Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Small Business Health Plans Act of
2007''.

SEC. 2. SMALL BUSINESS HEALTH BENEFITS PROGRAM (SBHBP).

Title XXVII of the Public Health Service Act is amended--
(1) by redesignating part C as part D; and
(2) by inserting after part B the following new part:

''PART C--SMALL BUSINESS HEALTH BENEFITS PROGRAM (SBHBP)

''SEC. 2771. SMALL BUSINESS HEALTH BENEFITS PROGRAM.

''(a) Establishment.--The Secretary shall establish a small
business health benefits program under which small employers may offer
health insurance coverage to employees and their dependents.
''(b) Program Elements.--Under the SBHBP:
''(1) Access to insurance.--Small employers are provided
access, for years beginning on or after January 1, 2007, to
qualified health pooling arrangements under which their
employees may elect self-only or family health insurance
coverage under at least 2 health insurance coverage policies,
regardless of whether premium assistance referred to in
paragraph (2) is available with respect to such employer.
''(2) Premium assistance for small employers.--Premium
assistance is available under subsection (c) to assist small
employers in the payment of premiums for the health insurance
coverage provided.
''(3) Employer share of premiums.--
''(A) In general.--Small employers are provided
access to health insurance coverage, and may be
eligible for premium assistance under subsection (c),
only if they pay (before the application of any premium
assistance under subsection (c)) at least 50 percent of
the premiums for coverage of their employees, but such
employers are not required to pay for the portion of
the premiums for dependents of employees.
''(B) Construction.--Nothing in this section shall
be construed as preventing an employee from applying
the payment described in subparagraph (A) towards the
payment of premiums for family health insurance
coverage.
''(4) Health insurance coverage.--
''(A) In general.--Health insurance coverage
offered under SBHBP shall meet the following
requirements:
''(i) The Secretary determines that the
coverage is substantially similar to health
benefits coverage in any of the four largest
health benefit plans (determined by enrollment)
offered under chapter 89 of title 5, United
States Code.
''(ii) The coverage complies with State
laws and regulations (including applicable
benefit mandates, rating requirements, and
other consumer protections) for group health
insurance coverage for the State in which the
coverage is offered.
''(iii) The Secretary determines that the
coverage provided to employees is coordinated,
in accordance with regulations prescribed by
the Secretary, with other coverage provided
under governmental health benefits programs
under which health benefits coverage is
available to such employees.
''(B) Standards for participating health
insurers.--In administering the program, the Secretary
may consider the solvency and claims payment history of
health insurers and shall promote participation by
qualified health insurers that establish--
''(i) integration of health information
technology tools to promote quality;
''(ii) chronic disease management;
''(iii) preventive health care services;
and
''(iv) evidence-based medicine
considerations of prescription drugs and other
treatment that take into account the individual
medical circumstances of individuals enrolled
in the program.
''(5) Enrollment.--In administering the program, the
Secretary shall provide that employee enrollment (and changes
in enrollment) are limited to an annual open enrollment period,
except in the case of change of employment status (including
new a new employee) that affects eligibility for coverage and
in the case of qualifying events (such as change in family
status) specified by the Secretary and consistent with section
2701(f).
''(c) Premium Assistance.--Under the SBHBP, the Secretary shall
establish a program of premium assistance for small employers. Such
program shall provide for a sliding scale of assistance to such
employers taking into account the following:
''(1) The number of employees of the employer.
''(2) The average wage level of such employees relative to
the average wage level for employees in the same geographic
area.
''(3) The profit margin of the employer.
''(d) Reinsurance for Catastrophic Costs for Certain Health
Insurance Issuers.--
''(1) In general.--In the case of health insurance coverage
offered under the SBHBP by a health insurance issuer that
participates in a qualified health pooling arrangement, the
Secretary shall provide for reinsurance coverage for 75 percent
of covered claims that exceed, for an individual for a year, an
amount determined by the Secretary for such year which is not
less than the minimum amount specified in paragraph (2).
''(2) Minimum amount.--The minimum amount specified in this
paragraph is--
''(A) for the first year in which this section is
in effect, $100,000; or
''(B) for a subsequent year is the minimum amount
specified in this paragraph for a previous year,
increased by the Secretary's estimate of the average
annual percentage increase in health insurance coverage
with a median level of premiums for the previous year.
Any amount determined under subparagraph (B) which is not a
multiple of $1,000 shall be rounded to the nearest multiple of
$1,000.
''(e) Qualified Health Pooling Arrangement.--For purposes of this
section, the term 'qualified health pooling arrangement' means, with
respect to employees employed in any State for any year--
''(1) except as provided in subparagraph (B), an
arrangement established by (and operating under the oversight
of) such State for purposes of this section, in accordance with
regulations of the Secretary, which provides for pooling of
health insurance coverage offered for such year in such State,
and
''(2) in any case in which there is not in effect for any
year an arrangement described in subparagraph (A) established
by such State, the national health pooling arrangement
established under section 3.
The Secretary shall determine, within a reasonable time prior to each
year, whether there is a qualified health pooling arrangement described
in paragraph (1) with respect to employees employed in any State.
''(f) Small Employer Defined.--
''(1) In general.--For purposes of this part, except as
otherwise provided in this subsection, the term 'small
employer' means an employer with 50 or fewer employees, as
determined under regulations promulgated by the Secretary.
''(2) Continuation of participation.--An employer whose
employees are provided health insurance coverage under the
SBHBP while the employer is a small employer as defined in
paragraph (1) and who thereafter has more than 50 employees
shall continue to be treated as a small employer.
''(3) Employers not in existence in preceding year.--In the
case of an employer which was not in existence for the full
year prior to the date on which the employer applies to
participate in SBHBP, the determination of whether such
employer meets the requirements of paragraph (1) shall be based
on the average number of employees that it is reasonably
expected such employer will employ on business days in the
employer's first full year.
''(4) Waiver.--The Secretary may waive the limitations
relating to the size of an employer which may participate under
SBHBP on a case by case basis if the Secretary determines that
such employer makes a compelling case for such a waiver. In
making determinations under this paragraph, the Secretary shall
consider the effects of the employment of temporary and
seasonal workers and other related factors.
''(g) Other Definitions.--For purposes of this part:
''(1) The terms 'employee' and 'dependent' have the
meanings given such terms by the Secretary in regulations and
shall be based upon the definitions of such terms used for
purposes of the Federal employee health benefits program
established under chapter 89 of title 5, United States Code.
The term 'employee' includes, in the case of a partnership or
sole proprietorship, a partner in the partnership or the sole
proprietor, including an individual employer who has no
employees. Such may include, with respect to an employer and at
the employer's option, part-time and seasonal employees.
''(2) The term 'SBHBP' means the small business health
benefits program established under this section.
''(h) Grants for State Qualified Health Pooling Arrangements.--
''(1) In general.--The Secretary shall provide grants to
States for the establishment, initial administration, and
operations of qualified health pooling arrangements described
in subsection (e)(1).
''(2) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be necessary to
carry out this subsection.

''SEC. 2772. ESTABLISHMENT OF NATIONAL HEALTH POOLING ARRANGEMENT.

''(a) In General.--The Secretary and the Secretary of Labor, acting
jointly and in consultation with the Director of the Office of
Personnel Management, shall provide for--
''(1) the offering on a timely basis consistent with
section 2771 of a national health pooling arrangement to
eligible small employers; and
''(2) appropriate oversight over any such arrangement.
''(b) Specific Requirements.--In carrying out subsection (a), the
Secretary and the Secretary of Labor shall--
''(1) model the national health pooling arrangement on the
Federal employees health benefits program under chapter 89 of
title 5, United States Code, to the extent practicable and
consistent with the other requirements of this part;
''(2) consistent with paragraph (1), negotiate the most
affordable and substantial coverage possible for small
employers; and
''(3) not offer any health plan under such arrangement
unless the plan meets the restrictions relating to premium
rates contained in the most recent 'Small Employer Health
Insurance Availability Model Act' of the National Association
of Insurance Commissioners .
''(c) Definitions.--For purposes of this section--
''(1) the term 'national health pooling arrangement' means
an arrangement which provides for pooling of health insurance
coverage offered for any year in all States which do not have
in effect for such year an arrangement for pooling of health
insurance coverage offered in such States; and
''(2) in connection with the national health pooling
arrangement offered pursuant to this section, an individual
employer shall be taken into account as an employee under this
section.''.
Student:
Small Business Health Plans Act of 2007 - Amends the Public Health Service Act to direct the Secretary of Health and Human Services to establish a small business health benefits program (SBHBP) under which small employers may offer health insurance coverage to employees and their dependents. Outlines program elements and coverage requirements, including that small employers are provided access to qualified health pooling arrangements under which their employees may elect coverage substantially similar to the federal employees benefit program (FEHB) coverage.

Requires the Secretary to: (1) establish a program of premium assistance for small employers under SBHBP that provides a sliding scale of assistance based on the number of employees, the average wage level of such employees, and the employer profit margin; (2) provide for reinsurance coverage for an individual's claims that exceed a specified amount for a year; and (3) provide grants to states for the establishment, initial administration, and operations of qualified health pooling arrangements.

Directs the Secretary and the Secretary of Labor to provide for a national health pooling arrangement for eligible small employers modeled after FEHB.