I
104TH CONGRESS
1ST SESSION
H. R. 2168
To extend COBRA continuation coverage to retirees and their dependents,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 1995
Mr. JOHNSON of South Dakota introduced the following bill; which was re-
ferred to the Committee on Commerce, and in addition to the Committees
on Ways and Means, and Economic and Educational Opportunities, 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 com-
mittee concerned
A BILL
To extend COBRA continuation coverage to retirees and
their dependents, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Retiree Continuation
Coverage Act of 1995.’’
SEC. 2. EXTENSION OF COBRA CONTINUATION COVERAGE.
(a) PUBLIC HEALTH SERVICE ACT.—
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(1) 
PERIOD
OF
COVERAGE.—Section
2202(2)(A) of the Public Health Service Act (42
U.S.C. 300bb–2(2)(A)) is amended by adding at the
end thereof the following new clause:
‘‘(v) QUALIFYING
EVENT
INVOLVING
SUBSTANTIAL
REDUCTION
OR
ELIMI-
NATION
OF
A
RETIREE
GROUP
HEALTH
PLAN.—In the case of an event described
in section 2203(6), the date on which such
covered qualified beneficiary becomes enti-
tled to benefits under title XVIII of the
Social Security Act.’’.
(2) QUALIFYING EVENT.—Section 2203 of the
Public Health Service Act (42 U.S.C. 300bb–3) is
amended by adding at the end thereof the following
new paragraph:
‘‘(6) The substantial reduction or elimination of
group health coverage as a result of plan changes or
termination with respect to a qualified beneficiary
described in section 2208(3)(A).’’.
(3) NOTICE.—Section 2206 of the Public
Health Service Act (42 U.S.C. 300bb–6) is amend-
ed—
(A) in paragraph (2), by striking ‘‘or (4)’’
and inserting ‘‘(4), or (6)’’; and
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(B) in paragraph (4)(A), by striking ‘‘or
(4)’’ and inserting ‘‘(4), or (6)’’.
(4) DEFINITION.—Section 2208(3) of the Pub-
lic Health Service Act (42 U.S.C. 300bb–8(3)) is
amended by adding at the end thereof the following
new subparagraph:
‘‘(C) SPECIAL
RULE
FOR
RETIREES.—In
the case of a qualifying event described in sec-
tion 2203(6), the term ‘qualified beneficiary’ in-
cludes a covered employee who had retired on
or before the date of substantial reduction or
elimination of coverage and any other individual
who, on the day before such qualifying event, is
a beneficiary under the plan—
‘‘(i) as the spouse of the covered em-
ployee;
‘‘(ii) as the dependent child of the
covered employee; or
‘‘(iii) as the surviving spouse of the
covered employee.’’.
(b) EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974.—
(1) PERIOD OF COVERAGE.—Section 602(2)(A)
of the Employee Retirement Income Security Act of
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1974 (29 U.S.C. 1162(2)(A)) is amended by adding
at the end thereof the following new clause:
‘‘(vi) QUALIFYING EVENT INVOLVING
SUBSTANTIAL
REDUCTION
OR
ELIMI-
NATION OF A GROUP HEALTH COVERING
RETIREES, SPOUSES, AND DEPENDENTS.—
In the case of an event described in section
603(7), the date on which such covered
qualified beneficiary becomes entitled to
benefits under title XVIII of the Social Se-
curity Act.’’.
(2) QUALIFYING EVENT.—Section 603 of the
Employee Retirement Income Security Act of 1974
(29 U.S.C. 1163) is amended by adding at the end
thereof the following new paragraph:
‘‘(7) The substantial reduction or elimination of
group health plan coverage as a result of plan
changes or termination with respect to a qualified
beneficiary described in section 607(3)(C).’’.
(3) NOTICE.—Section 606(a) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1166) is amended—
(A) in paragraph (2), by striking ‘‘or (6)’’
and inserting ‘‘(6), or (7)’’; and
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(B) in paragraph (4)(A), by striking ‘‘or
(6)’’ and inserting ‘‘(6), or (7)’’.
(4) DEFINITION.—Section 607(3)(C) of the
Employee Retirement Income Security Act of 1974
(29 U.S.C. 1167(2)) is amended by striking
‘‘603(6)’’ and inserting ‘‘603(6) or 603(7)’’.
(c) INTERNAL REVENUE CODE OF 1986.—
(1) 
PERIOD
OF
COVERAGE.—Section
4980B(f)(2)(B)(i) of the Internal Revenue Code of
1986 is amended by adding at the end thereof the
following new subclause:
‘‘(VI) QUALIFYING
EVENT
IN-
VOLVING
SUBSTANTIAL
REDUCTION
OR
ELIMINATION
OF
A
RETIREE
GROUP HEALTH PLAN.—In the case of
an event described in paragraph
(3)(G), the date on which such cov-
ered qualified beneficiary becomes en-
titled to benefits under title XVIII of
the Social Security Act.’’
(2) QUALIFYING EVENT.—Section 4980B(f)(3)
of the Internal Revenue Code of 1986 is amended by
adding at the end thereof the following new subpara-
graph:
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‘‘(G) The substantial reduction of elimi-
nation of group health coverage as a result of
plan changes or termination with respect to a
qualified beneficiary described in subsection
(g)(1)(D).’’
(3) NOTICE.—Section 4980B(f)(6) of the Inter-
nal Revenue Code of 1986 is amended—
(A) in subparagraph (B), by striking ‘‘or
(F)’’ and inserting ‘‘(F), or (G)’’; and
(B) in subparagraph (D)(i), by striking
‘‘or (F)’’ and inserting ‘‘(F), or (G)’’.
(4) DEFINITION.—Section 4980B(g)(1)(D) of
the Internal Revenue Code of 1986 is amended by
striking ‘‘(f)(3)(F)’’ and inserting ‘‘(f)(3)(F) or
(f)(3)(G)’’.
SEC. 3. EFFECTIVE DATE.
This Act shall take effect as if enacted on January
1, 1995.
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