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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Children's Health Protection Act of
2009''.

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) According to the Bureau of the Census, 8,100,000
children and young adults are uninsured at some point during
the year. Young adults between the ages of 18 and 25 years old
make up 21 percent of the total uninsured population.
(2) According to a recent study, approximately 20 percent
of school-aged children suffer from a chronic illness.
(3) Thirteen States have passed legislation that increased
the age of dependency for young adults for purposes of private
insurance coverage to age 25.
(4) When a child or young adult has a 63-day gap in
insurance coverage, pre-existing condition exclusions, such as
coverage limits or waiting periods, can be applied when the
child or young adult becomes insured under a new health
insurance policy.
(5) Eliminating pre-existing condition exclusions for
children is a vital safeguard to ensure all children have
access to health care when in need.
(6) High-risk pools were created to help individuals with
pre-existing conditions purchase insurance with the assistance
of government subsidies. However, State high-risk pools are
often underfunded, unaffordable for patients, have long waiting
lists and impose pre-existing condition waiting periods once
enrolled.
(7) Pre-existing condition limitation periods for children
in the private market discourage families from moving off
Medicaid or the Children's Health Insurance Program.

SEC. 3. PROHIBITION OF PRE-EXISTING CONDITION EXCLUSIONS FOR CHILDREN
UNDER GROUP HEALTH PLANS.

(a) Amendments to the Employee Retirement Income Security Act of
1974.--Section 701(d) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1181(d)) is amended--
(1) by striking paragraph (1) and inserting the following:
''(1) Exclusion not applicable to children.--A group health
plan, and a health insurance issuer offering group health
insurance coverage, may not impose any pre-existing condition
exclusion in the case of an individual who has not attained 25
years of age.'';
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as paragraph (2).
(b) Amendments to the Public Health Service Act.--Section 2701(d)
of the Public Health Service Act (42 U.S.C. 300gg(d)) is amended--
(1) by striking paragraph (1) and inserting the following:
''(1) Exclusion not applicable to children.--A group health
plan, and a health insurance issuer offering group health
insurance coverage, may not impose any pre-existing condition
exclusion in the case of an individual who has not attained 25
years of age.'';
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as paragraph (2).
(c) Amendments to the Internal Revenue Code of 1986.--Subsection
(d) of section 9801 of the Internal Revenue Code of 1986 (relating to
exceptions) is amended--
(1) by striking paragraph (1) and inserting the following:
''(1) Exclusion not applicable to children.--A group health
plan may not impose any pre-existing condition exclusion in the
case of an individual who has not attained 25 years of age.'';
(2) by striking paragraphs (2) and (4); and
(3) by redesignating paragraph (3) as paragraph (2).
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply with respect to
group health plans for plan years beginning after the end of
the 12th calendar month following the date of the enactment of
this Act.
(2) Special rule for collective bargaining agreements.--In
the case of a group health plan maintained pursuant to one or
more collective bargaining agreements between employee
representatives and one or more employers ratified before the
date of the enactment of this Act, the amendments made by this
section shall not apply to plan years beginning before the
later of--
(A) the date on which the last of the collective
bargaining agreements relating to the plan terminates
(determined without regard to any extension thereof
agreed to after the date of the enactment of this Act);
or
(B) the date that is after the end of the 12th
calendar month following the date of enactment of this
Act.
For purposes of subparagraph (A), any plan amendment made
pursuant to a collective bargaining agreement relating to the
plan which amends the plan solely to conform to any requirement
added by the amendments made by this section shall not be
treated as a termination of such collective bargaining
agreement.

SEC. 4. PROHIBITION OF PRE-EXISTING CONDITION EXCLUSIONS FOR CHILDREN
IN HEALTH INSURANCE COVERAGE IN THE INDIVIDUAL MARKET.

(a) In General.--Section 2741 of the Public Health Service Act (42
U.S.C. 300gg-41) is amended--
(1) by redesignating the second subsection (e) (relating to
market requirements) and subsection (f) as subsections (f) and
(g), respectively; and
(2) by adding at the end the following new subsection:
''(h) Prohibition of Pre-Existing Condition Exclusions for
Children.--Each health insurance issuer that offers health insurance
coverage in the individual market may not impose any pre-existing
condition exclusion (as defined in section 2701(b)(1)(A)) in the case
of an individual who has not attained 25 years of age.''.
(b) Conforming Amendment.--Section 2744(a)(1) of such Act (42
U.S.C. 300gg-44(a)(1)) is amended by inserting ''(other than subsection
(h))'' after ''section 2741''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to health insurance coverage offered, sold, issued,
renewed, in effect, or operated in the individual market after the end
of the 12th calendar month following the date of the enactment of this
Act.
Children's Health Protection Act of 2009 - Amends the Employee Retirement Income Security Act of 1974 (ERISA), the Public Health Service Act, and the Internal Revenue Code to prohibit a group health plan from imposing any preexisting condition exclusion for individuals who have not attained 25 years of age.

Applies such requirement to coverage offered in the individual market.