21 which would be an eligible coverage month with 

22 respect to a former spouse of a taxpayer but for 

23 the finalization of a divorce between the spouse 

24 and the taxpayer that occurs during the period 

25 in which the taxpayer is an eligible individual, 


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1 such month shall be treated as an eligible cov2 erage month with respect to such former 

3 spouse. 

4 ‘‘(C) DEATH.—In the case of a month 

5 which would be an eligible coverage month with 

6 respect to an eligible individual but for the 

7 death of such individual, such month shall be 

8 treated as an eligible coverage month with re9 spect to any qualifying family of such eligible 

10 individual.’’. 

11 (b) CONFORMING AMENDMENT.—Section 173(f) of 

12 the Workforce Investment Act of 1998 (29 U.S.C. 

13 2918(f)) is amended by adding at the end the following: 

14 ‘‘(8) CONTINUED QUALIFICATION OF FAMILY

15 MEMBERS AFTER CERTAIN EVENTS.— 

16 ‘‘(A) ELIGIBLE INDIVIDUAL BECOMES

17 MEDICARE ELIGIBLE.—In the case of a month 

18 which would be an eligible coverage month with 

19 respect to an eligible individual but for sub20 section (f)(2)(A), such month shall be treated 

21 as an eligible coverage month with respect to 

22 any qualifying family member of such eligible 

23 individual (but not with respect to such eligible 

24 individual). 


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1 ‘‘(B) DIVORCE.—In the case of a month 

2 which would be an eligible coverage month with 

3 respect to a former spouse of a taxpayer but for 

4 the finalization of a divorce between the spouse 

5 and the taxpayer that occurs during the period 

6 in which the taxpayer is an eligible individual, 

7 such month shall be treated as an eligible cov8 erage month with respect to such former 

9 spouse. 

10 ‘‘(C) DEATH.—In the case of a month 

11 which would be an eligible coverage month with 

12 respect to an eligible individual but for the 

13 death of such individual, such month shall be 

14 treated as an eligible coverage month with re15 spect to any qualifying family of such eligible 

16 individual.’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to months beginning after the date 

19 of the enactment of this Act in taxable years ending after 

20 such date. 

21 SEC. 8. OFFERING OF FEDERAL GROUP COVERAGE. 

22 (a) PROVISION OF GROUP COVERAGE.— 

23 (1) IN GENERAL.—The Director of the Office of 

24 Personnel Management jointly with the Secretary of 

25 the Treasury shall establish a program under which 


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1 eligible individuals (as defined in section 35(c) of the 

2 Internal Revenue Code of 1986) are offered enroll3 ment under health benefit plans that are made avail4 able under FEHBP. 

5 (2) TERMS AND CONDITIONS.—The terms and 

6 conditions of health benefits plans offered under 

7 paragraph (1) shall be the same as the terms and 

8 coverage offered under FEHBP, except that the per9 centage of the premium charged to eligible individ10 uals (as so defined) for such health benefit plans 

11 shall be equal to 5 percent. 

12 (3) STUDY.—The Director of the Office of Per13 sonnel Management jointly with the Secretary of the 

14 Treasury shall conduct a study of the impact of the 

15 offering of health benefit plans under this subsection 

16 on the terms and conditions, including premiums, 

17 for health benefit plans offered under FEHBP and 

18 shall submit to Congress, not later than 2 years 

19 after the date of the enactment of this Act, a report 

20 on such study. Such report may contain such rec21 ommendations regarding the establishment of sepa22 rate risk pools for individuals covered under 

23 FEHBP and eligible individuals covered under 

24 health benefit plans offered under paragraph (1) as 

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1 viduals covered under FEHBP and alleviate any ad2 verse impact on FEHBP that may result from the 

3 offering of such health benefit plans. 

4 (4) FEHBP DEFINED.—In this section, the 

5 term ‘‘FEHBP’’ means the Federal Employees 

6 Health Benefits Program offered under chapter 89 

7 of title 5, United States Code. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Paragraph (1) of section 35(e) of the Inter10 nal Revenue Code of 1986 is amended by adding at 

11 the end the following new subparagraph: 

12 ‘‘(K) Coverage under a health benefits plan 

13 offered under section 8(a)(1) of the TAA 

14 Health Coverage Improvement Act of 2007.’’. 

15 (2) Section 173(f)(2)(A) of the Workforce In16 vestment Act of 1998 (29 U.S.C. 2918(f)(2)(A)) is 

17 amended by adding at the end the following new 

18 clause: 

19 ‘‘(xi) Coverage under a health benefits 

20 plan offered under section 8(a)(1) of the 

21 TAA Health Coverage Improvement Act of 

22 2007.’’. 


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1 SEC. 9. ADDITIONAL REQUIREMENTS FOR INDIVIDUAL 

2 HEALTH INSURANCE COSTS. 

3 (a) IN GENERAL.—Subparagraph (A) of section 

4 35(e)(2) of such Code is amended by striking ‘‘subpara5 graphs (B) through (H) of paragraph (1)’’ and inserting 

6 ‘‘paragraph (1) (other than subparagraphs (A), (I), and 

7 (K) thereof)’’. 

8 (b) RATING SYSTEM REQUIREMENT.—Subparagraph 

9 (J) of section 35(e)(1) of such Code is amended by adding 

10 at the end the following: ‘‘For purposes of this subpara11 graph and clauses (ii), (iii), and (iv) of subparagraph (F), 

12 such term does not include any insurance unless the pre13 miums for such insurance are restricted based on a com14 munity rating system (determined other than on the basis 

15 of age).’’. 

16 (c) CLARIFICATION OF CONGRESSIONAL INTENT TO

17 LIMIT USE OF INDIVIDUAL HEALTH INSURANCE COV18 ERAGE OPTION.—Section 35(e)(1)(J) (relating to quali19 fied health insurance) is amended in the matter preceding 

20 clause (i), by inserting ‘‘, but only’’ after ‘‘under individual 

21 health insurance’’. 

22 (d) CONFORMING AMENDMENTS.—Section 173(f)(2) 

23 of the Workforce Investment Act of 1998 (29 U.S.C. 

24 2918(f)(2)) is amended— 

25 (1) in subparagraph (A)(x), by adding at the 

26 end the following: ‘‘Such term does not include any 


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1 insurance unless the premiums for such insurance 

2 are restricted based on a community rating system 

3 (determined other than on the basis of age).’’; and 

4 (2) in subparagraph (B)— 

5 (A) in the matter preceding subclause (I), 

6 by inserting ‘‘, but only’’ after ‘‘under indi7 vidual health insurance’’; and 

8 (B) in clause (i), by striking ‘‘clauses (ii) 

9 through (viii) of subparagraph (A)’’ and insert10 ing ‘‘subparagraph (A) (other than clauses (i), 

11 (x), and (xi) thereof)’’. 

12 SEC. 10. ALIGNMENT OF COBRA COVERAGE WITH TAA PE13 RIOD FOR TAA-ELIGIBLE INDIVIDUALS. 

14 (a) ERISA.—Section 605(b) of the Employee Retire15 ment Income Security Act of 1974 (29 U.S.C. 1165(b)) 

16 is amended— 

17 (1) in the subsection heading, by inserting 

18 ‘‘AND COVERAGE’’ after ‘‘ELECTION’’; and 

19 (2) in paragraph (2)— 

20 (A) in the paragraph heading, by inserting 

21 ‘‘AND PERIOD’’ after ‘‘COMMENCEMENT’’; 

22 (B) by striking ‘‘and shall’’ and inserting 

23 ‘‘, shall’’; and 

24 (C) by inserting ‘‘, and in no event shall 

25 the maximum period required under section 


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1 602(2)(A) be less than the period during which 

2 the individual is a TAA-eligible individual’’ be3 fore the period at the end. 

4 (b) INTERNAL REVENUE CODE OF 1986.—Section 

5 4980B(f)(5)(C) of the Internal Revenue Code of 1986 is 

6 amended— 

7 (1) in the subparagraph heading, by inserting 

8 ‘‘AND COVERAGE’’ after ‘‘ELECTION’’; and 

9 (2) in clause (ii)— 

10 (A) in the clause heading, by inserting 

11 ‘‘AND PERIOD’’ after ‘‘COMMENCEMENT’’; 

12 (B) by striking ‘‘and shall’’ and inserting 

13 ‘‘, shall’’; and 

14 (C) by inserting ‘‘, and in no event shall 

15 the maximum period required under paragraph 

16 (2)(B)(i) be less than the period during which 

17 the individual is a TAA-eligible individual’’ be18 fore the period at the end. 

19 (c) PUBLIC HEALTH SERVICE ACT.—Section 

20 2205(b) of the Public Health Service Act (42 U.S.C. 

21 300bb–5(b)) is amended— 

22 (1) in the subsection heading, by inserting 

23 ‘‘AND COVERAGE’’ after ‘‘ELECTION’’; and 

24 (2) in paragraph (2)— 


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1 (A) in the paragraph heading, by inserting 

2 ‘‘AND PERIOD’’ after ‘‘COMMENCEMENT’’; 

3 (B) by striking ‘‘and shall’’ and inserting 

4 ‘‘, shall’’; and 

5 (C) by inserting ‘‘, and in no event shall 

6 the maximum period required under section 

7 2202(2)(A) be less than the period during 

8 which the individual is a TAA-eligible indi9 vidual’’ before the period at the end. 

10 SEC. 11. NOTICE REQUIREMENTS. 

11 Section 7527 of the Internal Revenue Code of 1986 

12 (relating to advance payment of credit for health insur13 ance costs of eligible individuals), as amended by section 

14 3(b), is amended by adding at the end the following new 

15 subsection: 

16 ‘‘(f) INCLUSION OF CERTAIN INFORMATION.—The 

17 notice by the Secretary (or by any person or entity des18 ignated by the Secretary) that an individual is eligible for 

19 a qualified health insurance costs credit eligibility certifi20 cate shall include— 

21 ‘‘(1) information explaining how the program 

22 established under subsection (a) works with the 

23 credit established under section 35, 

24 ‘‘(2) the name, address, and telephone number 

25 of the State office or offices responsible for deterVerDate Aug 31 2005 00:30 Jun 30, 2007 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S1739.IS S1739

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1 mining that the individual is eligible for such certifi2 cate and for providing the individual with assistance 

3 with enrollment in qualified health insurance (as de4 fined in section 35(e)), 

5 ‘‘(3) a list of the coverage options that are 

6 treated as qualified health insurance (as so defined) 

7 by the State in which the individual resides, and 

8 ‘‘(4) in the case of a TAA-eligible individual (as 

9 defined in section 4980B(f)(5)(C)(iv)(II)), a state10 ment informing the individual that the individual 

11 has 63 days from the date that is 5 days after the 

12 postmark date of such notice to enroll in such insur13 ance without a lapse in creditable coverage (as de14 fined in section 9801(c)).’’. 

15 SEC. 12. ANNUAL REPORT ON ENHANCED TAA BENEFITS. 

16 Not later than October 1 of each year (beginning in 

17 2008) the Secretary of the Treasury, after consultation 

18 with the Secretary of Labor, shall report to the Committee 

19 on Finance and the Committee on Health, Education, 

20 Labor, and Pensions of the Senate and the Committee on 

21 Ways and Means and the Committee on Education and 

22 the Workforce of the House of Representatives the fol23 lowing information with respect to the most recent taxable 

24 year ending before such date: 


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1 (1) The total number of participants utilizing 

2 the health insurance tax credit under section 35 of 

3 the Internal Revenue Code of 1986, including a 

4 measurement of such participants identified— 

5 (A) by State, and 

6 (B) by coverage under COBRA continu7 ation provisions (as defined in section 

8 9832(d)(1) of such Code) and by non-COBRA 

9 coverage (further identified by group and indi10 vidual market). 

11 (2) The range of monthly health insurance pre12 miums offered and the average and median monthly 

13 health insurance premiums offered to TAA-eligible 

14 individuals (as defined in section 

15 4980B(f)(5)(C)(iv)(II) of such Code) under COBRA 

16 continuation provisions (as defined in section 

17 9832(d)(1) of such Code), State-based continuation 

18 coverage provided under a State law that requires 

19 such coverage, and each category of coverage de20 scribed in section 35(e)(1) of such Code, identified 

21 by State and by the actuarial value of such coverage 

22 and the specific benefits provided and cost-sharing 

23 imposed under such coverage. 

24 (3) The number of States applying for and re25 ceiving national emergency grants under section 


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1 173(f) of the Workforce Investment Act of 1998 (29 

2 U.S.C. 2918(f)) and the time necessary for applica3 tion approval of such grants. 

4 (4) The cost of administering the health credit 

5 program under section 35 of such Code, by function, 

6 including the cost of subcontractors. 

7 SEC. 13. EXTENSION OF NATIONAL EMERGENCY GRANTS. 

8 (a) IN GENERAL.—Section 173(f) of the Workforce 

9 Investment Act of 1998 (29 U.S.C. 2918(f)) is amended— 

10 (1) by striking paragraph (1) and inserting the 

11 following new paragraph: 

12 ‘‘(1) USE OF FUNDS.— 

13 ‘‘(A) HEALTH INSURANCE COVERAGE FOR

14 ELIGIBLE INDIVIDUALS IN ORDER TO OBTAIN

15 QUALIFIED HEALTH INSURANCE THAT HAS

16 GUARANTEED ISSUE AND OTHER CONSUMER

17 PROTECTIONS.—Funds made available to a 

18 State or entity under paragraph (4)(A) of sub19 section (a) shall be used to provide an eligible 

20 individual described in paragraph (4)(C) and 

21 such individual’s qualifying family members 

22 with health insurance coverage for the 3-month 

23 period that immediately precedes the first eligi24 ble coverage month (as defined in section 35(b) 

25 of the Internal Revenue Code of 1986) in which 


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•S 1739 IS

1 such eligible individual and such individual’s 

2 qualifying family members are covered by quali3 fied health insurance that meets the require4 ments described in clauses (i) through (iv) of 

5 section 35(e)(2)(A) of the Internal Revenue 

6 Code of 1986 (or such longer minimum period 

7 as is necessary in order for such eligible indi8 vidual and such individual’s qualifying family 

9 members to be covered by qualified health in10 surance that meets such requirements). 

11 ‘‘(B) ADDITIONAL USES.—Funds made 

12 available to a State or entity under paragraph 

13 (4)(A) of subsection (a) may be used by the 

14 State or entity for the following: 

15 ‘‘(i) HEALTH INSURANCE COV16 ERAGE.—To assist an eligible individual 

17 and such individual’s qualifying family 

18 members with enrolling in health insurance 

19 coverage and qualified health insurance or 

20 paying premiums for such coverage or in21 surance. 

22 ‘‘(ii) ADMINISTRATIVE EXPENSES AND

23 START-UP EXPENSES TO ESTABLISH

24 GROUP HEALTH PLAN COVERAGE OPTIONS

25 FOR QUALIFIED HEALTH INSURANCE.—To 


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1 pay the administrative expenses related to 

2 the enrollment of eligible individuals and 

3 such individuals’ qualifying family mem4 bers in health insurance coverage and 

5 qualified health insurance, including— 

6 ‘‘(I) eligibility verification activi7 ties; 

8 ‘‘(II) the notification of eligible 

9 individuals of available health insur10 ance and qualified health insurance 

11 options; 

12 ‘‘(III) processing qualified health 

13 insurance costs credit eligibility cer14 tificates provided for under section 

15 7527 of the Internal Revenue Code of 

16 1986; 

17 ‘‘(IV) providing assistance to eli18 gible individuals in enrolling in health 

19 insurance coverage and qualified 

20 health insurance; 

21 ‘‘(V) the development or installa22 tion of necessary data management 

23 systems; and 

24 ‘‘(VI) any other expenses deter25 mined appropriate by the Secretary, 


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1 including start-up costs and on going 

2 administrative expenses, in order for 

3 the State to treat the coverage de4 scribed in subparagraph (C), (D), (E), 

5 or (F)(i) of section 35(e)(1) of the In6 ternal Revenue Code of 1986, or, only 

7 if the coverage is under a group 

8 health plan, the coverage described in 

9 subparagraph (F)(ii), (F)(iii), (F)(iv), 

10 (G), or (H) of such section, as quali11 fied health insurance under that sec12 tion. 

13 ‘‘(iii) OUTREACH.—To pay for out14 reach to eligible individuals to inform such 

15 individuals of available health insurance 

16 and qualified health insurance options, in17 cluding outreach consisting of notice to eli18 gible individuals of such options made 

19 available after the date of enactment of 

20 this clause and direct assistance to help 

21 potentially eligible individuals and such in22 dividual’s qualifying family members qual23 ify and remain eligible for the credit estab24 lished under section 35 of the Internal 

25 Revenue Code of 1986 and advance payVerDate Aug 31 2005 00:30 Jun 30, 2007 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S1739.IS S1739

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1 ment of such credit under section 7527 of 

2 such Code. 

3 ‘‘(iv) BRIDGE FUNDING.—To assist 

4 potentially eligible individuals purchase 

5 qualified health insurance coverage prior to 

6 issuance of a qualified health insurance 

7 costs credit eligibility certificate under sec8 tion 7527 of the Internal Revenue Code of 

9 1986 and commencement of advance pay10 ment, and receipt of expedited payment, 

11 under subsections (a) and (e), respectively, 

12 of that section. 

13 ‘‘(C) RULE OF CONSTRUCTION.—The in14 clusion of a permitted use under this paragraph 

15 shall not be construed as prohibiting a similar 

16 use of funds permitted under subsection (g).’’; 

17 and 

18 (2) by striking paragraph (2) and inserting the 

19 following new paragraph: 

20 ‘‘(2) QUALIFIED HEALTH INSURANCE.—For 

21 purposes of this subsection and subsection (g), the 

22 term ‘qualified health insurance’ has the meaning 

23 given that term in section 35(e) of the Internal Rev24 enue Code of 1986.’’. 


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1 (b) FUNDING.—Section 174(c)(1) of the Workforce 

2 Investment Act of 1998 (29 U.S.C. 2919(c)(1)) is amend3 ed— 

4 (1) in the paragraph heading, by striking ‘‘AU5 THORIZATION AND APPROPRIATION FOR FISCAL

6 YEAR 2002’’ and inserting ‘‘APPROPRIATIONS’’; and 

7 (2) by striking subparagraph (A) and inserting 

8 the following new subparagraph: 

9 ‘‘(A) to carry out subsection (a)(4)(A) of 

10 section 173— 

11 ‘‘(i) $10,000,000 for fiscal year 2002; 

12 and 

13 ‘‘(ii) $300,000,000 for the period of 

14 fiscal years 2008 through 2010; and’’. 

15 (c) REPORT REGARDING FAILURE TO COMPLY WITH

16 REQUIREMENTS FOR EXPEDITED APPROVAL PROCE17 DURES.—Section 173(f) of the Workforce Investment Act 

18 of 1998 (29 U.S.C. 2918(f)) is amended by adding at the 

19 end the following new paragraph: 

20 ‘‘(8) REPORT FOR FAILURE TO COMPLY WITH

21 REQUIREMENTS FOR EXPEDITED APPROVAL PROCE22 DURES.—If the Secretary fails to make the notifica23 tion required under clause (i) of paragraph (3)(A) 

24 within the 15-day period required under that clause, 

25 or fails to provide the technical assistance required 


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1 under clause (ii) of such paragraph within a timely 

2 manner so that a State or entity may submit an ap3 proved application within 2 months of the date on 

4 which the State or entity’s previous application was 

5 disapproved, the Secretary shall submit a report to 

6 Congress explaining such failure.’’. 

7 (d) TECHNICAL AMENDMENT.—Effective as if in8 cluded in the enactment of the Trade Act of 2002 (Public 

9 Law 107–210; 116 Stat. 933), subsection (f) of section 

10 203 of that Act is repealed. 

Æ 


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