S 2918 IS

106th CONGRESS

2d Session

S. 2918

To amend title XVIII of the Social Security Act and the Employee Retirement Income Security Act of 1974 to improve access to health insurance and Medicare benefits for individuals ages 55 to 65 to be fully funded through premiums and anti-fraud provisions, to amend the Internal Revenue Code of 1986 to allow a credit against income tax for payment of such premiums and of premiums for certain COBRA continuation coverage, and for other purposes.

IN THE SENATE OF THE UNITED STATES

July 25, 2000

Mr. ROCKEFELLER (for himself, Mr. DASCHLE, Mr. KENNEDY, Mr. HARKIN, Mr. SARBANES, and Mr. LAUTENBERG) introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend title XVIII of the Social Security Act and the Employee Retirement Income Security Act of 1974 to improve access to health insurance and Medicare benefits for individuals ages 55 to 65 to be fully funded through premiums and anti-fraud provisions, to amend the Internal Revenue Code of 1986 to allow a credit against income tax for payment of such premiums and of premiums for certain COBRA continuation coverage, and for other purposes.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

TITLE I--ACCESS TO MEDICARE BENEFITS FOR INDIVIDUALS 62-TO-65 YEARS OF AGE

`Part D--Purchase of Medicare Benefits by Certain Individuals Age 62-to-65 Years of Age

`Sec. 1859. Program benefits; eligibility.

`Sec. 1859A. Enrollment process; coverage.

`Sec. 1859B. Premiums.

`Sec. 1859C. Payment of premiums.

`Sec. 1859D. Medicare Early Access Trust Fund.

`Sec. 1859E. Oversight and accountability.

`Sec. 1859F. Administration and miscellaneous.

TITLE II--ACCESS TO MEDICARE BENEFITS FOR DISPLACED WORKERS 55-TO-62 YEARS OF AGE

TITLE III--COBRA PROTECTION FOR EARLY RETIREES

Subtitle A--Amendments to the Employee Retirement Income Security Act of 1974

Subtitle B--Amendments to the Public Health Service Act

Subtitle C--Amendments to the Internal Revenue Code of 1986

TITLE IV--FINANCING

TITLE V--CREDIT AGAINST INCOME TAX FOR MEDICARE BUY-IN PREMIUMS AND FOR CERTAIN COBRA CONTINUATION COVERAGE PREMIUMS

TITLE I--ACCESS TO MEDICARE BENEFITS FOR INDIVIDUALS 62-TO-65 YEARS OF AGE

SEC. 101. ACCESS TO MEDICARE BENEFITS FOR INDIVIDUALS 62-TO-65 YEARS OF AGE.

`Part D--Purchase of Medicare Benefits by Certain Individuals Age 62-to-65 Years of Age

`SEC. 1859. PROGRAM BENEFITS; ELIGIBILITY.

paragraph (1) enrolls under this part and coverage of the individual is terminated under section 1859A(d) (other than because of age), the individual is not again eligible to enroll under this subsection unless the following requirements are met:

`SEC. 1859A. ENROLLMENT PROCESS; COVERAGE.

`SEC. 1859B. PREMIUMS.

`SEC. 1859C. PAYMENT OF PREMIUMS.

`SEC. 1859D. MEDICARE EARLY ACCESS TRUST FUND.

by the Congressional Budget Office at the time of, and in connection with, the enactment of the Medicare Early Access and Tax Credit Act of 2000. For subsequent fiscal years, the amounts under subparagraph (A) shall be the amount determined under this subparagraph for the previous fiscal year increased by the same percentage as the percentage increase in aggregate expenditures under this title from the second previous fiscal year to the previous fiscal year.

`SEC. 1859E. OVERSIGHT AND ACCOUNTABILITY.

`SEC. 1859F. ADMINISTRATION AND MISCELLANEOUS.

served under such part and the population under parts A and B.'.

TITLE II--ACCESS TO MEDICARE BENEFITS FOR DISPLACED WORKERS 55-TO-62 YEARS OF AGE

SEC. 201. ACCESS TO MEDICARE BENEFITS FOR DISPLACED WORKERS 55-TO-62 YEARS OF AGE.

such clause as of the last day of the month if the individual (or the spouse of the individual, as the case may be) had elected such coverage on a timely basis.

a group health plan or under a Federal health insurance program.'.

years of age, equal to 1/12 of the base annual premium rate computed under subsection (d)(3) for each premium area and age cohort.'; and

TITLE III--COBRA PROTECTION FOR EARLY RETIREES

Subtitle A--Amendments to the Employee Retirement Income Security Act of 1974

SEC. 301. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

Subtitle B--Amendments to the Public Health Service Act

SEC. 311. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

termination in the case of a covered employee who is a qualified retiree.'.

apply to qualifying events occurring on or after January 6, 2000. In the case of a qualifying event occurring on or after such date and before the date of the enactment of this Act, such event shall be deemed (for purposes of such amendments) to have occurred on the date of the enactment of this Act.

Subtitle C--Amendments to the Internal Revenue Code of 1986

SEC. 321. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

`(a) the date that is 36 months after the earlier of the date the qualified retiree becomes entitled to benefits under title XVIII of the Social Security Act, or the date of the death of the qualified retiree; or

`(b) the date that is 36 months after the date of the qualifying event.'.

paragraph (3)(G), in applying the first sentence of clause (i) and the fourth sentence of subparagraph (C), the coverage offered that is the most prevalent coverage option (as determined under regulations of the Secretary of Labor) continued under the group health plan (or, if none, under the most prevalent other plan offered by the same plan sponsor) shall be treated as the coverage described in such sentence, or (at the option of the plan and qualified beneficiary) such other coverage option as may be offered and elected by the qualified beneficiary involved.'.

TITLE IV--FINANCING

SEC. 401. REFERENCE TO FINANCING PROVISIONS.

TITLE V--CREDIT AGAINST INCOME TAX FOR MEDICARE BUY-IN PREMIUMS AND FOR CERTAIN COBRA CONTINUATION COVERAGE PREMIUMS

SEC. 501. CREDIT FOR MEDICARE BUY-IN PREMIUMS AND FOR CERTAIN COBRA CONTINUATION COVERAGE PREMIUMS.

`SEC. 25B. MEDICARE BUY-IN PREMIUMS AND CERTAIN COBRA CONTINUATION COVERAGE PREMIUMS.

`Sec. 25B. Medicare buy-in premiums and certain COBRA continuation coverage premiums.'

END