A bill to amend title 5, United States Code to establish a national health program administered by the Office of Personnel Management to offer Federal employee health benefits plans to individuals who are not Federal employee, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Universal Access to Affordable 
Insurance for all Americans Act of 2004''.

SEC. 2. EXTENSION OF FEDERAL EMPLOYEE HEALTH INSURANCE.

    (a) In General.--Subpart G of part III of title 5, United States 
Code, is amended by inserting after chapter 89 the following:

       ``CHAPTER 89A--HEALTH INSURANCE FOR NON-FEDERAL EMPLOYEES

``Sec.
``8951. Definitions.
``8952. Health insurance for non-Federal employees.
``8953. Contract requirement.
``8954. Eligibility of non-Federal employees.
``8955. Alternative conditions to Federal employee health benefits 
                            plans.
``Sec. 8951. Definitions
    ``In this chapter--
            ``(1) the terms defined under section 8901 shall have the 
        meanings given such terms under that section; and
            ``(2) the term `Office' means the Office of Personnel 
        Management.
``Sec. 8952. Health insurance for non-Federal employees
    ``(a) The Office of Personnel Management shall administer a health 
insurance program for non-Federal employees in accordance with this 
chapter.
    ``(b) Except as provided under this chapter, the Office shall 
prescribe regulations to apply the provisions of chapter 89 to the 
greatest extent practicable to eligible individuals covered under this 
chapter.
``Sec. 8953. Contract requirement
    ``(a) In each calendar year, the Office shall enter into a contract 
with 1 or more carriers to make available 1 or more health benefits 
plans (subject to the provisions of this chapter) to eligible 
individuals under this chapter.
    ``(b) In carrying out this section, the Office may require 1 or 
more carriers to enter into a contract described in subsection (a), as 
a condition of entering into a contract under section 8902.
``Sec. 8954. Eligibility of non-Federal employees
    ``(a) Except as provided under subsection (b), any individual may 
enroll in a health benefits plan under this section.
    ``(b) An individual may not enroll in a health benefits plan under 
this chapter, if the individual--
            ``(1) is 65 years of age or older;
            ``(2) is enrolled or eligible to enroll for coverage under 
        a public health insurance program, including coverage under 
        title XVIII of the Social Security Act, coverage under a State 
        plan under title XIX of such Act, coverage under a State plan 
        under title XX of such Act, or coverage under any other program 
        determined by the Office;
            ``(3) is enrolled or eligible to enroll in a plan under 
        chapter 89; or
            ``(4) is a member of the uniformed services as defined 
        under section 101(a)(5) of title 10.
``Sec. 8955. Alternative conditions to Federal employee health benefits 
              plans
    ``(a) Rates charged and premiums paid for a health benefits plan 
under this chapter may differ between or among geographic regions.
    ``(b) No Government contribution shall be made for any individual 
under this chapter.
    ``(c) In the administration of this chapter, the Office shall 
ensure that individuals covered under this chapter shall be in a risk 
pool that is separate from the risk pool maintained for individuals 
covered under chapter 89.''.
    (b) Technical and Conforming Amendments.--
            (1) Contract requirement under chapter 89.--Section 8902 of 
        title 5, United States Code, is amended by adding after 
        subsection (o) the following:
    ``(p) Each contract under this chapter may include, at the 
discretion of the Office, a provision that the carrier shall enter into 
a contract to provide 1 or more health benefits plans as described 
under chapter 89A.''.
            (2) Table of chapters.--The table of chapters for part III 
        of title 5, United States Code, is amended by inserting after 
        the item relating to chapter 89 the following:

``89A. Health Insurance for Non-Federal Employees...........    8951''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and shall apply to 
contracts that take effect with respect to the calendar year following 
such date of enactment.

SEC. 3. CREDIT FOR HEALTH INSURANCE COSTS OF CERTAIN NON-FEDERAL 
              EMPLOYEES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 36 as section 37 and inserting 
after section 35 the following new section:

``SEC. 36. HEALTH INSURANCE COSTS OF CERTAIN NON-FEDERAL EMPLOYEES.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by subtitle A for the 
taxable year an amount equal to the applicable percentage of the amount 
paid during such taxable year by the taxpayer for coverage of the 
taxpayer and family members under the health insurance plan established 
under chapter 89A of title 5, United States Code.
    ``(b) Applicable Percentage.--For purposes of subsection (a)--
            ``(1) In general.--The applicable percentage shall be 
        determined in accordance with the table under paragraph (2).
            ``(2) Determination of applicable percentage.--

``In the case of any taxpayer whose The applicable percentage is--
        family income is the 
        following percentage of the 
        poverty line--
    Not more than 100 percent.....................         100 percent 
    More than 100, but not more than 200 percent..          65 percent 
    More than 200, but not more than 300 percent..          40 percent 
    More than 300, but not more than 400 percent..          30 percent 
    More than 400 percent.........................           0 percent.
            ``(3) Poverty line.--For purposes of paragraph (2), the 
        term `poverty line' means the poverty line as defined in 
        section 673(2) of the Community Services Block Grant Act, for a 
        family of the size involved.
    ``(c) Special Rules.--
            ``(1) Coordination with advance payments of credit.--With 
        respect to any taxable year, the amount which would (but for 
        this subsection) be allowed as a credit to the taxpayer under 
        subsection (a) shall be reduced (but not below zero) by the 
        aggregate amount paid on behalf of such taxpayer under section 
        7528 for such taxable year.
            ``(2) Coordination with other deductions.--Amounts taken 
        into account under subsection (a) shall not be taken into 
        account in determining any deduction allowed under section 
        162(l) or 213.
            ``(3) Treatment of payments.--For purposes of this section, 
        payments made by the Secretary on behalf of any individual 
        under section 7528 (relating to advance payment of credit for 
        health insurance costs of eligible individuals) shall be 
        treated as having been made by the taxpayer.
            ``(4) Regulations.--The Secretary may prescribe such 
        regulations and other guidance as may be necessary or 
        appropriate to carry out this section and section 7528.''.
    (b) Advance Payment of Credit.--Chapter 77 of the Internal Revenue 
Code of 1986 (relating to miscellaneous provisions) is amended by 
adding at the end the following new section:

``SEC. 7528. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF 
              CERTAIN NON-FEDERAL EMPLOYEES.

    ``Not later than August 1, 2004, the Secretary shall establish a 
program for making payments on behalf of individuals described in 
section 36(a) to the health insurance plan established under chapter 
89A of title 5, United States Code.''.
    (c) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``, or 
        from section 36 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        striking the last item and inserting the following new items:

                              ``Sec. 36. Health insurance costs of 
                                        certain non-Federal employees.
                              ``Sec. 37. Overpayments of tax.''.
            (3) The table of sections for chapter 77 of such Code is 
        amended by adding at the end the following new item:

                              ``Sec. 7528. Advance payment of credit 
                                        for health insurance costs of 
                                        certain non-Federal 
                                        employees.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

SEC. 4. PLAN FOR EXTENSION OF FEDERAL EMPLOYEE HEALTH BENEFITS PROGRAM.

    Not later than 6 months after the date of enactment of this Act and 
after consultation with appropriate experts, representatives of 
affected individuals, and Federal officers, the Director of the Office 
of Personnel Management shall submit a comprehensive plan to Congress 
that--
            (1) provides for the orderly implementation of the 
        amendments made by this Act; and
            (2) includes a schedule of actions to be taken to provide 
        for that implementation.

Summary: Universal Access to Affordable Health Insurance for all Americans Act of 2004 - Directs the Office of Personnel Management to: (1) administer a health insurance program for non-Federal employees; and (2) enter into contracts with carriers to make health benefits plans available to eligible individuals. Allows the Office to require carriers to offer such a plan to be eligible to enter into a contract for a Federal Employees Health Benefit (FEHB) plan.

Prohibits individuals from joining the plan that are: (1) 65 years of age or older; (2) eligible to enroll for coverage under a public health insurance program; (3) eligible to enroll in a FEHB plan; or (4) members of the uniformed services.

Allows rates charged and premiums paid for such a plan to differ among geographic regions.

Prohibits any Government contribution to such plans.

Requires the Office to keep individuals under such plans in a separate risk pool from individuals covered under a FEHB plan.

Amends the Internal Revenue Code of 1986 to provide for refundable credits for payments made to such plans. Provides for full credit for those below the poverty line, and gradually decreasing credit based on individual income. Directs the Secretary of the Treasury to make advance payments to such a plan on behalf of an enrollee equal to the Secretary's estimate of the amount of credit allowable for the enrollee.