II 

111TH CONGRESS 

1ST SESSION S. 29 

To amend the Internal Revenue Code of 1986 to increase the credit for 

the health insurance costs of eligible individuals, to expand such credit 

to individuals covered under COBRA, and to extend the period of 

COBRA continuation coverage for certain individuals. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 7, 2009 

Mr. BROWN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to increase 

the credit for the health insurance costs of eligible individuals, to expand such credit to individuals covered 

under COBRA, and to extend the period of COBRA 

continuation coverage for certain individuals. 

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 ‘‘Coverage Continuity 

5 Act’’. 


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1 SEC. 2. INCREASE IN AMOUNT OF HEALTH CARE COV2 ERAGE TAX CREDIT. 

3 (a) IN GENERAL.—Section 35(a) of the Internal Rev4 enue Code of 1986 (relating to credit for health insurance 

5 costs of eligible individuals) is amended by striking ‘‘65’’ 

6 and inserting ‘‘85’’. 

7 (b) CONFORMING AMENDMENT.—Section 7527(b) of 

8 such Code (relating to advance payment of credit for 

9 health insurance costs of eligible individuals) is amended 

10 by striking ‘‘65’’ and inserting ‘‘85’’. 

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

12 this section apply to taxable years beginning after Decem13 ber 31, 2008. 

14 SEC. 3. EXPANSION OF HEALTH CARE COVERAGE TAX 

15 CREDIT TO INDIVIDUALS ENROLLED IN 

16 COBRA. 

17 (a) IN GENERAL.—Paragraph (1) of section 35(c) of 

18 the Internal Revenue Code of 1986 is amended by striking 

19 ‘‘and’’ at the end of subparagraph (B), by striking the 

20 period at the end of subparagraph (C) and inserting ‘‘, 

21 and’’, and by adding at the end the following new subpara22 graph: 

23 ‘‘(D) an eligible COBRA continuation indi24 vidual.’’. 

25 (b) ELIGIBLE COBRA CONTINUATION INDI26 VIDUAL.—Section 35(c) of the Internal Revenue Code of 


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1 1986 is amended by adding at the end the following new 

2 paragraph: 

3 ‘‘(5) ELIGIBLE COBRA CONTINUATION INDI4 VIDUAL.— 

5 ‘‘(A) IN GENERAL.—The term ‘eligible 

6 COBRA continuation individual’ means— 

7 ‘‘(i) any individual who is covered 

8 under a COBRA continuation provision (as 

9 defined in section 9832(d)) on January 1, 

10 2009, 

11 ‘‘(ii) any individual who enrolls in cov12 erage under a COBRA continuation provi13 sion (as so defined) at any time after Jan14 uary 1, 2009, and before January 1, 2011, 

15 or 

16 ‘‘(iii) any individual with respect to 

17 whom there is a qualifying event (as de18 fined in section 4980B(f)(3)) at any time 

19 after January 1, 2009, and before January 

20 1, 2011. 

21 ‘‘(B) EXCEPTION.—Such term does not in22 clude any individual described in subparagraph 

23 (A) after the earlier of— 


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1 ‘‘(i) the date on which such individual 

2 is no longer eligible to be covered under a 

3 COBRA continuation provision, or 

4 ‘‘(ii) the date which is 18 months 

5 after the date on which the qualifying 

6 event (as defined in section 4980B(f)(3)) 

7 occurred with respect to such individual. 

8 In the case of an individual who is eligible for 

9 extended coverage under a COBRA continu10 ation provision pursuant to section 4 of the 

11 Coverage Continuity Act, clause (ii) shall not 

12 apply.’’. 

13 SEC. 4. EXTENSION OF CONTINUATION COVERAGE. 

14 (a) EXTENSION OF CONTINUATION COVERAGE.— 

15 (1) IN GENERAL.—Notwithstanding section 602 

16 of the Employee Retirement Income Security Act of 

17 1974 (29 U.S.C. 1162), section 2202 of the Public 

18 Health Service Act (42 U.S.C. 300bb–2), and sec19 tion 4980B(f)(2)(B) of the Internal Revenue Code of 

20 1986, a qualified beneficiary who is covered under 

21 continuation coverage and whose eligibility for such 

22 continuation coverage would terminate during the 

23 period beginning January 1, 2009 and ending De24 cember 31, 2009, may elect to extend such continu25 ation coverage for an additional 12 months. 


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1 (2) LIMITATION.—Paragraph (1) shall apply 

2 only to a qualified beneficiary who does not termi3 nate such continuation coverage prior to the election 

4 of the 12-month extension under such paragraph. 

5 (b) DEFINITIONS.—In this section— 

6 (1) the term ‘‘continuation coverage’’ means 

7 continuation coverage provided pursuant to part 6 of 

8 subtitle B of title I of the Employee Retirement In9 come Security Act of 1974 (other than under section 

10 609), title XXII of the Public Health Service Act, 

11 and section 4980B of the Internal Revenue Code of 

12 1986 (other than subsection (f)(1) of such section 

13 insofar as it relates to pediatric vaccines), as appli14 cable; and 

15 (2) the term ‘‘qualified beneficiary’’ has the 

16 meaning given such term in section 607(3) of the 

17 Employee Retirement Income Security Act of 1974 

18 (29 U.S.C. 1167(3)), section 2208(3) of the Public 

19 Health Service Act (42 U.S.C. 300bb–8(3)), and 

20 section 4980B(g) of the Internal Revenue Code of 

21 1986, as applicable. 

Æ 


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