127
HR 2691 IH
(A) in paragraph (3)—
(i) in subparagraph (A), by inserting
‘‘except as otherwise provided in this para-
graph,’’ after ‘‘means,’’; and
(ii) by adding at the end the following
new subparagraph:
‘‘(C) SPECIAL
RULE
FOR
QUALIFYING
CAREGIVERS.—In the case of a qualifying event
described in section 2203(6), the term ‘qualified
beneficiary’ means a qualified caregiver and any
other individual who, on the day before such
qualifying event, is a beneficiary under the plan
on the basis of the individual’s relationship to
such qualified caregiver.’’; and
(B) by adding at the end the following new
paragraph:
‘‘(5) QUALIFIED CAREGIVER.—The term ‘quali-
fied caregiver’ means, with respect to a qualifying
event described in section 2203(6), an individual
who becomes eligible for a caregiver tax credit under
section 35 of the Internal Revenue Code of 1986.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to qualifying events occurring on
or after January 1, 2001. In the case of a qualifying event
occurring on or after such date and before the date of
128
HR 2691 IH
the enactment of this Act, such event shall be deemed (for
purposes of such amendments) to have occurred on the
date of the enactment of this Act.
CHAPTER 3—AMENDMENTS TO THE
INTERNAL REVENUE CODE OF 1986
SEC. 613. COBRA CONTINUATION BENEFITS FOR CERTAIN
CAREGIVERS.
(a) 
ESTABLISHMENT
OF
NEW
QUALIFYING
EVENT.—
(1) IN GENERAL.—Section 4980B(f)(3) of the
Internal Revenue Code of 1986 is amended by in-
serting after subparagraph (F) the following new
subparagraph:
‘‘(G) The termination of group health plan
coverage as a result of a covered employee be-
coming a qualified caregiver.’’.
(2) QUALIFIED CAREGIVER DEFINED.—Section
4980B(g) of such Code is amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by inserting
‘‘except as otherwise provided in this para-
graph,’’ after ‘‘means,’’; and
(ii) by adding at the end the following
new subparagraph:
129
HR 2691 IH
‘‘(E) SPECIAL RULE FOR QUALIFIED CARE-
GIVERS.—In the case of a qualifying event de-
scribed in subsection (f)(3)(G), the term ‘quali-
fied beneficiary’ means a qualified caregiver and
any other individual who, on the day before
such qualifying event, is a beneficiary under the
plan on the basis of the individual’s relationship
to such qualified caregiver.’’; and
(B) by adding at the end the following new
paragraph:
‘‘(5) QUALIFIED CAREGIVER.—The term ‘quali-
fied caregiver’ means, with respect to a qualifying
event described in subsection (f)(3)(G), an individual
who becomes eligible for a caregiver tax credit under
section 35.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to qualifying events occurring on
or after January 1, 2001. In the case of a qualifying event
occurring on or after such date and before the date of
the enactment of this Act, such event shall be deemed (for
purposes of such amendments) to have occurred on the
date of the enactment of this Act.
130
HR 2691 IH
Subtitle C—Financing
SEC. 621. REFERENCE TO FINANCING PROVISIONS.
Any increase in payments under the medicare pro-
gram under title XVIII of the Social Security Act that
results from the enactment of this title shall be offset by
reductions in payments under such program pursuant to
the anti-fraud and anti-abuse provisions enacted as part
of the Medicare Fraud and Overpayment Act of 1999.
TITLE 
VII—SOCIAL 
SECURITY
BENEFIT 
FOR 
LONG-TERM
CAREGIVERS
SEC. 701. SOCIAL SECURITY CREDIT FOR LONG-TERM
CAREGIVERS.
(a) IN GENERAL.—Title II of the Social Security Act
is amended by adding after section 233 (42 U.S.C. 433)
the following new section:
‘‘BENEFITS IN CASE OF CERTAIN LONG-TERM
CAREGIVERS
‘‘Definitions and Related Rules
‘‘SEC. 234. (a) For the purposes of this section—
‘‘(1) The term ‘eligible caregiver’ has the mean-
ing given such term in section 35(c)(3) of the Inter-
nal Revenue Code of 1986.
131
HR 2691 IH
‘‘(2) The term ‘applicable individual’ has the
meaning given such term in section 35(c)(1)(A) of
the Internal Revenue Code of 1986.
‘‘(3) The term ‘qualifying period’ means, in
connection with any individual, any period of leave
of not less than 84 consecutive days for which such
individual has been principally engaged in providing
service as an eligible caregiver to an applicable indi-
vidual.
‘‘(4) The term ‘period of leave’ means a period
in which the eligible caregiver is not employed and
which is preceded by a continuous period of at least
60 months in which the individual was employed at
least 20 hours per week on average.
‘‘Deemed Wages of Eligible Caregiver
‘‘(b)(1) For purposes of determining entitlement to
and the amount of any monthly benefit for any month
after December 1999, or entitlement to and the amount
of any lump-sum death payment in the case of a death
after such month, payable under this title on the basis
of the wages and self-employment income of any indi-
vidual, and for purposes of section 216(i)(3), such indi-
vidual shall be deemed to have been paid during each
month ending during any qualifying period commencing
after he or she attained age 18 wages (in addition to any
132
HR 2691 IH
wages actually paid to him or her) at an amount per
month equal to the greater of the amount of wages or self-
employment income actually paid or derived during such
month or the monthly rate of wages and self-employment
income derived by dividing—
‘‘(A) the arithmetic mean of the total wages
and self-employment income credited to such indi-
vidual for each of the last 3 calendar years ending
at least one year before the commencement of such
qualifying period, by
‘‘(B) 12 months.
‘‘(2) This subsection shall not be applicable in the
case of any monthly benefit or lump-sum death payment
if a larger such benefit or payment, as the case may be,
would be payable without its application.
‘‘Citizenship and Residency Requirements
‘‘(c)(1) An individual shall not be treated as an eligi-
ble caregiver for purposes of subsection (b) unless such
individual—
‘‘(A) is throughout the qualifying period a resi-
dent of the United States (as defined in paragraph
(2)), and
‘‘(B)(i) is throughout the qualifying period a
citizen of the United States or an alien lawfully ad-
mitted for permanent residence, and