text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``HSA Accessibility and Portability 
  Act of 2006''.
  
  SEC. 2. PROMOTING ACCESSIBILITY AND AFFORDABILITY OF COVERAGE IN THE 
                SMALL GROUP MARKET.
  
      Section 2711 of the Public Health Service Act (42 U.S.C. 300gg-11) 
  is amended--
              (1) in subsection (a)(1), by striking ``(f)'' and inserting 
          ``(g)''; and
              (2) by adding at the end the following new subsection:
      ``(g) Election of Alternative to Guaranteed Issue Requirement.--
              ``(1) Election.--
                      ``(A) In general.--A health insurance issuer may 
                  elect, with respect to any small employer (as defined 
                  in section 2791(e)(4)), to meet the requirements of 
                  paragraphs (2) and (3) instead of complying with the 
                  guaranteed issue requirement of subsection (a).
                      ``(B) Requirement of accepting or rejecting all 
                  eligible individuals within entire group at time of 
                  election.--An election made under subparagraph (A) with 
                  respect to a small employer shall apply with respect to 
                  all eligible individuals of that small employer at the 
                  time of such election.
                      ``(C) Subsequent eligible individuals.--In the case 
                  of an individual who becomes an eligible individual 
                  with respect to a small employer after an election has 
                  been made under subparagraph (A), the health insurance 
                  issuer is not required to provide group health 
                  insurance coverage for such individual.
              ``(2) Portability for individuals covered.--If an election 
          is made under paragraph (1)(A) and under such election group 
          health insurance coverage is provided by a health insurance 
          issuer for an eligible individual of a small employer, the 
          health insurance issuer shall guarantee continuation of 
          coverage to the individual (and to covered dependents), through 
          issuance of individual health insurance coverage, after the 
          date the individual no longer qualifies as an eligible 
          individual of such employer, at a rate that does not exceed 150 
          percent of the standard individual rate applicable to such 
          individual coverage in the State in which the policy was 
          initially issued.
              ``(3) Information on elections.--Any health insurance 
          issuer making an election under paragraph (1)(A) shall furnish 
          to the Secretary such information as the Secretary may require 
          in order to monitor the impact of such election on access to, 
          and affordability, of health insurance coverage in the small 
          group market and in the individual market. Such information 
          shall include at least information relating to the following:
                      ``(A) Rejection rate.--The characteristics of small 
                  employers denied health insurance coverage because of 
                  this subsection.
                      ``(B) Premium rates.--The rates charged for 
                  coverage offered under an election made under this 
                  subsection (in comparison to rates that are otherwise 
                  charged if this subsection were not in effect).
              ``(4) Limitation.--An election under paragraph (1)(A) may 
          only be made with respect to coverage of a small employer under 
          health insurance coverage that consists of a high deductible 
          health plan (as defined in section 223(c)(2) of the Internal 
          Revenue Code of 1986) and a contribution to a health savings 
          account (as defined in section 223(d) of such Code).
              ``(5) Report.--At least 6 months before the end of the 5-
          year period beginning on the date of the enactment of this 
          subsection, the Secretary shall submit to Congress a report on 
          the impact of this subsection on the availability and 
          affordability of health insurance coverage in the small group 
          market and in the individual market. Such report shall include 
          recommendations on whether this subsection should be extended 
          beyond such period and whether it should be expanded to cover 
          health insurance coverage in addition to the coverage described 
          in paragraph (4).
              ``(6) Contingent sunset.--This subsection shall not apply 
          to elections for small employers made by a health insurance 
          issuer after the end of the 5-year period described in 
          paragraph (5) if the Secretary, in the report to Congress under 
          such paragraph, recommends that this subsection should not be 
          extended beyond such period. If the Secretary makes such a 
          recommendation, this subsection shall still continue to apply 
          to elections made before the end of such 5-year period.''.
target: HSA Accessibility and Portability Act of 2006 - Amends the Public Health Service Act to authorize a health insurance issuer to elect, instead of complying with the guaranteed issue requirements (that require a health insurance issuer offering coverage in the small group market in a state to accept every small employer that applies and to accept all eligible individuals without certain restrictions), to: (1) guarantee continuation of coverage through individual health insurance for an individual who no longer qualifies as an eligible individual of the employer at a rate that does not exceed 150% of the standard individual rate applicable to individual coverage in the state; and (2) furnish information for the Secretary of Health and Human Services to monitor the impact of such election on access to, and affordability of, health insurance coverage in the small group market and in the individual market.
  
  Requires such an election to apply to all eligible individuals of that small employer at the time of such election, but does not require applicability to an individual who becomes eligible after such election. Allows an election under this Act to be made only with respect to coverage of a small employer under health insurance coverage that consists of a high deductible health plan and a contribution to a health savings account.
feat_title: To amend title XXVII of the Public Health Service Act to permit a health insurance issuer an alternative to guaranteed issue of health insurance coverage in the small group market in order to promote affordable access to portable health insurance coverage.