‘‘(B) A reduction in premium trends, ac-
tual premiums, or other cost-sharing require-
ments. 
‘‘(C) An expansion or broadening of the 
pool of individuals eligible for coverage, such as 
through eliminating waiting lists, increasing en-
rollment caps, or providing flexibility in enroll-
ment rules. 
‘‘(D) Less stringent rules, or additional 
waiver authority, with respect to coverage of 
pre-existing conditions. 
‘‘(E) Increased benefits. 
‘‘(F) The establishment of disease manage-
ment programs. 
‘‘(3) ALLOTMENT; LIMITATION.—The Secretary 
shall allot funds appropriated under paragraphs 
(1)(B)(ii) and (2)(B) of subsection (d) among States 
qualifying for a grant under paragraph (1) in a 
manner specified by the Secretary, but in no case 
shall the amount so allotted to a State for a fiscal 
year exceed 10 percent of the funds so appropriated 
for the fiscal year. 
‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to prohibit a State 
that, on the date of the enactment of the State High
Risk Pool Funding Extension Act of 2005, is in the 
process of implementing a program to provide bene-
fits of the type described in paragraph (2), from 
being eligible for a grant under this subsection. 
‘‘(d) FUNDING.—
‘‘(1) APPROPRIATION FOR FISCAL YEAR 2006.—
There are authorized to be appropriated for fiscal 
year 2006—
‘‘(A) $15,000,000 to carry out subsection 
(a); and 
‘‘(B) $75,000,000, of which, subject to 
paragraph (4)—
‘‘(i) two-thirds of the amount appro-
priated shall be made available for allot-
ments under subsection (b)(2); and 
‘‘(ii) one-third of the amount appro-
priated shall be made available for allot-
ments under subsection (c)(3). 
‘‘(2) AUTHORIZATION OF APPROPRIATIONS FOR 
FISCAL YEARS 2007 THROUGH 2010.—There are au-
thorized to be appropriated $75,000,000 for each of 
fiscal years 2007 through 2010, of which, subject to 
paragraph (4)—
‘‘(A) two-thirds of the amount appro-
priated for a fiscal year shall be made available 
for allotments under subsection (b)(2); and 
‘‘(B) one-third of the amount appropriated 
for a fiscal year shall be made available for al-
lotments under under subsection (c)(3). 
‘‘(3) AVAILABILITY.—Funds appropriated for 
purposes of carrying out this section for a fiscal year 
shall remain available for obligation through the end 
of the following fiscal year. 
‘‘(4) REALLOTMENT.—If, on June 30 of each 
fiscal year for which funds are appropriated under 
paragraph (1)(B) or (2), the Secretary determines 
that all the amounts so appropriated are not allotted 
or otherwise made available to States, such remain-
ing amounts shall be allotted and made available 
under subsection (b) among States receiving grants 
under subsection (b) for the fiscal year based upon 
the allotment formula specified in such subsection. 
‘‘(5) NO ENTITLEMENT.—Nothing in this sec-
tion shall be construed as providing a State with an 
entitlement to a grant under this section. 
‘‘(e) APPLICATIONS.—To be eligible for a grant under 
this section, a State shall submit to the Secretary an appli-
cation at such time, in such manner, and containing such 
information as the Secretary may require. 
‘‘(f) ANNUAL REPORT.—The Secretary shall submit 
to Congress an annual report on grants provided under 
this section. Each such report shall include information 
on the distribution of such grants among States and the 
use of grant funds by States. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) QUALIFIED HIGH RISK POOL.—
‘‘(A) IN
GENERAL.—The term ‘qualified 
high risk pool’ has the meaning given such term 
in section 2744(c)(2), except that a State may 
elect to meet the requirement of subparagraph 
(A) of such section (insofar as it requires the 
provision of coverage to all eligible individuals) 
through providing for the enrollment of eligible 
individuals through an acceptable alternative 
mechanism (as defined for purposes of section 
2744) that includes a high risk pool as a com-
ponent. 
‘‘(2) STANDARD RISK RATE.—The term ‘stand-
ard risk rate’ means a rate—
‘‘(A) determined under the State high risk 
pool by considering the premium rates charged 
by other health insurers offering health insur-
ance coverage to individuals in the insurance 
market served; 
‘‘(B) that is established using reasonable 
actuarial techniques; and 
‘‘(C) that reflects anticipated claims expe-
rience and expenses for the coverage involved. 
‘‘(3) STATE.—The term ‘State’ means any of 
the 50 States and the District of Columbia and in-
cludes Puerto Rico, the Virgin Islands, Guam, 
American Samoa, and the Northern Mariana Is-
lands.’’.
Passed the House of Representatives December 17, 
2005. 
Attest:
Clerk.