text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Health Care Continuation Coverage 
  Act of 2002''.
  
  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 the Treasury, in 
          consultation with 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 July 1, 2001, became 
                          entitled to elect COBRA continuation coverage; 
                          and
                              (ii) has elected such coverage; and
                      (B) enrolls in the premium assistance program under 
                  this section by not later than the end of such 1-year 
                  period.
      (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) 12 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 100 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 section 4980B(f)(6) of the Internal Revenue Code 
                  of 1986 with respect to individuals who, on or after 
                  July 1, 2001, 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 provision 
                  under section 4980B(f)(6) of the Internal Revenue Code 
                  of 1986 does not apply, the Secretary of the Treasury 
                  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 100 
  percent of your COBRA continuation coverage premiums for a duration of 
  not to exceed 12 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 the Treasury (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 shall prescribe models 
          for the additional notification required under this subsection.
      (f) 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.
      (g) Prompt Issuance of Guidance.--The Secretary of the Treasury, in 
  consultation with the Secretary of Labor, shall issue guidance under 
  this section not later than 30 days after the date of the enactment of 
  this Act.
      (h) Definitions.--In this section:
              (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. TEMPORARY MEDICAID COVERAGE FOR CERTAIN UNINSURED EMPLOYEES.
  
      (a) In General.--Notwithstanding any other provision of law, with 
  respect to any month, as a condition for the receipt of Federal 
  financial participation under title XIX of the Social Security Act, a 
  State shall provide, under its medicaid program under such title, 
  medical assistance in the case of an individual--
              (1) who has become totally or partially separated from 
          employment on or after July 1, 2001;
              (2) who is not eligible for COBRA continuation coverage; 
          and
              (3) who is uninsured;
  and to the individual's spouse and dependents (as defined for purposes 
  of the Internal Revenue Code of 1986) if they also are uninsured.
      (b) Limitation of Period 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) 12 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 the enhanced FMAP 
          (as defined in section 2105(b) of such Act);
              (2) a State may elect to apply alternative income, asset, 
          and resource limitations and the provisions of section 1916(g) 
          of such Act, except that in no case shall a State cover 
          individuals with higher family income without covering 
          individuals with a lower family income;
              (3) such medical assistance shall not be provided for 
          periods before the date the individual becomes uninsured;
              (4) 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;
              (5) a State may elect to provide such medical assistance 
          without regard to any limitation under sections 401(a), 402(b), 
          403, and 421 of the Personal Responsibility and Work 
          Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(a), 
          1612(b), 1613, and 1631) and no debt shall accrue under an 
          affidavit of support against any sponsor of an individual who 
          is an alien who is provided such assistance, and the cost of 
          such assistance shall not be considered as an unreimbursed 
          cost; and
              (6) the Secretary of Health and Human Services shall not 
          count, for purposes of section 1108(f)  of the Social Security 
  Act, such amount of payments under this section as bears a reasonable 
  relationship to the average national proportion of payments made under 
  this section for the 50 States and the District of Columbia to the 
  payments otherwise made under title XIX for such States and District.
      (d) Definitions.--For purposes of this subtitle:
              (1) Uninsured.--The term ``uninsured'' means, with respect 
          to an individual, that the individual is not covered under--
                      (A) a group health plan (as defined in section 
                  2791(a) of the Public Health Service Act),
                      (B) health insurance coverage (as defined in 
                  section 2791(b)(1) of the Public Health Service Act), 
                  or
                      (C) a program under title XVIII, XIX, or XXI of the 
                  Social Security Act, other than under such title XIX 
                  pursuant to this section.
          For purposes of this paragraph, such coverage under 
          subparagraph (A) or (B) shall not include coverage consisting 
          solely of coverage of excepted benefits (as defined in section 
          2791(c) of the Public Health Service Act).
              (2) COBRA continuation coverage.--The term ``COBRA 
          continuation coverage'' means coverage under a group health 
          plan provided by an employer pursuant to title XXII of the 
          Public Health Service Act, section 4980B of the Internal 
          Revenue Code of 1986, part 6 of subtitle B of title I of the 
          Employee Retirement Income Security Act of 1974, or section 
          8905a of title 5, United States Code.
              (3) State.--The term ``State'' has the meaning given such 
          term for purposes of title XIX of the Social Security Act.
      (e) Effective Date.--This section shall take effect upon its 
  enactment, whether or not regulations implementing this section are 
  issued.
  
  SEC. 4. TEMPORARY COVERAGE FOR UNSUBSIDIZED PORTION OF COBRA 
                CONTINUATION PREMIUMS.
  
      (a) In General.--Notwithstanding any other provision of law, with 
  respect to COBRA continuation coverage provided for any month, as a 
  condition of receipt of Federal financial participation under title XIX 
  of the Social Security Act, a State shall provide payment of the 
  unsubsidized portion of the premium for COBRA continuation coverage in 
  the case of any individual--
              (1) who has become totally or partially separated from 
          employment on or after July 1, 2001; and
              (2) who is eligible for, and has elected coverage under, 
          COBRA continuation coverage;
  and to the individual's spouse and dependents (as defined for purposes 
  of the Internal Revenue Code of 1986) if they also are eligible for 
  such coverage and are otherwise uninsured.
      (b) Limitation of Period of Coverage.--Premium assistance under 
  this section 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) 12 months after the date the individual is first 
          determined to be eligible for premium assistance under this 
          section.
      (c) Financial Payment to States.--A State providing premium 
  assistance under this section shall be entitled to payment under 
  section 1903(a) of the Social Security Act with respect to such 
  assistance (and administrative expenses relating to such assistance) in 
  the same manner as such State is entitled to payment with respect to 
  medical assistance (and such administrative expenses) under such 
  section, except that, for purposes of this subsection, any reference to 
  the Federal medical assistance percentage shall be deemed a reference 
  to the enhanced FMAP (as defined in section 2105(b) of such Act). The 
  provisions of subsections (c)(5) and (c)(6) of section 3 shall apply 
  with respect to this section in the same manner as it applies under 
  such section.
      (d) Unsubsidized Portion of Premium for COBRA Continuation 
  Coverage.--For purposes of this section, the term `unsubsidized portion 
  of premium for COBRA continuation coverage' means that portion of the 
  premium for COBRA continuation coverage for which there is no financial 
  assistance available under section 2.
      (e) Effective Date.--This section shall take effect upon its 
  enactment, whether or not regulations implementing this section are 
  issued.
  
  SEC. 5. AMENDMENT TO THE FOOD STAMP ACT OF 1977.
  
      (a) Amendment.--Section 5(d) of the Food Stamp Act of 1977 (7 
  U.S.C. 2014(d)) is amended--
              (1) by striking ``and (15)'' and inserting ``(15)'', and
              (2) by inserting before the period at the end the 
          following: ``, and (16) compensation under the State's 
          unemployment compensation law (including amounts payable 
          pursuant to an agreement under a Federal unemployment 
          compensation law)''.
      (b) Application of Amendment.--The amendment made by subsection (a) 
  shall not apply with respect to certification periods that begin before 
  the date of the enactment of this Act.
target: Health Care Continuation Coverage Act of 2002 - Directs the Secretary of the Treasury to establish a program to provide premium assistance for qualified individuals for Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation coverage under the Public Health Service Act, the Internal Revenue Code, and the Employee Retirement Income Security Act of 1974 (ERISA).Requires States to provide temporary Medicaid coverage, under title XIX (Medicaid) of the Social Security Act, for individuals who: (1) have become totally or partially separated from employment on or after July 1, 2001; (2) are not eligible for COBRA continuation coverage; and (3) are not covered under a group health plan, health insurance, Medicare, or Medicaid. Includes coverage of such individuals' spouses and dependents who are also uninsured.Requires States, under Medicaid, to pay the unsubsidized portion of COBRA continuation benefits for individuals who: (1) have become totally or partially separated from employment on or after July 1, 2001; and (2) are eligible for COBRA continuation coverage. Includes coverage of such individuals' spouses and dependents who are also eligible and otherwise uninsured.Amends the Food Stamp Act of 1977 to exclude unemployment compensation in determining eligibility and benefits under such Act.
feat_title: To provide for health care premium assistance; and to amend the Food Stamp Act of 1977 to exclude unemployment compensation for purposes of determining eligibility and benefits under such Act.