H.R. 3092 (104th): To amend the Internal Revenue Code of 1986 to encourage State unemployment insurance laws to establish a ...

...system under which workers may purchase insurance to cover the costs of health insurance during periods of unemployment.

104th Congress, 1995–1996. Text as of Mar 14, 1996 (Introduced).

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HR 3092 IH

104th CONGRESS

2d Session

H. R. 3092

To amend the Internal Revenue Code of 1986 to encourage State unemployment insurance laws to establish a system under which workers may purchase insurance to cover the costs of health insurance during periods of unemployment.

IN THE HOUSE OF REPRESENTATIVES

March 14, 1996

Mr. FRANKS of Connecticut introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to encourage State unemployment insurance laws to establish a system under which workers may purchase insurance to cover the costs of health insurance during periods of unemployment.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) subsection (a) of section 3304 of the Internal Revenue Code of 1986 (relating to approval of State unemployment compensation laws) is amended by striking ‘and’ at the end of paragraph (17), by redesignating paragraph (18) as paragraph (19), and by inserting after paragraph (17) the following new paragraph:

      ‘(18) optional health insurance continuation benefits shall be available as required by subsection (g); and’

    (b) Section 3304 of such Code is amended by adding at the end thereof the following new subsection:

    ‘(g) OPTIONAL HEALTH INSURANCE CONTINUATION BENEFITS-

      ‘(1) IN GENERAL- For purposes of subsection (a)(18), a State law meets the requirements of this subsection if--

        ‘(A) the State law establishes a program under which individuals performing services covered under such State law may elect to purchase health insurance continuation benefits by having premiums deducted by their employer from their wages,

        ‘(B) such program offers several options as to the period for which such benefits are available and as to the level of such benefits,

        ‘(C) such program specifies the periodic premium to be deducted for each of such options and the maximum total premium payable for any such option, and

        ‘(D) any premiums collected pursuant to such program are to be deposited in a special fund established under such State law which is to be used solely for purposes of providing health insurance continuation benefits (exclusive of costs of administration).

      ‘(2) HEALTH INSURANCE CONTINUATION BENEFITS- For purposes of this subsection, the term ‘health insurance continuation benefits’ means payments to or on behalf of an individual who is receiving compensation under the State law to assist in covering the cost of health insurance for such individual and his spouse and dependents.

      ‘(3) ADMINISTRATIVE FUNDS MADE AVAILABLE- For purposes of title III of the Social Security Act, the costs of administering the program referred to in paragraph (1) shall be treated as costs of administering the State unemployment compensation law.’.

    (c)(1) Except as provided by paragraph (2), the amendments made by this section shall take effect on November 1, 1996.

    (2) In the case of any State the legislature of which has not been in session for at least 30 calendar days (whether or not successive) between the date of the enactment of this Act and November 1, 1996, the amendments made by this section shall take effect 30 calendar days after the first day on which such legislature is in session on or after November 1, 1996.