text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Health Care Coverage Assistance for 
  the Unemployed Act of 2001''.
  
  SEC. 2. PREMIUM ASSISTANCE FOR COBRA CONTINUATION COVERAGE.
  
      (a) Establishment.--
              (1) In general.--Not later than 60 days after the date of 
          enactment of this Act, the Secretary of Labor shall establish a 
          program under which premium assistance for COBRA continuation 
          coverage shall be provided for qualified individuals under this 
          section.
              (2) Qualified individuals.--For purposes of this section, a 
          qualified individual is an individual who--
                      (A) establishes that the individual--
                              (i) on or after January 1, 2001, and before 
                          January 1, 2003, became entitled to elect COBRA 
                          continuation coverage (other than solely on the 
                          basis described in paragraph (3), (4), (5), or 
                          (6) of section 603 of the Employee Retirement 
                          Income Security Act of 1974); and
                              (ii) has elected such coverage; and
                      (B) enrolls in the premium assistance program under 
                  this section by not later than December 31, 2002.
      (b) Limitation of Period of Premium Assistance.--Premium assistance 
  provided under this subsection shall end with respect to an individual 
  on the earlier of--
              (1) the date the individual is no longer covered under 
          COBRA continuation coverage; or
              (2) 18 months after the date the individual is first 
          enrolled in the premium assistance program established under 
          this section.
      (c) Payment, and Crediting of Assistance.--
              (1) Amount of assistance.--Premium assistance provided 
          under this section shall be equal to 75 percent of the amount 
          of the premium required for the COBRA continuation coverage.
              (2) Provision of assistance.--Premium assistance provided 
          under this section shall be provided through the establishment 
          of direct payment arrangements with the administrator of the 
          group health plan (or other entity) that provides or 
          administers the COBRA continuation coverage. It shall be a 
          fiduciary duty of such administrator (or other entity) to enter 
          into such arrangements under this section.
              (3) Premiums payable by qualified individual reduced by 
          amount of assistance.--Premium assistance provided under this 
          section shall be credited by such administrator (or other 
          entity) against the premium otherwise owed by the individual 
          involved for such coverage.
      (d) Change in COBRA Notice.--
              (1) General notice.--
                      (A) In general.--In the case of notices provided 
                  under sections 606 of the Employee Retirement Income 
                  Security Act of 1974, section 2206 of the Public Health 
                  Service Act, and section 4980B(f)(6) of the Internal 
                  Revenue Code of 1986 with respect to individuals who, 
                  on or after January 1, 2001, and before January 1, 
                  2003, become entitled to elect COBRA continuation 
                  coverage, such notices shall include an additional 
                  notification to the recipient of the availability of 
                  premium assistance for such coverage under this 
                  section.
                      (B) Alternative notice.--In the case of COBRA 
                  continuation coverage to which the notice provisions 
                  described in subparagraph (A) do not apply, the 
                  Secretary of Labor shall, in coordination with 
                  administrators of the group health plans (or other 
                  entities) that provide or administer the COBRA 
                  continuation coverage involved, assure 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 under subsection (a)(2)(A) and enrollment 
                  under subsection (a)(2)(B) in connection with the 
                  coverage with respect to each covered employee or other 
                  qualified beneficiary;
                      (B) the name, address, and telephone number 
                  necessary to contact the plan administrator and any 
                  other person maintaining relevant information in 
                  connection with the premium assistance; and
                      (C) the following statement displayed in a 
                  prominent manner:
      ``You may be eligible to receive assistance with payment of 75 
  percent of your COBRA continuation coverage premiums for a duration of 
  not to exceed 18 months.''.
              (3) Notice relating to retroactive coverage.--In the case 
          of such notices previously transmitted before the date of the 
          enactment of this Act in the case of an individual described in 
          paragraph (1) who has elected (or is still eligible to elect) 
          COBRA continuation coverage as of the date of the enactment of 
          this Act, the administrator of the group health plan (or other 
          entity) involved or the Secretary of Labor (in the case 
          described in the paragraph (1)(B)) shall provide (within 60 
          days after the date of the enactment of this Act) for the 
          additional notification required to be provided under paragraph 
          (1).
              (4) Model notices.--The Secretary of Labor shall prescribe 
          models for the additional notification required under this 
          subsection.
      (e) Obligation of Funds.--This section constitutes budget authority 
  in advance of appropriations Acts and represents the obligation of the 
  Federal Government to provide for the payment of premium assistance 
  under this section.
      (f) Prompt Issuance of Guidance.--The Secretary of Labor shall 
  issue guidance under this section not later than 30 days after the date 
  of the enactment of this Act.
      (g) Definitions.--In this Act:
              (1) Administrator.--The term ``administrator'' has the 
          meaning given such term in section 3(16) of the Employee 
          Retirement Income Security Act of 1974.
              (2) COBRA continuation coverage.--The term ``COBRA 
          continuation coverage'' means continuation coverage provided 
          pursuant to 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), part 6 of subtitle B of title I of the 
          Employee Retirement Income Security Act of 1974 (other than 
          under section 609), section 8905a of title 5, United States 
          Code, or under a State program that provides continuation 
          coverage comparable to such continuation coverage.
              (3) Group health plan.--The term ``group health plan'' has 
          the meaning given such term in section 9832(a) of the Internal 
          Revenue Code of 1986.
              (4) 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.
  
  SEC. 3. OPTIONAL TEMPORARY MEDICAID COVERAGE FOR UNINSURED ELIGIBLE 
                EMPLOYEES.
  
      (a) In General.--Notwithstanding any other provision of law, a 
  State may elect to provide, under its medicaid program under title XIX 
  of the Social Security Act, medical assistance in the case of an 
  individual who is eligible for unemployment benefits, who is not 
  eligible for COBRA continuation coverage, and who is uninsured. For 
  purposes of this section, an individual is considered to be uninsured 
  if the individual is not covered under a group health plan, health 
  insurance coverage, or under such program or a program under title 
  XVIII or XXI of such Act.
      (b) Limitation to 18 Months of Coverage.--Assistance under this 
  section shall end with respect to an individual on the earlier of--
              (1) the date the individual is no longer uninsured; or
              (2) 18 months after the date the individual is first 
          determined to be eligible for medical assistance under this 
          section.
      (c) Special Rules.--In the case of medical assistance provided 
  under this section--
              (1) the Federal medical assistance percentage under section 
          1905(b) of the Social Security Act shall be 100 percent;
              (2) a State may elect to disregard any income, asset, or 
          resource limitation imposed under the State medicaid plan or 
          under title XIX of such Act, except, notwithstanding any other 
          provision of law, a State shall condition eligibility for 
          assistance under this section upon the payment of a monthly 
          premium approximating 25 percent of the average cost of 
          providing the assistance under this section;
              (3) such medical assistance shall not be provided for 
          periods before the date the individual is determined eligible 
          for such assistance;
              (4) a State may elect to make eligible for such assistance 
          a dependent spouse or children of an individual eligible for 
          medical assistance under subsection (a), if such spouse or 
          children are uninsured; and
              (5) individuals eligible for medical assistance under this 
          section shall be deemed to be described in the list of 
          individuals described in the matter preceding paragraph (1) of 
          section 1905(a) of such Act.
target: Health Care Coverage Assistance for the Unemployed Act of 2001 - Directs the Secretary of Labor to establish an emergency health coverage assistance program to provide premium assistance for qualified individuals for Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation coverage under the Employee Retirement Income Security Act of 1974 (ERISA).Allows a State to elect to provide temporary Medicaid coverage for individuals who are: (1) eligible for unemployment benefits; (2) not eligible for COBRA continuation coverage; and (3) not covered under a group health plan, health insurance, Medicare, or Medicaid.
feat_title: To provide for premium assistance for COBRA continuation coverage for certain individuals and to permit States to provide temporary Medicaid coverage for certain uninsured employees.