minus 15 percent of such amount for every 
$1000 of the amount by which such in-
come exceeds $12,001. 
(B) INDIVIDUAL WITH DEPENDENT FAM-
ILY
MEMBERS.—Subject 
to 
subparagraph 
(C)(ii), in the case of an eligible individual who 
has dependent family members and who has 
qualified health insurance coverage that covers 
the individual, such family members, or both, if 
the family’s income—
(i) is $25,000 or less, the annualized 
value of the certificate is the sum of—
(I) $1,000, for the individual; 
(II) $750, if such a family mem-
ber is the individual’s spouse; and 
(III) $500 for each other family 
member, but not to exceed a total of 
$1,000 under this subclause; or 
(ii) exceeds $25,000, the annualized 
value of the certificate shall be the amount 
determined under clause (i) minus 10 per-
cent of such amount for each $1,000 by 
which such income exceeds $24,001. 
Each of two eligible individuals who are mar-
ried to each other may receive the appropriate
amount designated for an individual, as opposed 
to the amount designated for a spouse, where 
they choose separate insurance coverage. 
(C) APPLICATION OF ASSETS TEST.—
(i) SELF
ONLY
COVERAGE.—In the 
case of an individual described in clause (i) 
or (ii) of subparagraph (A) whose re-
sources (as determined under a method-
ology that is similar to the methodology 
under section 1613 for purposes of the 
supplemental security income program) ex-
ceed $12,500, the annualized value of the 
certificate shall be 0. 
(ii) SELF AND FAMILY COVERAGE.—
In the case of an individual described in 
clause (i) or (ii) of subparagraph (B) 
whose family resources (as determined 
under a methodology that is similar to the 
methodology under section 1613 for pur-
poses of the supplemental security income 
program) exceed $20,000, the annualized 
value of the certificate shall be 0. 
(D) ROUNDING.—Any amount determined 
under subparagraph (A) or (B) which is not a
multiple of $12 shall be rounded to the next 
lowest $12. 
(2) CERTIFICATES FOR USE IN GROUP HEALTH 
PLANS.—In the case of an eligible individual who is 
covered under a group health plan—
(A) subparagraph (C) of subsection (b)(1) 
shall not apply; 
(B) the exclusion with respect to such cov-
erage under subsection (e)(2)(C) shall not 
apply; 
(C) the value of the certificate shall be 40 
percent of the value determined otherwise deter-
mined under paragraph (1) (before the applica-
tion of subparagraph (D) thereof); and 
(D) certificates under this paragraph may 
be used for qualified health insurance under 
any group health plan available to any family 
member by virtue of that member’s employment 
status. 
(e) QUALIFIED HEALTH INSURANCE COVERAGE.—
For purposes of this section—
(1) IN GENERAL.—The term ‘‘qualified health 
insurance coverage’’ means health benefits coverage 
(including individual health insurance coverage or 
coverage through a State high risk pool) that is
creditable coverage (as defined in section 2701(c)(1) 
of the Public Health Service Act), which does not 
consist entirely of excepted benefits (as defined in 
section 2791(c) of such Act). 
(2) EXCEPTION.—The term ‘qualified health in-
surance coverage’ does not include—
(A) a flexible spending or similar arrange-
ment; 
(B) any insurance if substantially all of its 
coverage is of excepted benefits described in 
section 9832(c) of the Internal Revenue Code of 
1986; 
(C) except as provided in subsection (d)(2), 
insurance provided through any group health 
plan related to employment, other than COBRA 
continuation coverage; or 
(D) any medical program described in sec-
tion 2(b)(3). 
(f) AUTHORIZATION OF APPROPRIATIONS.—To carry 
out this section and section 2745 of the Public Health 
Service Act (as amended by section 3), there are author-
ized to be appropriated such sums as may be necessary 
not to exceed—
(1) $28,457,000,000 for the period of fiscal 
years 2004 through 2008; and
(2) $49,965,000,000 for the period of fiscal 
years 2004 through 2013. 
SEC. 3. EXTENSION OF FUNDING FOR OPERATION OF 
STATE 
HIGH 
RISK 
HEALTH 
INSURANCE 
POOLS. 
Section 2745 of the Public Health Service Act, as in-
serted by section 201 of the Trade Act of 2002 (Public 
Law 107–210), is amended—
(1) in subsection (b)(1), by striking ‘‘estab-
lished a qualified health risk pool that’’ and all that 
follows through the end of subparagraph (C) and in-
serting ‘‘established a qualified health risk pool that 
provides for premium rates and covered benefits for 
such coverage consistent with standards included in 
the NAIC Model Health Plan for Uninsurable Indi-
viduals’’; 
(2) in subsection (b)(2), by striking ‘‘number of 
uninsured individuals’’ and inserting ‘‘enrollees in 
qualified high risk pools’’; and 
(3) 
in 
subsection 
(c)(2), 
by 
striking 
‘‘$40,000,000 for each of fiscal years 2003 and 
2004’’ and inserting ‘‘$40,000,000 for fiscal year 
2003 and, subject to availability of funds under sec-
tion 2(f) of the Health Insurance Certificate Act of