Title: Continuous Health Coverage for Workers Act
Policy area: Health

Summary:
Continuous Health Coverage for Workers Act
This bill provides health insurance premium assistance through 2020 for individuals who become unemployed, are furloughed, or receive a reduction in hours. Specifically, the bill treats premiums as paid for individuals who pay a specified minimum amount toward the premium and (1) are terminated from employment and elect to continue insurance coverage through the COBRA (Consolidated Omnibus Budget Reconciliation Act) program, (2) receive a greater than 30% reduction in paid hours but remain eligible for coverage under a group health plan, or (3) have been terminated or receive reduced hours for the duration of time that their employers voluntarily offer coverage under a church 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 the premium assistance program, 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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4329 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4329

 To provide premium assistance for COBRA continuation coverage, church 
 plan continuation coverage, and furloughed continuation coverage for 
                    individuals and their families.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 27, 2020

  Ms. McSally (for herself, Mr. Daines, Mr. Cornyn, and Mr. Sullivan) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To provide premium assistance for COBRA continuation coverage, church 
 plan continuation coverage, and furloughed continuation coverage for 
                    individuals and their families.

    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 ``Continuous Health Coverage for 
Workers Act''.

SEC. 2. PRESERVING HEALTH BENEFITS FOR WORKERS.

    (a) Provision of Premium Assistance.--
            (1) Reduction of premiums payable.--
                    (A) COBRA continuation coverage.--In the case of 
                any premium for a period of coverage during the period 
                beginning on the first day of the first month that 
                begins after the date of enactment of this Act and 
                ending on December 31, 2020, for COBRA continuation 
                coverage with respect to any assistance eligible 
                individual described in subsection (c)(1), 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) the greater of 15 percent of the 
                amount of such premium owed by such individual (as 
                determined without regard to this subsection) or the 
                amount of the premium that a similarly situated 
                individual enrolled in the plan who is not an 
                assistance eligible individual is (or would be, if so 
                enrolled) required to pay with respect to the plan 
                (after any employer contribution).
                    (B) Church plans.--In the case of any premium for a 
                period of coverage during the period beginning on the 
                first day of the first month that begins after the date 
                of enactment of this Act and ending on December 31, 
                2020, for coverage under a church plan with respect to 
                any assistance eligible individual described in 
                subsection (c)(2), such individual shall be treated for 
                purposes of the individual's coverage under such plan 
                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) the greater of 15 percent of the amount of 
                such premium owed by such individual (as determined 
                without regard to this subsection) or the amount of the 
                premium that a similarly situated individual enrolled 
                in the plan who is not an assistance eligible 
                individual is (or would be, if so enrolled) required to 
                pay with respect to the plan (after any employer 
                contribution).
                    (C) Furloughed continuation coverage.--In the case 
                of any premium for a period of coverage during the 
                period beginning on the first day of the first month 
                that begins after the date of enactment of this Act and 
                ending on December 31, 2020, for coverage under a group 
                health plan with respect to any assistance eligible 
                individual described in subsection (c)(3), such 
                individual shall be treated for purposes of the 
                individual's coverage under such plan 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) the greater of 15 percent 
                of the amount of such premium owed by such individual 
                (as determined without regard to this subsection) or 
                the amount of the premium that a similarly situated 
                individual enrolled in the plan who is not an 
                assistance eligible individual is (or would be, if so 
                enrolled) required to pay with respect to the plan 
                (after any employer contribution).
            (2) Plan enrollment option.--
                    (A) In general.--Any assistance eligible individual 
                who is enrolled in a group health plan offered by a 
                plan sponsor may, not later than 90 days after the date 
                of notice of the plan enrollment option described in 
                this paragraph, 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 subsection (c)(1), the 
                        qualifying event specified in section 603(2) of 
                        the Employee Retirement Income Security Act of 
                        1974, section 4980B(f)(3)(B) of the Internal 
                        Revenue Code of 1986, section 2203(2) of the 
                        Public Health Service Act, 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 provision;
                            (ii) in the case of an assistance eligible 
                        individual described in subsection (c)(2), the 
                        termination or reduction of hours of employment 
                        of such individual occurred; or
                            (iii) in the case of any assistance 
                        eligible individual described in subsection 
                        (c)(3), the furlough period began with respect 
                        to such individual.
                    (B) Requirements.--Any assistance eligible 
                individual may elect to enroll in different coverage as 
                described in subparagraph (A) 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 
                        paragraph;
                            (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--
                                    (I) coverage that provides only 
                                dental, vision, counseling, or referral 
                                services (or a combination of such 
                                services);
                                    (II) a qualified small employer 
                                health reimbursement arrangement (as 
                                defined in section 9831(d)(2) of the 
                                Internal Revenue Code of 1986);
                                    (III) a flexible spending 
                                arrangement (as defined in section 
                                106(c)(2) of the Internal Revenue Code 
                                of 1986); or
                                    (IV) 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).
            (3) Premium reimbursement.--For provisions providing the 
        payment of such premium, see section 6432 of the Internal 
        Revenue Code of 1986, as added by section 3(a).
    (b) Limitation of Period of Premium Assistance.--
            (1) Eligibility for additional coverage.--Subsection (a)(1) 
        shall not apply with respect to--
                    (A) any assistance eligible individual described in 
                subsection (c)(1) 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; or
                            (ii) the earlier of--
                                    (I) the date following the 
                                expiration of the maximum period of 
                                continuation coverage required under 
                                the applicable COBRA continuation 
                                coverage provision; or
                                    (II) the date following the 
                                expiration of the period of 
                                continuation coverage allowed under 
                                subsection (d)(2)(B);
                    (B) any assistance eligible individual described in 
                subsection (c)(2) 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; or
                            (ii) the first date on which the church 
                        plan is no longer available to such individual; 
                        or
                    (C) any assistance eligible individual described in 
                paragraph (3)(C) 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; or
                            (ii) the first date that such individual is 
                        no longer in the furlough period.
            (2) Notification requirement.--Any assistance eligible 
        individual shall notify the group health plan with respect to 
        which subsection (a)(1) applies if such paragraph ceases to 
        apply by reason of subparagraph (A)(i), (B)(i), or (C)(i) of 
        paragraph (1) (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.
            (3) 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 paragraph (1) 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.
    (c) 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 the first day of the 
first month that begins after the date of enactment of this Act and 
ending on December 31, 2020--
            (1) any individual that is a qualified beneficiary that--
                    (A) 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, section 4980B(f)(3)(B) of the Internal Revenue 
                Code of 1986, section 2203(2) of the Public Health 
                Service Act, or section 8905a of title 5, United States 
                Code (except for the voluntary termination of such 
                individual's employment by such individual); and
                    (B) elects such coverage;
            (2) any individual who--
                    (A) is terminated from (other than by reason of 
                such employee's gross misconduct or voluntary 
                termination), or is subject to a reduction in hours 
                with respect to, employment with an employer who offers 
                a church plan, if the employer voluntarily offers 
                coverage under such plan to such individual after the 
                termination or reduction of hours, or is a beneficiary 
                of such an individual who is terminated or subject to a 
                reduction of hours, if the employer voluntarily offers 
                coverage under such plan to such beneficiary; and
                    (B) elects such coverage; or
            (3) 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.
    (d) Extension of Election Period and Effect on Coverage.--
            (1) In general.--For purposes of applying section 605(a) of 
        the Employee Retirement Income Security Act of 1974, section 
        4980B(f)(5)(A) of the Internal Revenue Code of 1986, section 
        2205(a) of the Public Health Service Act, and section 
        8905a(c)(2) of title 5, United States Code, in the case of--
                    (A) 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 subsection 
                (c)(1) if such election were so in effect; or
                    (B) 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 subsection (g)(3) is 
        provided to such individual.
            (2) Commencement of cobra continuation coverage.--Any COBRA 
        continuation coverage elected by a qualified beneficiary during 
        an extended election period under paragraph (1)--
                    (A) 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, section 4980B(f)(3)(B) of 
                the Internal Revenue Code of 1986, section 2203(2) of 
                the Public Health Service Act, 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 
                subsection (a)(1) and any cost-sharing requirements for 
                items and services under a group health plan); and
                    (B) 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.
    (e) Expedited Review of Denials of Premium Assistance.--In any case 
in which an individual requests treatment as an assistance eligible 
individual described in paragraph (1), (2), or (3) of subsection (c) 
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 or a church plan which is provided other 
than pursuant to part 6 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974), 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 the 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 subsection. 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 subsection, subsections (a) through (e), and subsections (g) 
through (i) shall be treated as provisions of title I of the Employee 
Retirement Income Security Act of 1974 for purposes of part 5 of 
subtitle B of such title.
    (f) 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 
section 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.
    (g) COBRA-Specific Notice.--
            (1) General notice.--
                    (A) 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 
                subsection (c), 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, in writing, in clear and understandable 
                language of--
                            (i) the availability of premium assistance 
                        with respect to such coverage under this 
                        section; and
                            (ii) the option to enroll in different 
                        coverage if the employer permits assistance 
                        eligible individuals described in subsection 
                        (c)(1) to elect enrollment in different 
                        coverage (as described in subsection (a)(2)).
                    (B) 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.
                    (C) Form.--The requirement of the additional 
                notification under this paragraph may be met by 
                amendment of existing notice forms or by inclusion of a 
                separate document with the notice otherwise required.
            (2) Specific requirements.--Each additional notification 
        under paragraph (1) shall include--
                    (A) the forms necessary for establishing 
                eligibility for premium assistance under this section;
                    (B) 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;
                    (C) a description of the extended election period 
                provided for in subsection (d)(1);
                    (D) a description of the obligation of the 
                qualified beneficiary under subsection (b)(2) and the 
                penalty provided under section 6720C of the Internal 
                Revenue Code of 1986 for failure to carry out the 
                obligation;
                    (E) 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;
                    (F) 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 subsection (a)(2); and
                    (G) 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--
                                    (I) 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, 
                                section 4980B(f)(3)(B) of the Internal 
                                Revenue Code of 1986, section 2203(2) 
                                of the Public Health Service Act, or 
                                section 8905a of title 5, United States 
                                Code, with respect to such individual); 
                                and
                                    (II) 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 subsection (c)(1)(A) 
                        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 subsection (b)(1)); and
                    (H) information regarding compliance with the 
                requirements of subsection (n).
            (3) Notice in connection with extended election periods.--
        In the case of any assistance eligible individual described in 
        subsection (c)(1) (or any individual described in subsection 
        (d)(1)) 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 paragraph (1) and failure to provide such 
        notice shall be treated as a failure to meet the notice 
        requirements under the applicable COBRA continuation provision.
            (4) Model notices.--Not later than 30 days after the date 
        of enactment of this Act, with respect to any assistance 
        eligible individual described in subsection (c)(1)--
                    (A) 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 subparagraph (B)); and
                    (B) in the case of any additional notification 
                provided pursuant to paragraph (1) 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.
    (h) Furlough-Specific Notice.--
            (1) In general.--With respect to any assistance eligible 
        individual described in subsection (c)(3) who, during the 
        period described in such paragraph, becomes eligible for 
        assistance pursuant to subsection (a)(1)(C), 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 
        paragraph (2), provides to the individual a written notice in 
        clear and understandable language of--
                    (A) the availability of premium assistance with 
                respect to such coverage under this section;
                    (B) 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 subsection (a)(2); and
                    (C) the information specified under subsection 
                (g)(2) (as applicable).
            (2) Timing specified.--For purposes of paragraph (1), the 
        timing requirement specified in this paragraph is--
                    (A) 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
                    (B) 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 December 31, 2020, 30 days after the 
                date of the beginning of such furlough period.
            (3) Model notices.--Not later than 30 days after the date 
        of enactment of this Act, with respect to any assistance 
        eligible individual described in subsection (c)(3)--
                    (A) 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 subparagraph (B)); 
                and
                    (B) in the case of any notification provided 
                pursuant to paragraph (1) under section 8905a(f)(2)(A) 
                of title 5, United States Code, the Office of Personnel 
                Management shall prescribe a model for such 
                notification.
    (i) Notice of Expiration of Period of Premium Assistance.--
            (1) In general.--With respect to any assistance eligible 
        individual (as applicable), subject to paragraph (2), 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 paragraph (3), 
        provides to such individual a written notice in clear and 
        understandable language--
                    (A) that the premium assistance for such individual 
                will expire soon and the prominent identification of 
                the date of such expiration;
                    (B) 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;
                    (C) 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
                    (D) the information specified in subsection 
                (g)(2)(G).
            (2) Exception.--The requirement for the group health plan 
        administrator to provide the written notice under paragraph (1) 
        shall be waived in the case the premium assistance for such 
        individual expires pursuant to subparagraph (A)(i) or (C)(i) of 
        subsection (b)(1).
            (3) Period specified.--For purposes of paragraph (1), the 
        period specified in this paragraph 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 subsection, 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.
            (4) Model notices.--Not later than 30 days after the date 
        of enactment of this Act, with respect to any assistance 
        eligible individual--
                    (A) 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 subsection (other 
                than the notification described in subparagraph (B)); 
                and
                    (B) in the case of any notification provided 
                pursuant to paragraph (1) under section 8905a(f)(2)(A) 
                of title 5, United States Code, the Office of Personnel 
                Management shall prescribe a model for such 
                notification.
    (j) 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 
section, including the prevention of fraud and abuse under this 
section, 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 subsections (e), (g), (h), (i), and (k).
    (k) Outreach.--
            (1) 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 section. 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 subsection (g)(3). 
        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.
            (2) 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.
    (l) Definitions.--For purposes of this section:
            (1) Administrator.--The term ``administrator'' has the 
        meaning given such term in section 3(16)(A) of the Employee 
        Retirement Income Security Act of 1974.
            (2) Church plan.--The term ``church plan'' means a plan, as 
        described in section 414(e) of the Internal Revenue Code of 
        1986, that provides medical care to employees or their 
        dependents.
            (3) 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.
            (4) COBRA continuation provision.--The term ``COBRA 
        continuation provision'' means the provisions of law described 
        in paragraph (3).
            (5) 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.
            (6) 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.
            (7) 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.
            (8) 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.
            (9) Period of coverage.--Any reference in this section 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.
            (10) 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.
            (11) Furlough period.--
                    (A) 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 
                        December 31, 2020, 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--
                                    (I) the first month beginning after 
                                December 31, 2020; or
                                    (II) 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.
                    (B) Base month amount.--For purposes of 
                subparagraph (A), 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.
    (m) Reports.--
            (1) 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 section 
        that includes--
                    (A) the number of individuals provided such 
                assistance as of the date of the report; and
                    (B) the total amount of expenditures incurred (with 
                administrative expenditures noted separately) in 
                connection with such assistance as of the date of the 
                report.
            (2) 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 paragraph (1) 
        that includes--
                    (A) the number of individuals provided premium 
                assistance under this section;
                    (B) the average dollar amount (monthly and 
                annually) of premium assistance provided to such 
                individuals; and
                    (C) the total amount of expenditures incurred (with 
                administrative expenditures noted separately) in 
                connection with premium assistance under this section.
    (n) Limitation.--
            (1) In general.--Notwithstanding section 602(1) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1162(1)) or any other provision of part 6 of subtitle B of 
        title I of such Act of 1974 (29 U.S.C. 1161 et seq.), section 
        2202(1) of the Public Health Service Act (42 U.S.C. 300bb-2) or 
        any other provision of such Act (42 U.S.C. 201 et seq.), 
        section 4980B(f)(2)(A) of the Internal Revenue Code of 1986 or 
        any other provision of such Code, section 8905a of title 5, 
        United States Code, or any provision of State law, in the case 
        of coverage described in subsection (a)(1) for an assistance 
        eligible individual--
                    (A) such coverage shall exclude coverage of an 
                abortion (except to the extent described in section 
                507(a) of division A of Public Law 116-94) for any 
                period of coverage beginning on or after the date of 
                enactment of this Act, for which subsection (a)(1) 
                applies to the individual; and
                    (B) if such coverage would, but for the requirement 
                under subparagraph (A), include coverage of abortion 
                (except to the extent described in such subparagraph) 
                for such individual, the coverage shall be modified for 
                such individual so that the coverage excludes abortion 
                (except to the extent described in such subparagraph) 
                for any period of coverage as described in such 
                subparagraph.
            (2) Rule of construction.--Nothing in this Act, or any 
        amendment made by this Act, may be construed to require a 
        health plan, including any COBRA continuation coverage, to 
        provide coverage of any abortion.
    (o) Deadlines With Respect to Notices.--Notwithstanding section 518 
of the Employee Retirement Income Security Act of 1974 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 
subsections (g), (h), and (i).

SEC. 3. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

    (a) COBRA Premium Assistance.--
            (1) 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 Continuous Health 
Coverage for Workers 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 church plan continuation 
                coverage described in section 2(a)(1)(A)(ii), furlough 
                continuation coverage described in section 
                2(a)(1)(A)(iii) of the Continuous Health Coverage for 
                Workers 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 certain employees.--
        In the case of an individual who for any month is an assistance 
        eligible individual described in subparagraph (B) or (C) of 
        section 2(a)(3) of the Continuous Health Coverage for Workers 
        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).
    ``(h) Limitation.--In the case of any period of coverage (as 
defined in section 2(l) of the Continuous Health Coverage for Workers 
Act) beginning on or after the date of enactment of this section, no 
credit shall be allowed under this section with respect to any coverage 
that includes coverage of an abortion (except as described in section 
507(a) of division A of Public Law 116-94).''.
            (2) 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 
        subsection (without regard to this paragraph). 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.
            (3) 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.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to premiums to which section 2(a)(1)(A) applies.
            (5) Special rule in case of employee payment that is not 
        required under this section.--
                    (A) In general.--In the case of an assistance 
                eligible individual who pays, with respect any period 
                of coverage to which section 2(a)(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.
                    (B) Credit of reimbursement.--A person to which 
                subparagraph (A) 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 subparagraph.
                    (C) Payment of credits.--Any person to which 
                subparagraph (A) 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 section 2(a)(1) of 
                the Continuous Health Coverage for Workers Act.
    (b) Penalty for Failure To Notify Health Plan of Cessation of 
Eligibility for Premium Assistance.--
            (1) 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 Continuous Health Coverage for 
Workers 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 the Continuous Health Coverage for 
        Workers 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.''.
            (2) 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.''.
    (c) Coordination With HCTC.--
            (1) 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 Continuous Health Coverage for Workers 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.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.
    (d) Exclusion of Continuation Coverage Premium Assistance From 
Gross Income.--
            (1) 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 Continuous Health Coverage for 
Workers Act), gross income does not include any premium assistance 
provided under subsection (a)(1) of such section.''.
            (2) 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.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.

SEC. 4. RULE OF CONSTRUCTION.

    In all matters of interpretation, rules, and operational 
procedures, the language of this Act shall be interpreted broadly for 
the benefit of workers and their families.
                                 <all>