223 
riod. Such evaluation shall include an analysis of improve-
ments in access, costs, quality of care, or choice of cov-
erage, under different demonstration grants. 
(e) OPTION TO PROVIDE FOR INITIAL PLANNING 
GRANTS.—Notwithstanding the previous provisions of this 
section, under the program the Secretary may provide for 
a portion of the amounts appropriated under subsection 
(f) (not to exceed $5,000,000) to be made available to any 
State for initial planning grants to permit States to de-
velop demonstration grant proposals under the previous 
provisions of this section. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $100,000,000 for each 
fiscal year to carry out this section. Amounts appropriated 
under this subsection shall remain available until ex-
pended. 
(g) STATE DEFINED.—For purposes of this section, 
the term ‘‘State’’ has the meaning given such term for 
purposes of title XIX of the Social Security Act. 
SEC. 514. GRANT PROGRAM TO FACILITATE HEALTH BENE-
FITS INFORMATION FOR SMALL EMPLOYERS. 
(a) IN GENERAL.—The Small Business Administra-
tion shall award grants to 1 or more States, local govern-
ments, and non-profit organizations for the purposes of—
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(1) demonstrating new and effective ways to 
provide information about the benefits of health in-
surance to small employers, including tax benefits, 
increased productivity of employees, and decreased 
turnover of employees, 
(2) making employers aware of their current 
rights in the marketplace under State and Federal 
health insurance reforms, and 
(3) making employers aware of the tax treat-
ment of insurance premiums. 
(b) AUTHORIZATION.—There is authorized to be ap-
propriated $10,000,000 for each of the first 5 fiscal years 
beginning after the date of the enactment of this Act for 
grants under subsection (a). 
SEC. 515. STATE GRANT PROGRAM FOR MARKET INNOVA-
TION. 
(a) IN GENERAL.—The Secretary of Health and 
Human Services (in this section referred to as the ‘‘Sec-
retary’’) shall establish a program (in this section referred 
to as the ‘‘program’’) to award demonstration grants 
under this section to States to allow States to demonstrate 
the effectiveness of innovative ways to increase access to 
health insurance through market reforms and other inno-
vative means. Such innovative means may include (and are 
not limited to) any of the following:
225 
(1) Alternative group purchasing or pooling ar-
rangements, such as purchasing cooperatives for 
small businesses, reinsurance pools, or high risk 
pools. 
(2) Individual or small group market reforms. 
(3) Consumer education and outreach. 
(4) Subsidies to individuals, employers, or both, 
in obtaining health insurance. 
(b) SCOPE; DURATION.—The program shall be lim-
ited to not more than 10 States and to a total period of 
5 years, beginning on the date the first demonstration 
grant is made. 
(c) CONDITIONS FOR DEMONSTRATION GRANTS.— 
(1) IN GENERAL.—The Secretary may not pro-
vide for a demonstration grant to a State under the 
program unless the Secretary finds that under the 
proposed demonstration grant— 
(A) the State will provide for demonstrated 
increase of access for some portion of the exist-
ing uninsured population through a market in-
novation (other than merely through a financial 
expansion of a program initiated before the 
date of the enactment of this Act); 
(B) the State will comply with applicable 
Federal laws;