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<PRE>[DOCID: f:h1663ih.txt]






107th CONGRESS
  1st Session
                                H. R. 1663

To amend the Public Health Service Act, the Employee Retirement Income 
 Security Act of 1974, and the Internal Revenue Code of 1986 to extend 
   the basic period for health care continuation from 18 months to 5 
                                 years.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 1, 2001

 Mr. Moakley introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
  Education and the Workforce, and Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Public Health Service Act, the Employee Retirement Income 
 Security Act of 1974, and the Internal Revenue Code of 1986 to extend 
   the basic period for health care continuation from 18 months to 5 
                                 years.

    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 ``Health Insurance Continuation 
Improvement Act of 2001''.

SEC. 2. EXTENSION OF BASIC COBRA-CONTINUATION PERIOD FROM 18 MONTHS TO 
              5 YEARS.

    (a) Amendments to ERISA.--Section 602 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1162) is amended--
            (1) by amending clause (i) of paragraph (2)(A) to read as 
        follows:
                            ``(i) General rule.--In the case of a 
                        qualifying event not described in section 
                        603(6), the date which is 60 months after the 
                        date of the qualifying event.'';
            (2) in paragraph (2)(A)--
                    (A) by striking clause (ii);
                    (B) by striking clause (iv) and all that follows;
                    (C) by redesignating clause (iii) as clause (ii); 
                and
                    (D) in clause (ii), as so redesignated, by striking 
                ``36 months after the date of the death of the covered 
                employee'' and inserting ``the later of (I) 36 months 
                after the date of the death of the covered employee, or 
                (II) 60 months after the date of the qualifying 
                event''; and
            (3) by striking the last sentence in paragraph (3).
    (b) Amendments to PHSA.--Section 2202 of the Public Health Service 
Act 429 U.S.C. 300bb-2) is amended--
            (1) by amending subparagraph (A) of paragraph (2)(A) to 
        read as follows:
                    ``(A) Maximum required period.--The date which is 
                60 months after the date of the qualifying event.''; 
                and
            (2) by striking the last sentence of paragraph (3).
    (c) Amendments to IRC.--Section 4980B(f)(2) of the Internal Revenue 
Code of 1986 is amended--
            (1) by amending subclause (I) of subparagraph (B)(i) to 
        read as follows:
                                    ``(I) General rule.--In the case of 
                                a qualifying event not described in 
                                paragraph (3)(F), the date which is 60 
                                months after the date of the qualifying 
                                event.'';
            (2) in subparagraph (B)(i)--
                    (A) by striking subclause (II);
                    (B) by striking subclauses (IV) and all that 
                follows;
                    (C) by redesignating subclause (III) as subclause 
                (II); and
                    (D) in subclause (II), as so redesignated, by 
                inserting before the period at the end the following: 
                ``or, in such case and if later, 60 months after the 
                date of the qualifying event''; and
            (3) by striking the last sentence in subparagraph (C).
    (d) Effective Date.--The amendments made by this section shall 
apply to qualifying events occurring after the date of the enactment of 
this Act.
                                 &lt;all&gt;

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