(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; 
(C) the State will not discriminate among 
participants on the basis of any health status-
related factor (as defined in section 2791(d)(9) 
of the Public Health Service Act), except to the
extent a State wishes to focus on populations 
that otherwise would not obtain health insur-
ance because of such factors; and 
(D) the State will provide for such evalua-
tion, in coordination with the evaluation re-
quired under subsection (d), as the Secretary 
may specify. 
(2) APPLICATION.—The Secretary shall not 
provide a demonstration grant under the program to 
a State unless—
(A) the State submits to the Secretary 
such an application, in such a form and man-
ner, as the Secretary specifies; 
(B) the application includes information 
regarding how the demonstration grant will ad-
dress issues such as governance, targeted popu-
lation, expected cost, and continuation after the 
completion of the demonstration grant period; 
and 
(C) the Secretary determines that the dem-
onstration grant will be used in a manner con-
sistent with this section. 
(3) FOCUS.—A demonstration grant proposal 
under this section need not cover all uninsured indi-
viduals in a State or all health care benefits with re-
spect to such individuals. 
(d) EVALUATION.—The Secretary shall enter into a 
contract with an appropriate entity outside the Depart-
ment of Health and Human Services to conduct an overall 
evaluation of the program at the end of the program pe-
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.—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 develop demonstration 
grant proposals under 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. 5. 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—
(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).
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