I
106TH CONGRESS
1ST SESSION
H. R. 2238
To authorize the provision of waivers to allow welfare-to-work funds to be
used to cover the start-up costs of forming alliances designed to enable
small businesses to purchase discounted health insurance for their em-
ployees among whom are individuals eligible for assistance under a wel-
fare-to-work program.
IN THE HOUSE OF REPRESENTATIVES
JUNE 16, 1999
Mr. BALDACCI introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To authorize the provision of waivers to allow welfare-to-
work funds to be used to cover the start-up costs of
forming alliances designed to enable small businesses
to purchase discounted health insurance for their employ-
ees among whom are individuals eligible for assistance
under a welfare-to-work program.
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 ‘‘Affordable Health Care
For Working Families Act’’.
SEC. 2. AUTHORITY TO PROVIDE WAIVERS TO ALLOW
STATES TO USE WELFARE-TO-WORK FUNDS
TO COVER THE START-UP COSTS OF SMALL
BUSINESS HEALTH INSURANCE PURCHASING
ALLIANCES.
Section 415 of the Social Security Act (42 U.S.C.
615) is amended by adding at the end the following:
‘‘(e) WAIVERS
TO
ALLOW
WELFARE-TO-WORK
FUNDS TO BE USED TO COVER THE START-UP COSTS
OF SMALL BUSINESS HEALTH INSURANCE PURCHASING
ALLIANCES.—
‘‘(1) WAIVER AUTHORITY.—
‘‘(A) IN
GENERAL.—The Secretary may
waive section 408(a)(6)(A) to the extent nec-
essary to enable approved entities receiving
funds provided under section 403(a)(5) to use
such funds, subject to subparagraph (B), to
cover the start-up costs of forming alliances de-
signed to enable small businesses to purchase
discounted health insurance for their employees,
and any use of funds pursuant to such a waiver
shall be considered an allowable activity for
purposes of section 403(a)(5)(C).
‘‘(B) LIMITATION.—The Secretary, under
subparagraph (A), shall allow not more than
$2,000,000 of the funds provided with respect
to a single State under section 403(a)(5) to be
used in accordance with subparagraph (A) of
this paragraph.
‘‘(2) APPROVED
ENTITY.—An entity shall be
considered an approved entity for purposes of para-
graph (1) if the Secretary determines that the State
in which the entity is located—
‘‘(A) has developed a plan to establish a
nonprofit health insurance purchasing alliance
consisting of small businesses, each of which—
‘‘(i) employs at least 1 individual who
is receiving assistance or benefits provided
under section 403(a)(5);
‘‘(ii) has not less than 2 and not more
than 50 employees;
‘‘(iii) is able to obtain health insur-
ance through the alliance at the same pre-
mium rates for all employees; and
‘‘(iv) has not obtained health insur-
ance for any employee during the 365-day
period ending with the establishment of the
alliance;
‘‘(B) will regulate any insurance plan of-
fered through the alliance.
‘‘(3) START-UP COSTS.—For purposes of para-
graph (1), the term ‘start-up costs’ includes the
costs of providing administrative staff and facilities,
and the costs of activities in developing the range
and scope of an alliance’s operations.’’.
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