[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 263 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 263
To preserve health benefits for workers.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 4, 2021
Mr. Durbin (for himself, Ms. Cortez Masto, Mrs. Shaheen, Mr. Merkley,
Mr. Bennet, Ms. Duckworth, Mr. Blumenthal, Mr. Menendez, Mr. Reed, Mr.
Brown, Ms. Rosen, Ms. Smith, and Ms. Klobuchar) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
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.
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