I 

111TH CONGRESS 

1ST SESSION H. R. 3584 

To amend the Public Health Service Act to require reinstatement upon 

payment of all premiums due of group or individual health insurance 

coverage terminated by reason of nonpayment of premiums. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 16, 2009 

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

Committee on Energy and Commerce 

A BILL 

To amend the Public Health Service Act to require reinstatement upon payment of all premiums due of group or 

individual health insurance coverage terminated by reason of nonpayment of premiums. 

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 ‘‘Health Care Consumer 

5 Protection Act of 2009’’. 


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1 SEC. 2. RIGHT OF REINSTATEMENT FOR HEALTH INSUR2 ANCE COVERAGE TERMINATED BY REASON 

3 OF NONPAYMENT OF PREMIUMS. 

4 (a) GROUP HEALTH INSURANCE COVERAGE.—Part 

5 3 of subtitle A of title XXVII of the Public Health Service 

6 Act is amended by adding at the end the following new 

7 section: 

8 ‘‘SEC. 2714. RIGHT OF REINSTATEMENT FOR GROUP 

9 HEALTH INSURANCE COVERAGE TERMI10 NATED BY REASON OF NONPAYMENT OF PRE11 MIUMS. 

12 ‘‘(a) IN GENERAL.—If a health insurance issuer of13 fering group health insurance coverage in connection with 

14 a group health plan cancels or does not renew the coverage 

15 by reason of nonpayment of premiums, the issuer— 

16 ‘‘(1) shall provide, during the 14-day period be17 ginning on the date of such cancellation or non-re18 newal, written notice to the administrator of the 

19 plan and to each participant receiving such coverage 

20 under the plan of the cancellation or non-renewal of 

21 the coverage, of the reason for such cancellation or 

22 non-renewal, and of the right of reinstatement pro23 vided under paragraph (2); and 

24 ‘‘(2) shall reinstate the coverage as if the cov25 erage had not lapsed if the premiums due, and such 

26 reasonable administrative fee as the State regulating 


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1 such coverage may specify, are paid to the issuer by 

2 not later than 60 days after the date the cancella3 tion or non-renewal would otherwise have become ef4 fective. 

5 ‘‘(b) RELATION TO STATE LAW.—Nothing in this 

6 title shall be construed as preventing a State from pro7 viding for— 

8 ‘‘(1) reinstatement of lapsed group health in9 surance coverage in a case not described in sub10 section (a); or 

11 ‘‘(2) reinstatement of coverage after a period of 

12 nonpayment of longer than that specified in such 

13 subsection.’’. 

14 (b) INDIVIDUAL HEALTH INSURANCE COVERAGE.— 

15 Such Act is amended by inserting after section 2753 the 

16 following new section: 

17 ‘‘SEC. 2754. RIGHT OF REINSTATEMENT FOR HEALTH IN18 SURANCE COVERAGE TERMINATED BY REA19 SON OF NONPAYMENT OF PREMIUMS. 

20 ‘‘(a) APPLICATION OF RULES.—The provisions of 

21 section 2714 shall apply to health insurance coverage of22 fered by a health insurance issuer in the individual market 

23 in the same manner as they apply to health insurance cov24 erage offered by a health insurance issuer in connection 

25 with a group health plan. 


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1 ‘‘(b) APPLICATION TO COVERAGE OBTAINED

2 THROUGH AN ASSOCIATION OR ORGANIZATION.—In ap3 plying subsection (a), if— 

4 ‘‘(1) such health insurance coverage is offered 

5 through an association or other organization; 

6 ‘‘(2) the association or organization is respon7 sible for payment of the premium for such coverage; 

8 and 

9 ‘‘(3) the association or organization fails to 

10 make payment of such premium, 

11 the issuer shall provide the required notice both to the as12 sociation or organization and to the individuals whose cov13 erage is affected by such non-payment and repayment of 

14 premiums owed may be made by either the association or 

15 such individuals.’’. 

16 (c) EFFECTIVE DATES.— 

17 (1) GROUP HEALTH INSURANCE.—The amend18 ment made by subsection (a) shall apply to group 

19 health insurance coverage offered for plans years be20 ginning on or after 1 year after the date of the en21 actment of this Act. 

22 (2) INDIVIDUAL HEALTH INSURANCE.—The 

23 amendment made by subsection (b) shall apply to in24 dividual health insurance coverage as of the date 


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1 that is 1 year after the date of the enactment of this 

2 Act. 

Æ 


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