Worker Health Coverage Protection Act
Bill: S.263 | Sponsor: Sen. Durbin, Richard J. (D-IL)
Policy area: Health

Summary:
Worker Health Coverage Protection Act
This bill provides health insurance premium assistance to individuals who become unemployed or are furloughed during the period beginning on March 1, 2020, and ending on September 30, 2021. Specifically, the bill treats premiums as paid for individuals who (1) are terminated from employment and elect to continue insurance coverage through the COBRA (Consolidated Omnibus Budget Reconciliation Act) program during such period, or (2) receive more than a 30% reduction in work hours during such period but remain eligible for coverage under a group health plan. The bill also specifies requirements for individuals changing, or enrolling in, health plans under the program.  Additionally, the bill requires employers to provide eligible individuals specified written notice about this health insurance premium assistance, including, among other information, available health plan enrollment options and the date that such assistance expires.
The Department of the Treasury must reimburse employers, group health plans, and insurance issuers through a payroll tax credit or refund for unpaid premiums that were treated as paid under the program.
Premium assistance is not considered income for federal income tax purposes or for determining eligibility for federal or state benefits or assistance.

To preserve health benefits for workers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Worker Health Coverage Protection 
Act''.

SEC. 2. PRESERVING HEALTH BENEFITS FOR WORKERS.

    (a) Premium Assistance for COBRA Continuation Coverage and 
Furloughed Continuation Coverage for Individuals and Their Families.--
            (1) Provision of premium assistance.--
                    (A) Reduction of premiums payable.--
                            (i) COBRA continuation coverage.--In the 
                        case of any premium for a period of coverage 
                        during the period beginning on March 1, 2020, 
                        and ending on September 30, 2021 for COBRA 
                        continuation coverage with respect to any 
                        assistance eligible individual described in 
                        paragraph (3)(A), such individual shall be 
                        treated for purposes of any COBRA continuation 
                        provision as having paid the amount of such 
                        premium if such individual pays (and any person 
                        other than such individual's employer pays on 
                        behalf of such individual) 0 percent of the 
                        amount of such premium owed by such individual 
                        (as determined without regard to this 
                        subsection).
                            (ii) Furloughed continuation coverage.--In 
                        the case of any premium for a period of 
                        coverage during the period beginning on March 
                        1, 2020, and ending on September 30, 2021, for 
                        coverage under a group health plan with respect 
                        to any assistance eligible individual described 
                        in paragraph (3)(B), such individual shall be 
                        treated for purposes of coverage under the plan 
                        offered by the plan sponsor in which the 
                        individual is enrolled as having paid the 
                        amount of such premium if such individual pays 
                        (and any person other than such individual's 
                        employer pays on behalf of such individual) 0 
                        percent of the amount of such premium owed by 
                        such individual (as determined without regard 
                        to this subsection).
                    (B) Plan enrollment option.--
                            (i) In general.--Notwithstanding the COBRA 
                        continuation provisions, any assistance 
                        eligible individual who is enrolled in a group 
                        health plan offered by a plan sponsor, not 
                        later than 90 days after the date of notice of 
                        the plan enrollment option described in this 
                        subparagraph, may elect to enroll in coverage 
                        under a plan offered by such plan sponsor that 
                        is different than coverage under the plan in 
                        which such individual was enrolled at the 
                        time--
                                    (I) in the case of any assistance 
                                eligible individual described in 
                                paragraph (3)(A), the qualifying event 
                                specified in section 603(2) of the 
                                Employee Retirement Income Security Act 
                                of 1974 (29 U.S.C. 1163(2)), section 
                                4980B(f)(3)(B) of the Internal Revenue 
                                Code of 1986, section 2203(2) of the 
                                Public Health Service Act (42 U.S.C. 
                                300bb-3(2)), or section 8905a of title 
                                5, United States Code (except for the 
                                voluntary termination of such 
                                individual's employment by such 
                                individual), occurred, and such 
                                coverage shall be treated as COBRA 
                                continuation coverage for purposes of 
                                the applicable COBRA continuation 
                                coverage provision; or
                                    (II) in the case of any assistance 
                                eligible individual described in 
                                paragraph (3)(B), the furlough period 
                                began with respect to such individual.
                            (ii) Requirements.--Any assistance eligible 
                        individual may elect to enroll in different 
                        coverage as described in clause (i) only if--
                                    (I) the employer involved has made 
                                a determination that such employer will 
                                permit such assistance eligible 
                                individual to enroll in different 
                                coverage as provided under this 
                                subparagraph;
                                    (II) the premium for such different 
                                coverage does not exceed the premium 
                                for coverage in which such individual 
                                was enrolled at the time such 
                                qualifying event occurred or 
                                immediately before such furlough began;
                                    (III) the different coverage in 
                                which the individual elects to enroll 
                                is coverage that is also offered to the 
                                active employees of the employer, who 
                                are not in a furlough period, at the 
                                time at which such election is made; 
                                and
                                    (IV) the different coverage in 
                                which the individual elects to enroll 
                                is not--
                                            (aa) coverage that provides 
                                        only dental, vision, 
                                        counseling, or referral 
                                        services (or a combination of 
                                        such services);
                                            (bb) a qualified small 
                                        employer health reimbursement 
                                        arrangement (as defined in 
                                        section 9831(d)(2) of the 
                                        Internal Revenue Code of 1986);
                                            (cc) a flexible spending 
                                        arrangement (as defined in 
                                        section 106(c)(2) of the 
                                        Internal Revenue Code of 1986); 
                                        or
                                            (dd) benefits that provide 
                                        coverage for services or 
                                        treatments furnished in an on-
                                        site medical facility 
                                        maintained by the employer and 
                                        that consists primarily of 
                                        first-aid services, prevention 
                                        and wellness care, or similar 
                                        care (or a combination of such 
                                        care).
                    (C) Premium reimbursement.--For provisions 
                providing the payment of such premium, see section 6432 
                of the Internal Revenue Code of 1986, as added by 
                paragraph (14).
            (2) Limitation of period of premium assistance.--
                    (A) Eligibility for additional coverage.--Paragraph 
                (1)(A) shall not apply with respect to--
                            (i) any assistance eligible individual 
                        described in paragraph (3)(A) for months of 
                        coverage beginning on or after the earlier of--
                                    (I) the first date that such 
                                individual is eligible for coverage 
                                under any other group health plan 
                                (other than coverage consisting of only 
                                dental, vision, counseling, or referral 
                                services (or a combination thereof), 
                                coverage under a flexible spending 
                                arrangement (as defined in section 
                                106(c)(2) of the Internal Revenue Code 
                                of 1986), coverage of treatment that is 
                                furnished in an on-site medical 
                                facility maintained by the employer and 
                                that consists primarily of first-aid 
                                services, prevention and wellness care, 
                                or similar care (or a combination 
                                thereof)), or eligible for benefits 
                                under the Medicare program under title 
                                XVIII of the Social Security Act (42 
                                U.S.C. 1395 et seq.); or
                                    (II) the earlier of--
                                            (aa) the date following the 
                                        expiration of the maximum 
                                        period of continuation coverage 
                                        required under the applicable 
                                        COBRA continuation coverage 
                                        provision; or
                                            (bb) the date following the 
                                        expiration of the period of 
                                        continuation coverage allowed 
                                        under paragraph (4)(B)(ii); or
                            (ii) any assistance eligible individual 
                        described in paragraph (3)(B) for months of 
                        coverage beginning on or after the earlier of--
                                    (I) the first date that such 
                                individual is eligible for coverage 
                                under any other group health plan 
                                (other than coverage consisting of only 
                                dental, vision, counseling, or referral 
                                services (or a combination thereof), 
                                coverage under a flexible spending 
                                arrangement (as defined in section 
                                106(c)(2) of the Internal Revenue Code 
                                of 1986), coverage of treatment that is 
                                furnished in an on-site medical 
                                facility maintained by the employer and 
                                that consists primarily of first-aid 
                                services, prevention and wellness care, 
                                or similar care (or a combination 
                                thereof)), or eligible for benefits 
                                under the Medicare program under title 
                                XVIII of the Social Security Act (42 
                                U.S.C. 1395 et seq.); or
                                    (II) the first date that such 
                                individual is no longer in the furlough 
                                period.
                    (B) Notification requirement.--Any assistance 
                eligible individual shall notify the group health plan 
                with respect to which paragraph (1)(A) applies if such 
                paragraph ceases to apply by reason of clause (i)(I) or 
                (ii)(I) of subparagraph (A) (as applicable). Such 
                notice shall be provided to the group health plan in 
                such time and manner as may be specified by the 
                Secretary of Labor.
                    (C) Special enrollment period following expiration 
                of premium assistance.--Notwithstanding section 1311 of 
                the Patient Protection and Affordable Care Act (42 
                U.S.C. 18031), the expiration of premium assistance 
                pursuant to a limitation specified under subparagraph 
                (A) shall be treated as a qualifying event for which 
                any assistance eligible individual is eligible to 
                enroll in a qualified health plan offered through an 
                Exchange under title I of such Act (42 U.S.C. 18001 et 
                seq.) during a special enrollment period.
            (3) Assistance eligible individual.--For purposes of this 
        section, the term ``assistance eligible individual'' means, 
        with respect to a period of coverage during the period 
        beginning on March 1, 2020, and ending on September 30, 2021--
                    (A) any individual that is a qualified beneficiary 
                that--
                            (i) is eligible for COBRA continuation 
                        coverage by reason of a qualifying event 
                        specified in section 603(2) of the Employee 
                        Retirement Income Security Act of 1974 (29 
                        U.S.C. 1163(2)), section 4980B(f)(3)(B) of the 
                        Internal Revenue Code of 1986, section 2203(2) 
                        of the Public Health Service Act (42 U.S.C. 
                        300bb-3(2)), or section 8905a of title 5, 
                        United States Code (except for the voluntary 
                        termination of such individual's employment by 
                        such individual); and
                            (ii) elects such coverage; or
                    (B) any covered employee that is in a furlough 
                period that remains eligible for coverage under a group 
                health plan offered by the employer of such covered 
                employee.
            (4) Extension of election period and effect on coverage.--
                    (A) In general.--For purposes of applying section 
                605(a) of the Employee Retirement Income Security Act 
                of 1974 (29 U.S.C. 1165(a)), section 4980B(f)(5)(A) of 
                the Internal Revenue Code of 1986, section 2205(a) of 
                the Public Health Service Act (42 U.S.C. 300bb-5(a)), 
                and section 8905a(c)(2) of title 5, United States Code, 
                in the case of--
                            (i) an individual who does not have an 
                        election of COBRA continuation coverage in 
                        effect on the date of the enactment of this Act 
                        but who would be an assistance eligible 
                        individual described in paragraph (3)(A) if 
                        such election were so in effect; or
                            (ii) an individual who elected COBRA 
                        continuation coverage on or after March 1, 
                        2020, and discontinued from such coverage 
                        before the date of the enactment of this Act,
                such individual may elect the COBRA continuation 
                coverage under the COBRA continuation coverage 
                provisions containing such provisions during the period 
                beginning on the date of the enactment of this Act and 
                ending 60 days after the date on which the notification 
                required under paragraph (7)(C) is provided to such 
                individual.
                    (B) Commencement of cobra continuation coverage.--
                Any COBRA continuation coverage elected by a qualified 
                beneficiary during an extended election period under 
                subparagraph (A)--
                            (i) shall apply as if such qualified 
                        beneficiary had been covered as of the date of 
                        a qualifying event specified in section 603(2) 
                        of the Employee Retirement Income Security Act 
                        of 1974 (29 U.S.C. 1163(2)), section 
                        4980B(f)(3)(B) of the Internal Revenue Code of 
                        1986, section 2203(2) of the Public Health 
                        Service Act (42 U.S.C. 300bb-3(2)), or section 
                        8905a of title 5, United States Code, except 
                        for the voluntary termination of such 
                        beneficiary's employment by such beneficiary, 
                        that occurs no earlier than March 1, 2020 
                        (including the treatment of premium payments 
                        under paragraph (1)(A) and any cost-sharing 
                        requirements for items and services under a 
                        group health plan); and
                            (ii) shall not extend beyond the period of 
                        COBRA continuation coverage that would have 
                        been required under the applicable COBRA 
                        continuation coverage provision if the coverage 
                        had been elected as required under such 
                        provision.
            (5) Expedited review of denials of premium assistance.--In 
        any case in which an individual requests treatment as an 
        assistance eligible individual described in subparagraph (A) or 
        (B) of paragraph (3) and is denied such treatment by the group 
        health plan, the Secretary of Labor (or the Secretary of Health 
        and Human Services in connection with COBRA continuation 
        coverage which is provided other than pursuant to part 6 of 
        subtitle B of title I of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1161 et seq.)), in consultation 
        with the Secretary of the Treasury, shall provide for expedited 
        review of such denial. An individual shall be entitled to such 
        review upon application to such Secretary in such form and 
        manner as shall be provided by such Secretary, in consultation 
        with the Secretary of Treasury. Such Secretary shall make a 
        determination regarding such individual's eligibility within 15 
        business days after receipt of such individual's application 
        for review under this paragraph. Either Secretary's 
        determination upon review of the denial shall be de novo and 
        shall be the final determination of such Secretary. A reviewing 
        court shall grant deference to such Secretary's determination. 
        The provisions of this paragraph, paragraphs (1) through (4), 
        and paragraphs (7) through (9) shall be treated as provisions 
        of title I of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1001 et seq.) for purposes of part 5 of 
        subtitle B of such title.
            (6) Disregard of subsidies for purposes of federal and 
        state programs.--Notwithstanding any other provision of law, 
        any premium assistance with respect to an assistance eligible 
        individual under this subsection shall not be considered 
        income, in-kind support, or resources for purposes of 
        determining the eligibility of the recipient (or the 
        recipient's spouse or family) for benefits or assistance, or 
        the amount or extent of benefits or assistance, or any other 
        benefit provided under any Federal program or any program of a 
        State or political subdivision thereof financed in whole or in 
        part with Federal funds.
            (7) COBRA-specific notice.--
                    (A) General notice.--
                            (i) In general.--In the case of notices 
                        provided under section 606(a)(4) of the 
                        Employee Retirement Income Security Act of 1974 
                        (29 U.S.C. 1166(4)), section 4980B(f)(6)(D) of 
                        the Internal Revenue Code of 1986, section 
                        2206(4) of the Public Health Service Act (42 
                        U.S.C. 300bb-6(4)), or section 8905a(f)(2)(A) 
                        of title 5, United States Code, with respect to 
                        individuals who, during the period described in 
                        paragraph (3), become entitled to elect COBRA 
                        continuation coverage, the requirements of such 
                        provisions shall not be treated as met unless 
                        such notices include an additional notification 
                        to the recipient a written notice in clear and 
                        understandable language of--
                                    (I) the availability of premium 
                                assistance with respect to such 
                                coverage under this subsection; and
                                    (II) the option to enroll in 
                                different coverage if the employer 
                                permits assistance eligible individuals 
                                described in paragraph (3)(A) to elect 
                                enrollment in different coverage (as 
                                described in paragraph (1)(B)).
                            (ii) Alternative notice.--In the case of 
                        COBRA continuation coverage to which the notice 
                        provision under such sections does not apply, 
                        the Secretary of Labor, in consultation with 
                        the Secretary of the Treasury and the Secretary 
                        of Health and Human Services, shall, in 
                        consultation with administrators of the group 
                        health plans (or other entities) that provide 
                        or administer the COBRA continuation coverage 
                        involved, provide rules requiring the provision 
                        of such notice.
                            (iii) Form.--The requirement of the 
                        additional notification under this subparagraph 
                        may be met by amendment of existing notice 
                        forms or by inclusion of a separate document 
                        with the notice otherwise required.
                    (B) Specific requirements.--Each additional 
                notification under subparagraph (A) shall include--
                            (i) the forms necessary for establishing 
                        eligibility for premium assistance under this 
                        subsection;
                            (ii) the name, address, and telephone 
                        number necessary to contact the plan 
                        administrator and any other person maintaining 
                        relevant information in connection with such 
                        premium assistance;
                            (iii) a description of the extended 
                        election period provided for in paragraph 
                        (4)(A);
                            (iv) a description of the obligation of the 
                        qualified beneficiary under paragraph (2)(B) 
                        and the penalty provided under section 6720C of 
                        the Internal Revenue Code of 1986 for failure 
                        to carry out the obligation;
                            (v) a description, displayed in a prominent 
                        manner, of the qualified beneficiary's right to 
                        a reduced premium and any conditions on 
                        entitlement to the reduced premium;
                            (vi) a description of the option of the 
                        qualified beneficiary to enroll in different 
                        coverage if the employer permits such 
                        beneficiary to elect to enroll in such 
                        different coverage under paragraph (1)(B); and
                            (vii) information regarding any Exchange 
                        established under title I of the Patient 
                        Protection and Affordable Care Act (42 U.S.C. 
                        18001 et seq.) through which a qualified 
                        beneficiary may be eligible to enroll in a 
                        qualified health plan, including--
                                    (I) the publicly accessible 
                                internet website address for such 
                                Exchange;
                                    (II) the publicly accessible 
                                internet website address for the Find 
                                Local Help directory maintained by the 
                                Department of Health and Human Services 
                                on the healthcare.gov internet website 
                                (or a successor website);
                                    (III) a clear explanation that--
                                            (aa) an individual who is 
                                        eligible for continuation 
                                        coverage may also be eligible 
                                        to enroll, with financial 
                                        assistance, in a qualified 
                                        health plan offered through 
                                        such Exchange, but, in the case 
                                        that such individual elects to 
                                        enroll in such continuation 
                                        coverage and subsequently 
                                        elects to terminate such 
                                        continuation coverage before 
                                        the period of such continuation 
                                        coverage expires, such 
                                        termination does not initiate a 
                                        special enrollment period 
                                        (absent a qualifying event 
                                        specified in section 603(2) of 
                                        the Employee Retirement Income 
                                        Security Act of 1974 (29 U.S.C. 
                                        1163(2)), section 
                                        4980B(f)(3)(B) of the Internal 
                                        Revenue Code of 1986, section 
                                        2203(2) of the Public Health 
                                        Service Act (42 U.S.C. 300bb-
                                        3(2)), or section 8905a of 
                                        title 5, United States Code, 
                                        with respect to such 
                                        individual); and
                                            (bb) an individual who 
                                        elects to enroll in 
                                        continuation coverage will 
                                        remain eligible to enroll in a 
                                        qualified health plan offered 
                                        through such Exchange during an 
                                        open enrollment period and may 
                                        be eligible for financial 
                                        assistance with respect to 
                                        enrolling in such a qualified 
                                        health plan;
                                    (IV) information on consumer 
                                protections with respect to enrolling 
                                in a qualified health plan offered 
                                through such Exchange, including the 
                                requirement for such a qualified health 
                                plan to provide coverage for essential 
                                health benefits (as defined in section 
                                1302(b) of such Act (42 U.S.C. 
                                18022(b))) and the requirements 
                                applicable to such a qualified health 
                                plan under part A of title XXVII of the 
                                Public Health Service Act (42 U.S.C. 
                                300gg et seq.);
                                    (V) information on the availability 
                                of financial assistance with respect to 
                                enrolling in a qualified health plan, 
                                including the maximum income limit for 
                                eligibility for the premium tax credit 
                                under section 36B of the Internal 
                                Revenue Code of 1986; and
                                    (VI) information on any special 
                                enrollment periods during which any 
                                assistance eligible individual 
                                described in paragraph (3)(A)(i) may be 
                                eligible to enroll, with financial 
                                assistance, in a qualified health plan 
                                offered through such Exchange 
                                (including a special enrollment period 
                                for which an individual may be eligible 
                                due to the expiration of premium 
                                assistance pursuant to a limitation 
                                specified under paragraph (2)(A)).
                    (C) Notice in connection with extended election 
                periods.--In the case of any assistance eligible 
                individual described in paragraph (3)(A) (or any 
                individual described in paragraph (4)(A)) who became 
                entitled to elect COBRA continuation coverage before 
                the date of the enactment of this Act, the 
                administrator of the applicable group health plan (or 
                other entity) shall provide (within 60 days after the 
                date of enactment of this Act) for the additional 
                notification required to be provided under subparagraph 
                (A) and failure to provide such notice shall be treated 
                as a failure to meet the notice requirements under the 
                applicable COBRA continuation provision.
                    (D) Model notices.--Not later than 30 days after 
                the date of enactment of this Act, with respect to any 
                assistance eligible individual described in paragraph 
                (3)(A)--
                            (i) the Secretary of Labor, in consultation 
                        with the Secretary of the Treasury and the 
                        Secretary of Health and Human Services, shall 
                        prescribe models for the additional 
                        notification required under this paragraph 
                        (other than the additional notification 
                        described in clause (ii)); and
                            (ii) in the case of any additional 
                        notification provided pursuant to subparagraph 
                        (A) under section 8905a(f)(2)(A) of title 5, 
                        United States Code, the Office of Personnel 
                        Management shall prescribe a model for such 
                        additional notification.
            (8) Furlough-specific notice.--
                    (A) In general.--With respect to any assistance 
                eligible individual described in paragraph (3)(B) who, 
                during the period described in such paragraph, becomes 
                eligible for assistance pursuant to paragraph 
                (1)(A)(ii), the requirements of section 606(a)(4) of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1166(4)), section 4980B(f)(6)(D) of the Internal 
                Revenue Code of 1986, section 2206(4) of the Public 
                Health Service Act (42 U.S.C. 300bb-6(4)), or section 
                8905a(f)(2)(A) of title 5, United States Code, shall 
                not be treated as met unless the group health plan 
                administrator, in accordance with the timing 
                requirement specified under subparagraph (B), provides 
                to the individual a written notice in clear and 
                understandable language of--
                            (i) the availability of premium assistance 
                        with respect to such coverage under this 
                        subsection;
                            (ii) the option of the qualified 
                        beneficiary to enroll in different coverage if 
                        the employer permits such beneficiary to elect 
                        to enroll in such different coverage under 
                        paragraph (1)(B); and
                            (iii) the information specified under 
                        paragraph (7)(B) (as applicable).
                    (B) Timing specified.--For purposes of subparagraph 
                (A), the timing requirement specified in this 
                subparagraph is--
                            (i) with respect to such an individual who 
                        is within a furlough period during the period 
                        beginning on March 1, 2020, and ending on the 
                        date of the enactment of this Act, 30 days 
                        after the date of such enactment; and
                            (ii) with respect to such an individual who 
                        is within a furlough period during the period 
                        beginning on the first day after the date of 
                        the enactment of this Act and ending on 
                        September 30, 2021, 30 days after the date of 
                        the beginning of such furlough period.
                    (C) Model notices.--Not later than 30 days after 
                the date of enactment of this Act, with respect to any 
                assistance eligible individual described in paragraph 
                (3)(B)--
                            (i) the Secretary of Labor, in consultation 
                        with the Secretary of the Treasury and the 
                        Secretary of Health and Human Services, shall 
                        prescribe models for the notification required 
                        under this paragraph (other than the 
                        notification described in clause (ii)); and
                            (ii) in the case of any notification 
                        provided pursuant to subparagraph (A) under 
                        section 8905a(f)(2)(A) of title 5, United 
                        States Code, the Office of Personnel Management 
                        shall prescribe a model for such notification.
            (9) Notice of expiration of period of premium assistance.--
                    (A) In general.--With respect to any assistance 
                eligible individual, subject to subparagraph (B), the 
                requirements of section 606(a)(4) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1166(4)), section 4980B(f)(6)(D) of the Internal 
                Revenue Code of 1986, section 2206(4) of the Public 
                Health Service Act (42 U.S.C. 300bb-6(4)), or section 
                8905a(f)(2)(A) of title 5, United States Code, shall 
                not be treated as met unless the employer of the 
                individual, during the period specified under 
                subparagraph (C), provides to such individual a written 
                notice in clear and understandable language--
                            (i) that the premium assistance for such 
                        individual will expire soon and the prominent 
                        identification of the date of such expiration;
                            (ii) that such individual may be eligible 
                        for coverage without any premium assistance 
                        through--
                                    (I) COBRA continuation coverage; or
                                    (II) coverage under a group health 
                                plan;
                            (iii) that the expiration of premium 
                        assistance is treated as a qualifying event for 
                        which any assistance eligible individual is 
                        eligible to enroll in a qualified health plan 
                        offered through an Exchange under title I of 
                        such Act (42 U.S.C. 18001 et seq.) during a 
                        special enrollment period; and
                            (iv) the information specified in paragraph 
                        (7)(B)(vii).
                    (B) Exception.--The requirement for the group 
                health plan administrator to provide the written notice 
                under subparagraph (A) shall be waived in the case the 
                premium assistance for such individual expires pursuant 
                to clause (i)(I) or (ii)(I) of paragraph (2)(A).
                    (C) Period specified.--For purposes of subparagraph 
                (A), the period specified in this subparagraph is, with 
                respect to the date of expiration of premium assistance 
                for any assistance eligible individual pursuant to a 
                limitation requiring a notice under this paragraph, the 
                period beginning on the day that is 45 days before the 
                date of such expiration and ending on the day that is 
                15 days before the date of such expiration.
                    (D) Model notices.--Not later than 30 days after 
                the date of enactment of this Act, with respect to any 
                assistance eligible individual--
                            (i) the Secretary of Labor, in consultation 
                        with the Secretary of the Treasury and the 
                        Secretary of Health and Human Services, shall 
                        prescribe models for the notification required 
                        under this paragraph (other than the 
                        notification described in clause (ii)); and
                            (ii) in the case of any notification 
                        provided pursuant to subparagraph (A) under 
                        section 8905a(f)(2)(A) of title 5, United 
                        States Code, the Office of Personnel Management 
                        shall prescribe a model for such notification.
            (10) Regulations.--The Secretary of the Treasury and the 
        Secretary of Labor may jointly prescribe such regulations or 
        other guidance as may be necessary or appropriate to carry out 
        the provisions of this subsection, including the prevention of 
        fraud and abuse under this subsection, except that the 
        Secretary of Labor and the Secretary of Health and Human 
        Services may prescribe such regulations (including interim 
        final regulations) or other guidance as may be necessary or 
        appropriate to carry out the provisions of paragraphs (5), (7), 
        (8), (9), and (11).
            (11) Outreach.--
                    (A) In general.--The Secretary of Labor, in 
                consultation with the Secretary of the Treasury and the 
                Secretary of Health and Human Services, shall provide 
                outreach consisting of public education and enrollment 
                assistance relating to premium assistance provided 
                under this subsection. Such outreach shall target 
                employers, group health plan administrators, public 
                assistance programs, States, insurers, and other 
                entities as determined appropriate by such Secretaries. 
                Such outreach shall include an initial focus on those 
                individuals electing continuation coverage who are 
                referred to in paragraph (7)(C). Information on such 
                premium assistance, including enrollment, shall also be 
                made available on websites of the Departments of Labor, 
                Treasury, and Health and Human Services.
                    (B) Enrollment under medicare.--The Secretary of 
                Health and Human Services shall provide outreach 
                consisting of public education. Such outreach shall 
                target individuals who lose health insurance coverage. 
                Such outreach shall include information regarding 
                enrollment for benefits under title XVIII of the Social 
                Security Act (42 U.S.C. 1395 et seq.) for purposes of 
                preventing mistaken delays of such enrollment by such 
                individuals, including lifetime penalties for failure 
                of timely enrollment.
            (12) Definitions.--For purposes of this section:
                    (A) Administrator.--The term ``administrator'' has 
                the meaning given such term in section 3(16)(A) of the 
                Employee Retirement Income Security Act of 1974.
                    (B) COBRA continuation coverage.--The term ``COBRA 
                continuation coverage'' means continuation coverage 
                provided pursuant to part 6 of subtitle B of title I of 
                the Employee Retirement Income Security Act of 1974 
                (other than under section 609), title XXII of the 
                Public Health Service Act, section 4980B of the 
                Internal Revenue Code of 1986 (other than subsection 
                (f)(1) of such section insofar as it relates to 
                pediatric vaccines), or section 8905a of title 5, 
                United States Code, or under a State program that 
                provides comparable continuation coverage. Such term 
                does not include coverage under a health flexible 
                spending arrangement under a cafeteria plan within the 
                meaning of section 125 of the Internal Revenue Code of 
                1986.
                    (C) COBRA continuation provision.--The term ``COBRA 
                continuation provision'' means the provisions of law 
                described in subparagraph (B).
                    (D) Covered employee.--The term ``covered 
                employee'' has the meaning given such term in section 
                607(2) of the Employee Retirement Income Security Act 
                of 1974.
                    (E) Qualified beneficiary.--The term ``qualified 
                beneficiary'' has the meaning given such term in 
                section 607(3) of the Employee Retirement Income 
                Security Act of 1974.
                    (F) Group health plan.--The term ``group health 
                plan'' has the meaning given such term in section 
                607(1) of the Employee Retirement Income Security Act 
                of 1974.
                    (G) State.--The term ``State'' includes the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, American Samoa, and the 
                Commonwealth of the Northern Mariana Islands.
                    (H) Period of coverage.--Any reference in this 
                subsection to a period of coverage shall be treated as 
                a reference to a monthly or shorter period of coverage 
                with respect to which premiums are charged with respect 
                to such coverage.
                    (I) Plan sponsor.--The term ``plan sponsor'' has 
                the meaning given such term in section 3(16)(B) of the 
                Employee Retirement Income Security Act of 1974.
                    (J) Furlough period.--
                            (i) In general.--The term ``furlough 
                        period'' means, with respect to an individual 
                        and an employer of such individual, a period--
                                    (I) beginning with the first month 
                                beginning on or after March 1, 2020 and 
                                before September 30, 2021, during which 
                                such individual's employer reduces such 
                                individual's work hours (due to a lack 
                                of work, funds, or other 
                                nondisciplinary reason) to an amount 
                                that is less than 70 percent of the 
                                base month amount; and
                                    (II) ending with the earlier of--
                                            (aa) the first month 
                                        beginning after September 30, 
                                        2021; or
                                            (bb) the month following 
                                        the first month during which 
                                        work hours of such employee are 
                                        greater than 80 percent of work 
                                        hours of the base month amount.
                            (ii) Base month amount.--For purposes of 
                        clause (i), the term ``base month amount'' 
                        means, with respect to an individual and an 
                        employer of such individual, the greater of--
                                    (I) such individual's work hours in 
                                the month prior (or in the case such 
                                individual had no work hours in the 
                                month prior and had work hours in the 3 
                                months prior, the last month with work 
                                hours within the prior 3 months); and
                                    (II) such individual's work hours 
                                during the period beginning January 1, 
                                2020 and ending January 31, 2020.
            (13) Reports.--
                    (A) Interim report.--The Secretary of the Treasury 
                and the Secretary of Labor shall jointly submit an 
                interim report to the Committee on Education and Labor, 
                the Committee on Ways and Means, and the Committee on 
                Energy and Commerce of the House of Representatives and 
                the Committee on Health, Education, Labor, and Pensions 
                and the Committee on Finance of the Senate regarding 
                the premium assistance provided under this subsection 
                that includes--
                            (i) the number of individuals provided such 
                        assistance as of the date of the report; and
                            (ii) the total amount of expenditures 
                        incurred (with administrative expenditures 
                        noted separately) in connection with such 
                        assistance as of the date of the report.
                    (B) Final report.--As soon as practicable after the 
                last period of COBRA continuation coverage for which 
                premium assistance is provided under this section, the 
                Secretary of the Treasury and the Secretary of Labor 
                shall jointly submit a final report to each Committee 
                referred to in subparagraph (A) that includes--
                            (i) the number of individuals provided 
                        premium assistance under this section;
                            (ii) the average dollar amount (monthly and 
                        annually) of premium assistance provided to 
                        such individuals; and
                            (iii) the total amount of expenditures 
                        incurred (with administrative expenditures 
                        noted separately) in connection with premium 
                        assistance under this section.
            (14) COBRA premium assistance.--
                    (A) In general.--Subchapter B of chapter 65 of the 
                Internal Revenue Code of 1986 is amended by adding at 
                the end the following new section:

``SEC. 6432. CONTINUATION COVERAGE PREMIUM ASSISTANCE.

    ``(a) In General.--The person to whom premiums are payable for 
continuation coverage under section 2(a)(1) of the Worker Health 
Coverage Protection Act shall be allowed as a credit against the tax 
imposed by section 3111(a), or so much of the taxes imposed under 
section 3221(a) as are attributable to the rate in effect under section 
3111(a), for each calendar quarter an amount equal to the premiums not 
paid by assistance eligible individuals for such coverage by reason of 
such section 2(a)(1) with respect to such calendar quarter.
    ``(b) Person to Whom Premiums Are Payable.--For purposes of 
subsection (a), except as otherwise provided by the Secretary, the 
person to whom premiums are payable under such continuation coverage 
shall be treated as being--
            ``(1) in the case of any group health plan which is a 
        multiemployer plan (as defined in section 3(37) of the Employee 
        Retirement Income Security Act of 1974), the plan,
            ``(2) in the case of any group health plan not described in 
        paragraph (1)--
                    ``(A) which provides furlough continuation coverage 
                described in section 2(a)(1)(A)(ii) of the Worker 
                Health Coverage Protection Act or subject to the COBRA 
                continuation provisions contained in--
                            ``(i) this title,
                            ``(ii) the Employee Retirement Income 
                        Security Act of 1974,
                            ``(iii) the Public Health Service Act, or
                            ``(iv) title 5, United States Code, or
                    ``(B) under which some or all of the coverage is 
                not provided by insurance,
        the employer maintaining the plan, and
            ``(3) in the case of any group health plan not described in 
        paragraph (1) or (2), the insurer providing the coverage under 
        the group health plan.
    ``(c) Limitations and Refundability.--
            ``(1) Credit limited to certain employment taxes.--The 
        credit allowed by subsection (a) with respect to any calendar 
        quarter shall not exceed the tax imposed by section 3111(a), or 
        so much of the taxes imposed under section 3221(a) as are 
        attributable to the rate in effect under section 3111(a), for 
        such calendar quarter (reduced by any credits allowed under 
        subsections (e) and (f) of section 3111, sections 7001 and 7003 
        of the Families First Coronavirus Response Act, section 2301 of 
        the CARES Act, and sections 20204 and 20212 of the COVID-19 Tax 
        Relief Act of 2020 for such quarter) on the wages paid with 
        respect to the employment of all employees of the employer.
            ``(2) Refundability of excess credit.--
                    ``(A) Credit is refundable.--If the amount of the 
                credit under subsection (a) exceeds the limitation of 
                paragraph (1) for any calendar quarter, such excess 
                shall be treated as an overpayment that shall be 
                refunded under sections 6402(a) and 6413(b).
                    ``(B) Credit may be advanced.--In anticipation of 
                the credit, including the refundable portion under 
                subparagraph (A), the credit may be advanced, according 
                to forms and instructions provided by the Secretary, up 
                to an amount calculated under subsection (a) through 
                the end of the most recent payroll period in the 
                quarter.
                    ``(C) Treatment of deposits.--The Secretary shall 
                waive any penalty under section 6656 for any failure to 
                make a deposit of the tax imposed by section 3111(a), 
                or so much of the taxes imposed under section 3221(a) 
                as are attributable to the rate in effect under section 
                3111(a), if the Secretary determines that such failure 
                was due to the anticipation of the credit allowed under 
                this section.
                    ``(D) Treatment of payments.--For purposes of 
                section 1324 of title 31, United States Code, any 
                amounts due to an employer under this paragraph shall 
                be treated in the same manner as a refund due from a 
                credit provision referred to in subsection (b)(2) of 
                such section.
            ``(3) Limitation on reimbursement for furloughed 
        employees.--In the case of an individual who for any month is 
        an assistance eligible individual described in section 
        2(a)(3)(B) of the Worker Health Coverage Protection Act with 
        respect to any coverage, the credit determined with respect to 
        such individual under subsection (a) for any such month ending 
        during a calendar quarter shall not exceed the amount of 
        premium the individual would have paid for a full month of such 
        coverage for the month preceding the first month for which an 
        individual is such an assistance eligible individual.
    ``(d) Governmental Entities.--For purposes of this section, the 
term `person' includes any governmental entity or Indian tribal 
government (as defined in section 139E(c)(1)).
    ``(e) Denial of Double Benefit.--For purposes of chapter 1, the 
gross income of any person allowed a credit under this section shall be 
increased for the taxable year which includes the last day of any 
calendar quarter with respect to which such credit is allowed by the 
amount of such credit. No amount for which a credit is allowed under 
this section shall be taken into account as qualified wages under 
section 2301 of the CARES Act or as qualified health plan expenses 
under section 7001(d) or 7003(d) of the Families First Coronavirus 
Response Act.
    ``(f) Reporting.--Each person entitled to reimbursement under 
subsection (a) for any period shall submit such reports (at such time 
and in such manner) as the Secretary may require, including--
            ``(1) an attestation of involuntary termination of 
        employment, reduction of hours, or furloughing, for each 
        assistance eligible individual on the basis of whose 
        termination, reduction of hours, or furloughing entitlement to 
        reimbursement is claimed under subsection (a),
            ``(2) a report of the amount of payroll taxes offset under 
        subsection (a) for the reporting period, and
            ``(3) a report containing the TINs of all covered 
        employees, the amount of subsidy reimbursed with respect to 
        each employee, and a designation with respect to each employee 
        as to whether the subsidy reimbursement is for coverage of 1 
        individual or 2 or more individuals.
    ``(g) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out this 
section, including--
            ``(1) the requirement to report information or the 
        establishment of other methods for verifying the correct 
        amounts of reimbursements under this section,
            ``(2) the application of this section to group health plans 
        that are multiemployer plans (as defined in section 3(37) of 
        the Employee Retirement Income Security Act of 1974),
            ``(3) to allow the advance payment of the credit determined 
        under subsection (a), subject to the limitations provided in 
        this section, based on such information as the Secretary shall 
        require,
            ``(4) to provide for the reconciliation of such advance 
        payment with the amount of the credit at the time of filing the 
        return of tax for the applicable quarter or taxable year, and
            ``(5) with respect to the application of the credit to 
        third party payors (including professional employer 
        organizations, certified professional employer organizations, 
        or agents under section 3504).''.
                    (B) Social security trust funds held harmless.--
                There are hereby appropriated to the Federal Old-Age 
                and Survivors Insurance Trust Fund and the Federal 
                Disability Insurance Trust Fund established under 
                section 201 of the Social Security Act (42 U.S.C. 401) 
                and the Social Security Equivalent Benefit Account 
                established under section 15A(a) of the Railroad 
                Retirement Act of 1974 (45 U.S.C. 231n-1(a)) amounts 
                equal to the reduction in revenues to the Treasury by 
                reason of this section (without regard to this 
                subparagraph). Amounts appropriated by the preceding 
                sentence shall be transferred from the general fund at 
                such times and in such manner as to replicate to the 
                extent possible the transfers which would have occurred 
                to such Trust Fund or Account had this section not been 
                enacted.
                    (C) Clerical amendment.--The table of sections for 
                subchapter B of chapter 65 of the Internal Revenue Code 
                of 1986 is amended by adding at the end the following 
                new item:

``Sec. 6432. Continuation coverage premium assistance.''.
                    (D) Effective date.--The amendments made by this 
                paragraph shall apply to premiums to which paragraph 
                (1)(A) applies.
                    (E) Special rule in case of employee payment that 
                is not required under this section.--
                            (i) In general.--In the case of an 
                        assistance eligible individual who pays, with 
                        respect any period of coverage to which 
                        paragraph (1)(A) applies, the amount of the 
                        premium for such coverage that the individual 
                        would have (but for this Act) been required to 
                        pay, the person to whom such payment is payable 
                        shall reimburse such individual for the amount 
                        of such premium paid.
                            (ii) Credit of reimbursement.--A person to 
                        which clause (i) applies shall be allowed a 
                        credit in the manner provided under section 
                        6432 of the Internal Revenue Code of 1986 for 
                        any payment made to the employee under such 
                        clause.
                            (iii) Payment of credits.--Any person to 
                        which clause (i) applies shall make the payment 
                        required under such clause to the individual 
                        not later than 60 days after the date on which 
                        such individual elects continuation coverage 
                        under paragraph (1).
            (15) Penalty for failure to notify health plan of cessation 
        of eligibility for premium assistance.--
                    (A) In general.--Part I of subchapter B of chapter 
                68 of the Internal Revenue Code of 1986 is amended by 
                adding at the end the following new section:

``SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF CESSATION OF 
              ELIGIBILITY FOR CONTINUATION COVERAGE PREMIUM ASSISTANCE.

    ``(a) In General.--Except in the case of failure described in 
subsection (b) or (c), any person required to notify a group health 
plan under section 2(a)(2)(B) of the Worker Health Coverage Protection 
Act who fails to make such a notification at such time and in such 
manner as the Secretary of Labor may require shall pay a penalty of 
$250.
    ``(b) Intentional Failure.--In the case of any such failure that is 
fraudulent, such person shall pay a penalty equal to the greater of--
            ``(1) $250, or
            ``(2) 110 percent of the premium assistance provided under 
        section 2(a)(1)(A) of such Act after termination of eligibility 
        under such section.
    ``(c) Reasonable Cause Exception.--No penalty shall be imposed 
under this section with respect to any failure if it is shown that such 
failure is due to reasonable cause and not to willful neglect.''.
                    (B) Clerical amendment.--The table of sections of 
                part I of subchapter B of chapter 68 of such Code is 
                amended by adding at the end the following new item:

``Sec. 6720C. Penalty for failure to notify health plan of cessation of 
                            eligibility for continuation coverage 
                            premium assistance.''.
            (16) Coordination with hctc.--
                    (A) In general.--Section 35(g)(9) of the Internal 
                Revenue Code of 1986 is amended to read as follows:
            ``(9) Continuation coverage premium assistance.--In the 
        case of an assistance eligible individual who receives premium 
        assistance for continuation coverage under section 2(a)(1) of 
        the Worker Health Coverage Protection Act for any month during 
        the taxable year, such individual shall not be treated as an 
        eligible individual, a certified individual, or a qualifying 
        family member for purposes of this section or section 7527 with 
        respect to such month.''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall apply to taxable years ending 
                after the date of the enactment of this Act.
            (17) Exclusion of continuation coverage premium assistance 
        from gross income.--
                    (A) In general.--Part III of subchapter B of 
                chapter 1 of the Internal Revenue Code of 1986 is 
                amended by inserting after section 139H the following 
                new section:

``SEC. 139I. CONTINUATION COVERAGE PREMIUM ASSISTANCE.

    ``In the case of an assistance eligible individual (as defined in 
subsection (a)(3) of section 2 of the Worker Health Coverage Protection 
Act), gross income does not include any premium assistance provided 
under subsection (a)(1) of such section.''.
                    (B) Clerical amendment.--The table of sections for 
                part III of subchapter B of chapter 1 of such Code is 
                amended by inserting after the item relating to section 
                139H the following new item:

``Sec. 139I. Continuation coverage premium assistance.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to taxable years ending after the 
                date of the enactment of this Act.
            (18) Deadlines with respect to notices.--Notwithstanding 
        section 518 of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1148) and section 7508A of the Internal Revenue 
        Code of 1986, the Secretary of Labor and the Secretary of the 
        Treasury, respectively, may not waive or extend any deadline 
        with respect to the provision of notices described in 
        paragraphs (7), (8), and (9).
    (b) Rule of Construction.--In all matters of interpretation, rules, 
and operational procedures, the language of this section shall be 
interpreted broadly for the benefit of workers and their families.
                                 <all>